Jump to content

Financial Spread Betting and CFD's


zipdog
 Share

Recommended Posts

Download plus 500. It allows you to play with virtual money in realtime and real market so you can practice without risk.

You start with £20000 and see if you can build from there. Its amazing how quickly you can make money. But just as amazing is how quickly you can be wiped out.

Good luck

Tom

Link to comment
Share on other sites

Absolutely not a good idea, its high risk gambling, the only people who make money long term are the brokers. Watch Wolf of Wall St

I know three retired traders and two hedge fund guys who would disagree. They would probably be happy to fly you over by PJ or meet you on their yacht if you wanted to discuss further!!!

Link to comment
Share on other sites

Download plus 500. It allows you to play with virtual money in realtime and real market so you can practice without risk.

You start with £20000 and see if you can build from there. Its amazing how quickly you can make money. But just as amazing is how quickly you can be wiped out.

Good luck

Tom

 

Thank you will give it go!

 

Absolutely not a good idea, its high risk gambling, the only people who make money long term are the brokers. Watch Wolf of Wall St.

 

Wolf of Wall street was about individual company shares, not global commodity prices though!

Link to comment
Share on other sites

Wolf of Wall Street was about a brokerage company scamming people into buying junk stocks. Nothing to do with CFD's

 

CFD's are a derivative that enables you to gamble on the price of a stock/bond/commodity without having to buy said stock/bond/commodity.

 

If you think you can predict the movement of commodity prices then go for it. However don't gamble what you can't afford to lose.

Link to comment
Share on other sites

The FCA are trying to clamp down on retail investors (the man in the street) being targeted by assorted trading platforms who encourage them to dabble in CFDs.

 

Alpari was popular for these types of accounts until they went bust following the Swissy cap ending.

Link to comment
Share on other sites

I know three retired traders and two hedge fund guys who would disagree. They would probably be happy to fly you over by PJ or meet you on their yacht if you wanted to discuss further!!!

There are winners and losers but the losses can be spectacular. One of my customers lost his house and a bloke who phoned in to a radio show said his brother lost £250k on his phone while sitting in a hotel on holiday. But every time they buy or sell, whether the market goes up or down, the broker gets his cut.

Edited by Vince Green
Link to comment
Share on other sites

Wolf of Wall Street was about a brokerage company scamming people into buying junk stocks. Nothing to do with CFD's

 

CFD's are a derivative that enables you to gamble on the price of a stock/bond/commodity without having to buy said stock/bond/commodity.

 

If you think you can predict the movement of commodity prices then go for it. However don't gamble what you can't afford to lose.

The Wolf of Wall St was about "the stockbroker wins whether the client goes up or down". That what the old trader tells the main character on the first day. Its portrayed as a lightbulb moment

 

So he develops his strategy from that day

 

The real problem is leverage, these platforms push the amateur trader to use high leverage. But leverage shortens your spread to such a tiny amount that even a miniscule flutter will cause the software to auto sell and you lose the position.

 

Without leverage you would be able to sit on the position for a few days, even weeks, and maybe make a profit eventually but it would be a small profit. Its the greed factor that brings people crashing down

Edited by Vince Green
Link to comment
Share on other sites

The FCA are trying to clamp down on retail investors (the man in the street) being targeted by assorted trading platforms who encourage them to dabble in CFDs.

 

Alpari was popular for these types of accounts until they went bust following the Swissy cap ending.

 

Very true. And CFD's are banned in many countries including the US for just these reasons.

Link to comment
Share on other sites

Having worked in the industry several years ago I would advise you to stay well clear until you have an excellent understanding or the market you wish to trade. Pick one market. Watch it daily for months. Learn what makes it move. Don't get sucked in by multiple indicators, stochastics, fibonnachi etc. Stick to simple moving averages on a candle stick chart. Also, choose a market with low volatility to learn on. Gold for example. Its perhaps boring but will help limit your losses. ALWAYS USE A STOP LOSS, GAURUNTEED IN THE EARLY DAYS. also manage your money. Don't risk a high % of your pot on each trade

Link to comment
Share on other sites

I know what you're saying Vince, on the other side of any successful trade is a loss and those can wipe you out.

 

That said Zipdog could be the next John Paulson so as long as he's never risking more than he can afford to lose crack on and good luck I say!

Link to comment
Share on other sites

Having worked in the industry several years ago I would advise you to stay well clear until you have an excellent understanding or the market you wish to trade. Pick one market. Watch it daily for months. Learn what makes it move. Don't get sucked in by multiple indicators, stochastics, fibonnachi etc. Stick to simple moving averages on a candle stick chart. Also, choose a market with low volatility to learn on. Gold for example. Its perhaps boring but will help limit your losses. ALWAYS USE A STOP LOSS, GAURUNTEED IN THE EARLY DAYS. also manage your money. Don't risk a high % of your pot on each trade

 

That is kind of my logic. I need to do far more research but if I always use a low stop loss when im wrong my losses will minimal but if I predict it correctly I could make a few quid. This would not work for volatile commodities obviously.

I know what you're saying Vince, on the other side of any successful trade is a loss and those can wipe you out.

 

That said Zipdog could be the next John Paulson so as long as he's never risking more than he can afford to lose crack on and good luck I say!

 

Thanks for the optimism :good:

Edited by zipdog
Link to comment
Share on other sites

 

That is kind of my logic. I need to do far more research but if I always use a low stop loss when im wrong my losses will minimal but if I predict it correctly I could make a few quid. This would not work for volatile commodities obviously.

 

 

Thanks for the optimism :good:

Don't let greed get the better of you. If watching the market for a few weeks don't suddenly think stuff it and start checking money in. Start keeping a log of fake trades explaining to yourself why you think the market will go that way. Only when you are regularly making the correct prediction should you start for real. Using real money is a whole different psychological ball game. Keep emotions out of it. If you get a few losing trades on the bounce STOP. Take time to watch the market again before diving back in.

Link to comment
Share on other sites

Zipdog - Did you open your practise account and if so how have you been doing the past couple of days? It's been pretty volatile so you should be winning or losing large! I'm in negative territory for what it's worth.

Edited by AVB
Link to comment
Share on other sites

Guys, be very careful when switching from a dummy account to real money. Please remember that they are designed to make money for the platform operator not you, without fail you will find that when and if your returns are positive the platform will slow, you will miss prices, account will get suspended and they use every IT described trick to chip away at your cash..

Link to comment
Share on other sites

Guys, be very careful when switching from a dummy account to real money. Please remember that they are designed to make money for the platform operator not you, without fail you will find that when and if your returns are positive the platform will slow, you will miss prices, account will get suspended and they use every IT described trick to chip away at your cash..

Thanks. I'm not allowed to trade on my own account so just playing to while away the time. You are very cynical. Do you have first hand experience of the things you quoted?

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...