This coming week I have a break from work and would like to trade the XJO and various forex pairs using CFDs. My aim is to (by the end of next week) not look like an absolute fool.
I am inexperienced. Wish me luck please.
hey, BFB
as youre inexperienced and cfd's are a made market (not direct to market, theyre synthetic) please tell us what made you decide cfd's are a better route for you to travel
in other words please define what the word "trade" means in terms of transactions thru a synthetic platform,
that has no volume feed and no direct access to exchange data, thus, no effective indicia component,
keeping in mind that all-hours charts distort the outlook of cash-hours charts
interested to read your thoughts
about your post:
keep in mind what you look like is irrelevant (i say) to the longterm business youre running, would it be better to
aim for a successful failure rather than a appearance of smarts(?) .....a successful failure is where trade(s) fail yet
you can concisely nail what it was that caused the draw-down AND - more importantly - you can define what made
a win rather than just accepting you made a win, so it can be repeated, so that the draw-down can be understood
and added to your knowledge on what
not to do
everyone starts inexperienced, "everyone has a plan until they get punched in the mouth*", it's not the punch you
throw its the defence you have that determines sustainability, do you have the right capital size, do you understand the margin steps,
how much youre likely to lose when you do lose based on youre strategy versus the margin requirements, do you know the media affects on releases, the non-affects of media releases in trends, how news impels price, how binary events trap players, do you have a plan to stay out of news releases, do you know when liquidity is highest or lowest in a session, do you know what a puke trade looks like, an exhaustion trade looks like, do you know the difference between a congestion trade or an impulsive trade, do you know how to define a range trade, how to trade a break-out, know how to recognise a fake-out of the range or (charting) line break, do you understand the difference between cfd price bar and a cash price bar, do you understand how some (cash) opens trade, versus, how some (cash) closes trade, what instrument is best for you, do you understand intermarket pressures, when theyre likely to matter or irrelevant, in which phases would likely-ness matter, do you know how to judge where other players consider value, price bids get rejected, where the offer is rejected....
anyways, the point is, inexperience is fine of itself, way below the radar versus dimiwittery, alternatively, if you simply have a bag full of cash, just bored, then sure, give it a go and donate to the person on the other side of your "trade"
otherwise nobody here is going to laugh, we are far more keen to communicate and help where possible, cfd's are merely a transport for wealth to you or away from you, given that that is true, look around ASF to spot other traders and how they practise their craft
frankly, trading cfd's is fraught with danger - first clearly
define a trade edge over the instrument(s) you want to transact with - have that then jump in and while you can develop as you go, you still need to define a strategy for safe learning
someone i commend to you is @asennawealth twitter - he can take you thru trade edge for cfd's
*thanks, Mike Tyson