Tips for CFDs Trading

Tips for CFDs Trading

When you get started trading CFDs there are a few basic tips you might want to follow to make the most of your trading experience. It’s true that trading the markets can be complicated and will seem incredibly difficult at first, but by following three tips you can soon get up to speed and hopefully improve your trading success.

These three simple tips are below:

  1. Focus on a small number of markets. With so many different markets available to trade with CFDs you might be tempted to try them all.  This often process to be a recipe for disaster. Instead put your focus on no more than three markets initially and you’ll be able to improve more quickly. If you focus on a small number of markets you will have time to research each of the markets in depth each day. You’ll be able to place small trades in at least one and perhaps all each day as well. And with each passing day and each new trade you’ll learn more about what makes that market tick. You’ll see what the normal volumes are, you’ll find out if the market moves more at certain times of the day, and you’ll learn which economic reports are likely to move the markets. This is the best tip if you want to become an expert in any given market.
  2. Decide what timeframe is best for you. Some traders love the excitement that comes from trading very short time frames, but others can’t stand the stress of making split second decisions, and prefer to trade longer time frames. Decide when you begin trading if you’ll be a long term trader who focuses on weekly and monthly time frames, or a short term trader who focuses on daily, or even moves that can occur in minutes. By utilizing this tip you’ll be a more relaxed trader and a more confident trader as you follow your own personality traits rather than trying to fight your natural tendencies.
  3. Have a trading plan. It’s critically important that you don’t just jump into the markets without a plan. Before placing any trade you should have already completed your daily research and know whether you want to go long or short, why you’re planning on going long or short, where you’ll enter and exit your trade, and how much capital you’ll risk on each trade. By having all of this decided in advance you can avoid putting your capital at greater risk than you’re willing to accept. You are also more likely to avoid mistakes that many traders make when they trade without a plan, most notably those related to greed and fear.

These three basic tips are not only enough to get you started in trading CFDs, they will also serve you well for your entire trading career. Always keep them in mind and if you stray from them focus on getting back to the basic tips.

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Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.27% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance does not constitute a reliable indicator of future results. Future forecasts do not constitute a reliable indicator of future performance. Before deciding to trade, you should carefully consider your investment objectives, level of experience and risk tolerance. You should not deposit more than you are prepared to lose. Please ensure you fully understand the risk associated with the product envisaged and seek independent advice, if necessary. 24option does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of any financial product. Rodeler Limited is not a financial adviser and all services are provided on an execution only basis. Please read our Risk Disclosure document.

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Rodeler Limited does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of any financial product. Rodeler Limited is not a financial adviser and all services are provided on an execution only basis.