CFDs - Confused!

[>Apocalypto<]

Well pointers on where to start?

Happy to lose it if I learn something.

And to think I was doing well!

Hi Anthon,

If you want to learn to trade live and only risk a tiny amount then u can trade mini FX 1$ a pip. Or CMC plus others offer 1$ a point on indexes. you can still trade your 1500 and follow a tight money management plan.

It all depends on what u want, u want to be rich off that 15 hundred, u will most likely go broke. You want to learn to trade, that can do. Just follow MM and only risk 1$. 1% of 1500 is 15$ so u can do it. I rounded your acc total up so please don't kill me on that!

Good trading

 

[anthon]

Hi Anthon,

If you want to learn to trade live and only risk a tiny amount then u can trade mini FX 1$ a pip. Or CMC plus others offer 1$ a point on indexes. you can still trade your 1500 and follow a tight money management plan.

It all depends on what u want, u want to be rich off that 15 hundred, u will most likely go broke. You want to learn to trade, that can do. Just follow MM and only risk 1$. 1% of 1500 is 15$ so u can do it. I rounded your acc total up so please don't kill me on that!

Good trading

Thanks for that Apocalypto. We will see how we go!

 

[CFD]

Trade It, that's where you got to. Please to hear you trades are going well.

 

[Trembling Hand]

anthon could I ask what type of trading do you do? Intraday, scalp, position etc. That may determine if you are able to trade $1500.

 

[auric]

any views for and against
Amro quoted minis on the asx shares and xjo compared to cfd's
cheers
ken

 

[xjo]

My advice is do as much research as you can, get a trading plan together and start trading.
ALWAYS use stops to protect your account (and yourself) from a wipe out and keep your position size as small as possible to start with. If trading the A200, just trade one contract until you have the confidence and account size to increase your bet size. Trading small contract numbers also allow you to use wider stops which are then less likely to be hit by market noise (or CFD provider noise)

Cheers,
xjo

 

[MoneyNeverSleeps]

This site is great, I'm new to trading (previously a buy and hold investor which is pseudo trading!) and just from this thread alone (I am reading many others also) I now have a basic plan or at least a framework for a plan:

1. Open an account with CMC Markets (around $10000)
2. Learn with the Aussie 200 @ $1 per tick
3. Use CMC's Market Maker for now (perhaps also AmiBroker)
4. Create a trading plan:
i. Trade one contract at a time for now.
ii. Widen stops as I play to allow for "noise" etc (until I have the confidence for multiple contracts)
iii. Strategy will be scalping (100% intraday trades of seconds or minutes)
iv. Risk =< 2% of my equity on each trade (use this to calculate stops)
v. Keep reading threads on this site!!!

Hmmm..... I'm sure I've missed a million things?

 

[Trembling Hand]

Welcome MoneyNeverSleeps.

Just to point out a couple of things.

A trading plan is nothing if it doesn't exploit an edge. Meaning if you haven't got a known statistical advantage the basics money management guides are only going to stop you blowing up fast.

With the 2% rule and $1 contract that will give you a stop of 200 points which is obviously not right. I would look at a 10 to 20 point stop and stick to 1 contract until you have 100 -150 trades under your belt to then judge if you can put together some plan with a trading edge. and then start looking at the 2% rule.

And keep very good records.

Good luck.

 

[MoneyNeverSleeps]

Thanks TH!

I'm onto it now! Should have my account etc up and running fairly soon.

This is a career change for me, I've had several small businesses and been an investor in real estate and shares however I need a change in direction and trading made the top of a short list of options due to the flexibility and the fact that it draws on some of my experience and education etc.

Now, to work.............