CFD Traders Guide: Understanding CFDs
Start with the basics as you learn to trade contracts for difference. Find out where CFDs may fit into your successful trading strategy and how they open up the potential to profit in any market conditions.
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The right reading matter can help a lot whether you’re getting started in CFD or share trading, or deepening your knowledge. Be our guest, and browse the CMC Markets Trading Smart Series of guides that our Education team has put together for you. Download the guides for access to invaluable information free of charge even if you’re not a customer yet.
Start with the basics as you learn to trade contracts for difference. Find out where CFDs may fit into your successful trading strategy and how they open up the potential to profit in any market conditions.
Pattern recognition is a simple yet invaluable strategy that could transform the way you trade and make your portfolio work harder, but not enough traders know how to use it effectively. This free guide will help you recognise the signs that can make the difference between success and failure.
If you’re on the lookout for ways to fine-tune entry and exit points and trade more effectively, you’ll want solid indicators in a trading toolkit. One of them, available on our CFD trading platform, is the Relative Strength Index, or RSI.
As a trader, you need to have a good understanding of the nature of market volatility and the way it impacts your positions. One of the most popular – and one of the most reliable – tools that traders have at their disposal is Bollinger Bands.
It is natural for new CFD traders to concentrate on strategies to select profitable positions but, while this is essential, it is just as important to plan how to deal with losses. The objective of most traders is to make consistent profits over the long term.
CMC Markets has developed CFD Trading IQ to help you learn about all aspects of CFD trading. This first module covers the background, history and benefits of CFDs. It also provides you with a basic guide to navigating our trading platform with step-by-step instructions on how to place your first market order.
Day trading is the aspiration of many traders, because they believe that if they can get it right then this is where the highest profits can be delivered. But there are rules worth observing and pitfalls to be avoided, especially for novice traders.
Technical traders love tools like the oscillators. They reveal a lot about whether markets are overbought or undersold. But the oscillators can be misleading. Placing them in context using divergence setups makes them a more powerful trading tool.
The sudden triggering of supply or demand can provide clues as to where we should take our own strategy. Looking for long tails can add a whole new level of meaning to your candlestick charts by providing insight into the psychology of the market.
Of course you need strategies to deal with any negative impact arising from inevitable gapping, but it’s also worth learning to recognise trading opportunities it may offer, including additional confirmation of the strength of other classic signals.