CFD commodities and futures

[swissenergiser]

How different are CFD commodities and futures?

I was wondering if I read books about futures, does that mean I know how to trade CFDs easily?

 

[AverageJoe]

How different are CFD commodities and futures?

I was wondering if I read books about futures, does that mean I know how to trade CFDs easily?

Some CFD providers do not mimic the price of the real SPI200 from SFE. I do not trade SP200 CFD on my FX broker for this reason as well as liquidity. On the US indices they are liquid.

Just be aware that CFD providers are a derivative so if the CFD provider falls over, your funds in your segregated funds are basically gone.

I suggest you need more than reading a few books before you can trade profitably. You need to know the different trading styles, tools, crafting your setup, risk management, money management just to name a few. Then there is trade management and trading psychology. In my experience T Psychology is THE most important aspect beaise MM and TM etc...

Good luck. Don't rush and be prepared educationally wise and lot of free stuff on the web. You just need with time to spot the good from the rubbish.

 

[swissenergiser]

Thanks I will remember to take note of trade psychology, trade management and money management.

Going to start off by learning about Technical Analysis

My plan is to start off investing in stocks, and then after having experience go into CFDs.

 

[AverageJoe]

Thanks I will remember to take note of trade psychology, trade management and money management.

Going to start off by learning about Technical Analysis

My plan is to start off investing in stocks, and then after having experience go into CFDs.

I have been through a whole lot of indicators, methods, strategies etc..

Here is the list through my trading journey

Indicators - macd, rsi, stochastics, moving averages, bollinger bands, Directional DMI
Tools - fibonacci retracement + extension, candlesticks, bar,
Patterns - Harmonic, triangles, flags, pennants, ascending/descending triangles, support/resistance
Methods - trend, mean revert, Elliot wave
Strategies - mechanical style, discretionary

That was a big list right? After all that journey on the education + applications, I have decided to use raw charts with just support and resistance line and candle stick charts and selected a few continuation and reversal candlestick patterns. Strategy is swing trading, with the standard money management. Entry/Exit is based on risk reward ratio. Trade management is scale off method. That is it. I can now see the price action story and make better informed decision on my trade setups.

I don't even have a moving average on my chart. Good luck. Less is more....

 

[pixel]

How different are CFD commodities and futures?

I was wondering if I read books about futures, does that mean I know how to trade CFDs easily?

Reading books won't get you very far. A book will present one person's (the author's) ideas, and that is quite often based on market conditions and processes of yesteryear that no longer apply.
Books also cost money - lots of it.
I got more out of online material that is freely available; but make sure it's not affiliated with a "Training Course" or "Membership Subscription" that promises immense profits for a "tiny" up-front cost.

A few websites I've bookmarked include -
http://www.asx.com.au/education/shares-education.htm
https://www.aussiestockforums.com/forums/showthread.php?t=23721
http://thepatternsite.com/CandlePerformers.html
http://www.leavittbrothers.com/education/
http://www.incrediblecharts.com/

Once you have a grasp of the basics, start paper-trading. If done honestly, hat will show you which method works for your chosen instrument or more generally whether "you've got it".

Good luck. It'll be an exciting journey.