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Risk / Reward trading with cfds


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#1 Midas1

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Posted 08 April 2019 - 08:58 PM

May have to do bit laptop cfds when away..but addictive
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#2 Midas1

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Posted 08 April 2019 - 06:46 PM

Lucky sold good price today..if goes back 7.10 will be tempted..book build they hot 9.4 percent discount i thonk 7.10 cheap and do think share can easily go above 7.30..seems be really pushing
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#3 Midas1

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Posted 08 April 2019 - 06:47 AM

Have changed stops to more for most cfds as was chucking me out with normal pull backs so bit braver on most now
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#4 Midas1

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Posted 08 April 2019 - 06:38 AM

Thanks P..read extensively and printed bucketloads on it..and admittedly havent been applyinh to kap as been tempting..ill pay heed thanks..as don't want see my ar e...been really enjoying trading cfds and doing research..i pay .25 percent each way on cfds..but get yiur calculations...i find npn to trade also big risk for return..high outlay and risk for.not large sums money...cheers off to sunny uk tomorrow
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#5 Polly

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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...


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