CFD trading - anyone playing?

jamesblue

rightsaidfred wrote: »

I have traded normal style for 18yrs, currently use 3 brokers UK & USA. Reasonably successful (26%+ pa. nett). Casual time allocation though, not many hours. Using TA mostly rather than fundamentals (except for PE ratio which I think is quite important)
I just tried demo of Accendo and up £3k in 6 days. They don't claim to give advice, and it IS truly unreliable; however the info sheets they send out are actually very good; you make your own decision!
You can negotiate rate (they quote crazy 0.25 as the 'normal' rate!!); otherwise go straight to IG which its based on. The platform is pretty good, very fast.

+1 on Spam, this company actually got reported to FSA. Bad Advice, if you want to loose money then invest with them.

2.5K gone in 3 days, using their own low risk advisory service, on just 6 stocks. I found out from other forums other people had the same issues and that is when one of their customers said a group had gone to the FSA and they were been investigated.


Thanks

swift1_2

Damn, read thru the whole 3 pages to find spam at the end of it! here I was thinking there was gonna be some interesting cfd talk!

IronWolf

cepheus wrote: »

A guaranteed stop loss will only pay off if the instrument gaps over the stop loss you would have set anyway. This can happen overnight but unless you are playing with big bucks it hardly matters, why not just take the loss. Stop losses themselves shouldn't cost anything. You don't get somat for nowt and you can be sure the broker will add enough spread to cover any chances of gapping and add a bit more for profit. As in most cases, insurance costs you more than it costs them and is rarely worth it.

Insurance is rarely worth it??? That's completely untrue, insurance companies make money by spreading the risk across thousands of people. Individuals can be wiped out by improbable high losses because they can't spread the risk, thats why insurance companies exist.

TDM850

For any members looking for typical winning and losing trades, there are some good dummy trading examples on the Traders Own CFD guide http://www.tradersown.co.uk/tomarketscfds::cfd_trading_examples.html

Again as with the sharedealing accounts, if you open a CFD trading account, you can earn the equity units (shares in the holding co Traders Own Plc) with every trade

sabretoothtigger

Depends how big the gap is and whether it holds mostly. A good trader would usually be able to get out on a rebound, in these times of big overnight news its a pretty big selling point but I dont like stop losses anyway.
If the price is that volatile just dont buy it till the worst case scenario occurs and even then still dont get 100%

swift1_2

Here's any idea I'm toying with -but don't know if I've got the guts to do it tho!.

So with the likes of Aviva recently down at the 270-280p giving a div yield of over 9%.
So CFD finance charge 3%+LIBOR (say 1% currently)=4%, thus you can borrow money at 4% for the whole year to give you a yield from borrowed money of 5% (9%-4%) excluding any capital growth from the shares!

poorgirl-54

i started, with small amounts, gained put in more and more, got really addictive, and gained more and more- and then badly got hit and lost it all. its a game. very high risk. but will be ready for round 2, not just yet though.

swift1_2

Did you have a risk management strategy. Risk management is abso-blooming-lutely critical. i.e. you could have 3 loosing trades for every 1 profitable trade and still be in profit!

Ark_Welder

swift1 wrote: »

Here's any idea I'm toying with -but don't know if I've got the guts to do it tho!.

So with the likes of Aviva recently down at the 270-280p giving a div yield of over 9%.
So CFD finance charge 3%+LIBOR (say 1% currently)=4%, thus you can borrow money at 4% for the whole year to give you a yield from borrowed money of 5% (9%-4%) excluding any capital growth from the shares!

Assuming that the historic dividend yield is maintained and not cut.

swift1_2

Ark_Welder wrote: »

Assuming that the historic dividend yield is maintained and not cut.

Naturally, but normally there would be some forewarning that the divi will be cut and one could close the position if it was no longer viable.

Also in the height of the credit crisis in 2008/9, aviva hit a low of 160p in mar 2009! yet the divi was not too adversely affected, back then the divi was a staggering 33p and on 160p gives a yield of 20%!

My concern is we are supposed to be in a much much worse position than 2008 and yet shares in general/FTSE100 have not gone down to the 2008 levels!