CFD trading is no new concept and many investors taking advantage of the platform are reaping its full benefits. Yes it has its risks, but with some training and daily tips, you get the hang of it. Below are some pointers to make or break yours decision of becoming a CFD trader.

You Don’t Get Too Attached To Assets

If you could be honest with yourself, you are probably scared of owning real stock assets. Not when trading in a highly unpredictable marker that could come crashing with the slightest disturbance (2008 was a big lesson). Stocks tank every often, but a CFD trading account cushions this loss.

Here is the best part: you will never, at any given time, own any assets. Your job will be to speculate on market prices and use that to influence your investment decision. When you think the stock prices will go up, you go long (invest a huge sum) and when you perceive a loss, go short (invest a smaller amount). You only invest on prices changes and without being stuck with unwanted assets.

The 1% Margin Advantage

This advantage just says one thing, you only invest on a fraction of the asset price, but the resulting profit will be calculated at full asset value. So you can decide to purchase gold CFDs at a value of 10, 20, 50 or 100. At the closing of the market, the difference between the initial and final price is multiplied to the value of CFD you invested, and that’s your profit. You only make small calculated move but still reap the same full benefits as the investor who owns actual stocks.

Flexibility as a Trader

Being in the CFD trading business means you are more flexible compared to the asset-owning investor. There are over 10,000 trading markets online and you have access to each and every one of them. You have a 24 hour trading period in which you can enter and exit the market as you please.

Additionally, you get to decide which commodities are more beneficial to trade in. Today you can decide its gold and silver while tomorrow can be forex currencies. You can stretch your investment scope to include bonds, global shares, market indices or securities. Your investment portfolio can comprise of varying assets that you don’t get to own but only bet on their price fluctuations. Your profit margin stands a chance to grow with such a wide spread, and you never lose sleep over lost assets.

Trade in any Market

Whether the market is thriving or on the brink of a devastating fall is never your concern, you can still invest in it. Remember the two tricks of going short or long? These will be your most valuable moves in any market, regardless of how volatile it is. Here is the catch, you can still go at a loss but this means you won’t get the high payout you expected. But this is gold to any investor as opposed to watching the value of your houses drop drastically and sells off at mediocre prices.

It’s not a complex trading platform

You cannot compare CFD trading with conventional stock trading methods. With the latter, you have to analyse so many market indicators and keep several brokers on speed dial. Even with the brokers taking the heavy work from your hands, you still have to get involved in one way or the other to ensure your business goes forward; remember the broker will still earn their commission whether you gain or lose assets.

It’s a different story with CFDs; if you come from a gambling background, you can dive in right away. It’s all about predicting the directions in stock prices and make your money from that information. Yes, you will need a broker to help kick off your business but they wouldn’t be required to work as much as the broker managing assets for an investor.

You can decide to go solo with the online trading platform that lets you handle your own CFDs. There are online trading companies like CMC markets which let you open an account and even trade on simulators to help you understand the game. You also get daily alerts on market insights which will help hone your prediction skills.

The bottom line is, CFD trading is the future of online trading and you need to get with the program. If you can make your money without any attachment to real assets, what is stopping you from becoming a CFD trader?