CFD Trading Strategies for Beginners to Trade Like an Expert!

Some CFD trading strategies for beginners really could help many clueless traders improve their trading. And even quite possibly turn from losers into winners.

Best CFD Trading Strategies for Beginners

The best CFD trading strategies for beginners rely on basic probability analysis and basic well proven tips. Most online CFD training courses focus too much on the wrong stuff. As well as on naive trading theories, which cannot withstand real trading conditions. These courses provide a sense of comfort to beginners, but most of what they teach is downright wrong! Beginners should focus instead on flexible trading systems and strategies. And always take probability theory into account. Probability theory is counter intuitive in its results, but it does reveal facts closer to the truth. In doing so, new traders will have to break some of the classic trading rules, and be bold enough to apply critical thinking. So as to challenge their mentors and educators. Trading CFD for dummies kinds of courses on the other hand, are useful for understanding CFDs and some of their inner workings. CFDs have simple pricing structure, and simplicity is one of their advantage. These CFD courses are only the basis for getting into CFD trading. They are important because traders can get to see how CFDs are used to hedge market risk very efficiently. As beginner traders move on, away from the basics, they will have the chance to think for themselves and decide which practices to keep and which ones to ignore.

CFD Trading Strategies for Beginners who Want to Keep Things Simple

Keeping things simple is nice, but unfortunately things are never too simple in trading. Simple things can turn into complicated problems in no time. CFD trading strategies for beginners could be greatly improved if the student trader forgets all about disciplined trading and mechanical approaches to the markets. The good part of these strategies is probably in the way that educators teach you how to pick entry points. This part of their methodology is usually good, but again one has to add more flexibility. Which means using larger stops, than the ones educators recommend. Today’s CFD trading platforms make it easy to embrace risk, through the linear pricing of CFDs. Which means accurate hedging and great flexibility. There is absolutely no reason to use tight stops in today’s markets, in fact very few strategies use tight stops. None of which is of beginner level. Online CFD brokers facilitate smooth, fool proof trading because their platform designers have anticipated the mistakes a rookie trader will make. All in all, great flexibility is offered through simplicity and fool-proof design. CFDs however meet the needs of a wide range of traders. From beginners to very sophisticated traders.

CFD Trading Strategies for Beginners
Problem solving in general does involve both simple and complicated methods. Trading is even more weird, because simple problems can become too complicated, and seemingly complicated problems may have deceptively simple solutions. Moreover, all indicators suffer from ambiguity, as one takes a closer look into something as simple as a moving average, things start to become ambiguous. Probability theory can come to the rescue and clear things up, as to what is more likely to happen over a given time interval in the markets.

Simple or Sophisticated, which Makes More Money?

In the financial markets, the most advanced traders actually use multi-strategies, which combine both extreme aspects of trading. Both simple and complicated. A simple strategy for example may be based on a 10 day moving average and the market closing value of the last 3 days. An advanced strategy could be based on trading volume, active or inactive market hours, and LSS pivots. And throughout the trading week, both such strategies may be used to infer entry points to the market. Sometimes the simple wins over the complicated. And sometimes the simple needs time to consolidate before catching up with the market again. Wise CFD traders actually use both simple and complicated concepts.

8 Reasons Why You Should Take the Time to Learn Forex Basics

If you still wonder why learn forex basics, take a look at traders’ mistakes. They all boil down to ignorance of basic principles and basic risk assessment.

Learn Forex Basics in More Depth

You can actually approach learning through a hand-on method, in all kinds of subjects. Not just forex trading. In fact, learning becomes powerful and meaningful when the problems and challenges of life are presented first. The principles and ideas constituting the solutions should come second. Because if one fails to understand the usefulness of a theory. Then they are no longer motivated to learn a great deal about either the problem itself, or the possible solutions. Problem solving is interesting when one faces the problem, and then turns to theory. In the case of forex trading, some typical problems are risk assessment and management. Dealing with open losing trades. Identifying false market moves. And even recovering trading accounts that have been blown by more than 70%. All these problems look impossible to tackle, but actually aren’t. As the forex trading business opportunity appeals to to more and more people, the brokerage industry wants to make things easier for them. By not presenting too much complication. And by facilitating efficient, fool-proof trading. However, you can do better than the majority of these traders, by ignoring classic trading advice. And by solving those big problems of forex trading. That’s what will ultimately minimize risk and trading losses. And when most of the risk is removed, what will eventually remain will be a very profitable trading system.

