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CFD broker

CFD broker, how to recognise a good one?

Ever wanted to make money whenever and wherever you want? Start trading now and receive a 25 dollar welcome bonus
Hi all,

Welcome to the final CFD course. In the first lesson I have explained what CFDs are and why they are a great investment tool. In the second lesson I have showed you on how you can make money on CFD trading and the third lesson I have explained you on how to calculate the cost and profit on CFD trading. In the last lesson I am going to give you some tips on how to recognise a good CFD broker.

Tip #1: A good CFD Broker must have a license

It’s of vital of importance that a CFD Broker must be licensed by the financial authorities. The reason for this that when a CFD broker has a license from a financial authorities you can be sure that the CFD broker is not a scam. For a CFD broker to get a license from the financial authorities is not easy and it is also very costly. So for a CFD broker to get a license that broker company must be organized well and have the financials to run the company.

Tip #2: Check reviews of CFD Broker

On our website you check the  a few review that we have done on some CFD broker. This is the link (if you want to check it out now): https://101trading.co.uk/beginners/compare-brokers/

The importance reviews is that it gives you an insight what other people are experiencing using that CFD Broker. Reviews can give you that information that you were looking for your decision making process. Its always good to see what people like and what people dislike.

Tip #3: Check the deposit and withdrawl rules of a CFD Broker

One of the most important to check when choosing a broker is their withdraw and deposit policy. Most broker has a easy deposit policy but a tightened restrict policy on withdraw money. Make sure you understand them.

Tip #4: Check the profitability of a CFD Broker

I always check the profitability of a broker.This is not easy to find as many brokers are private companies. So sometimes when I asked for a balance they won’t give me. The reason I check profitability is to check if the broker has money. It’s important that a broker has money , so that when I withdraw my investment including the profit that I know for sure that I will get the money in my bank account. Plus500 is one of the few brokers that gives you a insight into their financials. For example last year Plus500 made a profit of $102.5 million Us dollars.

Tip #5: Check if your money can be deposit in a segregated account

What is a segregated account? A segregated account is a money account where the broker can’t touch your money. Your money is separated from the brokers firm money. In case a broker goes out of business, your money will be still safe and returned back to you.

I hope these tips have helped you in choosing a good broker. After using these tips I end up trading at the Plus500 broker. If you are interested in opening a trading account at Plus500 feel free the click here: Open a trading account Plus500 or Open a free demo trading account.

If you have any questions or suggestion feel free to comment in the comment box and we will reply to you in 24 hours.

Read more about CFD Trading: How to make money with CFD Trading

 

Make money on CFD trading in a simple way

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cfd trading

In this CFD tutorial I am going to explain on how you can make money with CFD trading.Now if you don’t know what a cfd is then you should read this article: What are CFDs?

The possibility that cfd trading gives to a trader

One of the reason that I like CFD trading so much is that it gives you so much possibilities to trade. You can use cfd trading to make a trade in forex, shares/stocks all over the world, top Indices, commodities and all kinds of funds. For example if you don’t see any opportunities to make money in the FTSE then you can always look to the German market and see if Volkswagen share fits your requirement to make a decent profit. Or you can trade in gold by using cfd trading if you believe that gold market gives a  good opportunity to make a profit.

CFD Trading Step 1

The first thing you need in CFD trading is CFD broker. Its vital that you choose a good cfd broker. Because unfortunately there are still some brokers around that are scam. To avoid off getting a scam broker, you should take a broker that has licenses from Financial Authorities. In our brokers review you will find what our experiences are with different brokers. Our top picks at the moment are Plus500 and Markets.com. You can the reviews here: Plus500 Review & Markets.com Review.

CFD Trading Step 2

After you have open a CFD trading account or if you already have one then it is time to make some profit. Here is the first thing that you should do. Create a trading plan. A trading plan is a simple plan where it states why you want invest or trade  in this object and at which price point you should get in or get out. One of the best way of determine a buying point is to use make use of the horizontal lines and trend lines. By using both U can pinpoint the price point where you should enter the market (buy the object) or leave the market (selling the object). If you want to know more about buying signales and selling signales then read this article: buying & selling signals.

Protect the down size risk

Have you ever heard of the first two rules of Warren Buffet in investing?

Rule nr.1: Never lose money

Rule nr.2: Never forget rule number One!

I love that rule. That’s why I always use a stop loss order to limit my potential loss.

cfd trading limit potential loss

cfd trading limit potential loss

By using a stop loss order, I am in control of my risk management. Meaning that I can control my potential losses and keep it small when the trading doesn’t work out well. And when it works out well I can make a huge profit while my loss is small.

A CFD trading making money extra tip: Use a stop loss order to protect your profit.

A stop loss order is used to keep you from losing money but it can also be used to secure your profit. Let’s you say your current trade is making a profit. Then all you need to do is to move up the stop loss order.

Example:

Let’s say the stock that you have bought at 20 pounds currently has a value of 35 pounds. The best thing to do now is to move the stop loss order to a price of 33 pounds. This way if the stock suddenly drops in price to 25 pounds, you will still have a profit of 13 pounds instead of 5 small pounds. If you have bought the stock with cfd then you profit will be a lot bigger then 13 pounds per share because of the leverage.

 

 

CFD broker

CFD one of the greatest investment instrument

Using CFD gives you a lot of advantages in trading.

In this post I will answer questions regarding cfd (contract for difference) are. And what the advantages are of using contract for difference in your portfolio.

 

What is a CFD?

CFD stands for contract for difference. In a CFD the contract stipulates two parties, which is typically described as “ Buyer” and “Seller”, which the seller will pay to the buyer the difference between the current value of an asset and its value at contract time. And if the difference is negative the buyer pays instead to the seller.

