Beginner CFD Trading strategies

Looking for beginner CFD trading strategies? You came to the right place. In this article, we are going to cover 3 SIMPLE strategies that will help you get started.

CFD trading might feel very advanced but if you manage to get the basics right, you are going to be well on your way on becoming a successful CFD trader.

Let’s be very blunt and honest right off the bat. If you are going to fire random trades without a CFD trading strategy, you might have fun, even get lucky sometimes, but it’s not a sustainable strategy. In order to be a successful long term day trader, you will need to use a CFD trading strategy.

In this article, we are going to list some of the most common CFD trading strategies known to man. Grab your notebook and get ready, we will briefly cover some of the most common CFD trading strategies.

CFD trading strategy 101

3 simple CFD trading strategies that can turn you into a profitable trader

Before we make this more advanced than what it need be, let’s kick off with the basics, too many traders out there think they have mastered trading. Truth be told, they probably have not even mastered the basics.

This is a beginners guide, stay tuned for the next version which is going to target slightly more advanced trading strategies.

1. Preserve capital and minimize losses

You cant invest money that you don’t have, always make sure that you minimize your losses. Do not make high-risk investments, and always set a clear stop loss.

Every trader is going to make successful trades, and not so successful trades. The most successful traders out there are really good at making unsuccessful investments hurt very little. They know when to throw in the towel and call it a day.

Some crypto enthusiast will yell out HODL! (Hold on for dear life) but this should not always be the case.  Most of the ones who HODL, HODLED away all their hard earned cash anyway. *giggles*

CFD trading is of course about making money through successful trades, but what is equally important is to make the unsuccessful trades as unsuccessful as possible. Always try to limit the losses in order to preserve your capital.

This is one of the most basic beginners CFD trading strategy tips our there, and also one of the most important ones.

2. Keep a trading journal

One of the first things we recommend that you get started with is starting a trading journal, in this journal, you will document a few important KPIs.

Minimum KPIs.

  • What instrument did you trade?
  • Why did you trade that instrument?
  • The time period for the trade. When you entered and when you excited.
  • Profit or loss?
  • Lastly, you should rate your own trade on a scale 1-10.

These KPIs are good to start with, if you want to make it a bit more advanced you can also include a technical analysis looking back at your own trade, also of the trade was a fundamental, technical, tip or dart board trade. But already here we are getting a bit too advanced, rather get the basics straight before you make stuff complicated.

3. Set clear and realistic goals

First of all, why do you want to trade CFDs? What is your goal? In order to understand how you need to progress you first need to understand where you want to get. One of the things you should do straight away is trying to define what you want to achieve. Otherwise, CFD trading strategies will not be as effective. What is your long-term goal?

After that its time to break that long-term goal into short-term milestones. If you are completely new, you might wanna start off easy.

  • Get to know the platform before conducting any real transactions. (2 weeks)
  • Trade with the demo account, get a certain ratio between profitable traders and losses before using real money. (4 weeks)
  • Make a first deposit of 200, turn that into 300 before a certain time period.

Set easy, clear and achievable goals. If you reach them, raise the bar, if you fail, find out why you failed, fix the problem. Set new goals. Repeat.

Beginner CFD trading strategies should never be to complex

There is a whole bunch of CFD trading strategies out there that are great, some of the basic, some of them advanced, and a lot of them are hard to understand. Starting out with CFD trading is just like starting out with anything else.

If you are going to learn how to ride a bike, you don’t start with jumping off an airplane on the bike while doing backflips. You start off easy, with the training wells, then you build on that. Slowly but surely, you will be able to ride the bike.

CFD trading is the same, don’t make it too complex, chances are you might not understand what you are doing, lose money, and lose interest.

We have tons of relevant resources for anyone interested in learning more.

Plenty of more can be found on our site, just navigate around and you will find what you are looking for.

Between 65-89% of retail CFD accounts lose money.