Risk / Reward trading with cfds
Posted 08 April 2019 - 08:58 PM
Posted 08 April 2019 - 06:46 PM
Posted 08 April 2019 - 06:47 AM
Posted 08 April 2019 - 06:38 AM
Posted 08 April 2019 - 03:03 AM
Hi M..i see you bought KAP at 7.10 and sold at 7.20 and you say you doing this consistently at a profit..
Good for you but as a newbie trading cfds you leaving yourself to hang.
Whats your brokerage/charges?
im paying .70% in and out. best you will get is i say .5%
assume you paying .5%
your net cost at 7.10 in is 7.1355
you net sell at 7.20 out is 7.164
thus you making .0039% profit every time you trade this share which is less than half a percent..
You mentioned stop of 2%
Google r/r and see what the pros have to say..
A r/r ratio of less than 1:1 is only for okes who know what they doing and have been tradign for at least 10 years. If you get the 1:1 r/r right , JP Morgan will hire you immediately with a salary of over R1m a month.
You trading cfs with a r/r ratio of 2: .0039 ie 1: .002 after costs
I promise you over time you will horribly fail and bunk your account over and over again.
Your system must not be over making small monies and thinking you doing well beating the market...Its ultimately about r/r...
With cfd share trading , minimum r/r should be 1:2 after costs otherwise you should not be trading as you will ultimately lose over time..
Any other cfd trader want to add their opinion on Midas strategy to see if he is on right track , please post and help this newbie...
Trading is one of the only fields where genuine con artists/scammers will urge you to “be careful of con artists/scammers.”