How Your CFD Trading System Can Affect Your Profits

Your CFD trading system can enhance the profitability of existing strategies. The superior performance of CFDs makes this possible through better filling price.

Your CFD Trading System is More than it Seems

Your CFD trading system enables you to trade in the most efficient way possible. So much so, that non-CFD retail traders are actually at disadvantage. Most online CFD brokers facilitate this kind of enhanced trading. And the benefits are often not presented well in CFD seminars. As many educators focus too much on leverage, ease of access to markets etc. But the real hidden benefits of CFDs, are enhanced liquidity and linear pricing. Both of these advantages are unique to CFDs, and not found in all other retail trading instruments. Futures and option traders for example suffer from non linear pricing. As these instruments don’t always follow the underlying market. And because markets are fast moving, linear instrument pricing can make all the difference between profit and loss. Wise CFD traders actually do use futures and options merely as indicators, exactly because of their non linear pricing. As this sometimes indicates how smart money is placed in the market. The actual market moves however are traded much better only through CFDs. And any experienced trader will confirm this.

Your CFD Trading System Determines Your Profits

Your CFD trading system determines your profitability in various ways, which are not obvious. CFD trading systems for example, that apply risk control methods, do make more money. Since many losing trades are temporarily hedged. Thereby saving the trader the trouble of unnecessary stop running and impulsive trading actions. Most CFD trading platforms actually allow you to hedge CFD open trades, through the same market directly. Hedging is a temporary way to by-pass high risk times in the markets. The end result is much higher profitability in your trading strategy. Classic stop loss orders, especially those based on low risk-reward ratios, do not really work. Traders should avoid low risk-reward ratios altogether, because they are only a fantasy in the minds of some idealists. When these idealists get down from their ivory towers and trade in the real world, the truth appears. And the truth is that low risk-reward ratios have a very low probability of success. First they fail to secure sufficient exposure to volatile markets. And secondly, when a trade does go well, the profit should not be limited by the margin that such a ratio dictates. The ratio may indicate a desired 20 point profit, but the market may stand to offer 50 points. So low risk-reward ratios are total nonsense in real world trading.

CFD Trading System
Most educators teach nonsensical tips, such as the so called low risk-reward ratio. The fact is that CFD trading systems perform much better when this ratio is high, much higher than the myth suggests. The impact of this is an overall boost in profitability through superior engagement of the market.

You Can Do Better than Others

Your CFD trading system needs to take full advantage of the real hidden benefits of CFDs. And to apply the whole concept on any good trading strategy. Even a marginally profitable strategy may be improved beyond recognition, through wise CFD trading. Classic stock investors are also turning to CFDs, as a way to hedge downside risk cost effectively. But even this long term investing can be improved more. All it takes is a good analytical mind to quantify risk against time. In this case, the idea is to always keep the actual shares of the underlying stock. And then trade in both directions as stock price fluctuates through different levels and chart patterns.

Decided to Trade Forex Online? Good Decision, Here’s Why

You can actually trade forex online better than most other traders, and better than your mentor. Because real success lies in being original and more creative.

Just Decided to Trade Forex Online? Act Differently

If you just decided to trade forex online, be careful not to follow generic trading tips. Many educators and forex gurus give generic tips and advice. Which finally leads to confusion and failure. Educators have to do this to make it easier on the average student to trade. Through greater comfort and tolerance of risk. But there’s no need to settle for average education and nonsensical tips. Because these, even when applied in exact detail, still fail. They have inherent ambiguities and limitations, which ultimately limit how profitable your trading can be. You can learn forex trading through critical thinking, and not through total faith in your mentor. The good news is that you will able to outperform many so called disciplined traders, because those are held back by their faith in perfect order. In their minds, it’s as if someone else has done all the work for them, and they simply execute a proven trading plan. Except there is a problem, there’s no such thing as proven in trading. Unless it’s well tested over 3 or more years. And it’s unlikely that the course in question lasts this long. By learning to be critical and to doubt established opinion, you will more often than not, beat the market. And this requires breaking some of the rules of classic trading. That is the real way to developing the best forex trading strategy.

trade forex online
Success comes from loose, flexible, incomplete planning. Not from lack! And not from detailed, strict planning either. And you are more likely to succeed in forex by taking advice from failing, struggling traders who try hard, rather than from so called professionals and professional teachers. Professionals are inflexible and often wrong. Profitable traders are also inflexible and fail to evaluate their trading, and also unlikely to share any secret they might have. You will learn much more, and much better things from losing traders, just be ready to judge, and know what to reject and what to take away from their methods. After all, they are losing traders and open to criticism, there’s no room for personal pride here. And this leads to great improvement.

