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The Industry Breakdown: Trading CFD for Dummies

CFDs are a way to trade at all levels of expertise. Trading CFD for dummies courses are a great way to become familiar with CFDs and understand their basic use.

Trading CFD for Dummies Courses

Trading CFD for dummies courses are good for understanding basic CFD trading and ideas. Most of these courses however fail to mention that the real benefits of CFDs lie in superior liquidity and pricing linearity. Most people argue that CFDs are affordable, nice and offer good leverage, but that’s not much of a deal. Many other instruments are also affordable and nice, and offer high leverage, but are really bad to use. The real hidden, unique advantages of CFDs are superior liquidity pools and linear pricing. These two make all the difference, and make CFDs perform so much better than other instruments. Better liquidity means getting a better price every time. You can trade stocks through CFDs, and short stocks even when stock traders cannot do short-selling. That’s one example of unfair advantages that CFD traders get to have. But linear pricing and good liquidity are evident everyday, through efficient trading and better filling prices. Profitable online currency trading through CFDs is a very appealing missions for all new traders. They all want to learn to trade in order to make extra money on the side. And while trading is surely difficult and confusing, CFDs definitely can help in boosting one’s profitability.

Trading CFD for Dummies Willing to Be Different and Better Traders

Good trading CFD for dummies education is provided by veteran traders and analysts who understand different markets and methods. The objective is to teach these new traders how to trade better and more wisely. And the biggest challenge lies with risk control. Well, CFDs actually make it possible to effectively hedge open losing trades. In ways that it would have been too hard through other instruments. Online CFD analysis is all about gauging market momentum, breakouts and volatility. When conditions are right a simple CFD trade can lock the loss on an open losing trade. And this averts a lot of confusion and impulse trading decisions. That’s why trading CFD is much more than just affordable leverage. Hedging is a natural occurring though that comes to the minds of many new traders. As they explore markets. How many times have we all seen a trade getting stopped out at maximum possible loss, only to see the market reversing right there. New traders have realized that the use of tight stop loss orders just isn’t right. And that more flexibility is needed. Ideally, large stops and hedging methods, could be the way to go.

New Traders are learning Fast

Today’s traders are learning faster than ever, and are quick to challenge classic trading opinion. Good profitable traders are expected to come out from this generation. Because they have learned to think outside the box. So today’s dummies could be tomorrow’s super star traders. Affordable leverage surely does play its part, because without it traders would not be able to afford their trades. But remember that this is not the real power of CFDs.

CFD Trading Stories: Strategies from Trading Experts that Work

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 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.

An Intro into CFD Trading Software on the Market

CFD trading software tools and resources offer a power way to test new trading ideas. Wise CFD traders make use of such tools, to gain an edge in the markets.

CFD Trading Software Tools

Some cool CFD trading software tools include just about everything. From online CFD simulator tools to arbitrage calculators. Traders will do anything to test their ideas, before trading them live. And most complex trade ideas require risk assessment, which cannot be done through visual chart analysis. Effective currency trading is about preparation and having good insights into the market. And CFD contracts help make all this possible through their unique advantages on liquidity and linear pricing. So much so, that no other trading instrument can do the job better. The use of software tools is not intended to replace trader skills, but rather to automate routine tasks. To prevent mistakes, and to help uncover hidden profit margins in the markets. Software tools today are capable of running complex algorithms and uncover profitable trades. Trades that nobody else can see. They can also assess probability and do advanced hedging calculations. Especially in hedging, they are very useful and irreplaceable. Because traders simply don’t have the time to do calculations manually. Computers can automate all these tasks and provide stability in a trading system. The trader on the other hand, still has to have an opinion and think carefully when trading. Personal responsibility never goes away. Traders who think that computers can do it all on their own, will be disappointed because it simply cannot happen. Traders will always have to participate in their trading, because not all trades and tasks are routine.

CFD Trading Software Tools on Advanced Probability

Probability theory has been quite overlooked by amateur traders. But it is possible for them to make use of such theories in today’s markets. New CFD trading software tools dedicated to assessing probability, could do great things. Even help a trader recover a losing trading account. What such a tool can really do, is amazing. It could realistically assess market risk, based on your open trades. And advise you as to which markets should be traded next. So that total portfolio risk is better managed. Which means less market risk, less account margin is used. And also less probability of making the wrong trade. All online CFD training courses focus briefly on portfolio management. But software tools could take things much further. So effectively CFD guide books and resources are not enough. They are merely an introduction to CFD trading. Traders willing to make serious money in the markets have to go further, much further than the basics. And into probability and logical analysis. The good news is that it is possible to put computers and mathematics to work together. Traders who experiment on advanced trading, start with a spreadsheet and end up hiring coders, to implement their ideas. This is necessary, because every such trader requires a software tool that is about as unique as their fingerprints. So it’s not available for sale, it has to be developed from scratch.

