Trading Shares vs CFD

[Eurostar]

I would like to get some views on persons that trade shares vs CFDs. I would like too have a longterm portfolio, then a portfolio for short term trades on shares. I do not like CFDS as i feel its too risky for my appetite, at least if i get it wrong with a share, i can just hold on too it long term.

[Galuc]

The joys of CFD is that there is no time value and you can hold "forever" and since it is geared a tickle turns into an orgasm and a scratch turns into a PK

[SimonPB]

this statement is a road to ruin ==>> at least if i get it wrong with a share, i can just hold on too it long term

[Russ]

With CFD's you are borrowing the money so you pay interest on it. So if your share is not moving up you are losing money.

[Eurostar]

I suppose so Simon cos the odds are you will eventually end up with a basket of long term shares that you need too hold on too.. Gotta look at those CFD's then ...

[mullet_fish]

CFD ... unless you are brave or lucky you will MOST likely get closed out (because you need a stop loss for safety) before you make any real money. Good luck though....

[Rams]

Its all about strategy, you must have a basket of shares, CFDs....so you can can always get rid of the losers, and the winners will shore up the portfolio even if you take a loss on a share. If you have BIL in your trading portfolio, you may have to consider this depending on your strategy...

[SimonPB]

worse, it a basket of long-term duds ..

[Rams]

well, it matters not if it shares or CFDs, you need to sell losers, and buy winners, so you dont have a basket of duds...so if you having trouble choosing only duds, just buy and sell the index, like your lazy system.

[Eurostar]

I have had some luck of late trading shares and i dont mean just any ones, decent companies that i wouldn't mind holding onto for the long term. I feel more at ease too sink 100k into a share too make 5 % return but with CFD's i seem too always mess up and i don't like buying large quantities. I suppose i need too look at my strategy and learn a bit more about CFD's...

[Russ]

The brokerage for cfds is much less than for shares, especially for bigger amounts.So if trading short term I think cfds are better (flat rate of R57 regardless of the amount).

[SimonPB]

and 0.35% of underlying value

[Russ]

The "market maker spread rate"?

[SimonPB]

yip

[#15]

and 9% interest on the full exposure - everyone seems to forget this little item