Beginner short term CFD trading

[grah33]

hi
for people who trade shares short term, they tend to use advanced charting software to scan for share candidates. what if we are shorting dma based share-cfds? should one conveniently use the same software to scan for share opportunites (in my case, downward moving shares), but then just take the corresponding cfd instead right? this seems to work nicely - once again using the same technical analyses skills (less new stuff to learn) to find cfds for trading short term (when the market is going down in the short term).



also, briefly, what other methods do we use to find other short term trading cfd (not share based) opportunities? special scanners or just browsing the default internet cfd platform the broker gives us.

thanks again everyone
(pardon me if i ask some dumb questions from time to time)

 

[wundorland]

i use a scanner that scans out both bullish and bearish reversal trends.
chartnexus high probability trading scanner, it dosnt have asx stocks listed yet, but will be updated in a new patch soon. the current subscription rate for this scanner is 798aud/year.

personally, the brokerage i use, is based in singapore, but i would like to ask, what are the tax implications of trading cfd in australia??
i read that it is a 30% flat rate to trade shares(maybe via cash account?), how true is this??

 

[wundorland]

i think it is fairly unrealistic to physically go through thousands of stocks a day to spot a particular reversal trend.

 

[grah33]

when one looks for share to buy , they can browse many of them visually with amibroker. i'm thinking of just doing the same thing - use amibroker to find the shares i'd like to short. but actually short through cfds. that should be fine right, as the cfd follows the underlying market? so i can analyze volume , trend and so on to pick my shares and get the corresponding cfd (dma ) for it. maybe i can also do it with OTC cfds too.

 

[aussiedaytrader]

Usually the CFD brokers also offer CFDs for major indeces and currency pairs /FOREX.
If you want to trade short term, I suggest to give some thoughts to trading Forex CFDs and indices. These are very volatile and it offers good opportunities for short timeframes.
You don't necessarily need advance charting software but you'll need to put in a lot of time and learning effort.
See some of my advice for newbies here:
http://www.aussiedaytrader.com.au/day-trading-for-dummies/

cheers
aussiedaytrader

 

[carbon44]

Usually the CFD brokers also offer CFDs for major indeces and currency pairs /FOREX.
If you want to trade short term, I suggest to give some thoughts to trading Forex CFDs and indices. These are very volatile and it offers good opportunities for short timeframes.
You don't necessarily need advance charting software but you'll need to put in a lot of time and learning effort.
See some of my advice for newbies here:
http://www.aussiedaytrader.com.au/day-trading-for-dummies/

cheers
aussiedaytrader

Great suggestion and interesting site. May I ask, what would you say are the key things to learn about to know how to trade short term forex (just beginner chart trading). There are many books out there and methods, and I don't have the experience to know what things are key to learn for basic successful trading. I might target a book or online tutorials which have these things in them.

 

[SilverRanger]

when one looks for share to buy , they can browse many of them visually with amibroker. i'm thinking of just doing the same thing - use amibroker to find the shares i'd like to short. but actually short through cfds. that should be fine right, as the cfd follows the underlying market? so i can analyze volume , trend and so on to pick my shares and get the corresponding cfd (dma ) for it. maybe i can also do it with OTC cfds too.

With DMA CFDs your trades go through the exchange just like real shares, so it doesn't just follow the underlying market, it is. Same thing can't be said about OTC CFDs, avoid.

 

[grah33]

With DMA CFDs your trades go through the exchange just like real shares, so it doesn't just follow the underlying market, it is. Same thing can't be said about OTC CFDs, avoid.

right then, i'll use dma cfds. and i'll use the share's price-volume chart for analyses (not the cfd). i suspect that the share-cfd's price -volume chart is the same chart as the share chart (obvious), unlike OTC share-cfds.

 

[ezz]

Hi All,

Wondering if someone can provide some advice. I'm looking into CFDs and have setup a demo account. Will start of practicing on CFDs by trading indices using some basic technical analysis, once I gain more experience and get the hang of things will eventually start to get into it.

Questions about Guaranteed Stop Loss:
I have setup a guaranteed stop loss. There are two parts:
1. Stop loss level which I have put in.
2. Limit: (What does limit mean? Is it the price that the stock will sell at to take a profit? )

Maybe a silly question just trying to get my head around some of the basics.

Cheers,

Ezz

 

[cynic]

Hi All,

Wondering if someone can provide some advice. I'm looking into CFDs and have setup a demo account. Will start of practicing on CFDs by trading indices using some basic technical analysis, once I gain more experience and get the hang of things will eventually start to get into it.

Questions about Guaranteed Stop Loss:
I have setup a guaranteed stop loss. There are two parts:
1. Stop loss level which I have put in.
2. Limit: (What does limit mean? Is it the price that the stock will sell at to take a profit? )

Maybe a silly question just trying to get my head around some of the basics.

Cheers,

Ezz

Yes! A limit order is placed at a level superior to where the market is currently trading. In the event of the limit order being triggered by the market achieving the specified level, the position will typically be closed at that level.

For capturing profits, some traders, rather than setting profit targets via limit orders, prefer to "trail" their stops (i.e. move the nominated stop level in step with favourable market moves).

Please note that when trading OTC CFDs, unless the client has some way of guaranteeing the integrity of pricing offered by their chosen provider, I typically recommend against the usage of stop orders.