Why Your CFD Trading System Platform Matters

Having a good CFD trading system is about selectivity, and the ability to dig deeper and deeper in every trade and set of market circumstances. And while the financial industry is based on statistics and probability, their formulas are based on risk measurement in a very general way. Just like car insurance firms, who adjust insurance premiums from driver to driver, so as to cover their own risk accordingly. This kind of statistics is very broad based, is diversification-based and not necessarily good for retail traders. The retail trader needs to avoid excessive asset diversification, and focus more on the single trade. Car insurance firms have no way of knowing who drinks and drives, who drives carelessly etc, so they use primitive statistical facts to charge higher premiums to drivers who fit these high risk profiles. If these firms had very specific information on risky drivers, they could avoid them altogether. Drivers who may cause millions of dollars of damage, in a single accident. Well guess what, CFD traders can go this deep in many single trades, and identify big losers and possible winners. So there is no need for much diversification. Moreover, if hedging strategies are used, through CFDs, there might not be need for diversification almost at all. It’s one smart trade, on one market, and that’s it! The probabilities can still be very good. Online cfd brokers allow this kind of sophisticated trading, and wise traders take full advantage. Any good CFD trading system can beat the odds, just as long as the trader is able to identify the uniqueness of each trade. Diversification and high frequency trading, based on large sample statistics can still work — it’s not that the theory is flawed. But the profitability is nowhere near as good as that of the wise CFD trader who makes unique trades, and no two trades are exactly alike. Online CFD trading has come a long way. Most CFD traders actually are not fully aware of the hidden benefits of CFDs. And these have to do with hedging a single trade, any trade, in a very good way. So that the trader doesn’t have to worry about diversification, and statistics of large samples. Rather they have to worry about trade-specific parameters, such as volatility, trade size and timing. Probability theory applies, but in a different way.

The Best CFD Trading System

Evidence evaluated in actual CFD trading and hybrid systems utilizing CFDs, does suggest that a CFD trading system can be made to be far superior to any non CFD based system. Rather, CFDs allow traders to hedge risk on a single trade, in a very efficient way. Without using advanced CFD trading software, or premium trading tools such as Expert Advisors and the like. Simply, by focusing on the uniqueness of the day, of the week, and the trade itself, traders are able to create asymmetrically low-risk / high-reward trade possibilities. These strategies do exist, and they are more strategies than actual systems in that they require a lot of personal judgment. And therefore they cannot be emulated, cannot be easily taught, and are impossible to prepackage and sell. But any wise-enough curious CFD trader will figure them out to some extent.