Free Financial Advice

Most Popular



Trading CFD Online

Top Trading Strategies for CFDs

When its comes to trading CFD online- there are a few check boxes to tick and, as with any new venture, make sure that all the necessary “tools” are in place. These include having read up and familiarized yourself with the basics, set up a CFD trading account, chosen a platform and carefully vetted and selected your broker. You are also fully aware of the risks and potential rewards involved in trading CFD online. And then of course - you have a some money to actually trade with.

The truth is that in order to have a positive experience you need to have researched, engaged with and selected a clear trading strategy. If you are looking to make a profit from your trading experience you need to treat your trading and decisions as you would a business. You need to have a clear focus with well-defined criteria as well as restrictions. Without the clear guidelines your trading experience can get totally out of hand - and nobody wants that. Making use of a trading platform that allows you to add a stop loss or profit limit to protect both your position and profits when trading CFD online.

When developing our deciding on your own independent CFD trading strategy - you will select a program from of two trade options - Fundamental or Technical.

As a fundamental trader you will follow closely the fundamental of various industries. How are the respective companies positioned, what type of return are they receiving and evaluating their profit margins. Essentially you will be making calculated trading decisions based on key business factors. These factors can also include their company’s track record, their management teams and the like. This type of trading strategy affords the trader with insight and information into understanding and evaluating the long term “buy and hold” trades. The type you manage carefully for a period of time instead of for a single day or few days.

On the other side of the trading platform is the technical strategy camp - the more active and dynamic strategies that allow the trader, equipped with insight and of course, analytic tools, to identify the emerging trends in the market and then make or close your trade accordingly.

The fact of the matter is that when it comes to trading online it’s all about numbers and enforcing the “3 W” rule.

  •  WHEN to start trading.
  •  WHERE to place the stop or limit of your trade.
  •  WHEN to stop trading.

With this knowledge in mind and with the support of the right trading platform and support - Trading CFD online should be a dynamic, exciting and hopefully profitable experience.