What CFD Tutorial to Choose

CFDs are simple to learn, though they can get complicated on tax issues, as these are country specific. Any CFD tutorial focusing on one aspect though, is good.

One CFD Tutorial at a Time

Any CFD tutorial focusing on one aspect at a time, and doing some digging, will be good enough for most readers. Most articles and tutorial which are generic in nature don’t help much, but they are good for introducing the reader to the general concept of trading CFD. But in order to really go deeper on the individual aspects, such as hedging, stock specific hedging and trading, commodity hedging and tax benefits, one has to use specialized tutorials and articles. The tax issue alone is massive one, but as with all money and income related matters, one has to become a specialist in order to reach the real benefits. Tax planning is useful, as it helps minimize your tax liability and capital gains tax. In most countries it is possible to offset investment losses through CFDs and even take things further when one combines CFDs with the spot market. As far as CFD trading platforms go, one does not need to use a tutorial. Platforms can be used and set to custom settings by the trader themselves. One needs to get brainstorming ideas out of specialized tutorials, but once that has been done and the content has sunk in on their mind, it’s time to get creative. CFDs can be used in a million different ways. Such as for the purpose of hedging impossible adverse market conditions, minimizing tax liability and even saving a fortune on capital gains tax. Most traders don’t like paying capital gains tax because they feel the government is profiting out of their hard earned profits, as if taking a good portion of their profits. While the same government was not willing to take a share of their losses when these traders were losing money. Bear in mind, that some of the world’s top traders endured long, painful learning curves where they were losing money for years, before finally making millions. So the idea of capital gains tax does not appeal to these people, because they feel they are robed by their governments. Because they took all the risks on their own, to make those profits. A good tutorial on tax planning is a must in this case.

 

When a CFD Tutorial is Not Good

A CFD tutorial is about providing specialized guidance and great insights into using CFDs to improve your trading strategy and overall efficiency as an investor or trader. Generic tutorials that simply explain what is CFD trading, in a nutshell, are good for beginners. But they are not good for serious traders willing to pursue the trade above and beyond the minimum. Many poorly put together tutorials focus too much on the benefits of leverage and tax planning. And they mention nothing about the benefits of linear hedging and one way liquidity, which are actually extremely important! Generic tutorials are understood right away, as they are intended for amateur investors who are introduced into derivatives trading for the first time ever. So they are not good for those investors and traders seeking to gain that edge, which is only possible to learn through specialized tutorials and educational materials. Tutorials lasting less than 30 minutes, are unlikely to touch upon these issues.