The ABCs of CFD Trading: Beginner Strategies for Earning Profits

By Gergios Vergakis - on June 23, 2016

The best CFD trading strategies for beginners are the ones that allow the trader to make enough money. So as to feel content with the overall work and the benefits of the actual trading. And in such a way, that they won’t have to deviate from the strategy and chase different trades here and there. While there is nothing wrong with some strategy diversification, beginners may find it overwhelming and confusing. So sticking to one strategy at a time, and for a long time, works better than anything else. These best CFD trading strategies for beginners have to take advantage of the unique benefits that CFD contracts offer. In actual trading, it has been proven that swing trading strategies offer just that. Very good profitability, the ability to stay focused on one market, and plenty of trade setups. It does help to know the basics of CFDs through some trading CFD for dummies guide. And when it comes to the forex market. The swing trading principles, all part of the more general swing point analysis theory. Are all a trader needs to know. Swing traders utilizing other currency trading strategies are able to avoid many false signals, exactly because swing point analysis reveals these signals. There is also much less emotion involved because the trades last anything from an entire day to several days or even weeks. And this is so different to the intense, stressful day trading strategies. Which make many new traders lose time after time. Day trading is fine to try out, but only experienced swing traders have a good chance of success. Day traders who use dry systems, and focus only on the single day, miss too much information about the daily trend. The swing trader doesn’t miss that critical information, because they pay attention to the entire daily chart. So that yesterday’s trading session is still relevant today.

CFD Trading Strategies for Beginners
Swing trading does suffer from false signals, but it is still a much more reliable strategy than many others. This is because the intraday volatility of the news cannot change the daily trend. With the addition of few technical indicators, the strategy goes even further. Plus the trader can hedge temporary or permanent losing trades. The day trader cannot do these things.

CFD Trading Strategies for Beginners Lacking Confidence

CFD trading strategies for beginners who lack confidence can be based on swing trading theory. But they can also include a simple hedging trade setup. And there is plenty of time to place, modify or cancel that hedging trade at any time. By looking to hedge sudden big losing trades, the beginner trader will feel more comfortable and not go around chasing losses, without having enough clues. They only need to know that the daily trend will not really change unless a valid swing point is breached, in a valid way. Swing trading theory deals with all these problems and ambiguities. And more often than not, even in the most confusing cases, the swing trader who also hedges losers, is able to tolerate a lot of risk. While simple, straightforward winning trades will always come back. The concept of trading online made easy is true here, as the hedging trader does deal with a difficult task. And they are able to be in the market, and still not be intimidated. Intimidation and extreme stress are huge obstacles to becoming a profitable trader. The wise beginner trader only needs to trade once or twice a week. And they can also prepare their hedging trades accordingly. If the trade size is large enough, the profits will make the entire trading task meaningful and worth the effort. There absolutely is no need to jump into day trading and high volatility when you are a beginner trader. And successful trading is not about committing full time, but rather about committing few hours a week, but with a deeper, sharper judgment on the markets. And ideally, doing these hours of analysis outside of the chosen market’s active hours. The-non active hours are much better for doing objective analysis.

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