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Is Attending a CFD Seminar Worthwhile?

CFD trading can be lucrative for those traders with a proper trading and risk management strategy in place however like any new venture learning the ropes can be difficult. CFD trading requires skill and knowledge of financial markets in addition to a proper trading plan. The unfortunate fact is that many novice CFD traders fail, failure is often caused by a lack of discipline and knowledge of financial markets.

Good CFD education can fast track the learning process that any new CFD trader should undergo prior to starting out. Free CFD seminars are always a good starting point as most CFD seminars cover the basics of CFD trading which can help novice traders understand the essentials, paving the way for the development of a trading plan to suit their lifestyle and risk profile.

Of course most free CFD seminars will only cover the basic elements of CFD trading. It is always recommended to enrol in a paid education course designed especially for CFD traders if more advanced knowledge is required. There are many paid CFD trading courses available which can help prospective CFD traders build a good understanding of the product itself, formulate a trading plan and learn proper risk management strategies.

The CFD trading courses available are all very different some are more advanced than others this is why it is important to choose a course that covers the key elements of CFD trading. Below are four essential elements that a good CFD trading course should cover:

1. How CFDs can be used within you overall wealth management strategy.
2. Risk management and how to incorporate it into a trading plan.
3. How to develop a trading plan to suit your lifestyle.
4. How to properly develop a money management plan.

Of course these elements are very broad and should only be used as a guide when choosing a suitable CFD trading course.

Attending CFD seminars and paid educational courses will help you with the theoretical component of your trading education however theory is only of value when it is applied in practice. The providers of some paid CFD educational courses will also offer you mentoring and coaching services, this is an essential competent in the educational process as more often than not the biggest and most expensive mistakes will be made in your first month of trading. Having a trading coach when you first start out will help you gain confidence before going out on your own.

After the first few trades you will begin to realise the power of CFDs and how can use them in your trading strategy, of course trading CFDs also comes with risks which if not managed correctly though a disciplined risk management plan can result in losses, this is why good CFD education is essential.

To learn more about CFD trading you can download our free CFD Guide.

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Choosing The Best CFD Broker

There are many good CFD brokers in Australia, their active marketing and promotions make it difficult to chose, some have advantages over the others but more often than not it is their fancy marketing makes you confident in your choice of provider.

When you sweep away all of the fog and evaluate each of the best CFD brokers on a few key metrics you will soon discover which provider genuinely suits your trading needs.

There are as few key metrics that you should judge your CFD broker on, these are:

• DMA or Market Made
• Web based or Downloadable trading platform
• Product Range

DMA or Market Made
It is important to ensure that you understand the differences between DMA and Market Made CFDs and the pro’s and con’s of each. DMA CFDs offer a few advantages in that they allow you to trade the opening and close phase of the market in addition to allowing you to participate in the market depth. DMA CFD are popular with scalpers and day traders but are not so popular with traders needing exposure to indices or currencies and wanting to place guaranteed stop loss orders, this is where Market Made CFDs have significant advantages over their DMA cousins.

Web Based or Downloadable trading platform
It can be quite confusing when choosing a CFD brokers platform as each platform has benefits and drawbacks. It is important to consider where you will be trading from as this will decide whether you use a web based or downloadable platform. If you intend to trade from work it would be better to choose a web based trading platform for the simple reason that web based platforms do not require a download, this means that they cannot be blocked by the firewall in an office, however, web based platforms come with some downside also in that they tend to lack much of the advanced charting functionality of downloadable platforms. Downloadable platforms a more suitable for home use as they offer significantly more advanced charts and order types in addition to added features such as back testing and customisable multi screen layouts. Professional day-traders and scalpers often prefer using downloadable platforms whereas casual traders tend to choose web based platforms.   

Product Range
It is important that when choosing the best CFD broker for your needs you should assess the products that they offer to ensure that can provide a range of CFDs that suit your trading plan. Some CFD brokers only offer CFDs on Australian Shares however others offer CFDs over stocks, indices and forex. If your trading plan covers all of these products you should be sure to choose a provider that does not restrict you to Australian share CFDs only.

Of course when choosing the best CFD broker for your trading needs you will need to asses all of the metrics above and make your determination based on your trading strategy. It is also advisable to download a few demo trading platforms available in the market, this will help you better understand whether the platform is suitable for your needs and trading style.

To understand CFDs in more detail and to learn how to develop a trading plan you can download our free CFD Guide.

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