learn forex basics
Necessity is the mother of invention, and in the case of the early light bulb the problem was to make it more efficient. So through more and more research and critical thinking, hidden properties of light and of the atom were explored and quantum mechanics was born as a result… And there was a rebellion against established opinion at a time. Basic principles of physcis however held, and it was them who led the revolution.  In the case of trading, the older generation hangs onto mistaken, unproven ideas, which fail under close scrutiny. But the fundamental principles surrounding market risk and price action are real.

 

Learn Forex Basics from Anyone Who Can Explain Clearly Enough

You can learn forex basics from all kinds of sources which explain principles well enough. Basic definitions such as pip size, leverage, and volatility. As for the problems themselves, and defeating market risk, you should not take much advice from anyone claiming to be a professional. Strangely enough, all educators claiming to be professionals actually provide generic risk management advice. And this advice fails to solve those key problems in real trading. Educational sites and resources are filled with all kinds of tired old tips, which are total nonsense. Tips such as…cut loses short and let profits run, or never add to a losing trade… These are all nonsensical trading tips, that are simply made to make you feel good. And of course they are useless. But here’s why:

  1. Classic investing risk-reward ratio contradicts small risk-reward ratio proponents in forex trading.
  2. Carry trading basics contradict those who claim that risk cannot be hedged.
  3. Probability analysis contradicts believers of random markets.
  4. Market charts contradict the tip of never adding to a losing trade.
  5. Market charts contradict the naive definition of support and resistance.
  6. Basic price analysis contradicts proponents of disciplined trading.
  7. Volatility contradicts most of the claims of proponents of news-based trading systems
  8. Volatility contradicts the concept of let profits run, how do you define an open trade as profitable?

Critical Thinking is Required

By applying all this critical thinking and challenging established opinion. You will see more of the truth. The forex market and its problems cannot be handled through naive tips and nonsense. The very basic principles of forex clearly indicate that classic trading theory cannot deliver on its promises. Whether you are a slow trader or day trading forex live, these basic definitions will help you sharpen your judgment and apply critical thinking to your trading. It’s odd, but all those who claim to be professionals and experts are actually providing nonsensical trading tips. The most ridiculous of which is often their definition of support and resistance. It’s so ridiculous, that it makes these so called professionals look right, no matter what the market does. Because if the market rallies it fits their naive resistance theory. And of the market falls, it does so because it breaks below their naive support level. How convenient is that. In today’s markets, many new traders are enticed to start trading based on such ridiculous tips. And thanks to various, reputable, CFD, forex brokers minimum deposit, it’s very affordable too. The problem is that lack of critical thinking on the part of the traders. Due to lack of knowledge of the basics. Eventually leads to frustration and the inability to trade even in the easiest market conditions. So do learn forex basics, and apply critical thinking. No matter who the expert giving you advice is!

How to Mix Day Trading Forex Live With Your Day Job

Day trading forex live is always difficult and requires good preparation. The more one prepares the less effort they will have to put into actual day trading.

Day Trading Forex Live Through Preparation

All emerging forex traders still have day jobs. Which require them to make the best use of their available free time. The question is whether one can trade either from work, or on the way to, and back from work. In big cities around the world, actual traveling times are at least 40 minutes each way. Day trading forex live cannot be actually performed during traveling. However the trader can put this time to good use, by preparing for day. Through looking at the markets, deciding what to trade and so on. So that they can place the trades at work. Or from back home. But that’s only for slow day trading. For more fast day trading, one has to be at home, at least for 2 hours. The forex market offers wise range of currency pairs. So every trader can find some active trading pair. During the most convenient local time. Remember that strategies such as scalping requiring the opposite, that is inactive trading hours. And again, the trader can find pairs that are inactive during his chosen local hours. In any case however, the most important factor is the trader’s own mental state. If the day job is too exhaustive, either physically or mentally. Then the trader will have difficulty in focusing properly on the markets. Though addicted traders actually find relaxation in trading. And all traders, both losing and winning ones, are addicted. Addiction is not necessarily a bad thing to have. And seeing through all these foreign exchange currency symbols, right after work… Yet the addicted trader knows their stuff and where to find opportunity. They trade forex online because the ultimate goal is to either become a slow, large size trader, who still has a day job. Or to quit that day job, by becoming a full time trader.

