Trading CFD For a Living: How to Get Started

Many traders are held back by their fear of the market. And this fear prevents them from executing many good trades, and hence from trading CFD for a living.

It’s All in the Mind – Trading CFD for a Living VS Reality

Your mind does keep you back, so as to prevent you from taking risks. But if you look back at all those losing trades, it was excessive excitement, over-reliance on others, and unrealistic goals, that made you take these trades. Trading CFD for a living is possible, for many experienced, yet struggling traders. These traders are almost making money, but are not quite there yet. Especially when considering the time committed to trading and studying the markets. In any case, it is important to take your own risks, stop relying too much on other traders, and be bolder. Trading is not the typical day job, where you have to be socially conditioned. Most working people see their day job as their identity, and not having one is like not having an identity. That’s where social conditioning comes in. But trading is very different, and requires you to be humble, and to talk in a spirit of humility about your skills.

Trading CFD for a Living Requires Breaking Classic Trading Rules

Trading CFD for a living does require you to break some classic trading rules. Because that’s what the formula of success requires. In order to have a high probability of trading success, some rules have to be broken, period. Trading CFD online offers much more than classic trading instruments, and that’s why some rules can be broken. Stops for example can be larger than normal, and risk-reward ratios can be high. Because they have to be high, to be successful. Classic trading rules are okay, but wise traders feel that at least a quarter of these rules don’t apply to them. Some wise trader may break the risk-reward ratio rule, while another wise trader may break another rule. Today’s CFD trading platforms allow traders to handle risk in many innovative ways, but the most amazing way is that of hedging. Simply hedging a risky trade until the fog of uncertainty clears. If on the other hand you attempt to play by all the rules, this will not get you anywhere, because the classic rules themselves are not compatible with one another. They are all full of ambiguities and gray areas. The most tired and ridiculous rule is that of cut profits short and let profits run… Well the problem is, one trader’s perceived losing trade may be another trader’s winning trade, in the same market direction! Only the timing differs! These classic rules and tips fail to deal with reality, big time…

Difference of Opinion is Key

Maintaining a difference of opinion spirit, against older and wiser traders, is essential to becoming a profitable trader faster. Trading CFD for a living is all about courage and original thinking. The very act of challenging top traders, on market direction will help you get years ahead in the trading game. Even if your opinion proves wrong most of the time. You still get to sharpen your observational and judgmental skills. And this makes you a much better trader. Sooner or later you will be able to trade better than these top traders. At least in one market, or one type of trade.