CFD Trading

One of the main advantages of CFD Trading is the ability to apply leverage. The most important part of trading with CFDs is to understand how they work and how the leverage can act like a double edged sword. A trivial topic to discuss but an important lesson to reiterate. CFDs can be traded long or short, as such you can lose out either way if the market goes against you. What is leverage?

Volatility is an Important Aspect of Short Term Share Trading: I realised early in the game of share trading that my trading style called for volatility. Since my capital was limited I was playing with leverage, be it with CFDs or warrants. Everyday that ticks by, holding the CFD or the warrant costs me interest. To limit my interest costs I needed to find stocks that were trending and were volatile enough for me to pocket myself some profit. You can find some of my target list of stocks to trade in this target list. According to CMC markets records BHP has been the most traded stock on their platform for a few months running now. The reason is that this stock is cheap enough to trade with and it is highly volatile.