Day Trading Forex Live while Considering Leaving Your Day Job

The psychological aspects of day trading forex live are interesting. Most people gain some confidence when winning, but lose all confidence when losing. And this confidence determines whether they will leave their day job or not. The wise thing to do in this case is to have a huge, diverse trading strategy, a multi-strategy. By doing so, the confidence from trading success will be more realistic and more fool-proof. Even if you make too many mistakes and one strategy fails. There will be another small strategy there in. One that is big enough to keep you winning and prevent you from developing too much fear in your mind. The goal is to eventually quit your day job, or to at least have a part time job instead. Many day trading forex live review reports focus on single strategies. Strategies that are inherently unstable. To be fool proof, the strategy has to be diverse, and to have emergency plans. So that if the trading account balance drops below a certain level, a totally different strategy will be used. CFD Forex brokers minimum deposit requirements also make it easy to have multiple accounts. So that different trading accounts are used for different strategies. You simply have to watch the total balance once in a week or so.

How to Mix Day Trading Forex Live With Your Day Job
Built-in redundancy is critically important, because remember that if anything can go wrong, at some time it will go wrong. Your single day trading strategy may be failing for weeks at a time. That’s why a multi-strategy approach is best. It will take you at least 3 years to develop such a multi-strategy, and this means at least 3 years of trading before quitting your day job. Until then, you can combine both. Or you can keep both for many years to come. Remember however that the job market is doing its best to make you redundant in your day job, so you should always have little trust in your job. And do use the concept of redundancy to your advantage through your trading.

Quitting Your Day Job is Possible

Forex trading is magic. It takes preparation, studying the markets and how the traded in the last week. But once you build enough confidence, you will see that trading is quite fair. In fact, the forex market is a better employer than the one you currently have in your day job. Because it pays fairly and impartially. The only thing you have to take care of, apart from winning, is insurance. Everyone needs to have insurance, and good traders actually have private insurance and this gives them even more confidence. Because major financial risks are covered. And because nobody will ever tell them.. You are fired!

Our Advice – Learn Forex Basics and Beat the Market!

A trader’s learning curve is cut shorter when they learn forex basics in-depth. This enables them to be an active rather than a passive trader, thinking right.

Learn Forex Basics beyond the Obvious

Traders who learn forex basics have a better chance of evaluating their own trading systems right. As opposed to traders who fail to understand them. All basic concepts, such as market terms, pip value calculation, leverage and volatility, are all important basics. All forex strategies will require you at some point to reevaluate them, and possibly make improvements. Basic training also includes definitions of swing trading theory, and picking entry points. Even though the task of picking entry points in the market is enormously huge and diverse. Traders can learn the basic ideas which define the average market trend. All these things will not make you a trader. But will act so as to improve your judgment on the market. Carry forex trading requires all these basics, and a good understanding of the definitions, at all times. As profitability in Carry forex trading is often hidden away. And only after few calculations can traders figure out whether there is a profit margin or not.

Learn Forex Basics for Hedging Strategies

Carry forex trading is a hedging strategy itself. But there are many more concepts where hedging is used in one way or another. Accuracy of calculations is extremely important. And knowing the basic definitions helps avoid miscalculation of market risk. When you learn forex basics, you should not think like everyone else. Rather, you learn in order to be better than the average trader, in real trading. And not for the purpose of impressing your friends with your knowledge of forex. They all want to learn how to trade forex but most are lazy, and only after the easy way. Lazy learners cannot make it far in the financial markets, because they focus too much on entry points. While ignoring money management and basic risk calculation. Which means they will find it increasingly difficult to assess risk in more complicated scenarios.

learn forex basics
The basics of forex trading can be used to formulate new theories on risk control. Mathematicians don’t do this, because they don’t know much about forex, while traders are ignorant of the predictive power of probability theory. It takes a curious trader to bring the two together, and to put probability theory to work in the dimension of trading. There are many concepts which hardly anyone has explored. As the highly paid academics are more focused on hedge fund strategies.

