Wisetrader Ebook Succeeding-Cfds Vertical

Download as pdf or txt
Download as pdf or txt
You are on page 1of 18

THE WISETRADER

SUCCEEDING WITH
CFDs TRADING

1
TABLE OF CONTENT
SUCCEEDING WITH
CFDs TRADING

High risk warning...............................................................................................................................................3


Advisory warning...............................................................................................................................................3

LESSON 1: UNDERSTANDING CONTRACT FOR DIFFERENCES.................................................................. 4


What is a pip?.....................................................................................................................................................5
CFDs pip cost.....................................................................................................................................................5

LESSON 2: WHY TRADE CFD?............................................................................................................................6


Advantages of trading CFDs............................................................................................................................6

LESSON 3: CONCEPT OF TRADING CFD..........................................................................................................8


But is there a good time frame to use especially when day trading CFDs?........................................... 9
Strictly using 3 different time frames to safely trade ...............................................................................10
Share CFDs against index CFDs or forex. The different time frames to consider..............................10
Discover how to select the ideal time frame for trading CFDs...............................................................11
So, how big will your CFD trade wins be? ...................................................................................................11

LESSON 4: PLATFORMS OF TRADING (WHERE AND HOW).....................................................................12


Guide to choosing the right CFD provider and platform for you ............................................................12
Main advantage of using a DMA broker .....................................................................................................14
Here is how you can learn to make CFD robots give CFD traders an edge .........................................16
Summary ..........................................................................................................................................................18

2
WISETRADER
SUCCEEDING WITH
CFDs TRADING

HIGH RISK WARNING

CFD trading carries a high level of risk that may not be suitable for all investors. Leverage creates
additional risk and loss exposure. Before you decide to trade CFDs, carefully consider your
investment objectives, experience level, and risk tolerance. You could lose some or all of your initial
investment; do not invest money that you cannot afford to lose. Educate yourself on the risks
associated with CFD trading, and seek advice from an independent financial or tax advisor if you
have any questions.

ADVISORY WARNING

We provide references and links to selected blogs and other sources of economic and market
information as an educational service to its clients and prospects and does not endorse the
opinions or recommendations of the blogs or other sources of information. Clients and prospects
are advised to carefully consider the opinions and analysis offered in the blogs or other information
sources in the context of the client or prospect’s individual analysis and decision making. None of
the blogs or other sources of information is to be considered as constituting a track record. Past
performance is no guarantee of future results and we specifically advise clients and prospect to
carefully review all claims and representations made by advisors, bloggers, money managers and
system vendors before investing any funds or opening an account with any Forex dealer. Any news,
opinions, research, data, or other information contained within this website is provided as general
market commentary and does not constitute investment or trading advice.

We expressly disclaim any liability for any lost principal or profits without limitation which may
arise directly or indirectly from the use of or reliance on such information. As with all such advisory
services, past results are never a guarantee of future results.

3
LESSON 1:
UNDERSTANDING CONTRACT
FOR DIFFERENCES

For the past few years, Contract for Difference has greatly gained popularity globally. This financial
instrument was introduced in the 80’s and given the name ‘equity swap.’ So what exactly is contract
for difference? This is an agreement between the seller and the buyer, indicating that the seller will
pay the person buying any difference between the value of the asset at the end of the contract and
the value of the asset at the time of entering into the contract. (Or obtain money from the buyer if
the difference turns out to be negative.) Well, no doubt that this may sound somewhat misleading
when in actual sense the CFDs are marked to market each day and unlike an option, they do not
have a fixed expiration.

There is no volatility premium or time value in a CFD. It is just a one for one equity swap. You do not
deliver the underlying and just like any share it is settled in cash if you are ready and willing to flatten
your position.

Additionally, like the equity swap the Contract for Difference’s are OTC meaning that the contracts
can easily be designed to suit an individual’s needs and they too avoid the exchange fees. Obviously,
selling may be become difficult if you fail to get a seller for your custom Contract for Difference.

If you cannot price a CFD like an option or deliver/ receive the underlying instrument the CFD is
based on the really, what is the point of trading? One of the known strengths of CFD trading is that
you can actually trade on margin – and this is basically the reason why most retail investors are
trading CFD - and in actual sense use very little capital to start. For instance, Singapore exchange
permits 1:20. Another benefit you will get to enjoy as an investor is the ability to enjoy markets
that are moving downwards rivaling a rather short position. Obviously, they are not really short as
nothing has been borrowed. To say the truth, the entire brokerage community likes the prospects
of the Contract for difference (CFD) business. They get to earn good commission from trades, plus
they also get to receive the financing charges and because of the daily marking to market default
risk is remains low.

