is it just me or is trading stock CFD's more predictable? i mean, i look at the charts and most of the candlestick rules seem to be followed nicely.
CFD or buy the stock? 7 replies
Stock CFD's is there any advantage? 0 replies
lets see you make this call a proven reality..........
PS.... good luck with the Gaps.Ignored
Dislikedi swore to myself that i wouldn't laugh at anything anyone talking about trading says since anyone could easily stumble upon the hidden treasure; you should do the same. now, to elaborate on my observation:Ignored
Dislikedthere are thousands of CFD's to trade and only a very small number of FOREX pairs in comparison (of course i'm talking about the retail sector). this means that finding the perfect, high-probability setups is more likely. also, having to analyse thousands of charts would likely decrease the number of boredom trades, which i would swear to you costs a majority of traders at least some money, though this is a minor point.
I trade stock CFD's and I find the stock market easier to trade - but I think that is because I have much more experience in stock trading than forex trading.
My biggest concern with CFD's of course is market gaps but I decided to only use brokers that guarantee my stops. You will pay a little more for this but IMO it is worth it... you can sleep a lot better that way!
DislikedThe bonus of leverage makes it possible to derive more efficient, more substantial returns on your money over a much shorter time period. This is tempered, however, by the increased risk profile of trading through CFDs as compared to trading in shares directly. As inherently valuable assets in their own right, shares are definitely more secure investments than CFDs, because they have some residual value independent of their market price. CFDs on the other hand are highly risky because they are transparent, personal contracts to pay the difference...