Thanks for your constructive arguments. I believe in what you say about short contracts ending up bad for you Techno8... particularly when WOW offer a 500million buy back, but that's part of the unknown nature of the share market. Also, consider Enron. After watching the documentary Enron: The Smartest Guys In the Room I have to conclude that you never fully know exactly how bad things can be in a company, whilst at the same time it is being recommended by brokers - take for instance NAB at the time of the trading scandal. But, I'm always a firm believer in working out your limited loss before you enter. If you do this and go in to it with a rational head then you will walk out of it able to pay for your bad trade even if things go wrong. I'd love to get into options sometime in the next 6-12 months because you can use strategies to control your losses. I think that options are probably the next natural progression from CFD's for me!
