daytraders aftermarket lounge – 1 december, page-181

Just logged in and surprised to see so many peeps here...

I've got something to share regarding CFDs. During the GFC, when they put the stupid ban on short selling, I dabbled in CFDs, trading the indices, and lost about 20K in just a few weeks.

What I didn't realise was that I was at the mercy (or the lack of it) of market makers, all indices trading are synthectic and they always run your stops.

I've since wisen up, here's my take on CFDs:

- CFDs are good for learning to trade forex, you can go for as low a as a dollar a pip.

- Share CFDs also good for going short, but make sure it's a DMA (Direct to Market) CFD, not a market maker product.

- I do not put stops on index CFDs but rather monitor my trades manually, this way they can't wipe me out. If I can't watch the screen then I don't trade the indices.