Stuck on cfd not making profits, help pls

Alexander0884

Junior member
47 5
Dear Community,

I have been using IG markets to do small tim trading with CFD's. They started me of on a trail account, and after a while I started to make a little money only making very small orders just to get the feel of the market and trading in general.

NOw I see they have increased my comission/spread and the same srategies of cashing out on 1-2 pip differences do not work as I end up losing out!

ALl of my trades are extreemely shrot term, up to 2 hours before I complete th orders.

I perform maily technical analysis and a tiny bit of fudnamental when I trade. I look at the trends and I watch for reversal pattenrs etc.

How else can I expand capitalise? I assume I need to change my strategy and consider longer orders? Any good resources recommended out there, so much info but so much of it irrelevant! I wish there were detailed youtube videos, I have allready watched the elementary ones.
 

Alexander0884

Junior member
47 5
Aha I see, so I will be charged broker fees but hopefully my trades will supplement that.

However I thought CFDs can only be traded through Market makers?
 

ChocolateDigestive

Experienced member
1,153 281
ALl of my trades are extreemely short term,

there is where you are falling down. If you are truly scalping you really need your commissions/total costs to be less then 10% of the minimu price increment of what you are trading. i.e. 1 tick, 1c. anything else and the odds are not on your side. what instrument are you trading through CFD?
 

Alexander0884

Junior member
47 5
there is where you are falling down. If you are truly scalping you really need your commissions/total costs to be less then 10% of the minimu price increment of what you are trading. i.e. 1 tick, 1c. anything else and the odds are not on your side. what instrument are you trading through CFD?

Hi thank you for your reply; currently I am just trading commodities such as gold and copper. I normally wait for them to dip in price and see if thres any particular beaking news and if not I know it will readjust so I wait for indicators/reversal patterns and scalp 1-2 pipps when the trend reverses.

I have read a few guides, watched youtube and read book Profiting with Forex but in all of them they alk about the past. Its very easy to go backa few years and pick out examples and data sets and explain what is happening and why, but its completely irrelevant when it is happening live and you need to make a decision short or long. So I am trying to learn and master my decision making by doing this.
 

ChocolateDigestive

Experienced member
1,153 281
Hi thank you for your reply; currently I am just trading commodities such as gold and copper. I normally wait for them to dip in price and see if thres any particular beaking news and if not I know it will readjust so I wait for indicators/reversal patterns and scalp 1-2 pipps when the trend reverses.

I have read a few guides, watched youtube and read book Profiting with Forex but in all of them they alk about the past. Its very easy to go backa few years and pick out examples and data sets and explain what is happening and why, but its completely irrelevant when it is happening live and you need to make a decision short or long. So I am trying to learn and master my decision making by doing this.

in this case I would encourage you to open a demo account with a futures broker and watch the comex gold futures contract, compare the spread size and price action compared to your CFD account.
 

Alexander0884

Junior member
47 5
in this case I would encourage you to open a demo account with a futures broker and watch the comex gold futures contract, compare the spread size and price action compared to your CFD account.

I live in the UK and broker comission is quite high considering I am only really bettign with ~$500, not looking to make money but more to learn as I work in Finance and plan to sidestep my carrer to a chartered financial adviser. Mainly doing this to learn about the affect of commodity values on stocks, indices etc.

I would like to start profiting from trading in the near future but I am not holding my breath and I know I will incurr losses etc etc. However, I guess I wanted to experience live trading or as close as it gets without the exessive fees. Going through a MM seemed to be a good idea at the time.

I guess I will continiue for a little while longer, and then switch to a DMA or stock trading with a capital of ~$4000. Though stock trading seems very slow and not as good learning ground if I want to learn on a daily basis.


With CFD's is it viable to do medium-long term trades? I guess I am still a bit cautious about leaving my money in the market for too long incase I get burned by a random event. Any recommndations on further reading that I can do that would trully open my doors and not just another book covering all the basics that ive read adn reread many times?
 
 
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