Some advice trading CFDs

TwoGallants

First of all I want to stress that I´m not a serious investor. I threw 100 euro into an online broker (plus500) and more than anything else I´ve been treating it as a fun new hobby. I don´t intend to ever put more of my own money into it ever again (but I do have vague dreams of being able to leave my job after wisely investing in something that hops 1000% over a week...)

Anyway, the long and short of it is that I initially lost some money (mostly because I didn´t understand the mechanisms that well). Then I regained all of it back and some (plus 50% of my initial investment) and now I´m back to -50% of my 100 euro after throwing everything into oil just as it decides to drop in price... but I digress.

Really all I´m looking for is some advice from people who´ve been down this path, presumably having put some real money down on the CFD traded markets! I do have a general strategy and to be honest with a bit of discipline I think I could make it work, but as I say I´m really just playing around at the moment and expect to (and most likely will) lose my 100 euro in the process.

strmin

Why not start with €100 DEMO account? Play with it until you consistently profitable and learn from your mistakes.
May I ask why you use plus500? It is by far most expensive broker I have tried. Their rolling fees sometimes 20-30 times higher.

Frogdog

Could you suggest a good online brokerage firm that offer demo accounts?

spear_mint

TwoGallants wrote: »

First of all I want to stress that I´m not a serious investor. I threw 100 euro into an online broker (plus500) and more than anything else I´ve been treating it as a fun new hobby. I don´t intend to ever put more of my own money into it ever again (but I do have vague dreams of being able to leave my job after wisely investing in something that hops 1000% over a week...)

Anyway, the long and short of it is that I initially lost some money (mostly because I didn´t understand the mechanisms that well). Then I regained all of it back and some (plus 50% of my initial investment) and now I´m back to -50% of my 100 euro after throwing everything into oil just as it decides to drop in price... but I digress.

Really all I´m looking for is some advice from people who´ve been down this path, presumably having put some real money down on the CFD traded markets! I do have a general strategy and to be honest with a bit of discipline I think I could make it work, but as I say I´m really just playing around at the moment and expect to (and most likely will) lose my 100 euro in the process.

its impossible to make money with an initial investment of 100 euro , your broker alone will take nearly that amount for making the trade

anything less than a grand is a hugely ineficent use of funds

TwoGallants

There are no commission costs with plus500, just a nightly premium (which you shouldn´t even notice if you´re doing it right) and the difference on the spreads. On some products its a couple of cents, on others its quite a lot (50c on bit coin). I know people who have made 40k just from the initial 25 euro signing on bonus.

spear_mint

TwoGallants wrote: »

There are no commission costs with plus500, just a nightly premium (which you shouldn´t even notice if you´re doing it right) and the difference on the spreads. On some products its a couple of cents, on others its quite a lot (50c on bit coin). I know people who have made 40k just from the initial 25 euro signing on bonus.

40 k from what initial investment amount ?

TwoGallants

25 euro... as in the fake money they give you when you sign up. You put it all down on some product, watch it go up, and voila! play money becomes real money. I think they take the 25 bonus back once you make the money back but nonetheless its a decent system I should think. cfds are very risky but as long as you never put more money in than you can handle losing (100 euro is the max I can potentially lose for what has for me become a more and more engrossing hobby). For example, I´m going long on Amazon. Buy up a few shares for 2 weeks and see how it fares. Worst case scenario I´m down 100 euro. Best case scenario is...

spear_mint

TwoGallants wrote: »

25 euro... as in the fake money they give you when you sign up. You put it all down on some product, watch it go up, and voila! play money becomes real money. I think they take the 25 bonus back once you make the money back but nonetheless its a decent system I should think. cfds are very risky but as long as you never put more money in than you can handle losing (100 euro is the max I can potentially lose for what has for me become a more and more engrossing hobby). For example, I´m going long on Amazon. Buy up a few shares for 2 weeks and see how it fares. Worst case scenario I´m down 100 euro. Best case scenario is...

are you refering to a demo platform , your not seriously saying that someone who invested 25 euro , saw this turn into 40 k

TwoGallants

No, with real money. You are familiar with how CFDs work? You don´t actually own the underlying share, and as far as I can see there aren´t any commission charges, at least not with the people I´m working with.

spear_mint

TwoGallants wrote: »

No, with real money. You are familiar with how CFDs work? You don´t actually own the underlying share, and as far as I can see there aren´t any commission charges, at least not with the people I´m working with.

not even warren buffett has seen that kind of returns , their is as much chance of realising that kind of return as their is of cleaning out vegas or winning the lotto

honestly , i dont believe that story

freeze4real

You do not thrown all your eggs into one basket. No matter how small your starting capital is either 25€ or €100. If you invest all your capital into one security and it goes south what happens ?

Thing with plus500 is they've tradeable derivatives that require low margin. So you can have 1 - 2 open positions.


A poster said its impossible to make money with €100. That's nonsense. Using plus500 I've turned 25 to €100. A poster here have turned it 25 to over 600€.

One thing about plus500 is they don't charge commission per trade but leaning trades overnight will include costs depending on the value of open positions.

Personally I will not encourage one to start trading with €1000 even if they've the money to piss away.

It you really want to know about trading/investing read a few books about trading/investing. A good one is trading in the zone.

Also do a search on this forum relating to trading or brokers as you'll find useful information.

There quite a god number if traders that read thses forum and those who own a portfolio of assets. They can give you better advice.