Nasdaq100 Handbook Vol. 2
Nasdaq100 Handbook Vol. 2
VOL. 2
Shabane JR
@ShabaneJr +255765453857 WhatsApp/ Telegram
0
RISK DISCLAIMER
This Handbook and all other materials from ShabaneJr are exclusively intended
for educational purposes only. As a student you must be aware that Trading
foreign exchange on margin carries a high level of risk and may not be suitable
for all investors. Before deciding to trade you should carefully consider your
investment objectives, level of experience, and risk appetite. The possibility
exists that you could sustain a loss of some or all of your initial investment and
therefore you should not invest money that you cannot afford to lose. You
should be aware of all the risks associated with foreign exchange trading, and
seek advice from an independent financial advisor if you have any doubts.
@ShabaneJr +255765453857 WhatsApp/ Telegram
1
Introduction
Welcome to another series of student handbook from Shabane Jr, as it is my
great pleasure to once again provide this kind of document with crucial
knowledge that will guide and give you insight on how to trade NASDAQ100
consistently and profitably.
Unfortunately in these lessons I won't include the basics of Forex and Trading in
general so if you are a new trader please do yourself a favor of getting familiar
with some basics first because this can be a little bit confusing for you.
I strongly recommend these websites for better learning as they are for free.
www.babypips.com
www.forex4noobs.com
And on YouTube try to look for
• Adam Khoo
• Tradingwithryner and so many other videos but try as much as possible not to
focus on INDICATORS.
Below are some of the Important topics you should learn
• Chart Patterns
If you haven't already passed through earlier volumes on NASDAQ100 lessons
which covered;
● Introduction to INDICES.
● Full Introduction to NASDAQ and NASDAQ100.
● Good Brokers to trade with.
● How NASDAQ100 is Traded profitably and its STRATEGIES.
I suggest that you contact me @Shabane Jr so that i can send you the PDFs as
they are very helpful for better understanding because i won't include those
lessons in this chapter.
And for this reason I have always been re-packaging and sharing every good
strategy that worked for me believing that it could help achieve your goals too.
But I was tremendously WRONG because that wasn't enough.
For those who have been with me since last year at NASDAQ100 - TRAINING
Telegram Channel can witness this. As of now we do still have many Losers
than Winners which is literally bad and really discouraging.
Before continuing on the Strategies and Trading skills I would first like to
make a very important thing in Trading Crystal Clear.
The determining factor between Successful and Losing Traders is not only
based on the Knowledge about Trading they possess but also TRADING
PSYCHOLOGY.
Maintaining the right mindset is one of the most important factors in being
successful Trader.
TRADING PSYCHOLOGY.
Trading Psychology refers to a Traders mindset during their time on the
financial markets.
I can easily say Trading Psychology is what determines why some Traders are
securing Huge Profits while others are being screwed off with heavy losses.
I will try to elaborate in the simplest manner as possible so that everyone can
understand before going forward to the Strategies and How to Trade the
NASDAQ100 successfully.
Emotions
Without any doubt emotions are among of the most influencing factors that
lead Traders to lose money.
Since having emotions is a human nature so getting rid of them can be quite
impossible but in this chapter we’ll discuss on how to control them in the
most effective way.
Fear manifests itself in a number of ways in Trading and it can be the cause of
many trading mistakes. Fear can be;
Fear of Success
This is when a trader is afraid of giving back (donating to the market) the
profits on running trades which results in closing the winning trades too early
before reaching the intended target which also attracts regret and pain.
Greed is supposed to be good, but when we look at the hard facts, greed often
causes a number of impulsive trading decisions that should be avoided.
Traders who are influenced by greed often don’t adhere to sound risk and
money management principles.
● Overtrading can be attributed to greed in that the desire to make money
encourages taking trades that are outside of the adopted methodology.
● Impulsive trading is often the result, with the trader ignoring pre-set
rules in favor of chasing profit or making up for losses.
● Aggressive risk taking In order to make more money and satisfy greed,
a trader may adopt risk parameters that exceed the available resources.
