The Cfd Trading Winners Diary-catherine Davey

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Catherine Davey has built a profile very quickly as being one of the best in the industry when it comes to CFD trading and her latest book ‘Making Money From CFD Trading’ outlines specifically how Cat Davey managed to turn $13,000 into $30,000 in 3 months. Essentially, this is a book from a successful CFD trader which is a source of many lessons in the trade.

Real trading results with a live account

Most essentially youll appreciate it that the trading diary of Cat Davey was collated with the use of her own trading funds and not some make-believe trading account with fictitious money. This is great help for those who have paper traded and those who have traded live with real funds. Paper trading is one thing but everything changes when you commit real trading funds. You can be sure that Cat Davey went through all the ups and downs when things started to go wrong and that includes also the euphoria.

The right time to take your CFD trading live

What is found in the Cat Davey CFD trading diary is a real account of what you might go through to have a dollar return equivalent to what a number of people would earn from their regular day jobs. This will provide you right perspective on how to challenge it and things to expect from your transformation from part time trader to full time, income generating trader. Having read Cat’s book you might find out that full time trading is the perfect means for you to create a solid return on the funds you have.

A number of CFD traders especially the day traders would attempt to go live even without ample experience in earning a solid income in trading. Whilst the idea sounds fantastic you do need to make sure you understand the critical trading numbers and Cat Davey covers that perfectly in her latest CFD trading book.

Day Trading Strategies for Beginners

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Day trading is all about speculations in buying and selling of financial instruments like bonds, stocks, securities, deposits, foreign exchange derivatives, assets, currencies, etc., which is done within the beginning and end of the same day, usually before the market closes for the trading day. Traders who are participating in it are called day or active traders and they take the role of speculators if they trade with a motive of making profit.

Before the advent of electronic and margin trading, it was an activity which was done by financial firms like banks or investment firms, who were specialists in equity and fund management, but now at-home traders have also become more popular. The trade may either last for a few minutes or may take many days to complete. Some traders, who do a trading business, buy and sell many times in a day and charge a trading fee from their clients. Though this is called day-trading, it involves many styles, traits, and risks. Many traders stop doing transactions before the market closes for the day, to avoid unwanted risks like the differences between the previous day’s close and the next day’s open bull price, while some traders have a belief that they should let the profits run even after the market closes.

Money Exchange

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Presently, a lot of people have started becoming interested in the day trading market. Although a lot of cash can be earned through trading, a trader should focus on the market all through the day, employ a strategy and stick to it.

The following are a few simple strategies that can be followed by a day-trader.

Scalping. This one of the most important and basic day trading strategy. This is a process where any of the financial instruments is sold immediately after the profit is made. This is a strategy where a trader gains small amount of profit from each trade and eventually makes a huge amount of profit through a lot of selling. Many such traders do a selling of more than hundred trades in a day.

Trend Following. This is an investment or trading strategy which is used in all times, where traders believe that the price of the financial investments which are rising will continue to rise and vice versa. The trader buys such an investment or short sells the ones which are lowering in price, expecting the trend to follow.

Daily Pivots. This strategy is used by traders who concentrate on high volatile investments. These strategists keep track of the movement of the investments and take advantage when the price is really high and when the price is at a reversal. These day traders buy when the price is low during the day and sell when the price is really high, thus making profit.

Fading. This is a contrarian investment strategy, where the trade is made against the trend. This is a very high risk strategy, but brings maximum profit. A trader who is using this strategy will sell an investment when the price is rising and would buy when the price is falling.

News Playing or Momentum. This is a strategy based on the new releases or finding the investments which are moving with a high volume. This type of trader usually invests in a financial instrument based on a news release and follows a trend until there are signs of reversal. This is mainly based on the volume and when the volume cease to decrease the instrument is sold.

Candlesticks Chart. This is used by investors who follow a candlestick charting where a technical analysis is determined by a bar chart pattern. Once a pattern is recognized a trader starts to take position and does a trading.

These are the general strategies that should help any day trader to do trading that fits during the time frame of day trading.

Alpha7Trading provides extensive trading courses and also helps out students and traders learn the best day trading strategies. To know more about day trading, you may visit Wikipedia.org.

Reality of Online Forex Trading

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Foreign exchange trading is the trading of currencies. Most currencies can be traded. Huge amounts of currencies are traded 24 hours a day, 5 days a week. On average $1.9 trillion is traded a day. The most traded are United States Dollar, Japanese Yen, Euro, Canadian Dollar, British Pound Sterling, Australian Dollar and Swiss Franc.

Many brokers will let you open an account with a starting balance of just $250. Though that may seem small, remember you will be trading on margin. Your $250 investment may let you control $25,000. As with all investments there are risks so make sure you take the time to study the markets and your exposure before making your first trades. I highly recommend that you do some paper trades first to make sure you have understood how the markets work. No risk training, just write down the trades you would have done for real and chart the prices. Buy and sell and see if you have the right strategy before making real trades.

A fast internet connection will allow you to do forex trading online. Your broker will give you many online tools to allow you to study the markets: Real time quotes, news feeds-

Visit different broker’s websites and compare the services they offer. Some brokers give you the possibility to open demo accounts. Do so, to test their software and find the one you like best.

