Four simple rules to survive in the CFD market

CFD market

CFD trading has become a very popular profession in the investment world. Thousands of traders across the globe are trying to change their lives by learning to trade the CFD market. Despite hard work, most people are failing to make money. Over 90% of investors are blowing up their trading account within a short period of time. To survive in the CFD market, a trader needs to follow some strategic rules. Without following standard rules in trading, no one can succeed in this complex trading industry.

Today, we are going to share the top 4 tips which can help you to protect your trading capital. Read this article very carefully as it may change your life.

Lower down the leverage

Most people in the Mena region start trading with the high leverage account. Usually, they open their trading account with a low-end broker and make things worse. But if you study the portfolio of successful traders, you will notice that no one is trading with insane leverage. All of them are following standard rules and taking the trades in a very conservative way. So, if you want to keep your fund safe, you should reduce the leverage and choose a good broker like Saxo. Never choose a broker who offers insane leverage and promises big profit in trading.

Trade with the best platform

No one gives priority to the quality of their trading platform. Most people are thinking about the low-cost trading environment. But if you study the CFD market in Dubai, you will be surprised to learn that most of the assets are showing stable price movement yet the low-end brokers are failing to give you an accurate price feed. Thus the retail traders are losing money due to technical glitches. But this will never be a problem once you chose your broker carefully. For instance, if you trade with a well-reputed broker likeSaxo, you can use SaxoTrader and avoid such problems. So, take your time and choose your broker very carefully.

Invest in an education

Do you want to protect your trading capital? If so, you need to invest in an education. People are always looking for big profit but they don’t give any importance to obtaining a proper education. But if you do the digging, you will notice most of the elite traders have in-depth knowledge about this market. They never take trades without assessing the overall condition of the market. So, instead of taking random trades in the CFD market, you should find a good mentor who can give you proper guidelines.

While choosing the mentor, you should carefully evaluate their portfolio. Unless they have a proven track record in the financial industry, they can never teach you to think outside of the box. Many scammers are trying to make money from inexperienced traders. So, study the portfolio of successful traders and learn about the traits of a profitable trader. Once you have identified a good mentor, it is better to invest some money to learn the important details of the CFD trading business.

Stop ignoring the news

Novice CFD traders keep on losing money since they never stop ignoring the key news. To them, news factors are nothing but profit-taking opportunities. They trade with big lots during the most volatile state of the market and loses a big portion of their capital. To be on the safe side of trading, you must learn to analyze the news. Some of you might think by ignoring the news, the risk factors will be reduced significantly. But to find a good trade signal, you need to rely on technical and fundamental data. Without depending on these two factors, it will be really hard to make a consistent profit.

Smart traders never ignore the news event. They use technical and fundamental analysis simultaneously as it helps them to make the right decision. So, take your time and educate yourself properly to keep your capital safe.

Rajesh Saini

Delhi6sweets – Authentic Indian Restaurant in Perth

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