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Online CFD Training for Investors

Online CFD training for commodity and currency investors attempts to teach the benefits of CFDs. As well as interesting ways for enhancing classic investing.

Online CFD Training for Already Successful Investors

Online CFD training offers classic investors the opportunity to extend their investing activities to CFD trading and short term online CFD trading. These investors don’t want to learn forex trading, as they already know how to invest in the markets and trade at least few currency pairs. They simply want to use CFDs for hedging risk on their old fashioned investing ideas. And for minimizing dealing costs. Many times, they are faced with frequent transactions in the markets, where it makes little sense to deal through a classic spot market broker. A CFD broker on the other hand allows them to deal just as effectively in the markets, but at much lower costs. Old fashioned investors are hard to change on their trading strategies. And they might not even be open to radical new ideas on market analysis. Especially when they are already making profits, and they feel content with what they have. The idea on saving on dealing costs and hedging downside risk, is about as far as they will go. They tend to trade at large size however, much larger than beginner forex traders do. Online CFD training courses will offer them new exciting ideas through the presentation of the benefits of CFD contracts. All for the purpose of enhancing their risk to reward figures. As we get older we all oppose radical changes, so these investors are unlikely to become day traders. But they keep on moving further and making progress by digging deeper into their established ideas, and by improving the way they analyze markets.

Online CFD Training is for Everyone

Online CFD training goes above and beyond generic CFD content, because key questions are answered in detail. Classic investors will have many questions on the tax benefits of CFDs and on tax issues in general. Since many of them have to pay capital gains tax on their investments, and they have been doing so for decades now. Online CFD trading will allow them to check their investments more often, and at one glance. Another thing with online training is that both old and new investors can get together in the forums, and exchange ideas. The older generation will focus on hedging downside risk. Whereas the younger traders will want to know more about fundamental analysis, which the old investors have priceless experience in. So there is common ground there for exchanging ideas and tips. And these traders and investors actually do meet in the market later on, as two of them may take the opposite sides of the same trade. This doesn’t mean that one is smart and the other is not. But that they have totally different objectives and focus on so different time frames. The old investor hedging a large investment, sees hedging through CFDs as insurance. And they are happy with the trade even if it is a loser. Just like they lose money by paying their car insurance premiums. Whereas the CFD day trader wants to make a profit on every possible trade. Ultimately however, it is the old investors who get the long term trends right. And they make markets move in solid trends.

Advancing Online CFD Trading

Online CFD Trading for Experience Traders

Advancing Online CFD trading is about innovating trading methods, and improving skills. Including psychological resilience and some essential personal skills.

Online CFD Trading for those Determined to Win

Online CFD trading for those determined to win, is about courage and personality. Unique personality traits that require you to be different than people around you. Online CFD trading is about determined traders, each one of them has different objectives and goals. Their goals in life might be about making money for repaying some debt, for helping someone else, or for all kinds of reasons. It doesn’t necessarily have to be about personal gain, supercars and boats. Online trading is for everyone, and some people do come up with creative, inventive strategies. These traders become greedy, for different reasons each. Though it is likely that traders having social goals may in fact be more determined to win in the financial markets. Self-centered traders on the other hand may or may not be successful, depending on their personal life story. In order to become really devoted to innovating trading. One has to make sacrifices, even stop being around negative thinkers. Juts like any other risky business, forex trading requires an enormous personal effort. You cannot pay someone else to trade for you, you cannot use widely and commercially available trading systems and expect to have an edge. Success has to come from within, and determined traders have a very strong motivation to beat the markets. Because something important to them, depends on that success.