How to Trade Forex Online and Be Profitable from Day One

You could trade forex online and be profitable right away, or at least not have big losers. This could be done through reason and sharp judgment. First you have to avoid chasing the news and expecting to figure out market direction through the news. Second, you should trade only during very active, and least active trading hours. Utilizing a different method in each case. Be willing to hedge losing trades for a while, rather than trying to decide there and then what to do. Judging an open losing trade under time pressure simply doesn’t work. Open trades can be evaluated with remarkable accuracy, over several hours. Simply lock the open loss through a hedging CFD trade, and take all the time you like to make your decision. Some probability concepts will come in handy here, and make you judge more clearly. This means, that you might actually have a possible winning open trade in your hands, even though it is currently losing. Or you may have a doomed trade, about to become a loser, even though it is currently profitable. And this means, you will have to add to losing trades accordingly. Thereby breaking the naive classic trading rule, which defines good and bad trades based on market noise and nonsense. You will learn how to trade forex so much better than those naive new traders. And you will never have regrets about it.

Why Generic Strategies Don’t Work

The global forex currency converter mechanism simply doesn’t obey the naive approach of classic trading. Contrary to what you will hear here and there, it is actually much better to hold open trades overnight, and to actually trade foreign currencies at night. In fact, there’s no much difference between night and day. If one exchange is opening in Asia, another is closing in New York, trading never stops. And the risk is not defined by day and night. You can be successful in active hours trading, just like you can be successful in quiet trading hours. Only the strategy differs.

How the Use of a CFD Trading App Can Improve Your Trading Strategy

A CFD trading app can be used to perform tricky and time consuming calculations. Especially ones dealing with probabilities and avoidance of excessive risk.

A CFD Trading App is Most Useful in Fast Trading

A CFD trading app can be used to constantly calculate market risk. Risk as defined in your strategy. The running result of the formula used, indicates market risk at that particular time. Based on your trade criteria. And because CFDs are used, the trader can enhance risk management through the use of temporary hedging. Wise CFD traders pay developers to create such apps, of course they go to great lengths to conceal the concept even from the developers themselves. They do this by splitting the formula in two, and employing two different developers to do the job. So it is in fact two different apps, and neither one is very useful on its own. But the two apps together provide that critical probability number. Moreover, successful trading starts by the elimination of market risk. And not by looking for profitable trades right away. It’s not so much about trading online made easy and effortlessly. It is partially about automating routine tasks, but more importantly about achieving accuracy in the calculations.

What a CFD Trading App Can Do

A CFD trading app can work through the numbers and see things that cannot be detected visually on the charts. No matter how good you think you are at visually observing patterns, you can never work this fast in real time. Moreover, probability tends to work in an exponential way. So that small factors can have a huge impact on the net result. Most people are oblivious to the power of mathematics and probability theory. Because they think it’s too abstract and kind of useless in real trading. But in fact, everything in nature is mathematical, and markets are part of nature. People who are ignorant of probability theory tend to have poor judgment and to fall victims to scams, misleading marketing etc. Probability theory is very powerful, but it was practically useless to the average person, prior to the advent of affordable computing power. Today, there’s no excuse, a good probability theory can do all kinds of things. And many trading mistakes can be avoided through probability analysis. All that is needed is the right formulation and developing the app, without giving away the secret.

CFD trading app
Probability in the markets and so many other natural processes is well hidden. So that two trading days can look remarkably similar, and yet one may pose excessive risk to the trader, while the other may pose very low risk.  The truth is revealed by looking into the data of recent days, at other markets, and the patterns on that data. No single chart can provide visual clues. A trading app however can confirm all these criteria in a second and come up with a binary outcome, giving you either a green or a red light before considering to make that trade.

Look for Guidance from Scientists, Not Traders

Online CFD brokers provide all the infrastructure to start trading. You can have affordable access, like everybody else, but that offers you no edge. The real edge finally comes from working with probabilities and learning how probability is used today to analyze risk. Law enforcement for example does use probability software to catch criminals. All by assessing where a criminal is likely to be, and the routes and hours the criminal is likely to choose to move through. And it does work very well. Because there are limitations in how a criminal can move around. Similarly, there are limitations in how market price can move through time. And different factors of varying relevancy are in control every day.

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!