Importance of discipline. Whenever you trade you need to make sure you follow your strategies and stick to your trading plan. Too after short term positions become long term, in the hope the financial market will move in the way you hope it will. #market#strategy
Keep leverage under control and don't over leverage. Recent ESMA margin requirement changes made it much more difficult to over leverage but it's still possible. Ideally, you shouldn't put more than 1%-2% of capital at risk per trade. #Leverage#trading#margin
What makes CFDs so popular amongst retail traders? What makes them so difference from the other trading options such financial spread betting, options, futures, or conventional share trading?
In this thread, we cover some differences. #cfdtrading
CFDs vs Options
One of the main advantages of options (not binary options) is that unlike CFDs, they offer the prospect of receiving the ownership of the underlying instrument at a specified price giving you all the rights of shareholders. #options independentinvestor.com/cfd/cfds-vs-op…
Contracts For Difference vs Spread Betting
By far the greatest advantage of financial spread betting over CFDs is the tax treatment as spread trading involves no CGT on the profits you make from trading the financial markets. Both options are stamp duty exempt. #spreadbetting
Forex trading... not again :)
Just saw 3 questions so decided to answer them here. 1. Should I use leverage? 2. Should I have multiple forex accounts with different brokers? 3. What is the best forex strategy?
So let's answer these 3 questions in this thread. #forex#fx
Should I use leverage?
Just because it's there it doesn't mean you have to use it up. Leverage has its benefits and risks but you have to use it wisely. Don't use it to the max just because it's there as it'll end up in bad way. #leverage independentinvestor.com/forex/forex-an…
Should I have multiple forex accounts with different brokers?
It depends on the amount of money you have and your trading style. You might want to trade on a few platforms to check them out. But if you're happy with your FX broker then NO. #forexbroker independentinvestor.com/brokers/fx
How to trade stocks and shares successfully? What makes somebody a shrewd investor? Let's look at the profile of a canny investor in this thread.
Strongly recommend reading "The Intelligent Investor" by Benjamin Graham, just ask Warren Buffett. #investing independentinvestor.com/share-dealing/…
Warren Buffett: "Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years".
Investors should concentrate on the long term returns and checking market quotes every day won't make you rich overnight. #markets independentinvestor.com/share-dealing/…
Warren Buffett: "Only invest in 'simple businesses' that you understand". Before buying shares in a company make sure you understand what the company does and how it makes money, rather than looking for the best thing since sliced bread. #buyshares
Currently, there are over 100 brokers to choose from to trade Contracts For Difference (or simply CFDs) but comparing them all is a hard task. So which CFD broker should you use?
In this thread we list vital characteristics of a reliable provider. independentinvestor.com/brokers/cfds #broker
1. Regulation. Broker regulation plays an important roles. Who would you rather trade with, a reputable and heavily regulated broker or unregulated one? Two, probably, strictest regulators are FCA (UK) and ASIC (Australia).
Stay away from unregulated brokers.
1. No taxes. This is the main and the vital benefit of financial spread betting as you get to pay no tax (no tax, no CGT, no stamp duty) on any profits you make from the financial markets.
It means you get to keep all your profits but can't offset it against your tax.
Who trades shares? And what are the main participants of stock markets and why trade shares? 1. Private investors play a vital roles. 2. Funds and institutions. 3. Predators.
Traders of all backgrounds participate and it's vital to pay attention to see who is ready to pounce.
How do the stock markets work?
Stock market works like any other market, it just matches demand and supply and and makes sure that buyers and sellers come together to "exchange" their shares and try to find the best value for their money. independentinvestor.com/share-dealing/…
Financial spread betting is still a popular trading option as it is tax-exempt and a leverage product.
But what makes some spread bettors successful? What makes them to stand out from the masses? #spreadbetting#trading#success#Trader
(it is a thread)
1. Don't over-leverage. Leverage is one of the pillars of financial spread betting and should be treated with caution; it can amplify your profits but it can do the opposite as well if not treated with respect.
Keep your leverage in check. independentinvestor.com/spread-betting…
2. Don't over-trade. Just because spread betting is available 24/5, it doesn't mean you should trade all the time and make as many trades as possible.
Do your own research and only trade when you think it's the right time.
Control your trading risks. independentinvestor.com/spread-betting…
Why most of CFD traders lose money?
When you visit your broker's site, you will see how many accounts lose money, this figure will likely be over 70%; thus over 70% of CFD traders lose money.
Ever wondered why?
Let's see in this thread. independentinvestor.com/cfd/why-trader… #forex#cfd#trader
Reason 1: Gambling. Gambling is probably the most common reason why so many CFD traders lose money. People get drawn into trading in a hope of making a quick buck and then end up losing money due to gambling and hoping for a lucky break. #cfdTrading#CFD
1. What is the first stock market in the world? Many people think the oldest stock market is in London... No. 1. Amsterdam Stock Exchange - 1602 2. Paris Stock Exchange - 1724 3. Philadelphia Stock Exchange - 1790 4. London Stock Exchange - 1801
2. What is a share? A share or stock is a share of a particular company. Both, public and private companies issue shares but only public shares are traded on the stock exchanges.
