CFD TRADING TIP 3:-Day Three (3) Controlling your CFD Levarage A very productive Monday to all........ Today we look at why it is crucial to control leveraging. What is leveraging you might ask? In short, it is the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. CFD leverage is so powerful when things are going well and it can be so easy just to keep increasing position sizes as you are winning but the inevitable loss is always lurking around the corner. One client managed to turn R50,000 into R450,000 in 10 months during the 2007 bull market, only to give half of that back in 1 bad week, March 2008 (Just before the world economic crunch). Ouch! Start small with your CFD leverage and keep your total exposure low, relative to your capital base. If you are starting out (novice), trade from zero leverage up to a maximum of 3 times your account size. For a more in-depth look into strategies surrounding the “Power of Leveraging” and your own unique circumstances........do give me a call on 011) 783-4700 ext (16). Till tomorrow, where we have a look @ what & how CFD Stop Loses are essential in your trading success...................Happy Trading to all.................... Compiled by : Kgomotso Mohajane Tel : 011)783 4700 ext (16)
Posted on: Mon, 09 Sep 2013 11:27:02 +0000
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