| Contracts For Difference - Nedbank Capital [message #47611] |
Sun, 10 January 2010 14:53  |
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CFD's offer investors 5%-6% returns on your capital per month !!!
MODUS OPERATION OF THE DAY TRADING-C.F.D's
The above operation takes place on a day to day basis live on the internet using a FSB registered stock broker. It is based on a derivative on the stock market known as CFD (certificates for a difference).
This means of trading allows the trader to go long (buy) or short (sell) on most listed J.S.E shares. The basis of the trade is the difference between the opening trade & the closing position, theoretically known as the spread. The beauty of the C.F.D system is the leverage it allows on each share deal ranging from around 3x to over 7x, averaging about 4-5x.
So for example with a trading value of one million rands, one could buy 10 000 shares of a top 40 J.S.E company at say a R100.00 per share R1 000 000-00 $ sell at R105.00 a share for a total profit of R50 000-00, giving a return of 5% on this one trade. This would be normal trading without leverage.
Now using the same basis of the above trade using "leverage" a trader with a trading value of one million rands would be in a position to buy for example 5x the above amount equating to a trading profit of R250 000-00 giving a return of 25%.
Of course the possibility exists were a loss could occur, BUT this is minimized by using a trigger stop loss of say 2%, meaning the downside for example would only be R2.00/ share, equating to a R100 000.00 loss.
Obviously the success of a trader is to have a ratio of a minimum of 65% winning trade.
For example using 20 trades a month, 13 winning trades (65%) & 7 losing trades (35%) & using the above example, the month end profit would be R2 250 000-00 ( W13 x R250 000 less L7 x R100 000), giving a monthly return of 225%.
Obviously this example is in an ideal market that exists today with great violating & uncertainty, a great traders market. On the other hand there will be days where the market moves "sideways" without enough spread, and so there will be much lower or profit or loss % occurring or no trading at all.
For more information please don't hesitate to contact me.
Regards,
makeafortune
Mobile:0760996552
Email:mjw0710@vodamail.co.za
Excellent online business opportunities & investments...
http://makeafortune.webs.com/investmentsonline.htm
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| Re: Contracts For Difference - Nedbank Capital [message #47692] |
Mon, 11 January 2010 22:58  |
praet123
Messages: 4
Registered: January 2010 |
Junior Member |
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How can you claim that it's possible to make about 5% return trading CFDs. There're plenty of people who have considerably higher returns but it takes a lot of education and learning.
[Updated on: Mon, 11 January 2010 23:01]
Financial Spread Betting and CFD Trading Guides and Trading News.
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| Re: Contracts For Difference - Nedbank Capital [message #55152] |
Wed, 16 June 2010 11:39 |
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Hi,
The trading company that has been appointed by Nedbank Capital are averaging these returns trading on a monthly basis.
Regards,
makeafortune
Emal: mjw0710@vodamail.co.za
Mobile: +27 74 116 5213
Excellent online business opportunities & investments...
http://makeafortune.webs.com/investmentsonline.htm
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