Before you start trading make sure that you have learnt the terminology: Market Order, Limit Order, Stop Order. You may find the definitions of these terms and more information at Calculating Forex Profits And Losses.

All currencies have standard identifying code used worldwide, some examples are: EUR (European euros), GBP (United Kingdom pounds), AUD (Australian dollars). Of course you don’t have to know them all but it may be good to be able to recognize all the major currencies codes so that you will be able to make quick decisions.

To make sound evaluations, you need information. Follow carefully the world’s current events, economic and political news. You will be surprised to see how, what may seem to you as insignificant will cause the currencies markets to fluctuate wildly.

David Jones writes for Forex Value Guides a site set up to give users the most updated information, articles, and news related to the Forex Market.

Advantages And Disadvantages Of Online Trading

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Online trading means trading of stocks through internet. In simple words online trading has brought the stock exchange literally to our homes. There are dedicated sites that offer online trading platform to indulge in trading of stocks. Since the introduction of online trading there has been a surge of investors, primarily new investors who were earlier shying away from the market. Online trading has made it possible to trade in different kinds of securities like stocks, bonds, futures, options, ETFs, forex currencies and mutual funds. There are some obvious differences between online and traditional trading. In traditional trading the activities are carried out through a broker, he helps the trader with suggestions on how to proceed in the trade. The transaction is carried out through archaic communication tools like telephone. The broker assists the trader in the whole process in the form of collecting and providing information for making better trading decisions. In return of this service the trader charges a commission on every trade, which is most of the time on the higher side. The traditional form of trading is a time consuming process and generally benefits long time investors who dont do much trading.

On the contrary there is a change in the process when it comes to online trading. Stock brokers have their websites through which they provide a platform to indulge in online trading of stocks. The platforms are very useful because they provide additional information like market data, news, charts and alerts. Market data is provided in the form of levels namely 1.5, 2 and 3. Day traders are the kind of traders who require every level of market data. Trading decisions are taken by the trader himself. Traders are allowed to trade more than one product, one market and/or one ECN with his single account and software. It is important to note that all trades in online trading are executed in (near) real-time. Online brokers in return of their service charge trading commissions and fees for the usage of the software.
Advantages

Fully automated trading process with access to advanced trading tools.
Online trading of stock allows trading in real-time market data and multiple markets and products.
Possible to indulge in faster trade execution that facilitates day traders in swing trading.
It is easy to open and manage an account and does not have any geographical limitations.
Online trading favors active traders, who trade in bulk but demands lesser commission.

Disadvantages
Online trading is risky if trading is done extensively on margin
There are chances of trading loss in case of mechanical/platforms failure
Online traders fall sort of constant support and suggestion
The fee of online brokers vary

Having said everything, online trading has been a big boost for the stock market.

Forex Trading – Why Most Trader’s Can Never Accept Huge Gains

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Most forex traders simply never make big returns because they cannot accept them. This may sound paradoxical as you would think most traders would want this and yes they do – but a psychological problem stops them from making the returns they deserve.

Traders have more problems accepting profits than taking losses.

Taking a loss is easy you place your stop and your taken out or not with a profit you don’t have such clear cut levels to work with – in fact you have no levels at all as the trade could produce a minor profit of a few hundred dollars or a huge profit of $5,000, $10, $20,000 or more but:

When do you take profits?

This is the problem for most traders.

The dilemma is most traders have problems staying with a long term trend, as open equity swings eat into their open profit.

Here is a typical example of what happens.

When a trader gets a profit he gets excited, the bigger the profit becomes the more excited he gets and the more tempted he is to take it. All the time as the trend is moving volatility causes retracements and losses in open profit.

As the profit gets bigger and the swings against him more violent the more nervous he gets and in the end he moves his stop up or snatches the profit and banks it.

He then watches as the trend continues the way he thought and make a huge profit while he only has a minor profit despite getting the trend right.

So how do you cope psychologically with the above?

Here are some guidelines that will help you milk and maximize your profits from major trends.

1.Have Courage

You’re after a big profit, so you know that if you believe the trade has further to go you need to accept short term price swings against you. Short term dips in equity, are a by product of making huge gains.

2.Risk = Reward

Do NOT Move your stop to quickly leave it in its original position and trail it up slowly, a big trend will sometimes show huge volatility as it develops and this means not getting clipped out early. Traders try so hard to avoid risk they actually create it by getting clipped out by putting their stop to close.

3.Trail Slowly

If you want to make money from the big trends you are going to have to trail your stop slowly and this means that at the end of the trend, you are going to give a big chunk back at the turn – this is unavoidable with long term trend following so get used top it. Comfort yourself with the knowledge that if you caught just 50% of every major trend you would be very rich.

The KEY

Is to have rock solid confidence in your forex trading strategy and accept that you will give back profit and lose open equity but acceptance of the above will make you a lot of money.

A lot of traders think that they actually don’t deserve big gains and they should take what they can get but if you have the courage and conviction to hold a big trend you deserve every cent of it – because most traders are simply incapable of doing it.

Accepting big profits is not easy psychologically – but get the right mindset and a solid system and you could be catching the big trends that yield thousands or tens of thousands in profits, so get ready to accept them when they come your way!

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