VINSON FINANCIALS PRESENTS
CFD TRADING TIPS TO KEEP IN MIND
CFD trading has emerged as a popular alternative for traditional form of trading. Without actually having the ownership of the financial products, all you do in CFD online trading is take a position on the price of the product, speculating whether the price will rise or fall. The best CFD platform will provide you with a wide range of financial instruments for CFD trading, such as forex, commodities, indices, etc. Your CFD trading broker will only demand of you a small margin amount upfront in order to trade using his CFD platform. But remember, while the profits with this form of trading can be huge so can the losses be. Keep the below tips in mind when you’re trading CFD for a living:
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1. START WITH TRADING SMALL AMOUNTS
2. BE CAREFUL ABOUT YOUR PROFIT/LOSS
Start with trading small amounts, especially when
There will come a time when you’ll have to face
you have little experience in this type of trading. The
losing trades. In such a situation, you should be
thing about trading with margin is that your losses
rational and step away from the trade in order to cut
can way surpass your initial deposit. So keep the
your losses before they run too extreme. Similarly,
trading small and easily manageable when starting
you should also be careful not to take your profits
out, and only when you’ve earned some substantial
from a profitable trade way too soon, there is a
experience, think about going big.
chance that if you let your profits keep running they yield better results.
3. DECIDE THE PRICE LEVELS
4. DON’T BE IMPULSIVE
With CFD online trading, your first step should be to
Don’t be impulsive with your CFD trading. Foe
decide the price levels at which you want to enter
example, you shouldn’t trade against the current
and exit the trade. Try to stick to this plan of buying
trending price positions, without concrete evidence
and selling the financial instrument when its price
that the trend is likely to reverse or change in the
reaches those levels. For exit points, you should keep
future. Your trading decisions should always be
two price levels decided, one for when you’re
based on logic and evidence, rather than random
incurring losses and one for when you’re reaping in
instincts.
profits.
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5. USE FUNDAMENTAL & TECHNICAL ANALYSIS
6. MAINTAIN AN EXCLUSIVE NOTEBOOK
Use a combination to make sound trading decisions.
Keep logs of your CFD trades. Make detailed notes of
You can use fundamental analysis to decide the
your trades, such as what financial instrument you
trigger point of your trade and use technical analysis
traded, when did you enter and exit the trade, what
to decide the entry time into the trade. Your CFD
were your reasons for doing so, did the trade result
online trading platform may offer you various
in profit or loss, etc. Such a notebook will be a useful
analysis tools that you can make use of.
tool in your learning from the past trades.
Contact us: (+357) 25 02 88 61–63 | general@vinsonfinancials.com