As a matter of fact, CFDs are today so prevalent amid the brokerage community that even the
Australian Stock Exchange (ASE) is trying to be part of the game by simply registering exchange
traded CFDs. They are also trying to further diversify their product offering and at the same time
earning the exchange fee for each and every trade.

Like I mentioned earlier on, CFDs are marginable. And there are always two types of margin;
initial and variable margin. Let me give you an example. In most cases, variable margin is set at a
particular percentage with stocks, but when it comes to CFDs and marking to-market setting a fixed
percentage is absolutely unnecessary.

For instance, if a CFD investor decides to buy 200 shares using Contract for Difference at let say
$200 and then the price depreciates to $180 the therefore means that the broker will have to
decrease the account by $4000 (200 shares x $20) and this will be in variable margin. Obviously

4
LESSON 1:
UNDERSTANDING CONTRACT
FOR DIFFERENCES

alternatively, if the share price skyrockets to $110 the broker will simply have to credit the CFD
traders account by $1000 in positive variable margin. When the markets are volatile, they are
always in a position to increase without notice. The original margin on the other hand is normally
debited from a customer account up front and after the credit is flattened, it gets credited. In such
a situation, the buyer will only have to put t up $500 (5% of $100 x 100) and borrow the remaining
amount which is $9500. Not you can see why the whole brokerage community is very excited and
happy to finance AND also make a commission on these products. Again referring to the sample
above if DBS increased $10 and the client sold, they would possibly earn ($11,000 - $10,000) =
S$1000 from a mere $500 investment. Minus, obviously, financing and brokerage. Certainly not bad
for your average client.

So, now that you have a rough idea of what CFD is, it’s time to understand the reason why you really
have to trade CFDs. Well, basically the end result is making profits but below are some of the unique
benefits that you never heard of.

Before we jump on to the advantages of trading CFD, first let me help you define a common term
that you will come a cross “A Pip”

WHAT IS A PIP?

This is an increment used to account for both losses and profits and it is the commonly used in the
forex market, to mean “points” or even “ticks”. But when it comes to the CFD products, the “pip” is
used to refer to the last digit in a price quotation. Well, the general value of a pip basically depends
on both the common currency of your account, CFD product that you are trading and the overall
size of your trade. A trader is able to view the existing pip value of just any instrument in his or her
trading account in the Dealing Rates window which is in the pip cost.

CFDS PIP COST.

The Pip Cost clearly indicates how much loss or profit 1 pip is worth if you are holding 1 CFD of that
same instrument. All this is displayed in the common currency in your account.

5
LESSON 2:
WHY TRADE CFD?

Now let’s discuss the advantages. We all must admittedly confess that CFDs have today become
a favorite short term trading product to most business persons. There definitely are several key
advantages that investors get to enjoy when trading within this derivative. Here, I’m only going to
outline to you the top five.

ADVANTAGES OF TRADING CFDS

1. CFD trading permits the investor to make good use of leverage.

This simply means that investors do not really have to invest all their capital just to enter the
position. Let’s say for example if the ratio of the specific position is 10:1 and you are willing to
invest $2000 then that mean you will be entitles for $20,000 worth of CFDs. Leverage can be a
good at times but you also have to be extra careful because it can easily destroy you. If you are not
watchful, you can easily lose much more than what you have, but if correctly done, you will have an
opportunity to engage in several other trades.

2. As the trader you do not have to actually purchase the underlying asset.

This means that you will instead be entering into a contract with the broker. This will also assist
because you will not be required to pay a stamp duty since you are not physically taking control of
the asset. But there are particular naturally still taxes that you will have to pay in case of any gains.

3. Contracts for Difference allow you the investor to trade in many financial markets/

This is very true! And as a matter of fact, you will not necessarily have to create more than one
account hence making it very flexible. Another thing is that when you trade with one account, you
also get to easily track your daily reports and statements.

