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trading stock CFD's

  • #1
  • First Post: Dec 6, 2009 6:35pm Dec 6, 2009 6:35pm
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.
  • #2
  • Dec 6, 2009 7:26pm Dec 6, 2009 7:26pm
I'm interested in CFDs. Who do you trade with?
  • #3
  • Dec 6, 2009 8:48pm Dec 6, 2009 8:48pm
Quoting ABoulfoul
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.
LOL,

lets see you make this call a proven reality..........

PS.... good luck with the Gaps.
  • #4
  • Dec 8, 2009 1:48pm Dec 8, 2009 1:48pm
Quoting Bluehills
I'm interested in CFDs. Who do you trade with?
You can trade them anywhere but the USA...
  • #5
  • Dec 8, 2009 2:39pm Dec 8, 2009 2:39pm
care to share the strategy?

Oz
  • #6
  • Dec 8, 2009 3:17pm Dec 8, 2009 3:17pm
Quoting >Apocalypto<
LOL,

lets see you make this call a proven reality..........

PS.... good luck with the Gaps.
i 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:

there 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.
  • #7
  • Dec 8, 2009 3:18pm Dec 8, 2009 3:18pm
Quoting ozzieb88
care to share the strategy?

Oz
i wasn't looking at anything special when i was browsing through CFD charts. just mainly trends, breakouts and pin bars.
  • #8
  • Edited 5:40pm Dec 8, 2009 5:28pm | Edited 5:40pm
Quoting ABoulfoul
i 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:
I have traded stock CFDs I am very well aware of the pitfalls. When I see someone that makes a post of they're more predictable then of coarse I will comment on what a stupid statement that is.

The hidden treasure is YOU! It's your ability to have discipline patience and show no emotions while you stick to your trading rules like a glove!

Have a think about this, stocks gap my friend from day to day. If you swing trade them on CFDs you can't price that into you risk management. I once saw RIO Tinto gap 40% of its price last year. closed at 80 opened at 40 the next morning. Now is that a treasure mate? you would have losts your account or been in a terrible margin call.

Stocks gap 1-5% all the time if you get it right fantastic, if not trouble. if you want to trade stocks day to day look at options on them as the most you can lose is the premium, forget CFDs champ if you can't beat FX on 4 main markets, I can't see why having 1000+ markets will change anything. It will most likley leave you over exposed.

Quote
there 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.
Again I go back to you, you need to have the patience and discipline to wait for the best set ups. If you make boredom trades you're not a good trader and you will not make it if you continue to do that.

If you choose to go down that path good trading to you, but I am 99% sure ti will not make any positive difference in your trading.

Cheers,
  • #9
  • Dec 8, 2009 6:31pm Dec 8, 2009 6:31pm
Quoting ABoulfoul
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.
Well, there's no such thing as a silly question, and every question deserves a response..

My humble view#1: if you want to trade stock CFD's then start out by trading stocks. It depends on where you live and what the regulations are of your home country, but essentially, stock CFD's are just the same as stocks except you trade with leverage (assuming you are also able to short a physical stock where you live or trade)... and if you trade with high leverage and don't have a proven method behind you then there is a good probability you will go broke rather quickly.

My humble view #2: stocks often are less "predictable" (I have a BIG problem with using the word "predictable" when it comes to trading.. but that's for another thread) than trading fx or market index. With a stock, you never know when a trading halt might come, you never know when a major announcment that might impact the share price will come, and you never know what might happen after the close of the bell that may cause the stock to gap up or down, against your position - sure there are ways to mitigate against these risks (again for another posting) but you were talking about basic price action, right?

Humble view #3: you should think about a few basic questions, if you have not already -

What are you trying to achieve with your trading?
What did you not like about studying fx that you think will be different with stock CFD's?
Most importantly: what are the assumptions behind your basic question? (eg "Candle stick rules help you to predict future price movement..."), are these assumptions correct, and how can they be tested?

Happy trading
  • #10
  • Dec 15, 2009 11:11am Dec 15, 2009 11:11am
Quoting ABoulfoul
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.
Hi,

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. I trade stocks based on my fundamental opinion of them and use technical analysis to fine tune my entry.

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!

Regards,

Dan
  • #11
  • Dec 24, 2009 5:27am Dec 24, 2009 5:27am
Trading CFDs is a bit more risky than the FX pairs, keep in mind that you need more money as margin req and they are not traded 24/5, interest rates you pay are a bit higher etc...

In my opinion trading CFDs on index fututres is the best choice, low margin and almost 24/5 traded.
For a SPX500 you need only 11 USD, isn't that cheap, or 100 for DJIA..
And there are a lot of brokers offering good terms..
  • #12
  • Jan 4, 2010 3:07pm Jan 4, 2010 3:07pm
Quoting DanUK
Hi,

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!

Regards,

Dan
Hi Dan,
Thanks for your threads which i've been following for quite some time! So when you write about trading stocks, you actually mean stock CFDs or real stocks or both? I remember your post with a ProRealTime chart and was curious about technicalities or rather methodology - do you analyze stocks using some free (at least on daily basis) charting tools like ProRealTime and place your orders elsewhere or do you use the trading platform of the (stock or CFD) broker of your choice both for analysis and trading? Would appreciate greatly if you'd share your "technical" experience with stocks / CFDs.
Happy New Year and thanks once again!
  • #13
  • Apr 12, 2014 11:15am Apr 12, 2014 11:15am
Quoting DanUK
{quote}My biggest concern with CFD's of course is market gaps but I decided to only use brokers that guarantee my stops.
I thought your biggest concern would be the use of leverage!
  • #14
  • Apr 12, 2014 11:18am Apr 12, 2014 11:18am
Quote
The 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...

To read more on the difference between normal share dealing and trading them through CFDs, I suggest you follow this link:
http://www.independentinvestor.com/cfd/shares.php
  • #15
  • Last Post: Jul 1, 2014 4:18pm Jul 1, 2014 4:18pm
No doubt about it, market indexes are easier for most people to 'predict' than currency movements...
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