CFD Tips & Strategies

7 Critical CFD Trading Tips Plus 2 CFD Strategies

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Successful CFD trading is not rocket science but it’s not easy either. There are some critical fundamentals (tips) that you must follow if you are going to survive the exciting game of CFD trading. Whilst there are many stories of incredible gains with trading CFDs you won’t find the methods here to triple your account overnight.

Instead, LearnCFDs.com is dedicated to offering sensible, down to earth strategies that have been time tested and proven to work for those disciplined enough to follow them.

Our goal is to assist you in building a solid trading foundation enabling you to build a steady, rising equity curve whilst minimising drawdowns.

Your 7 CFD Trading Tips and 2 CFD Trading Strategies are outlined below.

Remember to grab your Free Copy of Our 7 day CFD Tutorial by filling in your details below. 

Please note this page has been summarized to capture the main points. To view the full articles click on the headings below.

7 CFD Trading Tips

1. Preserve Precious Capital – PPC
2. Ensure you have an edge
3. Control your CFD Leverage
4. Use CFD stops religiously
5. Establish clearly defined realistic Trading Goals
6. Keep a CFD trading or Share trading journal
7. Have a well defined trading plan

Check out the 3 extra CFD tips here

You will notice the majority of CFD tips listed above all point towards minimising risk (drawdowns) and having the discipline to follow a clearly defined, profitable trading plan. When you start trading CFDs your goal in the first year should be to learn all the skills of a professional trader at the smallest possible outlay (ie losses).

If you have managed to break even or better in your 1st year of trading pat yourself on the back as you have done better than most ‘newbie’ CFD Traders. Always keep in mind that successful trading takes time, discipline and patience but once you have mastered it, the rewards can be amazing.

2 CFD Trading Strategies

1. Swing trading CFDs

Goal: Take advantage of small swings in the market. One of the most widely used terms in trading. Buy the dips on confirmation of uptrend. Use profit targets and trailing stop losses.
CFD Trading strategy: FMG comes off its uptrend, hits a turning point and starts to track back to new highs. The CFD strategy would be to use an indicator to identify the turning point, wait for confirmation of uptrend and jump on the new move up.
Timeframe: 1 day – 20 days
Suited to: All short to medium term traders confident with stop losses and stop to enter orders.
Risk Level: Medium

2. Position Trading CFDs

Goal: Position yourself based on intraday information with the goal to hold for days to weeks. You work on computers during the day, have your trading platform open with your trading alerts set and when a intraday alert goes off, you position yourself into the trade.
CFD Trading strategy: Set FMG alert if price breaks resistance at $9.75. When alert gets triggered go long 500 CFDs with stop at 9.59.
Timeframe: Intraday (if stop gets hit) to several weeks.
Suited to: Experienced traders with specific entry orders and those who like to check market depth to help time their entry.
Risk Level: Medium to high.

Whilst there are dozens of CFD trading strategies available we have found that both swing trading CFDs and position trading CFDs are two of the most commonly used methods. They both allow a great opportunity for gains over a reasonable time frame, considering most semi-active traders are End of Day traders.

Remember to grab your Free Copy of Our 7 day CFD Tutorial by filling in your details below.

Thank You.

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