CFD trading strategies - start trading at nextmarkets

Investors, be they retail investor accounts or individual investors, generally have to make several decisions about their trading positions on a daily basis. Long vs short, long term vs short term, speculation vs hedging and trend vs swing are all common dilemmas with day trading and long term trades. The following are common strategies employed by the experts at nextmarkets:

• Swing trading: attempting to benefit from reversals or “swings” within trends of the current market price (when a high price inevitably drops slightly, for example).
• Hedging: this protective strategy involves stopping open positions from losing value by taking an opposing CFD position. Such distribution is where the term “hedging your bets” originates.
• Long vs short: purchasing an asset is known as a “long position” – on the assumption its sell price will gain value over the length of the contract. Shorting is when the investor sells back an asset at a low level, with the intention of purchasing it back at a more favourable buy price at a later date.

Once you’ve opened a CFD account at nextmarkets and got the hang of investing with virtual demonstration funds, you might feel like it’s time to begin with real money. However, implementing risk management when looking to trade CFDs is one of the most important lessons to learn, and you should always look at securing your financing costs before you make the jump to real money.

One popular way to achieve this is to adopt the “one per cent” strategy – this involves never investing more than one per cent of your overall funds on a single trade. This way, you won’t start losing money rapidly if the markets take an unexpected downward turn. Remember that occasional losses are part of trading, and never risk more than you can afford.

When learning about at nextmarkets, beginners are advised to keep CFD trading strategies as simple as possible. Taking a risk without having an understanding of the market can lead to experiencing losses, which is why it’s so important to choose free CFD software that offers help and advice. The following are some of the simplest CFD trading strategies to implement:

• Breakout: spotting the potential signals that a new upward or downward trend is beginning.
• Moving average crossover: overlaying old price data with recent price data to spot trends. When the two lines meet on the graph, this could be evidence of a movement.
• Carry trade: profiting from interest received on bonds that exceed the cost of financing the debt of another trade or loan.

The days of having to provide your bank details to every company you transact with are over. Modern, flexible payment gateways allow for secure deposit options. Many apps recognise this, which is why it’s not uncommon to find CFD broker PayPal payments as standard across several platforms. In addition to flexible payments, the nextmarkets CFD trading app provides help and answers to even the most basic questions like “what is CFD?” and “what are CFD stocks?” to help you get up to speed with how CFD trading works before you invest with your own funds.

Choosing a trading account that offers support is crucial, particularly if you’re starting out and asking questions like “what are stocks?” and apps are a great choice as they offer tutorials from the experts. New traders are advised to invest wisely through a series of low-risk investments at first. Three of the most valuable tips are when trading with nextmarkets :

• Don’t jump the gun – stick to a maximum of three trades each day
• Dedicate time to monitor the markets – the more hours you put in, the greater insight you’ll have
• Look at what professional traders are doing and mirror their actions to learn the basics of how CFDs work

Successful traders understand that minimising the high risk of losing money, maximising profits and emulating professional traders go a long way to ensuring a healthy return on investment. You’re not entitled to receive compensation of any sort if your trade doesn’t work out, Clinging to a losing trade and cashing in too early are two of the easiest mistakes to make, and the following strategies should be implemented where possible:

• Trade on logic, not emotions – analysis trumps gut feeling every time.
• Limit your trades – if you’re investing huge amounts of your total capital, you’re overstepping the market and merely gambling.
• Timing is everything – entering a trade early on could result in serious losses. The same goes for waiting too long. Individual circumstances come into play, so investment research is always key.
• Avoid adding to losing CFD positions – CFDs are complex instruments and come with high risk within volatile markets, don’t expect prices to turn around immediately after they’ve taken a dip.

Follow these trading tips at nextmarkets and enjoy the best possible returns.

The best CFD strategies for beginners help the new trader to make a reasonable amount of money while minimising their risks. While there’s nothing inherently wrong with diversifying from low-risk strategies from time to time, beginners are likely to find it confusing and overwhelming to implement complex techniques at first.

What is swing trading? Swing trading is one of the easiest strategies to implement, as it helps new traders to stay focused on one particular market. Swing traders tend to avoid false signals because the analysis methods reveal these signals. By sticking to the statistics instead of relying on emotion, there is the opportunity to enjoy a profit from a series of low-risk investments.

One of the strategies with trading CFDs favoured by many traders involves combining technical (TA) and fundamental (FA) analysis together. By implementing both of these methods, a CFD trader stands a much better chance of being successful than someone who uses just one of them.

As a general rule, traders should aim to use FA to trigger a trade, while using TA to predict the best possible time to enter a CFD trade. If you want to learn how to trade CFD in more complex ways you should choose the nextmarkets app that offers plenty of tutorials, insights and analysis.