Y-Man,
The ASX simulator accounts for interest on positions held over night and does not account for brokerage fees. I have however, in a spreadsheet, calculated the brokerage fees for each trade etc.
I guess my main curiosity is, is that how people usually trade CFD's succesfully? I've been closing all of my positions within the day (to avoid paying interests) and only riding 0.01c fluctuations on any cfd at a time...
JD
JD
"If you don't want to work, you have to work to earn enough money so that you wont have to work." - Ogden Nash
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Never tried it myself, but I'm sure it's as "valid" as any other techniqueOriginally Posted by J_D
Cheers,
The Y-man
Fair call...
Well, I'm going to shift some funds and see if I can capitilise on this....
JD
JD
"If you don't want to work, you have to work to earn enough money so that you wont have to work." - Ogden Nash
Despler Group - Business Resources and more...
As always - start small (with pocket money) and don't upsize too quickly.
The Y-man
If you're only riding 0.01c (I think you mean $0.01 ?) you're not going to make anything with CFD's (or shares for that matter). Brokerage costs will wipe you out very quickly. Typical brokerage is around 0.1%, so take this example:
You purchase 300 BHP shares/CFDs at $40 = $12,000 and pay brokerage of $12.
You then sell 300 BHP shares/CFDs at $40.01 = $12,003 and pay brokerage of $12.
You have made $3 and paid $24 in brokerage. To break even you would have needed to sell BHP at $40.08
Nice Topic this one very informative
I played with CFD's a long time ago and was pretty successful but in the end got a bit too bored and lazy and ended up losing money. Dont think CFD's are a magical get rich quick guaranteed scheme they are high risk. That said if you're sensible and can control your impulses they are a good way to earn a few dollars. The biggest mistake I made from going from a 'demo' account to an actual account is that I believed all orders would be filled as per the demo account. With a demo account - when you put a buy or sell order in at a specified price it will be filled at that price. In real life it doesnt always work that way. If the market is moving very quickly and your stop loss kicks in at $1 there is no guarantee you will get $1 - dont forget there needs to be a buyer for you to make a sale! The price may continue to plummet to 60 cents and the stop loss will finally kick in at 60 cents (the next available buyer).
Anyway - dont be stupid - dont take irrational risks - dont become bored and settle for too small profits - dont put all your eggs in one basket - dont trade without a stop loss or guaranteed stop loss. Do that and you'll be fine.
I traded cfd's through CMC market when the volatility was high. Traded intra day trends on the XJO 200. Did allright from it but it got a bit boring and not so profitable when the big intra day swings dried up
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