An introduction to CFDs Contracts-for difference (CFDs) is a popular form of investing across a range of financial instruments that does not require buying or selling the underlying asset. CFDs are offered by most brokers given their flexibility. They function as a derivative product that allow investors to speculate on everything from foreign exchange, commodities,
Stop placement One of the frustrating things when you are trading intraday is to find that you pick a direction in a trade, get that direction right, but your stop was taken out before the trade moved in your direction. Why does this happen? Sometimes you might feel that your stop has deliberately been hunted!
This is a short article at Zero Hedge that is very instructive indeed and worth a read. Point 1 looks at human risk aversion due to asymmetric evaluations of gain/loss i.e. the pain of a loss is twice the joy from a gain  Point 2 is that risk tolerance is inextricably intertwined with personality My key takeaway
Trading 101 If you are struggling to master the financial markets understanding this one concept could be enough to help you start thinking the right way. This article is for the very novice trader. We were all there once, but many people like to forget that. However, it can be a horrible place to be.
Hear no evil, see no evil, speak no evil? Recently I have been re-reading Vic Sperandeo’s Method of a Wall Street Master. It is an excellent read even if some of the market conditions in the book are a little dated. One of the general tips that he has, and many other traders have, is