4. Ability to use guaranteed stop loss orders.

This means that the trader will be allowed to set the amount of loss they can accept before they
close their position. With a definite stop loss your position will automatically close the moment that
amount is reached which you will agree with me that it will save you some reasonable amount of
capital, particularly when the movements are occurring in your absence and you are not available to
see whatever is going on in the markets.

6
LESSON 2:
WHY TRADE CFD?

5. CFD trading gives the investor an opportunity to earn money from upwards or downwards
movements in the derivative they have chosen.

What this means is that you will be able to create a contract on leveraging the drop of the market or
the aloft movement.

Of course there are several other positive aspects in regard to Contract for Difference trading; the
ones I have listed for you are just a slice of the many main reasons that have made this product
to become popular. However, it is very important that you completely understand the various
implications when using leverage and when trading on margins. Don’t ever forget to implement the
stop loss orders because you can easily lose all your capital and even much more.

7
LESSON 3:
CONCEPT OF TRADING CFD

Now that you know the benefits associated with trading CFDs, Let me take you through the different
tips, Hints and even methods that you can employ to become successful when trading.

5 TIPS, HINTS AND METHODS FOR SUCCESS - CFD TRADING SYSTEM

Ways of CFD (CFD Trading System) is basically a contract or agreement to exchange the difference
in value of a specific share (or any financial instrument or commodity) between the opening time of
the contract and the closing time. The following are some of the top tips, hints and methods that will
undoubtedly assist you when trading.

Cultivate A Winning CFD Trading Strategy – Whether you are unemployed, employed or even a
student, you can still trade easily and successfully using Contract for Difference. In fact it takes way
less than 5 minutes just to implement a profitable trade. This is actually a bonus to individuals who
have a fixed and busy schedule. Furthermore, you really don’t have to trade on a daily basis as you
can just take new trading positions about 4-8 times monthly. But for you to get the best out of the
system, you have to take at most one contract at a time and do intense study, this will certainly give
you some advantage and high chances of making good profit.

How to select an Ideal CFD Trading Platform - As a CFD trader, I know you might be wondering
how this is possible. But below are the step you need to follow when choosing your ideal trading
platform:

• An ideal trading platform should allow trade on world’s trade markets throughout the day every
trading day.
• It is crucial that a platform has customizable interface which can easily provide interface for a
wide range of markets such as indices, commodities, shares, and Forex.
• Totally free trading tools are supposed to be offered.
• Trading platform need to be very easy to use and should also provide absolute functionality and
it should allow the investor to easily access any market he or she desires.

Contract for Difference Trading Strategies – just like any human activity or business, making
profit in CFD largely depends on carefully designed strategies. Continue reading to find out the key
strategies that you must include when trading.

• Invest in your financial education as it will greatly help you create a fulfilled dream.
• Invest a lot of time learning the simple and basic concepts of the business.
• Always trade in any market (up or down) as it can help you generate a lot of wealth.
• Stop attending so many seminars, in the long run, there is no better way of succeeding other
than self-education.

8
LESSON 3:
CONCEPT OF TRADING CFD

Best Tips on Trading Systems and Methods: identify an expert – this is the easiest and actually the
best to start your trading career. Anyone who is successful in CFD trading strictly follows his or her
footsteps:

• You also have an option of identifying an existing plan and tweaking it to suit you. In other words,
I mean adaption an existing plan to fit your own. This is more like following a pattern that is
proven to give good results.
• Strictly use back tested plans – This is a process of running a particular system through a set of
historic information. This entire process largely depends on repeatability of performance and it is
best for confirming your plan’s success.
• Match your plan with your tools: Contract for Difference tools basically include but not limited to
- charting package, stock broken firm and back testing facility.
• Day Trading Education: In an extremely competitive financial market, it is very crucial that any
individual with the intent to make profit should by all means make trading education a personal
priority. So what are do these trading education include?
• Online courses and training programs: To invest and trade in Forex, futures and stocks.
• Purchase or download some important eBooks and books on the subject: Religiously Study
them to develop a balanced and sound education.
• It is vital that you subscribe to monthly and even weekly journals. And also don’t forget to
privately review the periodic activities of different brokers.

We all know the financial markets for their ease of leading focused investors to attaining financial
victory leveraging factors. In the recent past, it was just the mega-rich individuals and financial
institutions that had the financial muscle to participate in the financial markets as they are now
known. All the available recourses online today make it easier for just any individual to trade and
experience the benefits already mentioned.

BUT IS THERE A GOOD TIME FRAME TO USE ESPECIALLY WHEN DAY TRADING
CFDS?

Well, I admittedly confess that this is a very common question among many investors and even
those new to this trading platform. I have outlined to you the three most vital factors that you need
to consider when looking for your ideal time frame to trade.

1. What size wins similar to your losses are you after?


2. Strictly use 3 different time frames to safely trade.
3. Share CFDs against index CFDs or forex. The different time frames to consider.

9
LESSON 3:
CONCEPT OF TRADING CFD

What size wins similar to your losses are you after?


No doubt that one of the most important and somewhat ignored component of day trading success
is finding the appropriate ratio of win and loss or what other individuals refer to as risk:reward ratio.
It is crucial for every trader to have this idea planted in his or her mind of how vital it is to locate the
various opportunities of day trading where the chances of winning are high about 1.5 to 2 times the
risk.

If you keep this in mind all the time, then you are sure of locating high prospect opportunities and
completely disregard the need to trade CFD just for the sake of trading. Well trading for the sake of
trading will not only waste your hard-earned cash but it will also waste your valuable time and also
drain your confidence which will in turn make it hard for you to try any other trade. In this regard, you
may want to choose the time frame the offers you plenty of opportunities for making profit after you
have established your setup.

STRICTLY USING 3 DIFFERENT TIME FRAMES TO SAFELY TRADE

As a trader, it is important that you have a winning ration of over 60%. This is because of trading over
a limited time frame hence minimizing the chances of winners running. For you to easily locate high
probability setups that will without a doubt win you more than 60% of the time, you have to identify
medium-term, long-term and short term frames to maximize your chances of success.

If at all you are using a 30 minute chart to trade, it would be wise for you to trade in the direction of
the trend and also have the 1 hour chart and 5 minute chart trending in similar direction as your 30
minute chart. Basically the 5 minute chart will detect the early set up, then the hourly chart will make
sure you are trading with the prevailing trend and use time your entry using the 30 minute chart. You
can be sure that the combination of these three different time frames will put the probabilities of day
trading success significantly in your favor.

SHARE CFDS AGAINST INDEX CFDS OR FOREX. THE DIFFERENT TIME FRAMES TO
CONSIDER

Contingent on the chart you are given access to and the kind of CFD broker you are using, you will
get the perfect time frame for day trading. When trading CFDs the best thing is to use the 1minute
chart for the first 40 minutes, and then proceed to the two-minute chart over the next 3 hours before

10
LESSON 3:
CONCEPT OF TRADING CFD

finally closing using the 5-minute chart. When you trade index CFDs or forex you will get enough
liquidity and opportunity using anything from a one minute chart to even the one hour chart.

Now that we have answered the question “when” it is time to shift gears to how you can pick the
ideal time frame when trading CFDs.

DISCOVER HOW TO SELECT THE IDEAL TIME FRAME FOR TRADING CFDS

As a CFD day trader, it is important to know how to generate high profits within the shortest time
possible. Now I want to take you through the several ways you can easily identify the perfect time
frame for you when trading.

Firstly, the use of multiple time frames when carrying out your chart analysis will greatly influence
your success as a CFD day trader. Exploiting your entry will start from using a long medium and
short term chart to concentrate on the best entry on your time frame. For instance, you can trade a
15 minute chart, meaning you can be able to use a daily chart, 4 hourly chart and then lastly the 15
minute to time your entry. Initially, your challenge is to get the 3 charting time frames that reliably
locate winning trades.

SO, HOW BIG WILL YOUR CFD TRADE WINS BE?

The next main factor is determining the size of your wins compared to your losses. And like we
mentioned up there, this is commonly referred to as your risk:reward ratio. Day Traders always have
comparable size wins to losses and CFD traders really need to be extra careful when the typical
size of a loss is way greater than their wins. And also like I mentioned earlier, for you to successfully
trade your percentage win must be over 60%.

An example of a great win percentage are the robots present on the Forex markets such as FAP
Tubo or even Forex Megadroid who suggest between 85%-95% win rates. Many of the high win
percentage trading systems have huge losses which can overwhelm the account when they happen.
Overtrading is the quickest way of getting poor so by all means, avoid this detrimental activity.

11
LESSON 4:
PLATFORMS OF TRADING
(WHERE AND HOW)

GUIDE TO CHOOSING THE RIGHT CFD PROVIDER AND PLATFORM FOR YOU

There are particular things that you need to be very keen about when looking for a CFD broker and
platform.

Firstly, you really have to consider the broker’s reputation in terms of level experience and how long
they have been working, there rating in the sector and who they are backed by.

The unfortunate thing is that you will always come across those that have absolutely no experience,
so it is utterly important that you carry out proper research and only go with a name that is trusted.
Hopefully the guidelines below will greatly assist you when choosing a CFD broker.

Right outside of the broker’s reputation, you have to make sure that the client funds are safely kept
in a different trust accounts. This will go a long way in ensuring that you are able to withdraw your
money from the account anytime you need it.

Plus you really have to be careful and make sure that the instruments you are interested in trading
are readily available in your desired trading platform. As a matter of fact, this should be the number
one question when looking for a CFD broker.

Most people starting out in CFD trading only want to trade things that they are familiar with; for
instance, Australian equities. Eve in this situation, nonetheless, particular platforms and brokers will
be better especially in what they offer to the trader.

You will however come across platforms that are somewhat restrictive when it comes to the
number of shares they offer, restricting themselves for instance to the top 50 ASX stocks. If you
particularly interested in trading more speculative stocks or even smaller cap, you will have to get a
platform that offers a wider range of share CFDs. Certain platforms offer up to 500 Australian share
CFDs.

Apart from shares, several traders and investors are looking to get access to markets that are more
exotic, for example commodity and currency markets. Those interested in gain adequate exposure
to oil or gold, for instance, will have to make sure that their CFD broker offers all these instruments.
The next crucial consideration when choosing a broker basically involves commissions and fees. As
a trader, you need to be much updated on the various costs that are involved in CFD trading.

Commissions, similar to those that are paid to share brokers, are the costs experienced when
a transaction, such as a sale or a purchase, is made. Just like share brokers, there is a major
difference between the most expensive CFD broker and the cheapest CFD broker. Characteristically,
a competitive fee for CFD brokers will be no more than 0.1% of the position size, or, a lowest fee of

12
LESSON 4:
PLATFORMS OF TRADING
(WHERE AND HOW)

between $7 and $10 per transaction.

So, does this work practically? How?


Let us say for example you take a $6000 position size, in BHP.

So what would be the commission on this particular position on a 0.1% commission rate? It simple
$6 (0.1% x $6000 = $6).

Another example is, if you are interested in a $12000 position size in the market, the commission will
turn out to be $12 (0.1% x $12000 = $12).

So far, the cheapest commission rate for regular traders is 0.1% and 0.08 for investor who have high
turnover volumes. As an expert, I recommend that no individual should pay way more than 0.125 for
brokerage.

Even though it may not seem like a big difference, it is very easy for excessive commissions to add
up with time and can accumulate to hundreds if not thousands of dollars. Keep in mind that this
money is better off in your account if not in your pocket!

Interest charge is the other part of the fee structure. Since CFDs are a leveraged financial
instrument, fundamentally what takes place when one is taking a 9 SUCCEEDING WITH CFDs
TRADING position is that he or she must first put up a deposit, commonly referred to a the margin
requirement, and the broker ends up putting the rest.

Again, let us consider the $6000 position size in BHP, and let us assume that BHP has something
like a 10% margin rate. Meaning that you only have to put 10% of the $6000 which is just $600. It is
always the broker who puts the rest of the remaining cash, which you basically borrow.

Just like any other financial institution, after borrowing money from a CFD broker you will be forced
to pay an interest on the position. Of course the most competitive rate that we (traders) are aware
of is the Reserve Bank Cash Rate. Less competitive rates can be as wide as the RBA rate where in
some cases it goes even up to 3%. But anything above 3% as far as I’m concerned is just too much.

Also with these commission rates, even though it does not seem like there is a big difference, it can
easily accumulate with time if you choose a broker with high interest charges.

Another major consideration when choosing a CFD broker is whether the he offers a Market Maker
(MM) model or Direct Market Access (DMA).

Generally, a DMA broker will reflect the liquidity and price that is present on the exchange over which

13
LESSON 4:
PLATFORMS OF TRADING
(WHERE AND HOW)

it is offering a market.

For instance, if we sit at the ASX and observing stock XYZ being traded at $20, then that is the exact
price that will be quoted on the DMA platform.

