Monday, 27 May 2013

The Risks Of Trading On Margin

Margin Trading - picture
If you have just started Day Trading and you are using a margin account such as those provided by Contract For Difference (CFDs) and Spread Betting, then you will be well advised to go steady with the size of your positions.

When you first start trading, it is extremely easy to get carried away with wanting to make as much money as possible in a very short space of time -- these are mistakes that most traders will make when they first start day trading, including yours truly.

Ronnie Chopra at Bullbearings.co.uk has written a good article on the very subject of High Risks of Margin Trading.

1 comment:

David Wallace said...

Great advice, it is so so so easy to underestimate the effects of to much leverage!

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