Trading CFD for Dummies and Former Losing TradersBy Content-mgr - on March 24, 2016
Trading CFD for dummies and former losing traders is not a very hard thing to get into. It requires though good devotion, and ignoring all negative thinkers.
Trading CFD for Dummies – The Right Way
Trading CFD for dummies may seem intimidating but it is not. CFDs are used by novices and seasoned trades alike. CFDs allow for making mistakes, and even allow for more stress-free trading. This is because many losing trades on the daily time frame can be hedged all the way. Currency trading doesn’t have to be all about directional trades and large momentum rides. It can also be about hedging and offsetting risk 80% of the time, and riding momentum only 10% of the time, or less. The forex market cannot be beaten simply by picking entry points, these are bound to be wrong far too often. That is why trading CFD for dummies is actually possible. And it doesn’t require having a crystal ball, to figure the markets out. Seasoned traders also use CFDs, they don’t have crystal balls or psychic powers either. They simply know more on picking entry points on the market. But they too have losing trades, even at their level of experience. So traders should not be afraid of losing trades. They are part of trading. What CFDs come to offer, is a limitation on these losses. And ultimately a limitation on stress and impulse trading. Because traders can postpone making the crucial decision, on whether or not to close that open trade. Beginner traders can find ways and creative ideas as to how to deal with this. And many of them do actually become very good through practicing, in small size live trading accounts.
Trading CFD for Dummies and Former Losing Forex Traders
Trading CFD for dummies is also what former losing traders need. Fomer losing traders, having lost money in the forex market now lack confidence. They are no better than those newbies. They lack confidence because way too many losses have broken them psychologically. And they still tend to think wrong. This is because they still believe that 80% of the trading game is about riding momentum trends, which is not. There is nothing wrong with wanting to catch a long lasting linear move in a currency. But they lack the analytical skills to filter out so many false signals on the currency charts. Most of these traders blew their accounts because they used too many established nonsensical rules. Such as using ultra tight stops, not adding to losing trades when they should have done so. And also getting out of good trades, way too early. Just because some Fibonacci price projection rule told them so. These former losers can still learn forex trading in a much better way. First they have to pursue the 80% sideways market idea, that the market will trade sideways most of the time. And then look for ways to work on volatility and daily range predictions, and not price trends. The market does move directionally for more than 20% of the time, but the trades can still managed as if it was 20%. All because CFDs can hedge losing trades, very linearly. Thereby giving them time to think again. Without rushing to make a quick decision just for the sake of time pressure.
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