Additional features of DMA platforms are:

• No additional spreads
• The capability of being be a price maker and a price taker
• Clients being able to participating the closing and even opening market auctions
• DMA brokers are the framers of the market, who actually simplify the ability to trade CFDs.

MAIN ADVANTAGE OF USING A DMA BROKER

The greatest advantage of using a Direct Market Access (DMA) CFD broker instead of a Market
Maker (MM) type broker is about the transparency of pricing into the larger market. With a DMA
broker you are sure that you will see 100% of the market action throughout. Everything in the market
depth is clearly displayed and available all the time. This simply means that you will deal directly
with the market rather than using a middle man.

When it comes to the maker, it actually works a bit differently and has the following features:

• Never quotes the same price as those of the underlying exchange.

• There is possibility for potential requotes and extra spreads.

• Market makers are strictly price takers.

• The client has no ability to engage in opening and closing market auctions.

• As MM brokers have another hedging methodology, high chances are that they will get profit
from the performance of the customer’s positions. This means, they have an interest in how a
client loses or makes money, coupled with the capability of manipulate the prices.

• You can choose to call them suspicious but that sounds just like a recipe for trading account
destruction. Moreover, my experience has led me to believe that some MM brokers can decide
to charge particular clients a specific price, and other clients a totally different price, just for the
same instrument. But this is always to benefit clients who have bigger accounts at the expense

14
LESSON 4:
PLATFORMS OF TRADING
(WHERE AND HOW)

of the ones with smaller accounts.

• While there is nothing unlawful about any of the above mentioned practices, trading can really be
tough as it is without your broker influencing the prices and favoring other clients. That makes it
wise for you to use a CFD provider who offers a DMA platform.

• As usual though, you need to always consider your own needs and situations, besides reading
the distinct brokers’ Product Disclosure Statements -PDS- before making your last decision.

• The final concerns when choosing a CFD broker are not quite as crucial but can without a doubt
make a big difference to your trading situation. It basically involves a platform’s functionality and
reliability.

• Well, no doubt that all trading platforms are quite serviceable but, obviously, there are those that
are better than others.

• Even though at the beginning it is hard to evaluate, once you have decided to trade you definitely
want to make sure that the trading platform you are using is not going to crash and that the
overall functionality of the platform entails standard features such as news feeds and also good
live prices charts that have technical indicators.

• The important thing to note is that today the CFD market has grown to be so competitive that
you really have to go for a broker that will cater for all your need and offer you a quality service.
My advice for you is that you need to be choosey and do not settle for services that are less than
what you actually need.

• But I’m so sure you are wondering if indeed there are any particular trading platform that is
indeed good for you. Well, the answer is yes! And below I’m specifically discussing the Meta
Trader 4.

The uptime is normally less than 1%. It offers the traders with all the possible functions that need
to be provided by trading platform and it is equally very instinctive and allows its users to grasp a
subject of CFD trading completely. In fact a good number of the automated CFD systems or the
robots succeed on this software.

Meta trader always comes in PDA versions, desktop versions and succors windows and also Palm
OS plus windows mobile. You can the Meta trader data from your broker. With this, you will be able
to easily stream lime current data relating to the charting software and many other related facets;
for example the screenshots.

15
LESSON 4:
PLATFORMS OF TRADING
(WHERE AND HOW)

Hundreds of brokerage communities globally use this particular platform to trader and are
unquestionably satisfied with the way it performs and that only if unbiased testimonies are to be
believed. With its front-end trading interface traders are able to enjoy acute technical analysis and
also professional opinions apart from getting a charting software and screenshots with indicators.
On these, those trading robots or programs perform their trend lines, candlesticks and Fibonacci.
As a trader you can be sure that with Meta trader 4 are able to not only easily develop your strategy
but also do exceptionally well with it. It is no secret that the success of mete trader unleashed new
grounds. As a matter of fact, it started seeking the best in terms of growth beyond the desktop
meniscus.

Traders enjoy automation but that still needed office hour for example if you wanted to place a
trader with your broker. Now you really can work from anywhere, even in the office. Meta trader
allowed trader to work from just any part of the world with the help of a PDA. For those particular
indicators that can be dragged and then dropped on the screen, Meta trader 4 has proclivity. It is far
easier to download such indicators from the internet. For individuals that are completely new to this
subject, using Meta trader 4 will come spontaneously. The whole idea is just to get the software and
begin right then. Funny enough, it may not even be necessary to go through the instruction manual.

