CFD Trading Stories: Strategies from Trading Experts that Work

By Gergios Vergakis - on January 8, 2017

Old wise traders have many tips to offer. Their CFD trading stories are among their best. Since they are about linear and efficient trading, in tough markets.

CFD Trading Stories From the Past

Some interesting CFD trading stories from the past underline the difficulties and excitement of trading. All older traders are familiar with direct access trading, limited leverage and legacy trading platforms. But in the last 15 years or so, they all moved, more or less to CFD trading platforms. They now know how CFDs benefit their proven strategies and methods. How does CFD work to facilitate all that, has all to do with how CFD contracts are priced. They simply follow the markets very closely. And work better than the underlying markets themselves, so in effect they are better even than direct access trading. Because the benefits of superior liquidity are available in CFD trading. But liquidity issues common in the actual markets, are almost completely eliminated in CFDs. That’s because CFD liquidity pools work like small harbors for small ships. By providing access to the open wide sea, but at the same time preventing risky waves from reaching deep inside. CFD liquidity advantage is clearly proven in stock trading. Where CFD traders can short any stock they choose, even if the SEC in the US has imposed temporary short selling restrictions on all stocks. In the other markets, this unfair advantage is still there, but is less obvious. Whether investing in foreign currency or stock day trading online. These older traders have many relevant stories to tell. Their most proven working strategies remain either secret, or too psychology based, and hence difficult to figure out. However, it is evident that wise profitable traders fall into various different categories. And they have different levels of risk tolerance. In general, they all are addicted to trading. And they all have some kind of preference for one specific methodology. This is how we know that strategies based on LSS pivots, time zones and volatility, really do work. As opposed to strategies that rely too much on Fibonacci, oscillators, and moving averages, which we know definitely don’t work. Time zones for example, tell forex traders when a currency pair has the highest probability for either making a move, or trading flat. Wise forex traders cannot afford to ignore time zones. It has been proven beyond doubt, markets trend at specific time zones.

CFD trading stories
Pattern recognition for the purpose of trading the financial markets is still in its infancy. Such commercially available products are too primitive and overrated, so don’t bother wasting money on those. But serious, objective research based on intermarket analysis, LSS pivots, volatility variables and time zones, is very promising. Because it is possible to find real patterns, not random events, and end up avoiding many false trading signals. By eliminating more and more false signals, what will remain, will be a series of very profitable trades.

CFD Trading Stories From the Present

Today’s CFD trading stories follow in the footsteps of the pioneer traders. Who first used these methods and tested them to the limit. Today’s traders go a step further by making use of software, calculator apps, and more complex formulas. Back in the 60’s and 70’s probability and mathematical formulas could not be used in real time. Because there was no way to have them running in real time. Today’s traders can, as both market data and computers make it possible to. CFD trading strategies for beginners don’t go this far. But even beginner traders soon come to the realization that mathematics and computers really can enhance all strategies. Even the best old timer trading strategy can be drastically improved through some automation. Today’s traders go as far as using pattern recognition formulas, to infer hidden relationships between different markets. And this makes it possible to assess trading signals much better. So that false signals are detected and avoided. But in order to successfully embark on the quest to develop such a good strategy. It is important that the fundamental principles and ingredients are good. That’s why successful trading comes down to LSS pivots, time zone analysis and volatility studies. If you focus your research on momentum, which is neither correct nor misleading. The quest will be harder. Momentum in the financial markets is misleading at least half the time. While it is useful the rest of the time. But it’s not a key ingredient for going deeper into a market’s inner workings. Momentum is only useful when traders look at the longer term. So as to what will happen over a week or a month. But for day to day momentum readings, your findings will be misleading and will not lead into safe conclusions.

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