when you got small money the only thing you can do is day trade with 50 k you can relax and be a southern Gentleman with a cigar and a maid. its good to know how to swing and day trade because they are completely different
as much as i do not like cfd's with 5k one could easy swingtrade at for example saxotrader and have your funds secured by danish goverment. for small trades i would never consider them but for bigger moves, lets say for ES more then 5 to 7 point i do not see a problem to use cfd's
I doubt anyone knows what CFDs are I can find the definition but real understanding what they are, no one knows
what ???? maid gets paid salary of an engineer holy moly, why do people become accountants and engineers or nurses I want to be a maid
CFDs = you aren't buying/selling the stock. You just have a "certificate of difference." Pure speculation.
if you can explain in simple english Where does the profit come from I'll buy you a drink when I win with CFDs, where does money come from thin air, like the FED ?
Someone is obviously taking the other side to your trade.. someone who ACTUALLY owns the stock and knows where the price is really heading. you are only "playing" the difference, you ARE NOT purchasing the underlying asset. It's not zero-sum, you do not know what my exposures are, or if it's profitable for me to take the other side of your trade. I may have gotten into prices of stock so cheap, that it does not matter if you buy or sell the CFD. I will churn you for the commission. You're trade also does not close when I close my trade. You're trade is still open, you're trade will be matched with someone else. Simple as that.
no wonder failure rate is so high when you actually think you understand you don't listen here when I buy CFD lot WHO SELLS IT TO ME does my broker find a person willing to sell it to me or does my broker take the other side hoping I would lose WHAT THE HELL MAN