CFD Trading Advice for Beginner Traders

All beginner traders seek advice. CFD trading advice is very useful, regardless of the chosen strategy. As every strategy can improve with few tips and tricks.

CFD Trading Advice for Beginners and those Lacking Confidence

Most good CFD trading advice focuses on strategy development, and on sharpening one’s trading skills. Trading CFD contracts offers some good benefits, the biggest and most important of them is liquidity. This makes it possible for traders to take a more flexible approach to trading their chosen markets. So instead of focusing on precise entry and exit levels, as popular myths suggest, the flexible approach works best, and embraces volatility much better. Precision does not work in the markets, and nothing which claims precision and accurate trading ever works. The flexible approach means that the trader is willing to be wrong first time around, and willing to add to the open losing trade. The next step is to focus on longer and longer time frame even as the market moves against them. At that point, the trader may trade both sides of the market, and only marginally favoring one side over the other, for example buying over selling. This offers great flexibility, which through the linearity and liquidity of CFDs offers big profits in every such trade. The open losing trades can be hedged, or placed under scrutiny for a while, but an open loss does not in any way suggest that it is a wrong trade.

CFD Trading Advice Beyond Myths

CFD trading advice focuses on the properties of CFDs, which are unique, and takes advantage of flexible trading approaches and linear and precise CFD pricing. The same flexible approaches would not have been possible through Futures, as the element of linearity is not there. And not even through the spot market directly, because liquidity tends to play nasty games against traders, and day traders especially. CFD trading platforms offer the tools required for flexible trading, whether it has to do with a stock, commodity, or investing in foreign currency. Markets tend to pull back all the time, and to also create false moves. But most importantly they tend to prove analysts wrong, either on the timing of the expected move, or on direction. Trading with precision is the wrong way to go, and it can never be done. Simply because, the more precision there is in a plan, the more uncertainty its execution creates. A flexible plan acts like a suspension system in an automobile, where it is okay for the road to be unpredictable. And the objective is to turn adverse moves in the market, into opportunities. All the trading advice that exists out there, about using tight stops, low risk reward ratios, and never adding to losing trades, is downright wrong and not in touch with reality! And the proof to this are those rich traders, whose trading does not involve accuracy, nor any of the trading myths.