MOL4 – this is a trading strategy programming language used strictly on a Meta trader 4 platform
specifically for assuming technical indicators. Even when one has more than one account or maybe
is running another for someone else, it is easier to proceed with Meta trader 4 multi terminal. Thanks
to Meta trader 4 which can now utilize “professional” feature to incorporate and design robots. So
you will get not only a trading system but also a platform on purchasing the software. The robots is
capable of clinically analyzing the exit and entry points for a trade to estimate sell and buy positions.

Technical analysis in present mode was surely never easy. Meta trader 4 has is a game changer
and has completely changed how trader would like to perceive CFD trading today. CFD Robots I’m
sure that you have heard of the CFD robots and that they can offer a trader an edge. But how is this
possible? Continue reading and I will give you an insight and exclusive information on how you can
possibly make the robots give you an edge as a trade.

HERE IS HOW YOU CAN LEARN TO MAKE CFD ROBOTS GIVE CFD TRADERS AN
EDGE

Yes! It is important to know that indeed there are hundreds if not thousands of CFD robots for
CFD traders that profess to offer them with an added advantage, but it is equally very essential to
understand that so many CFD trading robots actually do not even function. Several trader today
waste a lot of their quality time in the internet purchasing a lot of different robots and testing them.
Personally I think this time can otherwise be used in trading and sharpening trading skills. Rather

16
LESSON 4:
PLATFORMS OF TRADING
(WHERE AND HOW)

than testing all of the CFD robots available on the market, would it not be better to look for a review
site that test’s all those reviews for you and then you choose the best robot? It is never easy to
review CFD robots since it is time consuming and can sometimes take weeks if not several months.

Putting all these types of information together also requires a sizable database to keep all these
important information; and this is not available in most individual’s computers. No doubt that it also
takes a lot of money since the CFD robots have to be tested on a live account to simulate an actual
selling and buying situation. Another essential facts to keep in mind is that robots do not work for
long simply because in most cases a lot of people buy the same robot and make money.

Many CFD robot testers that spend most of their time testing robots are mostly computer gurus
who know a lot about programming, a little bit much more than a normal person. Leaving the testing
to the experts is something that I would strongly suggest as they are able to tweak the robot to do
well in just any market situations, this is utterly vital as one of the common problems with robots is
that they tend to fail when too many people purchase them. Most individuals only notice that their
robot has failed right after paying money for it.
There is a lot of CFD robot review sites that claim that traders can probably get an edge if they
read them but then again most of the sites don’t regularly test their robots or even update them.
Regularly testing robots is very important as it keeps the traders updated and also ensures that they
make reasonable profits from trading CFD. You should also know that CFD robots also become
unsuccessful if liquidity in stocks vanishes, this mostly occurs when traders stop using robots when
trading.

I have to confess that indeed robots that can help one make good profits from trading CFD are very
hard to come by and can only be found in a couple of niche sites online, most people don’t even
know where to find these sites and as a result, visiting a CFD trading robot review site guarantees
that you as a trader will get an edge in the market. Many CFD robot assessment sites also have
glitches because they never test their robots regularly as it is needed, it is these web sites that bring
problems because they encourage the existence of robots which are not successful and also not
used by professional traders.

Before purchasing a trading robot which can offer you and of course many other CFD investors and
edge you may want assurance that indeed the site is reliable, utilize the competent software testers
and try it on actual CFD trading accounts that contain real money. Well, no doubt that most of the
sites don’t use this particular level of testing, this is why it is vital that you take a closer look at two
or even three internet sites and of course browse some on-line reviews before purchasing a CFD
robot that claims to provide traders and edge in the CFD market.

17
LESSON 4:
PLATFORMS OF TRADING
(WHERE AND HOW)

SUMMARY

How will you integrate yourself as a trader among those who know the steps to take when wanting
to make the most out of trading CFD? I’m sure that with this E-book you will get not only the basic
but also the complex concepts of trading CFD which will then help you elevate and make huge
profits in this lucrative financial market. Now you can boldly brag about achieving the new lifestyle
that accompanies a realm of vast financial opportunities in fruitful CFD Trading.

18

You might also like