I've been waiting for someone to start a decent CFD trading thread. CFD's are a powerful derivative, that few traders really capitalize on.
It would be interesting to see some trade suggestions based off TA only, using margin and stop losses on some blue chips/ indexes. The trouble is when your using CFD's, your using margin to create a bigger position, which means you really need a tight stop- otherwise your a leaking ship who's taking on more than it can handle. If you swing trade then a stock could easily gap down/ up on the open which then triggers your stop at market, well below the price you had placed it- which could mean you lose 100's or 1000's of dollars more than you anticipated. If you say no this doesn't happen to me because I trade many smaller positions with wider stops( like lots of retail investors would do), then your not really taking advantage of CFD's, since all this allows you to do is diversify a portfolio using a smaller bankrole( this is what some financial guru would probably recommend, however it's load of BS to anyone who actually trades on leverage)- IMO using CFD's to diversify is a losing strategy , diversification is for fund managers or investors who don't know what they're doing. Even if you're just using CFD as a short hedge, you're still opening yourself up to additional( unnecessary) risk if a stock gaps on open. IMO The power of CFD's is not in swing trading, but in day trading- where you can hold big positions( that are multiples bigger than the size of your account) over short periods(minutes/ hours), where you can almost fully control the risk.
I day trade on the US markets through CFD's( trades could last anywhere from a few minutes to a few hours- never overnight). I don't use much traditional TA, and trade mainly based of geometric analysis using scaled charts.
I've had a play around with a few Aussie blue chips, but found most to be a waste of time compared to trading US equities, where there's far more liquidity. I'm sure you could day trade some of the blue chips though.
