CFD Trading

Hi,

Has anyone here dealt or have any experience with CFD trading? I've looked into it a bit recently and from my understanding it's predicting the movement of stocks or other assets but not actually buying into them.

Comments

  • +6 votes

    CFDs are highly volatile and you're likely to lose a bundle of money on them.

    https://www.plus500.com/Docs/Plus500/RiskDisclosureNotice.pd...

    "CFDs do not provide any right to the underlying instruments"

    You're not even buying the asset, just betting on which direction the market will go. Remember, the house always wins.

    •  

      And the most important bit! Losses can and often do exceed investments.

      •  

        Lol yup. I got stuck in BAL when it went into halt a couple years ago. Gap down weeks later when it re-opened = margin call. Physical stocks ever since.

  •  

    Yep paid for some expensive leveraged lessons on CFD's a few years back. If the action of CFD's suits your trading personality more than the slower pace f regular stocks you could look into Forex trading. Similar concept in terms of leverage but greater volumes. The big PLUS is that you can open as many Forex demo accounts as you like so that you can demo trade for free until your have your strategy and psychology sorted out to the point where you can be comfortable switching to live currency. And then you can start with small amounts, say .1 lots and gradually increase your lot sizes over time.

  •  

    Definitely start with demo accounts for at least a month, I jumped in too quickly and lost 50%.. should've just stuck to gambling.

    •  

      what platform did you use for CFD trading ?

    •  

      No. Demo accounts are fair. The house is not playing against the trader.

      Real trading against CFD companies including IG, may have lowered the traders odds to perhaps 35%.
      Demo account odds are over 60% if you're patient.

      IG and many others have admitted that "most of their clients lose money overall"

      If you like their realworld odds, fine. But you won't make as much as you should. It's always been a scam.

      Trade real shares at Selfwealth, you are probably not cheated in any way. Or get a better job.

  •  

    I checked and was startled to see Member Since: 03/03/2014 and not a throwaway.

    You'd have a better return going to a casino.

  • +1 vote

    Yeah unless you are expert day trader I say don't touch CFD. If you have lots money, margin lending is slightly better.

  • +1 vote

    Hey,

    I have used cfd (plus500) and I made 11k in a week. I didn't use cfd for stocks though, I used it for natural resources (such as oil, natural gas, platinum etc.) which are a lot more predictable and move a lot faster than stocks.

    I stopped because I couldn't sleep seeing how much money was moving in a second and I was literally getting anxiety attacks.

    Furthermore, I got all that from the $50 demo/trial they give you.

    What basically happened was that I put it all on Litecoin (note that this happened during the really big crypto boom at the end of 2017) and overnight it went to $550. I took it all out then put it on oil which then went to 1k. After a closer look, natural gas price was the lowest it's been for literally years at that time, so I went all in on that and it went up thousands a day.

    I have screenshots on my computer of me hitting 1k and 10k.

    But I still wouldn't recommend doing it, it just doesn't seem healthy and really akin to gambling.

    •  

      Thanks. Gonna try all-in as well.

    •  

      Furthermore, I got all that from the $50 demo/trial they give you.

      Are you saying you made $11k on a demo account? It doesn't count no one is playing against you.

      Try real money, not so easy.

      •  

        No lol it wasn't in the demo mode.
        It was using the $50 they give you for first time signing up.

  •  

    If you have to ask what a CFD is you shouldn't be using them.

    You can lose so much more than you put in, the risk is very high

  • +1 vote

    It's a fools errand in my estimation* but then again I think no one is predicting the market correctly in the long run.

    • Unless you understand that it's gambling not smart investing.
  •  

    Hi guys, I found this website about 15 years ago which helped me to understand CFD and FX real world trading risks.
    http://forexfacts.atspace.com
    Have a look if your tired of beating yourself.