One of the most used sayings in the Stock Market Trading Business is "Trade What You See ...." and if most traders took this simple advice seriously and understood its real meaning then I am sure they would increase their trading profits multi-fold.
When reading through some of the CFD or Forex forums, one cannot help noticing that the majority of traders seem to form a rigid opinion on how the market will shape or perform in the future; something which I doubt many traders could possibly forecast correctly.
At the moment with the financial mess which the banks have got themselves into it would be extremely unlikely that even the biggest financial guru would be able to come up with "a viable scenario" as what would happen to the stock market 2 days from now never mind months ahead.
Bearing the above comments in mind and having access to a leveraged account such as CFD why not just be content to grab whatever profits that you can make from a market which is not really sure of itself and its direction until the time that a solid trend is formed on the basis of good fundamentals in all foundations which are required to hold a stock market together. So trade what you see and not what you think you will see in order to stay in the game or even prosper from it!
2 comments:
Rod:
Is it possible to use CFD charts to trade futures? I am a swing trader using 1H and 4H charts.
I use a charting package called metatrader 4. It has a proprietary indicator which I bought. I want to use this indicator package to trade futures. However, the problem is that no broker or data feed exists for Futures in Metatrader 4.
However, several brokers do offer CFD data feed. So, what I was thinking is that I can chart CFD for the E-mini S&P (#ES) and just trade futures with those charts (I am in the USA and cannot trade CFD's). Do you think this is doable?
thanks in advance.
Hi,
As far as I know I have not come across any CFD brokers in UK which would offer data-feed for their clients to incorporate into their own applications.
What the brokers do offer here is charting facilities which traders could use for free as part of the brokerage services.
Having said that I am sure if you searched around there would be companies which would sell the data for a set subscription.
When you find such a comapny, I would let them know that you would only want to use part of the data i.e. the futures prices relevant to what you intend to trade, so that you may pay the amount proportional to the service you would be using.
Hope that you will have some luck with that.
Rod
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