Is there a benefit to forex or index trading versus CFD or contracts for difference trading?
Is one better than the other?
If so, how?
Let’s have a look at the first argument that forex and indices are better. (... more about Forex vs CFDs)
In trading shares, cfds or any other instrument, the topic of trading upcoming floats or ipos (initial public offerings) is a relatively new one.
IPO’s are not new, but the trading of them is a relatively less known type of trading on the asx ipos, but it is becoming more well known now in 2011.
What floats are is the initial float of a company onto the stock market.
And the reason why there is so much excitement, and interest in these companies when they float is that they have traditionally traded at a price which increases by the end of the day, the week and the month and even months later. (... more about upcoming floats)
So what is Contract for Difference, and what do we need to know when trading CFDs in the post GFC period?
CFDs have certainly become more popular in recent years, due to increased public awareness of trading instruments, and the thousands of seminars and educational systems teaching people how to trade the market whether it is with forex, share trading, options, commodity trading or index trading, and others.
But what most of these trading instruments have in common is Contract for Difference.
Why?
As there are CFDs on stocks, indices, commodities and other trading instruments.
So what are CFDs and what do we have to be aware of now?
See this page on the latest update on what is Contract for Difference and CFDs and trends in trading CFDs. Continue reading
At a recent trading conference, there were presentations about finding undervalued stocks to trade, a very popular topic right now.
This is fundamental analysis to find stocks with potential for growth in the medium to long term future.
So what are the ways to find these stocks which are undervalued?
What to look at are: Continue reading
In the world of trading short selling can be very misunderstood.
Here’s a page on short trading stocks and CFDs that is recently put up onto the website that explains it.
There are a few things to note here. Continue reading
So what’s our trading strategy?
In this next series of posts, we’re going to look at a few trading strategies that traders use for share and CFD trading alike.
What’s a strategy? Continue reading
In the world of trading, leveraged products such as Contracts For Differences or CFDs as well as ordinary shares, may have taken a hit during the GFC or global financial crisis of 2007 to 2010.
The temporary ban on short selling stocks during falls in prices, which means a loss for long positions or some long term trend followers, may have had many people shy away from trading.
But now in 2011, the market may be changing and more people are thinking of trading again.
But should you trade contracts for difference or CFDs? Continue reading
The goal of every investor and money manager in the world is virtually the same—to create alpha. When an investor or money manager buys or sells a financial asset such as a stock, commodity, currency, etc according to pre-defined trading strategy, they are generally hoping that the underlying asset will move in a favorable price direction so as to create a profit when the trade is closed.
One of the primary challenges that most investors face, however, is learning how to handle significant price swings in a volatile market. To illustrate this point, let’s use a real-life example.Let us assume that Joe Investor is your average 40 year old investor who is actively managing a portion of his retirement investments. Joe lets a professional money manager control 80% of his net worth, but he has an incredible passion for finance and financial markets in general, so to satisfy his urge to invest, Joe actively manages 20% of his net worth in a privately held portfolio. Continue reading
Have you ever been asked this question ‘how to buy shares’?
Well, if you have then you would know that the answer depends on what you mean by this question!
The simple answer is the answer that tells you the mechanical way to buy shares in what you have to do step by step, but the first questions to ask are:
1. Why are you buying the shares? Continue reading
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Seek your own financial advice before trading or taking any action.
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