Taking abnormally large positions and engaging in reckless money
management practices are common issues associated with greed.
● Inability to define profit and loss Profit and loss are key elements of
money management that must be defined before each trade is taken.
Greed makes this difficult, because the profit targets are often
unreasonable and the realization of a loss delays the instant gratification
that a winning trade provides.
The result is the tendency to exhibit indecision when taking profits, and
reluctance in exiting losing trades.
Let's first understand these common Emotions before we jump on how to control
them.
Hope
Most of the times when we are in a losing position we often show signs of
hope, when they delay the realization of a loss and give a trade more room to
breathe.
Another example of hope is when we try to make up for past losses and then
enter a trade with a position that is too big and not according to their rules.
Excitement / Anxious
Any touch of excitement when trading is a sign that somewhere along the lines,
you went wrong.
When you are overly anxious when you are in a trade, it is often a sign that
your position is too big, you broke your rules or that you shouldn’t be in that
trade.
Keeping track of your excitement level and asking yourself why you feel
anxious or excited can often help you get out of trades where you shouldn’t be
in the first place.
Although boredom is more a current state than an emotion, it is worth pointing
it out.
Also, when you miss trade entries, because you weren’t paying attention,
browsing the internet or doing something else is a sign that your focus is not
where it should be.
Get your priorities straight and when you are trading, don’t engage in any
other activities.
Frustration
Frustration is often the cause of trading mistakes that result from any of the
previously mentioned emotions.
When traders miss trades, violate their rules and lose money, take too much
risk and lose too much money, or see what they should have done, frustration
starts to take over.
Traders who are not in a hurry to learn typically have an easier time
sifting through all of the information available on the internet. Consider
this: if you were to start a new career, more than likely you would need to
study at a college or university for at least a year or two before you were
qualified to even apply for a position in the new field. Expect that learning
how to trade demands at least the same amount of time and factually
driven research and study.
7. Only Risk what you can afford to lose ( Protect your Trading capital )
Blowing a Trading Account is a very devastating feeling which can leave a
trader in an Emotional and Financial pain. As a Trader you should always
protect your Trading Account by applying proper Risk management and
not exposing more than 3% of your trading per trade.
Since saving money to fund a trading account can take a long time and
much effort. It can be even more difficult (or impossible) the next time
around. It is important to note that protecting your Trading capital is not
synonymous with not having any losing trades. All traders have losing
trades; that is part of the business. Protecting capital entails not taking
any unnecessary risks and doing everything you can to preserve your
trading business.
8. Keep yourself Neutral ( Don't attach your Feelings to losses ).
Not all trades are going to be winning Trades, by knowing that it will help
managing emotions by not being so attached when losses occur.
Take this technique i normally use when trading: Before placing any
trade after you have already decided on the percentage that you are willing
to lose then Virtually deduct that amount from your Trading account by
assuming that you have already lost. So even when the trade truly turn out
to be a losing one you will not feel so down since you have already trained
your mind this technique.
9. Always Ignore that Greedy Voice in your Head.
This is absolutely happening to every trader but as A successful you
should always learn to ignore inner voice that keeps telling you not to
respect your Risk management and adding more positions hoping to get
rich quick from a single trade. You must always fight and detach these
human instincts ( Greed and Fear ) as they can be your enemies.
BUT what many traders fail to understand is how to enter the Market with the
Right Mindset.
As it is possible to make a lot of money in few hours or day it's also possible to
lose a chunk of money if you don't know how to trade it accordingly.
● 20% of Trading Skill and rest 80% is all about (Risk Management,
Trading plan, Trading psychology as well as discipline and patience)
Many if not every Trader knows how to draw Trend lines, many know how to
spot beautiful trading patterns, many know how to do Analysis but why Many
are still unsuccessful in Trading? There comes the question
And the Answers to all those questions are
• Risk management
Set realistic goals when trading this will help you minimize if not to eliminate
all wrong expectations on your Trading career.
Even when you are 100% sure of your trade, anything can happen at any time
and you will read about the cause later after your account is gone. You can use
a take profit or trailing stop for taking profits.
