Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Stocks Don’t Care About Trump Impeachment - 17th Oct 19
Currencies Show A Shift to Safety And Maturity – What Does It Mean? - 17th Oct 19
Stock Market Future Projected Cycles - 17th Oct 19
Weekly SPX & Gold Price Cycle Report - 17th Oct 19
What Makes United Markets Capital Different From Other Online Brokers? - 17th Oct 19
Stock Market Dow Long-term Trend Analysis - 16th Oct 19
This Is Not a Money Printing Press - 16th Oct 19
Online Casino Operator LeoVegas is Optimistic about the Future - 16th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - Video - 16th Oct 19
$100 Silver Has Come And Gone - 16th Oct 19
Stock Market Roll Over Risk to New highs in S&P 500 - 16th Oct 19
10 Best Trading Schools and Courses for Students - 16th Oct 19
Dow Stock Market Short-term Trend Analysis - 15th Oct 19
The Many Aligning Signals in Gold - 15th Oct 19
Market Action Suggests Downside in Precious Metals - 15th Oct 19
US Major Stock Market Indexes Retest Critical Price Channel Resistance - 15th Oct 19
“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools - 15th Oct 19
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - 13th Oct 19
The Most Successful IPOs Have This One Thing in Common - 13th Oct 19
Precious Metals & Stock Market VIX Are Set To Launch Dramatically Higher - 13th Oct 19
Discovery Sport EGR Valve Gasket Problems - Land Rover Dealer Fix - 13th Oct 19
Stock Market US Presidential Cycle - Video - 12th Oct 19
Social Security Is Screwing Millennials - 12th Oct 19
Gold Gifts Traders With Another Rotation Below $1500 - 12th Oct 19
US Dollar Index Trend Analysis - 11th Oct 19
China Golden Week Sales Exceed Expectations - 11th Oct 19
Stock Market Short-term Consolidation Does Not change Secular Bullish Trend - 11th Oct 19
The Allure of Upswings in Silver Mining Stocks - 11th Oct 19
US Housing Market 2018-2019 and 2006-2007: Similarities & Differences - 11th Oct 19
Now Is the Time to Load Up on 5G Stocks - 11th Oct 19
Why the Law Can’t Protect Your Money - 11th Oct 19
Will Miami be the First U.S. Real Estate Bubble to Burst? - 11th Oct 19
How Online Casinos Maximise Profits - 11th Oct 19
3 Tips for Picking Junior Gold Stocks - 10th Oct 19
How Does Inflation Affect Exchange Rates? - 10th Oct 19
This Is the Best Time to Load Up on These 3 Value Stocks - 10th Oct 19
What Makes this Gold Market Rally Different From All Others - 10th Oct 19
Stock Market US Presidential Cycle - 9th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Strategies on how to be a Successful CFD Trader

Stock-Markets / Financial Markets 2019 Oct 05, 2019 - 03:15 PM GMT

By: Submissions


If you’re new to the world of trading, CFD trading refers to Contracts for Difference. It is the ability to speculate. You buy and sell based on the rise and fall of financial products. You can trade similar products in the share market, but in this case, you need only a small amount of margin upfront. Most CFD brokers allow access for more than 10,000 trading instruments all over the world. These strategies are not a formula to get multi-billion-dollar rich in one week but to help you build a strong foundation to trade in CFDs, forex exchange, and other global markets to improve your profits.

1. Preserve Capital

When you start trading, have a successful defense. Do not focus so much on the money. Instead, focus on not losing anything while you get your bearing around the market. Every penny you have is precious at this point, therefore work and fight as hard as possible to keep it. There is no point in having the world’s best CFD trading system if you lose all your money. The goal here is to keep your loses on the minimal to zero.

2. Breakouts

It is the most commonly used strategy. It involves you establishing a fundamental price level of a specific stock. When the stock reaches your desired level, sell or buy it, depending on the most suitable option at the moment. To have successful breakouts in CFD trading, avoid trading when the market gives mixed signals about the direction of the trend. You must evaluate it thoroughly before making a trade.

3. Trend following

Following the stock, trends is a long term strategy. You buy stock and hold it for weeks, even months while you closely monitor the direction of the prices to come up with a conclusion. Acquire the share when the prices are low then ride the wave until it reaches its peak. At this point, sell it, and in the meantime, you will have other stocks in your possession. It is one long game strategy.

4. Contrarian Investing

It is a market timing strategy with the idea of playing on the fact that trends change from time to time. If a trend sees stocks declining, then pick a point where according to your knowledge, you think it’s near the end. Go into a buy position in anticipation of the trend turning the other direction. Follow the same procedure when the prices are going up. There is a range of analytical tools and theories that can help in ascertaining when those shifts are going to take place in a trend.

5. Scalping

It is the most active trading strategy. You identify small profit opportunities in differences between bid and ask price of stocks and exploit them. These small profits at the end of the day end up generating large sums of profit. Do this while scouting for a window to make big trades.
The most important thing to remember in CFD trading is maintaining a positive mindset. Fake it till you make it! 

By Hamza Zahid

© 2019 Copyright Hamza Zahid - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules