cfds with no leverage

Originally posted by mistyrains ↑

@wilfran1pm,

I think the ASX CFD you are referring to are the listed CFD offered by the ASX. I don't trade those as the number of CFDs is fairly small. In the past I traded the DMA CFDs offered by FP Market which have a much wider choices of ASX companies. You can check that out with the FP Market now that you have a DMA CFD account with them. They have a full list of DMA CFDs with the leverage % that you can have a look at.

My usage of Ichimoku was fairly simple and straightforward, as I did not trade that much. You will notice that I have used the past tense "was" instead of "is" because I have not traded for at least a year now because of family commitments, but I am ready to trade again and that is why I am here in this forum.

With Ichimoku, when Price is above Cloud, then the environment is bullish, and when Price is below Cloud the environment is bearish, and when Price is inside the Cloud, Price is in consolidation mood.

I would stay out when Price was inside the Cloud.

When Price is above Cloud, I would look to go Long. I had already mentioned in an earlier post that the way I did it was:

I used EOD data, I had my own small list of Top50 ASX companies that I monitored for trading opportunities. During the weekm after I had downloaded my EOD data for the day, I would look at those companies on my watch list. If it looked like there was one with a good potential, I might decide to enter a Buy or Sell the next day. That night, I looked at the ATR of the share price of that company, decided on a Price I would want to Buy in or Sell, based on the % leverage offered by my provider, I worked out how much I could afford afford to buy, estimated the potential price movements, based on that I decided on the profit I liked to make (it could be the $ amount or a % amount) . I did the same with my Stop Loss figure.

It was then a case of putting in my DMA CFD order the next morning before the ASX opened.

I hope the explanations make sense.

How you use the Kijun-sen and the Tenken-sen is up to you. They are moving averages of the High & Low of different periods.

By the sound of it, the way you trade is probably more sophisticated than mine.

I stayed away from small cap or speculative stocks.

These are all my opinions, not my advice. You should do your own research.

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Yes I understand what you have said. Thanks @mistyrains for expressing your opinions and sharing your experience trading CFDs. Actually our systems sound quite similar. Although I do have an objective of removing any subjectivity from my CFD trading system, i.e. have a purely mechanical system. Still not sure whether I can achieve this, but its nice to have some sort of an objective. Wish me luck!

Believe it or not I am starting to feel that technical trading of speculative low cap stocks could be quite profitable, and I am surprised that not very many of the posters on the Spec stock threads are interested in this. Very basic indicators can be used to catch most of the impulse moves of these types of stocks. There doesn't seem to be the same amount of noise in the share prices, probably because they run more on emotion driven by announcements etc. The trick is of course not to fall in love with any of these stocks. Just make short time frame trades targeting 20% to 50% profit and minimising the losses on the trades that got the wrong way.

Thanks again for your opinions.