Contract for Difference (CFDs)
There was much chatter on the FB discussion group yesterday on the virtues of CFD trading. The great thing about CFD trading is the platform allows you to trade multiple assets on multiple markets at the click of a mouse, easy to short a stock. And that is about the only positive. The whole system is set up for you to fail as a trader. From the colours of the platform which are in some cases almost pokie-like to the stop losses and the effective gearing that is inherent in the products, the odds are stacked against you. To be successful requires extreme discipline and a seriously good trading plan.
CFDs should only be used by experienced disciplined traders and even then be very careful.
Having traded them at various times in...Continue Reading