In effect CFDS are financial derivatives that allow traders to make a profit when the market prices are moving up or when the prices are moving down. If you want to know more about CFDS then read this article: CFDS for beginners

What are the advantages of using CFD?

When you start trading with CFDs you will encounter the term leverage. Leverages are one of the biggest advantages that a CFD has. What it does is that it gives you the ability to invest largely with a small amount of money. CFD gives you the ability to take advantage of small price movement. And many traders are using CFD for this purpose only.

However, investing through a large lever brings with it certain risks. This article is part of the short course of how to invest in CFDs. When you are investing in CFD you will always use leverage. A lever is always displayed as a ratio, eg 1:50. When the lever is 1:50, this means that with a balance of € 1,000 you can invest as much as € 50,000. With this CFD leverage you can add a greater amount of securities to your portfolio.

How does a CFD leverage works?

The leverage works in a similar ways as a mortgage. When you want to buy a house, you will need make a down payment and get a mortgage. In this case the mortgage gives you the ability to buy the house that you want. When you sold your house you pay off the mortgage. And what you have left is your profit.

The same way it works with CFD leverage. Let’s say you want to buy 100 Starbucks shares. With CFD Starbucks shares you only make a small down payment to acquire 100 Starbuck shares and the broker will finance the rest.

The broker is behind much of the position and the difference between the opening and closing price will eventually settle with your own balance. You are at no time the owner of the security; the broker will control both the buying and selling. When investing in CFDs, you have no further responsibility since you are not the owner of the physical effect.

 

Advantages of using high leverage

A major advantage of a high leverage is the fact that you can also achieve high gains with low power. If the share price rises eg with a euro and you use a leverage of 1:50 then you immediately earn € 50.00. However, when the price falls a euro, you will lose the same amount. The gain or loss on your position is usually settles with your balance. Be careful with leverage! You will not be the first to directly leverage from one hundred to open a position. With a higher leverage also come increased risks, since each euro to fall in price much higher loss entails. The leverage effect can work both ways and it is important to deal responsibly with this. Don’t use the full leverage in the early stage and go only use this useful tool once you know how you can make money investing. Once you figure out of how it works. Then using leverage will give you big profits!

Want to give CFD a try? Then click here: Try CFD for free and make use of unlimited demo account

Read more about CFD Trading: How to make money with CFD Trading

day trading

Day trading, make some money beside your full time job

Start trading now to receive a 20 pounds welcome bonus!

Maybe you have done or are doing this yourself. Trading under work time and after work . But I have certainly done this before when I was in my second year of trading back then. In this article you will get to know how I made money when I still had a full time job.

From a day trading to become a long term investor

I started trading on the markets about 5 years ago. After months of practising on the demo account, I finally made my first move on the options of TomTom. I failed badly on my first trade. But learned a lot of lessons from that first trade. Some of these lessons I described it in the blog named : Demo trading account are dangerous.

After my first trade I decided that I wanted generated enough income with trading that would cover my monthly living expenses. Although I failed at my first trade but there a time window of 20 minutes where I making a profit of 60% on my investment. At the beginning of my trading career I wanted to become like Warren Buffet and George Soros but I had no large funds to become a long term investor or to become a full time trader. So I had to become a great short term trader in day trading.

Day trading during job time

While I was improving my trading strategy  and developing my investment plan for short term and long term. I was faced by another challenge. And that time was time managing. Sometimes good opportunities comes when you are at work or at moments that you are really busy. At first I tried to trade all opportunities. Some were good and a few turned out to be a pain in the ass. I got myself a few times in a situation where I was already in a trade but could not exit a trade because some unexpected stuff happens at the office that required my attention immediately and just like that my profits turned into a loss. To avoid this problem I made a rule for myself in my trading plan.Exit the trade immediately when work is calling.”

So from that day on whether my colleague or my boss was calling me, I just exit my day trading. And when I was done talking with my manager or colleague, I just either re-enter the same trade or enter a new trade.

Day trading after/before work

day trading

day trading

With so many markets on the world. You can basically trade 24 hours a day if you want too. Forex market for example is 24/5. And if you don’t like forex then you can trade in many other markets. For example if you are from the UK you can trade in FTSE during the day , the Dow Jones in the noon and at night you can trade in Asian markets. With Plus500 I was being able to trade 24/5. Because I had access to all the markets. That’s the beauty of online brokers like Plus500. It gives you the ability to trade any time and any where you want. With brokers like Plus500 or Markets.com I was able to become good at day trading. And now I even trade and make money when I am on vacation or travelling. Pretty cool huh?

 

 

A few preparation tips for a good day trading

  1. Make sure you got a trading plan. If you don’t know on how to set up a trading plan then click here: Trading plan
  2. Check out the economic data calender so that you know at which time there is a possible news influence that could create a movement on the markets
  3. Before you enter a trade fill in your trading journal

That’s all for now. If you want to know on how to trade like a pro then click here: //bit.ly/1Pd8WuA

If you don’t have a trading account , then click on one the banners below and receive a nice welcome bonus.
Plus500
Plus500

 

Changing the language

Table of contents

Downloading MetaTrader
First Login to MetaTrader
Login to MetaTrader
Changing the language
Changing your password
Forgot password
Trading with MetaTrader 4
Choosing Trading Instruments
Market Watch Window (Instruments Window)
Adding / Removing Instruments
Opening / Closing Positions
Open a New Position
Close an Existing Position
Pending Orders (Entry Stop / Entry Limit Orders)
Using MT4 Charts
How to Open a Chart on MT4?
Types of Charts
MT4 Chart Functionalities

Changing the language

If you wish to change your language of operation, simply click the view menu tab and choose the Language option. After choosing your preferred language, restart the MetaTrader 4 platform.

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