Online CFD Trading above and beyond 5% a Month

Online CFD trading above and beyond small monthly returns, requires heavy modifications to existing trading methods. And also figuring out how other traders. And how the market as a whole tends to think, at times of strong trending action. The market is not always right! So those determined to learn how to trade forex and predict both the volatility and price direction of forex exchange rates. Will stop at nothing to make this happen. They know that they will have to fade other traders’ opinions, and even question opinion of top investment banks. Above all, they will have to question the market itself. But that’s the way it really is. Traders who don’t question the actual trend in their market, end up chasing momentum. And momentum is deceptive, because it allows you to win at first, early in the trend. Then once your confidence is high, on the next trade, momentum reverses and you suddenly have a large losing trade in your hands. Traders seeking innovative methods, know that momentum is deceptive and dangerous. It cannot possible be used as a basis for solid trading success. Some of the good traders out there focus on using CFDs for semi-directional strategies. Where it is okay to carry hedged losing trades through the month. And they are able to capture small profits on the directional moves. This is one example of unthinkable and unacceptable trading by disciplined traders’ standards. And yet it does work.

Trading CFD Tips for Struggling Traders

Trading CFD tips can help struggling and losing forex traders improve their trading dramatically. Some concepts are explained and presented as food for thought.

Hot Trading CFD Tips for Losing Forex Traders

There are many trading CFD tips. The most important in our opinion is the ability to judge a trade before it becomes a loser. This can be achieved by developing a notional stop strategy, in the time domain. You can still use price based stops, preferably large ones. But a notional stop in the time domain, will warn you in advance. And it will allow you to close that would be loser, before it becomes a loser. One of the best trading CFD tips for the average forex trader is the notional stop concept. It works well on day trading too. The trader simply allows for a maximum of 20minutes to 30 minutes of waiting time, for the trade to prove itself. If the market fails to move in the trade’s direction, and the time has elapsed, then the trader closes the trade. And oftentimes they manage to trade would be losers while they are still at break-even level. This alone saves them $1000s in avoided losses. Why wait for price to trigger your stop, when you know that specific time limits can be used as notional stops. Stops in the time domain are based on probability. It’s simply the idea that if something seems to be taking too long to happen, the probabilities favor that it will never happen! It’s a fact of life, and of market price too. You can learn how to trade forex this way, and cut your losses dramatically. First do some research on your favorite currency pair, and do some hypothetical trades in your head. Do it using various time limits, and test to see what would happen if you exited the losing trade, or if you reversed direction. Always based on that notional stop in the time domain, which puts a time limit on waiting. You will see that the market does in fact obey some kind of probability, and staying in a trade too long is not a good idea.

More Trading CFD Tips

Another one of the best trading CFD tips is that of forex time zones. If you combine it with the tip on time domain stops, you will have much more clarity and confidence in your trades. Currencies tend to make their biggest moves during active trading times. These are the times when the countries of the corresponding currencies in the pair, are open for business. And it’s usually the daily business hours when stock and commodity markets are open for trading in that country. So EURUSD is likely to make a move when either Euro or Dollar related news hits the market. When does this news hit the market? When either London or New York markets are open for trading. So even though forex trading works 24/5, you can see that some trading times are more important than others. Now go a step further, and look into the active trading time zone of any currency pair, where a move is expected and most likely to happen. And apply notional stops in the time domain. So that if the market fails to move, and more than 20 or 30 minutes elapse, you get out. Does this help you limit losses to a minimum, and still capture profits? If so you will make progress. But remember that is more important not to lose, than to win. So use large stops in the price domain, even if you are a day trader. And use tight stops in the time domain. Tight stops in the price domain are for the naive and the delusional out there. And instead of protecting your capital, they cost you dearly. The same applies to stops placed near yesterday’s high or low, or near daily LSS pivots. These levels are bound to be tested daily by the market. CFD trading platforms allow you to implement nice time zone based forex trading, and to handle your trades very efficiently. At phenomenal liquidity. CFD trading platforms may even include stops in the time dimension, in the intermediate future.

Using a Single Forex Trading Indicator

Traders wonder if they can trade currencies successfully, using a single forex trading indicator. Combining different indicators is more tricky than it seems.

