CFD Trading Platform: Basic Investment Principles For Beginners By Ade Adewolu http://ezinearticles.com/?CFD-Trading-Platform:-Basic-Investment-Principles-ForBeginners&id=5304175
A Contract For Difference (CFD) Trading Platform is the enabling facility to operate different instruments of trading transactions. It is a scenario that enables traders to hedge against an existing portfolio without having to sell the portfolio. This transaction does not trigger any tax charges or other complications. It is fast gaining grounds globally. A typical CFD and spread trading platform offers: · The ability to instantly trade a wide variety of instruments like UK, European and US shares, indices, commodities and currencies. · A variety of order types: The trader should be able to place stops, limits and guaranteed stops, but also link orders together for even more control · A java trading platform - that provides a reliable and competent trading without any downloads More than any theoretical requirements, a strong mindset and mental frame of mind for success are fundamental requirements for profitable CFD trading. · New Trader's Income Generation Objectives: What are the new trader's income generation objectives? Since there may not be too much flexibility for a beginner trader, the time horizon is of the essence. Current income potential become more crucial than long-term capital appreciation. · Capital Preservation Objectives: Whatever the age or stage of the trader, it is important to distribute the investment money wisely. It is most advisable to not allocate more than 25% of investment funds on trading. Whether the trader is young or nearing retirement age, a diversified portfolio is the key to ultimate financial success · Trader's Growth Objectives: What are the primary objectives for Investor's capital appreciation? This has to be viewed in the context of both long-term and short-term needs. Summary: CFD trading platform provides a new dimension to trading which any new trader can easily grasp for maximum efforts. It must be noted that the leveraging power of Contracts For Difference (CFD) makes it a double-edged sword that must be carefully understood. Taking time to diligently study it cannot be over-emphasized. The time for profitable trading is now. Go for it. ADE ADEWOLU - Investor & Entrepreneur More helpful hints available at: http://www.forexbulletproof01.info Article Source: http://EzineArticles.com/?expert=Ade_Adewolu