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How to Get Rich Investing in Stocks by Riding the Electron Wave

Strategies on how to be a Successful CFD Trader

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

By: Submissions

Stock-Markets

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 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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