The Truth about Using a Single Forex Trading Indicator

Using a single forex trading indicator alone, is often thought as a way to simplify trading. Day traders especially do believe in this concept, since they have to deal with fast changing, live forex rates and forex news stories. These day traders however come prepared into the market, having done a lot of homework based on the daily chart and yesterday’s close. And they do use more than one indicators for that. In day trading, they can resort to a single indicator, it is possible to some extend, though it is not the best way to trade. Using a single forex trading indicator alone, does bring in simplicity and agility. But that indicator would have to be price based. If price is used as an indicator, on its own, some predictability is possible on the market. But when the market is due to give a false signal, or some other confusing pattern, all price based indicators ultimately fail. There goes the old saying that the market is always right. But in fact, it isn’t always right! The market can be wrong, and so using price or price momentum alone, as indicators for trading can be a very big mistake. Price may move in the misleading direction just because of profit taking. Making the market seem moving in that direction, but profit taking is not a real trend. Real trends are based on objectives and targets that carry a lot of weight. That’s where the market want to go, and if it doesn’t go there today or tomorrow, it will still go there before the week is out. So be careful of price and momentum indicators, because they can be way too misleading.

The 10 Day Moving Average as a Single Forex Trading Indicator

The 10 day moving average is an example of a forex trading indicator which can be used more or less, on its own. It is an average (which means price and momentum and misinformation) but it is based on the daily close. The daily close of most markets carries more weight than the high and the low. Because there is more meaningful trading volume during the last trading hour of the daily session. The 10 day moving average does not yield clear forex signals, but it does hint near term direction and momentum. Especially when a new trend has just started, traders can confirm early in the trend the validity of the move. All they have to do is check contrarian indicators, for just one time. And if the move is confirmed. Then they are good to go and trade on the 10 day moving average alone, for several days at least. The idea is to buy the market if price is above this average, it’s that simple. Using too many indicators, and using them all at the same time is too confusing and not recommended. Wise traders use 5 to 7 good indicators, in different ways. And they also expect that all of these indicators will have failures at one point or another. Using a single indicator alone is not a good idea, but if it has to be done, then the 10 day moving average can be used for several days in a row. But only on newly started trends, confirmed once, by some other indicator, such as contrarian indicators confirming reversals.

Forex Trading Investment for Long Term Investors

Long term investors new to currency trading and CFDs, can use forex trading investment strategies for achieving their objectives. The benefits are often unique.

Forex Trading Investment Ideas for Classic Investors

Classic investors rely heavily on quarterly fundamental analysis and on identifying solid trends in the markets. The advent of online CFD trading in recent years facilitates forex trading investment ideas. And also complex strategies, above and beyond the needs of each investor. Forex trading investment concepts are just that, a combination of long term investment and various trading ideas. As a result, the investor can hold onto long term stock or commodity investments, while at the same time hedging risk in the opposite direction, through CFDs. These hedging trades allow the investor to save a lot of money on transaction fees, since they no longer have to liquidate their long term investment. These fees, especially when dealing shares of a stock, are quite significant. The main idea is to hedge day to day and week to week adverse moves in the markets. So that the investor ends up readjusting their entire exposure to the market in question. So that they stand to actually gain more, without taking additional risks. Many of these investors invest in commodity stocks, wither directly, or through their pension funds. These are very long term investments, but the stocks can have down months and even down years. The use of hedging through CFDs allows them to take a brand new approach. And if the stocks perform badly over many years, they will have profited from these hedging CFD trades. This is equivalent to profiting out of their pension or any other investments, much earlier. Since when one side of the investment fails, the other brings in profits.

Forex Trading Investment for Carry Traders

Carry traders are a new type of investors, their strategies are supposed to be far more risky than classic stock and commodity investors. But thanks to CFDs and some mathematical models. They are able to hedge even Carry trade risk through strongly correlated commodities. This is because these commodities move like some currencies do, but unlike currencies there is no interest charge nor credit involved. A good Carry forex trading investment takes into account all these variables, and investors usually confirm the strategy is implementable using a forex calculator. Calculations extend to correlation analysis and other factors. Many trading ideas seem too risky or impossible at first glance, but if one takes probabilities and correlation analysis into account, they could see the facts. Usually, the investors do all the work themselves, as there is no single piece of software doing all this work for them. The global forex converter mechanism allows for arbitrage opportunities, through correlation patterns. Investors have to make some assumptions, but as long as these assumptions are within realistic expectations, the strategy will work.

