Trading CFDs can bring investors great rewards, but it can also carry
substantial risk. The key to maximizing the rewards while minimizing the
risks is to be smart about your investments, and follow some solid
strategies and rules. cfdspy.com
substantial risk. The key to maximizing the rewards while minimizing the
risks is to be smart about your investments, and follow some solid
strategies and rules. cfdspy.com
No matter how much you think a certain position is going to be a “sure thing,”
don’t put a sizable amount of your trading capital into a single trade.
If you put 50 percent of your capital on one trade, you’re not making a
smart investment – you’re just gambling.
don’t put a sizable amount of your trading capital into a single trade.
If you put 50 percent of your capital on one trade, you’re not making a
smart investment – you’re just gambling.
Making investment decisions based on a gut feeling, or an emotional
reaction to a certain company or event, is not a smart way to operate.
It is much wiser to make your investment decisions based on a thorough
analysis of the facts and trends.
reaction to a certain company or event, is not a smart way to operate.
It is much wiser to make your investment decisions based on a thorough
analysis of the facts and trends.
Some investors are so certain that a price will turn around that they
take a losing trade, and multiply it by adding even more. This can be a
fatal mistake when it’s based on a false expectation. A good technique
to learn is using trend lines to distinguish between trends.
take a losing trade, and multiply it by adding even more. This can be a
fatal mistake when it’s based on a false expectation. A good technique
to learn is using trend lines to distinguish between trends.
Not only should you limit a single trade to 2-3 percent of your capital,
but it’s also smart to diversify your portfolio across different
industries or markets. For example, you could have a number of positions
in banking companies, but still not be diversified.
but it’s also smart to diversify your portfolio across different
industries or markets. For example, you could have a number of positions
in banking companies, but still not be diversified.
Holding on to a losing trade too long will escalate your losses.
Conversely, cashing in on a profitable trade too early will shrink your
gains. The key is to get out of the losing positions early, while
holding to the winning positions long enough to maximize your profits.
Conversely, cashing in on a profitable trade too early will shrink your
gains. The key is to get out of the losing positions early, while
holding to the winning positions long enough to maximize your profits.
If you trade CFDs without using a stop loss,
you could be setting yourself up for a disaster. Due to the leverage
involved in CFDs, a small price change in the wrong direction can mean a
big loss for you. Setting stop loss is a smart way to prevent it. cfdspy.com/guide/stop-los…
you could be setting yourself up for a disaster. Due to the leverage
involved in CFDs, a small price change in the wrong direction can mean a
big loss for you. Setting stop loss is a smart way to prevent it. cfdspy.com/guide/stop-los…
Smart investors
know how to use both fundamental and technical analysis. The
combination gives you a better picture of what’s happening than either
approach on its own, and gives you a greater chance of profits.
know how to use both fundamental and technical analysis. The
combination gives you a better picture of what’s happening than either
approach on its own, and gives you a greater chance of profits.
It’s important to keep costs in mind to get a true picture of the profit
or loss you could take on a trade. For instance, holding onto a
position longer may get you a better price, but the financing costs go
up as well.
cfdspy.com/cfd-brokers/
or loss you could take on a trade. For instance, holding onto a
position longer may get you a better price, but the financing costs go
up as well.
cfdspy.com/cfd-brokers/
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