Trading Plan
As a Trader you should always have a trading plan. Because if you fail to plan
then you plan to fail. Simple as that.
A trading plan is your roadmap for what you are going to do in the markets. It's
something that you have to create and is not optional hence it needs to be
written down.
Having a proper Trading plan is essential if you want to become Consistent and
Profitable in Trading. A good trading plan includes
● At the very first place you have to decide which Financial Instruments will
you trade?
● How many trades will be taken in a specific period of time?
● What Strategies that works for you that you will use?
● What best time of the day will you trade ?
● How much money you can risk per trade?
● When not to trade?
● What are your entry and exit edges?
● What is your Profit Target?
Here I will elaborate more about how a trader can control Greedy, Fear and
Emotions when trading.
Failing to control emotions and greedy can make you lose what you've earned
hard in a very short period of time.
Discipline is the key to preserve your trading capital and increase chances of
Trading profitably.
Also when the trade is already in partial profit and you have to wait until it
reaches your Target (Take Profit).
In the previous Lessons I have tried to explain how to Trade the NASDAQ100
profitably starting from the Fundamental Strategies how to trade the News
events and Announcements to the Technical strategies and Now we are going
to Learn the Most effective and crucial Strategy to Trade NASDAQ100 and all
other INDICES profitably that i have found working with an accuracy of more
than 90%.
And if you commit yourself to learn i can guarantee that your 2020 is going to
be very amazing and everlasting.
Literally the Strategy is not so complicated like rocket science and it has
absolutely nothing to do with Indicators. As some of you may already know
that I'm anti indicators activist. Hahah
INDICES Trading is not the same as the way we trade other Financial
instruments like Currencies or Metals although there are few similarities.
And this is why many Currency Traders lose money when it comes to Trade
Indices especially the NASDAQ100 because they are complicating things which
weren't supposed to be complicated at all.
STRATEGY - NASDAQ100
Indices especially the NASDAQ100 can be tradable using the basic knowledge
of Forex Trading but that won't guarantee your success over the long run.
In the Previous chapter I have discussed on The Scalping Strategy that
INDICES always choose one direction in a certain period of time then turn to
the opposite direction and this is why Indices are referred to be instruments
with High Volatility in the Market because they always keep on retracing.
And if they don't retrace, when the price keeps going to one direction the
Potential continuation patterns are likely to occur at zones and that will be our
trading confluence that the price will continue to its direction.
Check the last PDF about Potential Continuation Patterns(PCP) @ Telegram
Channel
Zone of Supply of Demand in Combination with Support and Resistance
simply are zones represented by lines and are not only lines as many thought
to be.
No need to complicate things please! I repeat no need to make things look
harder while they aren't.
I'm saying this because many Traders have this disgusting habit of making
things look harder by mixing a lot of strategies and indicators. You can mix
with some of the price action strategies like Trends, Trend lines, Trading
Patterns, Breakouts and Retest and others that you know to make your Trading
Confluence look stronger but keep this in mind that INDICES especially the
NAS100 most of the times don't respect Price Action that currency Traders are
used to.
The hard part comes on how to draw and spot these Golden zones that will
likely make us a lot of money.
Important:
For better understanding, kindly make sure you pass through all the previous
lessons and PDFs on Nasdaq100 or contact me @ShabaneJr for any inquiries
and help.
NASDAQ100 and all other indices except volatility indices moves in specific
numbers (points) before turning or retracing. These points act as our strong
Key levels to execute trades from.
KEY POINTS
● Fail to break completely and turn (retrace) back to the previous zone.
● Break and retest then continue moving to the next zone or creating a
new zone (Higher high or Higher low) if the market has reached it
highest or lowest point of all the time.
NB: This Strategy works with an effective accuracy of more than 90% when
Fundamental factors (News release or Announcements) are not associated.
Important technical KEY LEVELS at which price price could face an increased
buying or selling pressure.
Or simply
❖ Are areas of Support and Resistance where the price tends to stop falling
or rising but in some scenarios these zones can be broken and retested
and then price continue to its intended direction hence Supply becomes
Demand or Support becomes Resistance and vice versa.
