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CFDS

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iifunky
Occasional Contributor
Hi all; i'm a newbie to the trading world and am slowly but surely gaining as much info as possible. So i'm looking at trading CFD's. do you guys have any basic tips around CFD's? why are there no CFD's for certain companies? Thanks; hope to help one of you in the future.
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12 REPLIES 12
Not applicable
Tip 1: If your very new dont trade CFD's Tip 2: Go to the free courses on CFD's :)
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Super Contributor
Tip 3: don't forget the last two tips
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RisseN
Contributor
If you aren't yet able to make consistent profits with trading stocks then leverage (eg: CFD's) are a sure fire way to go broke in a hurry. If you are making good gains already, then sure, start looking into derivatives but if not your losses will only grow substantially and you'll find yourself without any money to trade very quickly.
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Super Contributor
You can help me now, I'm going to forward you my banking details so that I can enjoy what you intend spending on CFDs. Beginners usually go for penny stocks to start with because they look at the percentage they move...........big mistake. With no experience SSF or CFD is a sure way to bury yourself...quickly.In fact it's one of the few ways I know of how a beginner can attend his own funeral
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Super Contributor
Dont you will lose money!! Lots!
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Super Contributor
Don't trade CFD,highly geared - that mean quick gains / losses. Maybe try share installments around 2x gearing.
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iifunky
Occasional Contributor
i attended the warrants and share installment course on Saturday in JHb. I guess i'll be looking into those rather. You are correct; CFD's are for those with developed appetite. You also right about penny shares; a lot of newbs think that penny's are the way to go. goodluck trading.
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Super Contributor
Hey if you want I can send you my bank account prancing hourse... just because you own a bottle store and I dont....what you say charity begins at my home!
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Super Contributor
In the case of CFD, standard bank is the market maker. They will only issue CFD on shares that are very liquid, ie they need to buy and sell as you trade. CFD's one contract equals one share, in case of SSF 1 contract equals 100 shares. I therefore prefer CFD's. Remeber the interest cost on CFD's.
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Super Contributor
Hi John,30 years ago a bottle store or off sales licence was the equivalent of owning a gold mine of that era, today it remains the same,that is, like owning a present day SA gold mine (eg DRD),sorry but these tough times preclude me from giving you the help you so desperately deserve and need :)
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Highlighted
Super Contributor
LOL...nice retort. Like all gold assets its not the owning them that makes you money its the selling them that counts. When you bringing your car in for a service in the cape.. you still owe me a lunch in the wine lands
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Faith_1
New Contributor
Thanks guys for info about CFD'S.I AM ALSO NEW TO TRADING.WILL DO MORE COURSES ON CFD'S.
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