Interesting CFD Trading Stories

There are CFD trading stories about this or that trader who made millions fast. But the methods or markets involved were surprisingly different that suspected.

Best CFD Trading Stories of Success

Some of the best CFD trading stories are about traders who thought differently than the rest. So we know about a trader – investor who made $2 million dollars though trading CFDs on sugar. And also about various scalpers and day traders who also made good money, at a similar percentage gain rate. The sugar trader was rich already, or at least able to somehow fund large exposure to the sugar market through leveraged CFDs. He simply bought sugar at the right time. And sugar simply followed the rest of the commodities higher and higher over few months. The probability of success was high, as sugar was coming out of a multi year down trend. And he even kept buying new dips on the way. The scalpers and day traders were mostly poor people, or at least people who could not afford to lose big money in the markets. So they put less money and much more active trading time. But they were able to make very good money over few months to 2 years. Much more than their former day job paid. So examples as these are stories of success. Since all these traders were very selective in the markets and methods they used. They knew how to trade CFD contracts and how to manage risk. And used a good CFD trading company, what is known as a broker. And these are not the only examples, there are more success stories of people trading various markets. And not two of these people think alike when it comes to trading. Each one is unique, in many ways. This emphasizes the complexity and opportunity seen in the financial markets. Remember that a market is not simply up and down, there’s also cost of leverage. Also known as foreign exchange currency swap in the forex market, which is either paid to you, or paid by you as a trader. Complexity is immense in all markets, even in that sugar market where one would think it’s just another commodity. It’s not, you can actually assess and calculate market risk in sugar. Based on seasonal and fundamental data.

Wild CFD Trading Stories

Some strange CFD trading stories sometimes come from wild traders, who took all kinds of risks to make their money. And while they don’t reveal their trade secrets, they do in fact make more money than you could possibly believe. And it’s not about using some magical forex calculator software, which tells them when to trade and when not to trade. Rather, they use years of experience, huge stops which defy belief, and risk management. The weird thing is that they are no more capable of predicting market direction than anybody else. These wild traders are daredevils willing to take more risk than normal. They simply cut losers short through empirical assessment skills. We have no way of knowing their secrets, but it’s safe to assume that they use some kind of mental stop strategy. It could be mental stops in the time domain. Or a more complex approach to assessing open trades. It looks risky because the trades need plenty of room to prove themselves, this means huge stops. But despite looking so messy, risk is actually less than it would otherwise be. Because they somehow feel the probability of the trade, and take action when necessary.Australian traders are savvy traders who tend to apply such wild trading methods, and to break classic, limiting trading rules. The kind of CFD trading Australia witnesses, does involve many such trading ideas. Which may in fact be innovative.

What to Know: Forex Trading Scalping Made Easy

Forex trading scalping requires intensive efforts but small trading capital. Earning potential is as much as $300 per selected trading day, in a small account.

Forex Trading Scalping Reality

Forex trading scalping is all about selectivity and trust in your trading system. Even flawed scalping systems can be turned around simply by allowing for greater risks, whilst also knowing how to deal with these risks. And the only risk is price breakout. Given enough trading online practice and risk evaluation, wise forex scalpers realize that there are ways to boost profitability. It’s all about scalping fewer, and better days, and during inactive trading hours, always. Wise scalpers identify a baseline price level, during those inactive hours, and trade the ups and downs of the market. If a good hedging idea is in place, so that they know how to deal with a breakout scenario, risk can be kept under control. The worst that happens to scalpers is when they expect a flat trading session, but the market seems to gradually move in one direction, leaving them trapped in a losing trade. So their assumed baseline is no longer valid. Hedging traders think as follows, first they start the session as scalpers. But when the session is ruined by unforeseen volatility or solid breakouts. They simply quit scalping and treat the open losing trade as a directional longer term trade. Now the daily chart becomes relevant, and if caught on the wrong side of the market, they will simply hedge the trade so as to be able to get out of it tomorrow, at minimum possible loss. Scalpers do make $100s per session, but some of them give it all back in a single breakout event. At least through hedging, one has time to relax and think things straight, through many stress-free hours. And as a result, they might be able to get out of very bad losing trades at very low loss. A loss which can be made good with only 2 scalping trades later on. Trading online made easy is only true, when one is flexible and adapts to market conditions fast.