● KEY LEVELS of Supply and Demand in combination with Support and
Resistance are Represented by the Horizontal Red Lines
● As we have already discussed earlier that these are the Levels or Zones
Represented by lines whereby the price come to retest for the
continuation of the intended market direction or retrace to form a new
trend.
● Also are the levels at which the price has found either a support or
resistance and flipped to become a new level.
● Turning points are represented by Blue squares on the charts.
https://www.tradingview.com/x/kiejGLIh/
❖ Only Gamblers can make Money from market of this type, To avoid the
risk of Blowing account it's better to stay away from this kind of Market.
https://www.tradingview.com/x/YnXn5BHO/
From the above chart we can clearly see our Key Levels as well as its respective
Turning Points.
The price firstly broke and retested the key then went up (This was the first
trade entry) and retested back again to the same Key Level ended up forming a
Second Retest before shooting up again. ( second entry )
https://www.tradingview.com/x/AC0lZesp/
With this Strategy, a minimum profit target is not less than 1000 points so even
if you use a lot size 0.01 you can still walk away with a very nice profit of 100USD
within a short while. ( This is why i only Trade NASDAQ100 ) Hahahah
https://www.tradingview.com/x/oGo8WuAB/
● When you spot a pattern like this, patiently wait for it to form reversal
candlesticks or rejections then execute trades without Fear.
● The Money Pattern is mostly visible in H1 and 15M Time Frames.
● It works also on Bearish Scenario.
● This Strategy has a profit accuracy rate of more than 90%.
( see more examples below )
https://www.tradingview.com/x/TUVNIpMB/
Gap Fill Strategy is a popular strategy among traders but many fail to
understand the reality behind it.
What is a Gap?
A gap is an area of a chart where the price either rises or falls from the
previous day’s close with no trading occurring in between.
I won't go deeper into this but I'll try to elaborate on the important points.
The NASDAQ100 open each day with a new price, therefore when the price
opens on a gap up or gap down it shows an imbalance between buyers and
sellers.
● When NASDAQ100 opens on a significant Gap Down, there is an
imbalance caused by too many sellers, it can therefore be a good
opportunity to buy and wait for a Gap to fill.
● When NASDAQ100 opens on a Gap up means there is an imbalance
caused by too many buyers and it can be a good chance to sell and wait
for the Gap to be filled.
Note:
➔ When market opens with a Gap caused by Technical Factors that Gap
tend not to close(Fill) suddenly and price will likely continue to the
direction of the Gap until when it reaches a strong Key level of Demand
and Supply in combination with Support and Resistance and after then it
closes.
➔ When the Market opens with a Gap caused by Fundamental factors
(News release) most of the times the Gap tend to be filled suddenly after
an impulsive move.
RECAP
A piece of advice to my fellow Traders especially to those who are still struggling
in Trading.
Before investing your hard earned Money into trading, first you should consider
your level of understanding how the market works.
You might have not blown an account or accounts and you don’t have to first
blow accounts to make it in Trading. All you have to do is seek for the knowledge
first and the rest will follow you like it's following some of us right now.
Knowledge, Right Mindset and Patience are the ones that will define your
consistency as a successful Trader and nothing else.
Seek the knowledge first then money will come after.
Don't Gamble your hard earned money by trading what you don't understand
because blowing accounts is what you'll only experience.
You also don't need big accounts to make it in trading, make your own right
decisions that will shape and bring the life you have always wanted instead of
living with unrealistic goals.
Thank you.
Shabane Jr
❖ FOR SIGNALS AND PREMIUM MENTORSHIP (online) with an inclusive of
E-Books, Video Lessons and Live Webinars a nd where you will be given the
Following;
❏ LIFETIME MENTORING AND LESSONS ON NASDAQ100
❏ LIFETIME SIGNALS ON NASDAQ100
❏ PDFs with All the STRATEGIES (Technical and Fundamental)
❖ Contact me at +255765453857 WhatsApp Telegram @ShabaneJr