More and more traders are taking interest in CFD, but it is important for you to understand that it does come with considerable amount of risks. If you don’t play it smart, then you can even see your bankroll or capital amount disappear.
In this post, we shall talk about some of the tips that can help you in surviving and thriving in the volatile CFD trading environment. Before getting into it, please be reminded that these tips will not make you a rich person overnight, or in a few weeks.
Learning and mastering the art of trading takes time, which is why you will need to gain knowledge and experience with smaller stakes, before making big trade decisions. Let us start by telling that CFD is more suitable for people who have experience in trading.
CFD learning app for beginners:
If you are a total beginner, and wish to learn everything about CFD trading from the scratch, you must download and install any of the popular learning apps on your smartphones or tablets. These apps will help you to learn trading from the scratch, and gain the required knowledge that will help you to become a successful trader.
Make sure you choose a broker platform that provides you with complete information on company stocks along with their price charts. For example, if you are looking for specific trading information like Travis Perkins Share Price, you should be able to pull out all their information instantly.
You will need vital data like the, buying price, selling price, spread, overnight fees for long position and short position, overnight fee, minimum trade quantity, margin, currency, trading hours, and other important data to make informed trade decisions. You must also be able to see the real-time price movement chart, and the complete profile of the company that you are interested in.
Tips to survive and thrive in the CFD market:
Stop Loss – You should have a clear picture about how much loss you can sustain on a transaction. The best way to play it safe is by marking the trades with stop loss, so that the trades gets terminated when you are reach the predetermined threshold.
Start with demo account – Before you put real money on trades, it is always a good idea to get the real feel of trading environment. The best way to go about it is by using a demo account, till you gain some confidence to go real. However, don’t get too comfortable with the demo account for a long time, because it could start playing on your confidence level. You will have to take a plunge at some time, but don’t take too long to do so.
Learn to do your own analysis – If you wish to become a successful trader, then you cannot treat trading like a lottery. You cannot place blind bets out of your gut feelings, or because of some hearsay from others. You must learn both fundamental and technical analysis, so that you will know what exactly you are doing. Even if you get some signals from experts, you should still be in a position to tally those signals to your analysis.
Be proactive – In addition to gaining the knowledge on CFD trading, it is also important to join the community of fellow traders. Such forums are excellent resources for knowing and discussing about all different trade related topics, and also to get some inside information.