Shares can also be called: stocks, equities, securities. independentinvestor.com/share-dealing/… #stocks#trading
1. Leverage: leverage plays a vital roles in derivative trading and spread betting is no exception. Leverage is like a double edged sword; you can amplify your profits but you can also lose more than you would like. Treat it with caution.
2. Probably the biggest advantage: no tax, no stamp duty, and no Capital Gains Tax. Yes, it's true, you have to pay nothing in tax and all your profits are tax free.
A word of caution you can't offset your CGT liabilities against spread betting losses.
Financial spread betting remains the popular choice of so many traders in the UK as with all the risks of a leveraged product it offers many benefits.
So why is financial spread betting so popular? independentinvestor.com/spread-betting/
1. The range of markets: with financial spread betting, it is possible to trade virtually any market. You name it, from stocks and bonds to property prices and cryptocurrencies.
2. Go long or short. Unlike share trading or trading stocks, spread betting allows you to buy and sell financial instruments. Gone are those times when you could only buy and hope for the best, now you can also short and benefit from the falling markets.
Forex (also called foreign exchange market) is becoming more and more popular these days when many people who dream of financial freedom. However, many people simply do not understand that without proper knowledge they have no chances of succeeding. independentinvestor.com/forex/
Most ordinary people would have heard about the forex market, but at the same time they have a vague idea of what forex actually is. They had only heard stories about someone who has a lot of money in trading currency.
The initial step is creating a business plan. A good coach will help you to make a risk profiling, which determines the appropriate business strategy. Each person will have his own preference for a specific business strategy. independentinvestor.com/forex/strategi…
How Can Your CFD Broker Help You?
When you start online trading, you’ll hear all about the brokers. There are many top online CFD trading brokers and it is worthwhile finding a reputable and regulated broker. independentinvestor.com/brokers/cfds
The top advisory CFD brokers will already know the market. They understand the importance of choosing the right assets to put your money on and will have a better idea of whether those assets are going to rise in value or drop.
There are many platforms to trade on at the moment. How do you know which one is best for you? Well, the top online trading brokers do know and they can help you. CFD brokers make money from your trades so it's in their own interests you stay with them. independentinvestor.com/cfd/how-broker…
Although it is difficult for many people to see the point in trading within a virtual environment where there are no tangible rewards, opening one or more CFD demo accounts is highly advisable for two reasons: #cfd#cfdbroker#forex
1. It gives those that are new to derivative trading the chance to put the intricacies of CFD trading into practise within a risk free environment. If you are a beginner then there is much to learn and it is pointless diving in at the deep end and risking your hard earned cash.
2. There are so many CFD companies on the market that it can be difficult to decide on which one to trade with. Most brokers provide demo accounts and by ‘testing the water’ it is possible to decide which one ticks the boxes that are important to you.
The more you understand the value of analysis, the sooner you will become a better trader. It’s a common mistake for beginners not to pay attention to these. Though, some of them stick to them, realizing that the best choice is to be fluent. independentinvestor.com #forex#trade
Technical Analysis: The main action of technical forex analysis in trading is to look for patterns’ actions, especially past patterns. They consider the past history mostly likely to happen in the future.
Fundamental Analysis: The idea of fundamental analyst is to review different countries and financial states, which include social, economic and political factors. You can see the importance of fundamental analysis, and find the reason why some traders prefer using only this type.
Whether your goal is to save money for traveling, buying a car and a real estate, or to retire, investment is the most essential way of getting there where you want. And the old adage “Money isn’t everything, but happiness alone can’t keep out the rain” independentinvestor.com
Investing in stocks: Stocks are usually bought through brokers; you buy shares of a company. You can also get a fraction of profits as dividends. If you invest in good stocks over a long period of time they are safe and can be very profitable.
Investing in commodities: Commodities unlike stocks do not pay out dividends, and do not accumulate interest. They undergo great price fluctuations based on certain factors, like seasonal and cyclical. And timing them properly is exceedingly tough.
1. Range of markets: with financial spread betting you practically get any possible market to trade on, including but not limited to forex, indices, commodities, stocks, interest rates, crypto.
2. Go long or short: this is a real beauty of spread betting on financial markets as you can go long (buy) and short (sell) on any financial market; this opens a land of opportunity as traders can easily gain from the falling markets.
2. Probably, the most common question about CFDs is how they are taxed. Yes, you have to pay CGT on profit but with contracts for difference you avoid stamp duty. independentinvestor.com/cfd/cfds-and-t…
Why would you need a spread betting account?
If you're from the UK or Ireland and want to trade tax free then it's the best option for you to trade the markets on margin. independentinvestor.com/brokers/spread…
Are you really into forex trading?
Make sure you take it seriously if you want to make money out of your trading, you really need to invest your time if you want to succeed.
Start with finding the right forex broker - independentinvestor.com/brokers/fx