Your survivor’s guide to trading CFDs

Trading can be an exciting but tricky journey to navigate. There are a few basic rules that can help any trader build a strong foundation and set you off on the right course.

Many of these rules exist, and we’ll be offering lots of them on this blog. Here are just 5 simples ones you should come to terms with if you’re going to be a successful trader.

1) Create a demo account

Before you dive deep into the world of trading, we suggest you set up a demo account to test the waters. At TIOmarkets, we offer the chance to test out our tips in a trading environment at no cost, so you don’t even need to risk any investment so early on. So our advice to you, trade with a live account once you’ve had some success on the demo.

2) Limit your leverage 

High leverage can increase your profits from trading, but it can also increase your losses by the same margin. Consider limiting your leverage in order to contain risk to a level that’s acceptable to you.

3) Be a smart trader 

Do your research. Netflix facing increasing competition from Disney? Google looking outside of advertising for new revenue channels? These are things you need to know if you’re trading those stocks. On forex, you need to keep informed about the US-China trade war and other geopolitical events that will impact currency markets.

4) Don’t chase your losses

Stay committed to your initial strategy. Why you ask? Because as soon as you start reacting irrationally, you’ll make mistakes. 

Removing your stop loss, increasing your order sizes or trading in unfamiliar territory is the worst way to react to a few bad trades. Get a plan, stick with it for a while: win, lose or break-even.

5) Diversify your investments 

Some brokers (like us) give you access to a wide variety of markets and instruments.

Don’t put all your money into Amazon stocks just because they’re having a good quarter. 

Instead, make sure you’re not fully exposed to a slump in Amazon’s stock price by putting some of your investment in gold, or the Japanese Yen, maybe an energies stock like Exxon – whatever makes sense at the time, as long as you’re not fully reliant on the strong performance of a single asset.

More great tips coming your way on this blog soon. Be sure to stay tuned, and in the meantime we hope you enjoy trading with us.

Avatar
Author

15 Comments

  1. Avatar

    It’s awesome for me to have a web site, which is beneficial in support of my know-how.
    thanks admin

  2. Avatar

    You really make it seem so easy with your presentation but I find this matter to be actually something that I think I would never understand. It seems too complicated and very broad for me. I am looking forward for your next post, I will try to get the hang of it!

  3. Avatar

    Heya i’m for the first time here. I came across this board and I find It truly useful & it helped me out much. I hope to give something back and aid others like you aided me.

  4. Avatar

    Excellent article. Keep posting such kind of info on your page.
    Im really impressed by it.
    Hi there, You have done an incredible job. I will certainly digg it
    and in my opinion suggest to my friends. I’m sure they’ll be
    benefited from this website.

  5. Avatar

    It’s enormous that you are getting ideas from this piece of writing
    as well as from our dialogue made at this place.

  6. Avatar

    I have been browsing on-line greater than three hours today, yet I by no means discovered any attention-grabbing article like yours. It is beautiful price enough for me. In my view, if all web owners and bloggers made good content as you probably did, the net will likely be a lot more useful than ever before. “Where facts are few, experts are many.” by Donald R. Gannon.

  7. Avatar

    Hello, i read your blog from time to time and i own a similar one and i was just curious if you get a lot of spam responses? If so how do you reduce it, any plugin or anything you can recommend? I get so much lately it’s driving me insane so any help is very much appreciated.

  8. Avatar

    We are a group of volunteers and starting a new scheme in our community.
    Your website provided us with valuable info to work on. You have done an impressive job and
    our whole community will be grateful to you.

  9. Avatar

    Very nice post. I just stumbled upon your blog and
    wished to say that I have truly enjoyed browsing your blog posts.

    In any case I’ll be subscribing to your feed and I hope you write again very soon!

  10. Avatar

    Whats up very cool website!! Man .. Excellent ..
    Wonderful .. I’ll bookmark your website and
    take the feeds additionally? I am satisfied to seek out so
    many helpful info right here in the post, we’d like develop
    extra techniques on this regard, thanks for sharing.
    . . . . .

  11. Avatar

    I want to be in on your company but now I don’t have money because I’m working @ my home (construction) bt next year I’m 100 % sure that I’m going to give you all money that you going to need to start working with you guyz…..

    thanx…..

    ….have a grea happy new year…

Write A Comment