Wednesday, 18 April 2007

Don't gamble on results

When you are using CFD's you cannot really afford to take wild chances - leaving your cfd positions open before a company reports is nothing short of a 50-50 gamble which is something professional and wise traders would normally be very reluctant to do. To emphasise this point further let's take Yahoo which published its results last night as an expample:

Yahoo's share price closed at $32.09 last night - a few minutes after the close Yahoo announced that its quarterly profit fell by 11% - as a result in the after-hours trading its share price lost roughly $2.70 - now imagine you were Long 1000 CFDs on this stock - this not only would have not pleased your bank manager, it would have also got you lots of naggings and blames from your other half for having departed with a cool $2700 in a short space of time! --- So if I were you I would avoid all temptations as a CFD trader; and I would always try to employ a very rigid self-control mechanism.

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