Trading CFDs: was this luck or could it be a strategy?

[troyxlr8]

Hi all,
So I was following ASR advisory service but read one of the advice things wrong and lost 1300 in a demo account. So I started looking at how I could make it up,
I saw crude oil had dropped significantly over the last day or 2, so I thought I would buy long, lost another 1300,

So I was reading about how crude and gold would rise due to the 48min old news post about it rising after the report on US jobless data,
Sure enough I banged out +800 and bought another 10 gold, which went south -400, so I bought more -400 then looked at the chart and saw it dropped 3 or 4 big drops over the last hour so I thought whatever goes down must go back up, I read that gold was expected to trade at over 1800 at the end of the year,
I bought more, then to my surprise I won +5k

If this was real money I wouldn't of had the balls for this..

My question is, is this a strategy you would take? Or was it pure luck?

 

[tech/a]

Purest of luck.
Even the losses!

 

[VSntchr]

Hi all,
So I was following ASR advisory service but read one of the advice things wrong and lost 1300 in a demo account. So I started looking at how I could make it up,
I saw crude oil had dropped significantly over the last day or 2, so I thought I would buy long, lost another 1300,

So I was reading about how crude and gold would rise due to the 48min old news post about it rising after the report on US jobless data,
Sure enough I banged out +800 and bought another 10 gold, which went south -400, so I bought more -400 then looked at the chart and saw it dropped 3 or 4 big drops over the last hour so I thought whatever goes down must go back up, I read that gold was expected to trade at over 1800 at the end of the year,
I bought more, then to my surprise I won +5k

If this was real money I wouldn't of had the balls for this..

My question is, is this a strategy you would take? Or was it pure luck?

What you have to understand is, if it was that easy to form a strategy...why wouldn't every trader be rich?

To become good at trading you need plenty of experience, mentoring, wide reading etc etc..
Keep playing on a demo account while you start educating yourself...thats if your motivated enough to put some big hours into this.

 

[pavilion103]

Complete luck.

Educate yourself and develop a strategy with positive expectancy.

Be patient. Take your time. Get it right. No hurry.

 

[troyxlr8]

Thanks for the response everyone!

I've been trying with real money but sadly.. lost..

So with the big drops and big gains and hoping for a reversal, I thought this was something the intraday traders would use?

It seems alot of the stuff I have been reading has been geared towards long term or swing trading, is there other strategies I should read about for day trading?

 

[CanOz]

Thanks for the response everyone!

I've been trying with real money but sadly.. lost..

So with the big drops and big gains and hoping for a reversal, I thought this was something the intraday traders would use?

It seems alot of the stuff I have been reading has been geared towards long term or swing trading, is there other strategies I should read about for day trading?

Unless youre already a gun trader, day trading with CFDs is a recipe for disaster....been there lost that one!

Educate, save...the markets will still be there later...

CanOz

 

[cynic]

Unless youre already a gun trader, day trading with CFDs is a recipe for disaster....been there lost that one!

Educate, save...the markets will still be there later...

CanOz

+1

On the subject of CFD Demo accounts:

Last year I opened one to paper trade a strategy that I wanted to test. I made a >50% profit within the first 20 minutes!

Despite having previously traded live with that same provider, I never enjoyed anything close to that level of ease and profitability. In fact I lost money for four consecutive financial years and ended up changing provider. (Interestingly enough, my luck dramatically improved thereafter.)

Isn't it curious how the game changes when there's real money at stake?!!