Go Further than Others

You can become a better, much better trader by also understanding the basics of probability. This will make you see why trading on the news is a bad idea. And also which kinds of trades offer the highest probability of success. Probability theory is fascinating, and it will help sharpen your risk assessment skills, in amazing ways. You can learn forex basics and apply basic probability theory on everything you do in the markets. Probability theory can allow you to go further, by studying the patterns of the losing trades. And to be able to detect them early, before they actually become losing trades. This alone is worth studying probability theory for. As it is more important not to lose in the markets, than to win. And once the losing trades are kept in control, the profitable ones will take care of themselves. Because by simply removing more and more risk from the equation, all that will remain is the reward. So to learn forex basics could really transform you into a new innovative trader. You can even do better than people who are probability specialists, who simply don’t make use of their knowledge.

Can Online Currency Trading Help You Achieve Financial Goals?

Online currency trading seems appealing to many young people. As it is promising. Few however can embrace market risk and really make a lot of money from it.

Online Currency Trading for Daredevils

Online Currency trading is seen by big risk takers as the best way to make a lot of money fast. And in some cases they are proven very right. Because as they say, who dare wins. This is indeed true. And traders who prepare before starting trading do have the odds on their side. The idea of trading online made easy is not true, not by any stretch of the imagination. Daredevils take risks, but they do prepare before doing so. So just because someone takes a lot of risk, it doesn’t mean that this risk has not been assessed. Foreign exchange currency trading online for beginners tends to teach that excessive risk is unacceptable, and that all trading should adhere to limiting rules. Such as using a low risk-reward ratio, which is really nonsense. Risk is better understood through probability analysis, and over the weekly time frame. All other kinds of analyses which are based on single trades, are total nonsense. Risk takers have figured this out already. They know that beginner trading advice is against taking risks. They also know that no beginner trader ever made 1000% in a year. So the prospects of making good money through such basic training are non existent.

online currency trading
The biggest successes in life came from risk takers, who took the extra step, when no one else dared to. Many people, even  educated people, are held back today, and are prevented from grabbing success right next to them, because they suffer from peer syndrome. ‘I won’t do it unless I see it proven by someone else’. And by the time the prood of concept comes, the opportynity is long gone. Risk takers are born leaders, and don’t expect to join any cue for finding success.

Online Currency Trading for Slow Traders

Slow traders willing to profit from online currency trading are simply low frequency traders, not beginners. They simply make fewer traders, they want to encounter less volatility, but are willing to trade at much larger size. They have an investor’s mindset, who wants to trade forex online, at significant size. And doing it slowly is just their preferred style. Slow traders can include all kinds of seasoned traders, even very sophisticated commodity CFD traders. Trading slowly and through a large account, implies that all volatility from Monday through to Friday can be handled smoothly. Plus, they have the time to plan smaller hedging trades when things go wrong. So they are in fact risk takers just like all daredevils in trading. Except that they can do a whole day away from the markets, without checking pricing, trusting their open trades to their risk management skills. Large stops and sufficient account margins make this possible. And think about it, how would a classic investor, or a classic antiques dealer trade forex? They have learned to invest big money, and to trade slowly. Waiting one or 3 weeks for a good forex trade is okay with them. The average trade in the antiques market may takes several years. So patience is second nature to them. They are also selective. Seeing all these foreign exchange currency symbols. Slow traders are very selective as to what they will trade.

What are Your Financial Goals?

In order to achieve your financial goals you must realize that life itself is just as volatile as markets are. And tight, well defined goals are hard to reach. Whereas loosely defined goals are possible to reach, all through life’s volatility. People who make too many detailed plans, end up achieving almost nothing in life. Because life’s volatility messes everything up. So it’s best to have loose plans and an open mind, where one has to turn problems into opportunities. Forex trading is one of those things which can provide total financial independence in as early as 3 years. You can be a profitable trader within 3 years. But realistically, it’s not possible to cut the learning curve any shorter. Because 3 years is enough to expose you to extensive market volatility and confusion. Turning you into a superstar trader.