Forex Trading Scalping for Account Recovery

Forex trading scalping is priceless when it comes to recovering a blown trading account. Traders who lost even 90% of their trading balance on large day trades and swing trades. They were actually able to recover it all through scalping. It’s almost like attempting to drive a car, whose engine has lost 90% of its power output. The only way to drive it is in 1^st gear, and it is possible. Against all odds, such traders were able to regain all their losses through tiny scalping trades, doing as many as 60 in a day! No trading online account is ever doomed, if the trader has a scalping emergency plan up their sleeve. Losing and retreating is normal in trading, but being able to adapt fast and recover, is a really remarkable achievement. Successful scalpers end up making a lot of money later on in their careers, through the experience gained. And even though we call them scalpers, their methods are actually more intricate and do involve hedging and day to day trades when necessary. Because that’s what tough market conditions require.

$300 Per Selected Day

Scalpers do make $300 per selected day, it has been proven on small accounts with $2,000 initial balance. Now imagine what can be done on a $20,000 account, per such selected scalping day. That’s more money than one can physically count, considering the speed at which scalpers operate. And yet it’s real and possible, for dedicated traders to achieve. Because market conditions make it possible during inactive forex trading hours.

Recommended Day Trading Forex System for 2016

A proven day trading forex system is that of LSS pivot levels. The daily LSS pivot levels are the levels where market price and momentum tend to react most.

Day Trading Forex System Based on LSS Pivots

The day trading forex system which works based on the LSS pivots has been proven to work. It works much better than news trading or any other kind of daily strategy. LSS pivots have great depth, and can therefore offer both simplicity and complexity. It all depends how far the trader wants to take things. But anyone who has studied LSS pivots even for just a week. Is bound to have seen market price stopping or starting right at some such pivot. And this is important in more ways than one. Because remember that asymmetries in price momentum can be used to adjust your hedging trades. LSS pivots also help traders achieve better risk control, by adjusting their stop loss orders accordingly. As oppose to using fixed size stops, which is so inefficient. All forex trading strategies can be greatly improved through the use of some LSS based method. And all forex charts today offer LSS indicators at a mouse click, there’s no need to calculate anything manually. 2016 was a year where LSS pivots were extensively used by traders, in an effort to enhance their trading methods. You can think of LSS as a momentum indicator, as support-resistance numbers, or simply as indecision levels. Where traders are not sure what’s coming next. The point is that they do work, much more often than not. And they are a great trading tool, as opposed to news based tools. They are also useful to scalpers, because scalpers have to figure out the price baseline to scalp around. And LSS numbers provide a solid picture of what is likely to happen. If the baseline happens to fall right on some LSS number, then there’s a serious risk of a breakout. So the wise scalper will not trade on that day. Or will look to find some other currency pair.

Day Trading Forex System for Wise Traders

A day trading forex system is expected to deliver some kind of edge, some advantage. LSS pivot numbers are often underestimated by new traders. And yet they work way better than Fibonacci, Elliot wave theory, or news based trading. The natural volatility cycles of the market often match LSS numbers. And this is the greatest insight a day trader can have on a day. The debate of day trading forex vs stocks is another interesting debate. And generally, traders prefer to use LSS pivots on forex trading. But the concept applies to many markets. Stock day trading is more advanced, more difficult. And it will have to include the use of complicated level II quotes. But when all this is combined with LSS, day traders gain good insights and can make very good money.

Forex is Simpler, at Least for Beginners

Forex is simpler than stocks, in all ways. Day traders may choose to trade one or the other, from time to time. But forex is simpler, there are no level II quotes, and there’s wide range of choice. Among so many foreign exchange currency symbols. Stock day traders are looking for something else in the market, not wide range of choice. But rather increased probability that the stock in question will move in one direction. This is possible to tell through fundamental analysis and daily level II quotes. But regardless of what one is day trading. All markets can be traded efficiently through CFDs. And there’s no need to reinvent the wheel or develop the next superstar CFD trading app.