First couple of CFD trades today!!

[coyotte]

In the long run if trading Ozz stocks U will probably find IG better than CMC.

CMC better for International though


Cheers

 

[Ants]

Good onya Youngun. Give it a go keep the risks small and you will gain knowledge and skills. Keep us informed as I would like to learn from your practice. Cheers

 

[Fab]

For those of you that are interested I am entering into my first medium term CFD trade today.

I have decided to go long on Lihir Gold once it hits $2.83. The price is currently at $2.80. Having owned this stock previously and wathcing it over a period of time its noticable the stock rebounds up and down like a yo yo everytime it hits the sub $2.70 point and the jumps back up to $3.00 ish.

I thought id have a bit of a punt on this and see how I go. If the share reaches the price of $2.83 a trade for aprox $8,000 will go through on a long position. Ill keep you guys updated.

What type of trading technique are you using for intra day. I only invest mid to long term but would not mind having a go at CFDs. The problem is that my understanding is to make it profitable you need to make at least a 2% gain

 

[Young Gun]

What type of trading technique are you using for intra day. I only invest mid to long term but would not mind having a go at CFDs. The problem is that my understanding is to make it profitable you need to make at least a 2% gain

I look for reversal patterns and trends on a 3 - 5 minutes daily graph, I havent really got my trading stratergy down pat.

Yes its true trading CFD's you do need aprox 2 % gain to make it worth while. However if you buy $15,000 using 95 % leverage , using a deposit of $750. A 2 % move will give you $300 or 40 % return on equity. A couple of succesfull trades a week and your returning aprox $1,000 per week....

However if the trade goes against you 2 % your also down $300.

 

[Young Gun]

So far so good, up to about $2.87 at the moment, roughly 2.7% in the past 2 days.

 

[caleb2003]

It can definitely go against you with the leverage, I traded on the UK100 yesterday (I am in the UK for the time being) and whilst all signs were bullish I went long only to be whacked by an unexpected interest rate ris, the thing the thing went down faster than a _ _ (fill in the blanks yourself). Luckily I actually applied good money management rules (it's finally getting in my head)
so I could ride the wave and was up at the end of the day the same amount I was down at the rate rise, with being so leveraged a lack of money management could and obviously does kill gamblers accounts who did such a thing.

Cheers and good luck

Ps I have a UK CMC account and it only shows me the ASX200 index so no Aus stocks at all. I presume if I convert it to an Aus one i'll get all the stocks?

 

[Young Gun]

Tis true I know their are alot of things that can go against you when you trading which is why whenever I trade I put a stop loss and prepare myself for the maximum loss.

With this trade I set my stop at $2.75 if it hits that point I would have lost $400 however I have already anticpated this and if it happened although I would be dissaopinted it isnt the end of the world , wont stop me trading ect ..

 

[Young Gun]

Ps I have a UK CMC account and it only shows me the ASX200 index so no Aus stocks at all. I presume if I convert it to an Aus one i'll get all the stocks?

Not sure, if you dont pay for extra ASX live market feed fee you dont get any aussie CFD's however you still get CFD from europe, asia, america etc etc ....

 

[caleb2003]

with the marketmaker sooftware I have it doesnt allow me to set stop losses?!?

 

[Young Gun]

Update​

The stock has hit a high of $2.97 and is hovering around that ammount , sitting on a profit of $300.00 or a about a 80% return on my investment.

 

[Young Gun]

Stop losses can be cruel .

I purchase 40 oz of gold at $25,000 US last night because I was admit Gold had performed well under the strong fluctuation of oil. I bought in at about $624 US two days ago , setting a stop loss for $620.

I wake up today the price of gold has risen over 1 % to $633 an oz . But guess what ???? It just triggers my stop button , bloody hell ....

 

[Sean K]

That's a pretty tight stop YG. Any reason to set it that close? Is that a % drop from your buy in?

In golds circumstance it might have paid to place a stop just under $620 as this has been a support line for some time. So, I would have expected gold to bounce off that level, which it happened to do - it might not have, but that's where my stop would have been....Depending on the stock and circumstance, I set stops at a 10% loss, or just under previous support because I expect the stock to bounce off that level - depending on the strength of the support line. So, in this case, I might have gone for $618....Just my ideas, others will have different plans...that may work better.

Good work with LHG. Have you set a sell at a % gain, or at a resistance level? I see resistance at $3.00, $3.15 and $3.25.

Stop losses can be cruel .

I purchase 40 oz of gold at $25,000 US last night because I was admit Gold had performed well under the strong fluctuation of oil. I bought in at about $624 US two days ago , setting a stop loss for $620.

I wake up today the price of gold has risen over 1 % to $633 an oz . But guess what ???? It just triggers my stop button , bloody hell ....

 

[proudwanderer]

Hey Young Gun,

What software are you using to produced all the charts you've posted up?

And where are you getting your instant up to the minute data feeds - and how much does it cost?

Thx

 

[Young Gun]

The graphs are from market maker which is free with CMC Markets. In order to trade Aus CFD's with CMC markets you need direct market acess. This is I think off the top of my head $50 per month , or if you make 4 trades a month its free.

 

[porkpie324]

It's 38 per month and free after that ammount of commission with CMC. porkpie

 

[motion]

Hi YoungGun,

Great post and info have followed you for a while. I'm just new to tradding and would like to get into CFDs.

Can you tell me are CMC Markets Australia any good ? and also any tips for who to use and what to read for starting out would be great.

Thanks again keep up the great work.