We believe that Opteck is possibly the world's most advanced trading platform. It's superbly designed, simple to navigate puts around 1,000 top assets at your fingertips and offers multiple analysis displays (Stochastic, Bollinger Bands etc.). You can begin CFD trading pretty much as soon as you open an Opteck account, and it can be tempting to start opening trades and aiming for your first profits. But before you connect to the financial markets, there are some things you need to know.
The smart investors in this world are the ones who learn from other people's mistakes. We'll talk about some of the common mistakes that CFD traders make and give you 5 essential CFD trading tips. Even if they don't make you rich, they'll hopefully save you some money and put you on the path to successful trading:
1. Understand Trading Psychology
Some basic psychology is vital. If you have an open Opteck account, you're going to be making financial decisions every time you trade. You need to consider how your own personality will influence your investments.
- How will you react to losses?
- Are you likely to be greedy and take risks?
- Will you be over cautious and miss opportunities?
- Do you have the patience to perform effective technical and fundamental analysis?
2. Use CFD Trading Strategies
To succeed you must trade logically and systematically. Modern CFD trading began to evolve over a 100 years ago and there are several proven strategies that have developed since then. You need to find a combination of trading strategies that suits your expectations and current market conditions. The Opteck Academy should be your starting point for learning CFD trading strategies.
3. Learn the markets.Take every opportunity to learn how the world's financial markets work and how events affect the value of currencies. You will need to read the financial news, subscribe to daily reviews and use the free Opteck education center. Effective trading begins with good fundamental analysis.
4. Don't Over-trade.
New traders sometimes get anxious and monitor each trade on a second-by-second basis. As soon as the trade shows signs of losing value, they close it. Even the best traders will take some losses from time to time. Caution is good, but you'll need to take a step back and let your trades run for long enough to see clear trends. It can take a while to get the balance right.
4. Use the Tools.
If you're connected to an advanced trading platform, make the most of it! Learn how to use leverage wisely and take the time to set your stop loss and take profit parameters. Read the live charts and signals, use the analysis display features and attend live webinars and 1-on-1 training sessions. Use the tools that are available to analyze your own trading style.
A Final Word on Online CFD Trading
If you choose assets at random or follow hunches, you're basically gambling. You might as well throw your money away in a casino. Even experienced traders will sometimes be swayed by 'brand loyalty'. They'll invest in a currency that they have some kind of positive association with. Unfortunately, the markets don't run on sentiment, they react to economic and geopolitical events. It pays to make cold decisions based on logic and approach your investments as a business.