Almost got wiped out! How to stop it happening again?

[Paul Ellis]

I almost got wiped out this year also with CFD's - you have to be really careful. I may investigate Guaranteed Stop Losses - if it means I can sleep at night not worrying about whether the market will gap the following day then it would be money well spent!

 

[RazzaDazzla]

Paul,

So it was an opening gap that almost wiped you out?

I guess the secret there is to only look to trade stocks that don't have a tendency to gap. Though, obviously these things happen with announcements etc.

I guess it's a coin toss. Sometimes it will gap in your favour, other times it wont.

Regarding my scary experience, a gap I could understand, but some corporate action then affecting me if/when I was exercised was something I had never in my wildest dreams been ready for.

 

[mazzatelli]

Regarding my scary experience, a gap I could understand, but some corporate action then affecting me if/when I was exercised was something I had never in my wildest dreams been ready for.

I subscribe to component ticker email elerts which details upcoming events. You receive updates before e.g. Yahoo updates its pages.

 

[XavierZ]

I am quite suspicious about CFDs and about CFD providers to be honest. I suspect there is some kind of arbitrage going on which we do not see. I would love to see an inquiry into the providers about how their profits are generated. I am yet to meet a person in real life who has actually made money from CFDs. There are plenty of them on the internet tho....interesting....!

 

[jono1887]

that kind of corporate action would not affect you when you trade indexes, currencies and commodities right?

 

[wayneL]

that kind of corporate action would not affect you when you trade indexes, currencies and commodities right?

Just watch out for frost in Brazil.

Also check out Cattle futures in Dec 2003 when there was Mad Cow scare.