Guys, CFD's are definitely not for playing gambling games and day trading in my experience.... may as well go to the casino and put your money on one of those wheels where you bet what number comes up when the crupier spins it. BUT, for me a classic CFD play which yields buckets of money is shorting on horror stories. I've made $9000 this month, and have done so by going short. My methodology and ideology is very simple. My ideological belief (proven) is that fear is a very very powerful motivator to sell ... so, if a very large earnings downgrade comes along, which hasn't been factored into the share price then you can be as sure as anything that the living guts will fall out of the share price. I have made some very beautiful short plays on profit downgrades and irrepairable corporate damage. They are as safe as a bank vault! Here's a good example: AWB started their inquiry with the share price pretty well at its peak. It doesn't take a halfwit to work out that with such a nasty inquiry lerking that the share price will get smashed. I got in at 6.30 and out at 5.30 ... a drop of 16% ... with a $40,000 contract only requiring me to put down $4000 deposit, and a GUARANTEED stop 5% above the entry price for that short position, then my profit is 0.16*40000 = $6400 Going short is absolutely beautiful... can make so much money out of the horror bluescopes and flight centre downgrades, as well as the AWB's of this world ... it's hard to pick the winners, but it's easy to predict that losers will fall hard if they forecast a 20% profit downgrade... and particularly when a falling market can help them along as well. TOO EASY!
