CFD's/Spread betting - where to start

adonis10

Anyone know of any good, knowledgeable forums for the above? I've done a search but all I've found so far is a bunch of unhelpful know-it-alls!

Looking to get into trading but don't have the funds for actual share dealing so considering the CFD/SB route. Currently thinking SB due to the lack of commission charges (yes, I know they're built into the spread though). Lowert commission I can find for CFD's is £10 per trade which, given my budget of ~£1,000 to start, is not worthwhile by the time it's been bought and sold, or vice versa.

I've done some reading on markets, done a few months of virtual trading and feel confident to dip into the real thing.

Any advice appreciated.

Please don't waste time mentioning risks etc. as I have done the necessary reading and was not born yesterday!

adonis10

Just knocked up a quick spreadsheet. Have assumed a margin requirement of 5%. This is the test to see whether I actually know what the hell I'm talking about.

Don't know how to attach it to this message but will PM it to anyone who wants to have a look and advise.

Toki

adonis10 wrote: »

Just knocked up a quick spreadsheet. Have assumed a margin requirement of 5%. This is the test to see whether I actually know what the hell I'm talking about.

Don't know how to attach it to this message but will PM it to anyone who wants to have a look and advise.

Hi adonis10,

I am quite new to spread betting myself, opened an account in October last year. In my experience you will need more than a 5% margin, depending on where you put your stops and how much you have in your account. I use Tradefair.

For example if you have your stop 100 points away from your entry level, you will need £125 in your available margin to cover that particular stop.

Regarding advice, I tend to go with my own technique, if you have been doing some virtual trading and are happy with your tactic of getting in and out then stick with it. The key thing I have found is it's very hard to take the same risks / bets with a real account as it is with real money. It's easy to stick on £10 a point with virtual money but not so easy with your own money and you see it going up or down on a second to second basis. I find I cash in bets earlier than I really want to as I see it's in profit, then regret it later when it rises more, as I expected. Just my own experiences that may help.

whatyadoinsucka

cut your losses and ride your gains !!

Toki

whatyadoinsucka wrote: »

cut your losses and ride your gains !!

Sometimes, depends on your strategy I would say. I bought the FTSE100 after the Japan disaster, I bought too early and it continued losing money, instead of getting out, I put more in when it went down further and came out with a healthy profit relative to what I put on (£400 profit) once the market went back up within a few days.

whatyadoinsucka

Toki wrote: »

Sometimes, depends on your strategy I would say. I bought the FTSE100 after the Japan disaster, I bought too early and it continued losing money, instead of getting out, I put more in when it went down further and came out with a healthy profit relative to what I put on (£400 profit) once the market went back up within a few days.

lucky trade.. eggs in a basket.. Diversification.

although yes your right now and again you know it will bounce back.