The Golden Rules of Online CFD Trading for Real Success

Online CFD Trading at its Best

Traders engaged in Online CFD trading can do all kinds of strategies, from day trading to long term investing. It is good to know which is best for each trader.

Online CFD Trading for Stocks

Online CFD trading in the case of stocks could be implemented in various ways. The smartest and most reliable ways to trade stocks. Are the ones where market information is as meaningful as possible, and the least ambiguous. Day trading stocks based on charts alone is a popular but highly misleading way. Because charts and chart based indicators are highly ambiguous. Very few CFD trading courses teach good strategies. These that do teach peculiar good strategies combine market charts together with some other indicator. The best proven indicators are stock option premiums, and level II quotes. Stock option premiums can hint stock price direction over the next several days or weeks. And so they are good indicators for the longer term trader. Level II quotes on the other hand contain all the information needed to figure out the auctioning action going on, on the underlying stock. And this can be used in day trading specific stocks, quite successfully. Attempting to day trade stocks any other way, will almost certainly lead to failure. Because charts can fool traders very easily. Level II quotes on the other hand provide crucial information about supply and demand. And traders combining level II quotes and basic chart information, such as support and resistance, get to see the real action. Level II information may reveal false stock price breakouts in ways that charts alone can never do. The wise level II CFD stock day trader is at enormous advantage. Because CFDs allow them to capture the ensuing price moves very fast, and very efficiently. Level II strategies are based on logic, the same logic that can be used to monitor all kinds of live auctions. Auctions of works of art, antiques etc. Except that CFD stock trading is 100s of times more affordable than these other auction trades.

Online CFD Trading of Stocks Can Be Extremely Profitable in One Case

Online CFD trading of stocks, through the level II day trading approach changes everything. While classic day trading, based on the naive idea that charts alone are enough, offers a low probability of success. Perhaps as low as 5%. The level II stock CFD day trading approach together with basic charts and LSS pivots, offers a probability of success of 70% or more. Therefore it really is possible to make good and consistent profits. All that is needed apart from the strategy, is courage and a strong desire to be different than other traders. Even the level II domain of insightful information allows for widely diverse sub-strategies and methods. But the basic principle is simple, for a stock to go up, there have to be more and more buyers and offers to buy. For a stock to go down, there have to be more and more sellers, and more offers to sell.

Learning about CFDs Wisely

Online CFD training available is more than enough to cover the needs of a level II stock trader interested in doing it all through CFDs. Online CFD trading is not complicated. And also the retail CFD day trader actually has unique liquidity benefits over day traders dealing through futures, or stocks through direct market access. It’s simply a matter of liquidity, the CFDs market is smaller than the direct market access. Because liquidity always flows from big to small, but not from small to big. It’s a market fact. Those wondering how how does CFD trading work? Only need to learn the basics of CFDs, and then look at the liquidity benefits in particular. Liquidity and linear pricing are the biggest benefits and are often not even mentioned in most CFD beginner handbooks. But these two benefits are even more important than leverage, because they are unique to CFDs!