The Magic of Forex Trading Scalping

Forex trading scalping is seen by many as a boring concept for trading currencies. But this is not so. Trading zones in the forex market provide the answer.

Forex Trading Scalping is All about Avoiding Active Trading Hours

Forex trading scalping is not boring at all. It could be risky, very risky in fact if one trades during the wrong hours. Scalpers are directionless traders who simply want to see market price move up and down for many minutes. The risk is that if market price breaks out in either direction, then 50% of their attempted trades will be losers. And if one trades mechanically on such a breakout, the losing trades will be much bigger than the profitable ones. Scalpers don’t have large profitable trades, even a 6 pip profitable trade is something they will accept. Forex trading scalping is really interesting when one chooses selectively how and when they will trade. Forex trading through scalping is all about avoiding extremely volatile trading hours. Maximum volatility occurs when economic announcements are made. And these economic announcements are made during the active hours in the countries in question. GBPUSD for example, is currency pair which relates to two countries, Britain and USA. Hence all economic announcements are made during the active trading hours in these two countries. If one wants to scalp GBPUSD, they will have to look for the best trading hours within the Asian trading session. That’s when this particular currency pair will be safest to scalp. The currency pair will still move up and down, throughout the Asian trading session. But a large part of this period will be kind of mean-reverting. Where price will be reverting back to a baseline, from both directions. So the scalper simply has to buy dips and sell rallies below and above the perceived baseline respectively. Online trading has evolved in the last 15 years, this hasn’t necessarily made markets less risky to trade. Selective trading however is possible, even in the case of scalping. There is a lot preparation involved, and some days may not even qualify for scalping. But those that do, offer amazing profitability.

Forex Trading Scalping and Day Selection

Forex trading scalping mainly about selecting the right currency pair and corresponding trading time zone. But one can enhance scalping even more by eliminating few days in the trading month. Where market price still breaks out, even in the quiet trading time zone. Scalpers always tend to have a series of many profitable trades, for as long as a straight week, and then a nasty breakout day. On that nasty breakout day they usually give back almost all of the profits made in that week. That’s why trading time zone selection is not enough, unless one trades very carefully and can sense breakouts in the making. Forex scalpers do a lot of preparation on selecting the most suitable days for scalping, the actual trading is much easier to do, since it’s essentially directionless. As far as profitability goes, good scalpers typically make as much as $300 per such good day, even on small accounts, with less than $3,000 available. Good scalpers don’t chase losses, if the scalping session begins with losses and larger than expected price movements, they will quit for that day. Scalping doesn’t work with tight stops, they actually use 50pip or larger stop size. While profits may only be as little as 6 pips and as large as 30 pips on the most frequent trades.

Forex scalping is one of the best ways to experience trading for the first time, as it is about trading the less obvious patterns on the charts. Volatility has to be avoided, as well as surprise breakouts, this is where all the tasks are really hidden. So what is forex scalping in a nutshell? It’s a way to trade probability in the market, in a well defined, counter intuitive way. This is because large stops have to be used, and the objective is to only make few pips in every trade. But scalping can do so much more, for example it is possible to take a trading account that has been blown from $30,000 down to $5,000. Through other strategies, and to make a full recovery back to $30,000 through forex scalping, amazing, but it is very possible! Scalping is all about day selection, and risk control on any trades gone wrong. Beyond that, it can offer $300 profit, on every such day. It is therefore a trading method which many traders could have looked into, instead of just rushing to trade the obvious directional moves on the daily chart. Scalping is all about probability assessment, and this boils down to volatility-causing events, and the risk events (or absence of), during the next trading day.