What's the best strategy for trading the QQQ?

Discussion in 'Trading' started by ANCHOR, Jul 2, 2002.



    I usually do not trade the QQQ's but this market just sucks. I feel like going short in QQQ and then just going to bed for the next year. Anyway I am really looking for some ideas and strategies that people use to trade the QQQ's. Any ideas would be most helpful. Thanks in advance.
  2. hmap1


    Buy low, sell high, again and again..........



    Right now I think I would be better off trying to sell high and buy low.
  4. hmap1


    Think about it, if you can consistently loose money on a system than technically that is a GREAT system. It's just as hard to loose money as it is to make money. If you have a -1 correlation, then you are gold...:)
  5. MarkHyman

    MarkHyman Advanced Futures

    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.
  6. ddefina


    1st, start with the emini's. Trading the Q's are expensive.
  7. richk


    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.
  8. Trade futures!

    1. It's generally less expensive
    2. You can get more bang for your buck
    3. Taxes are less
  9. T/A_Bo


    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 I’d suggest you experiment with first are.....

    1 Internals.... The Q’s 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 “bounce trader”

    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
    #10     Jul 2, 2002