CFDs and how I use them
CFDs are contract for difference trades – the way to make money from stocks, even if you don’t own them. It’s a bit complex, but basically, you buy the right to ‘bet’ on whether a stock is going to rise or fall. If you’re right, you make money – if you’re wrong, then you lose money.
CFDs and making money
It’s one of the major ways I make money, so CFDs are a great strategy for making money on stocks. It’s of vital importance though, to ensure that you’re looking at the best moves to make, and ensure that any choices you make are designed around what you’d like to do. It’s also of vital importance to ensure that you’re working with the best choices you’ve got. One way to do that is to make ‘safe’ bets, and choose shares that will do well steadily. Once you’ve got the hang of what you’re doing, you can extend your wings a bit.
I started with small trades, and looked at shares that worked with my ethos. One of the reasons that I did this was to get an underlying feel for the market – and because I had time. And once I got the hang of it, I moved out and worked well with various trades and made a lot of money from a couple of well-placed shares.