What's the best strategy for trading the QQQ?
- Thread starter ANCHOR
- Start date
The QQQ's used to be really good to trade, but lately it is very
difficult because of the penny spreads. A lot of traders that
traded the QQQ's went to the E-minis. You can make money
on one tick in the futures, and they do move. In the QQQ's,
your commissions will not allow you to scalp the market
with just one tick.
difficult because of the penny spreads. A lot of traders that
traded the QQQ's went to the E-minis. You can make money
on one tick in the futures, and they do move. In the QQQ's,
your commissions will not allow you to scalp the market
with just one tick.
Hi Anchor,
I just trying to daytrade QQQ instead of daytrading stocks and I feel very comfortable with daytrading QQQ.
I feel that I can more much more profit on QQQ because of huge liquidity (no problem to make 500 or 2000 shares trades), also QQQ nice respond to technical analysis.
I can make only a few trades in a day to make the same profit as I made by make hundred of scalp intraday trades in other stocks.
I just trying to daytrade QQQ instead of daytrading stocks and I feel very comfortable with daytrading QQQ.
I feel that I can more much more profit on QQQ because of huge liquidity (no problem to make 500 or 2000 shares trades), also QQQ nice respond to technical analysis.
I can make only a few trades in a day to make the same profit as I made by make hundred of scalp intraday trades in other stocks.
Trade futures!
1. It's generally less expensive
2. You can get more bang for your buck
3. Taxes are less
1. It's generally less expensive
2. You can get more bang for your buck
3. Taxes are less
Question: What's the best strategy for trading the QQQ?
Answer: Each person will have a methodology that feeds them the best return. Your job is to experiment and find the style that best suits your personality.
The three strategies Iâd suggest you experiment with first are.....
1 Internals.... The Qâs are an index proxy, looking at tick, trin, advance/decline will give you a lot of supply demand information to base a trading plan on.
2, reversion to the mean. Look for any chance to fade overbought oversold conditions, the index instruments tend to trend in a much more overbought oversold manner then individual stocks. Become a âbounce traderâ
3. Become a trap trader, the NQ, ES, QQQ and SPY delight in rinsing the swing highs and lows. This clears out all the traders who have stops set above/below, then as the money move begins these poor angry, abused traders will be frothing at the mouth to buy your shares for a revenge trade
My suggestion is not to trend follow the index proxies unless your trading deep time frames, as the whips and headfakes are so deep nowadays. Your much better off taking your trade, capturing the easy money off the pop, then moving on to your next setup.
Good Luck and Good Trading,
-Bo Yoder
Answer: Each person will have a methodology that feeds them the best return. Your job is to experiment and find the style that best suits your personality.
The three strategies Iâd suggest you experiment with first are.....
1 Internals.... The Qâs are an index proxy, looking at tick, trin, advance/decline will give you a lot of supply demand information to base a trading plan on.
2, reversion to the mean. Look for any chance to fade overbought oversold conditions, the index instruments tend to trend in a much more overbought oversold manner then individual stocks. Become a âbounce traderâ
3. Become a trap trader, the NQ, ES, QQQ and SPY delight in rinsing the swing highs and lows. This clears out all the traders who have stops set above/below, then as the money move begins these poor angry, abused traders will be frothing at the mouth to buy your shares for a revenge trade
My suggestion is not to trend follow the index proxies unless your trading deep time frames, as the whips and headfakes are so deep nowadays. Your much better off taking your trade, capturing the easy money off the pop, then moving on to your next setup.
Good Luck and Good Trading,
-Bo Yoder