Jump to content

Why do I lose money even when my CFDs trading is Profitable


Recommended Posts

Hey everyone,

I've just started a Demo account exploring how to trade CFDs however, what I've noticed is that despite I made a small profit there through a few trades I kept losing my funds value. The way I understood CFDs simply that it magnifies your returns whether it was profits or losses. But the confusing for me is that in my case should profits trades overcome the losing ones. Any explanation for that?

For the below tradings, my funds went from 10,000 to 9,812.93! A 187 short?

Capture.JPG

Capture.JPG

Edited by JSmoney
Link to comment

It is worth looking at the spread betting account option as if you are taking small size positions for shorter time periods, you need a big move to make enough cover the quite high fees and still make a profit. Forex does not have commission on CFD's but stocks and I think Indexes do. Spread betting has a larger spread to overcome but can work out a cheaper way to enter and exit trades if they are small and not held for larger moves.

 

  • Like 2
Link to comment

Above American Airline is share of a company and you pay a additional set fee for buying and selling it which is  £12.12 in this case.

Wall Street Cash index is spread betting  and difference between buying ans selling is the spread added or included within the trade. So  you don't see it separately.   

 

  • Like 1
Link to comment
  • 4 weeks later...

So you are down at least £20 to start with every time you decide to open a position? That seems like a pretty bad deal. 
Wasn't there a smaller commission/trade cost if more than a certain amount of trades are placed in a month? 
It just seems strange. If you're averaging say 4-5 trades a day you get a £100 dent into your profits (supposing you are profitable on all the trades). Seems unreasonable.

  • Like 1
Link to comment
20 hours ago, Msim224 said:

So you are down at least £20 to start with every time you decide to open a position? That seems like a pretty bad deal. 
Wasn't there a smaller commission/trade cost if more than a certain amount of trades are placed in a month? 
It just seems strange. If you're averaging say 4-5 trades a day you get a £100 dent into your profits (supposing you are profitable on all the trades). Seems unreasonable.

If you're from the UK you can trade stocks on a spread betting account. The fee would be the spread x your bet size. 

You may find this more cost effective for your trading strategy. 

  • Like 1
Link to comment
4 hours ago, CharlotteIG said:

If you're from the UK you can trade stocks on a spread betting account. The fee would be the spread x your bet size. 

You may find this more cost effective for your trading strategy. 

It is definitely the only reasonable option for a frequent or intraday trader. 
Another thing that seems to go against the concept of profitability (in both spreadbets and cfd accounts) is the minimum stop loss distance: in most of the assets it's 2% which is a HUGE gap, and makes it impossible to place a reasonable position. I've seen it explained as a way to avoid slippage risks on volatile markets, but it is literally on basically on 90% of the shares listed, and some that don't have the 2% seem to be some of the most volatile assets. 
It is incredibly limiting and puts the investment at unnecessary risk.
Something should definitely be done about this. 

  • Like 2
Link to comment
On 10/06/2020 at 13:09, Msim224 said:

It is definitely the only reasonable option for a frequent or intraday trader. 
Another thing that seems to go against the concept of profitability (in both spreadbets and cfd accounts) is the minimum stop loss distance: in most of the assets it's 2% which is a HUGE gap, and makes it impossible to place a reasonable position. I've seen it explained as a way to avoid slippage risks on volatile markets, but it is literally on basically on 90% of the shares listed, and some that don't have the 2% seem to be some of the most volatile assets. 
It is incredibly limiting and puts the investment at unnecessary risk.
Something should definitely be done about this. 

 

Other members have mentioned the large minimum stop distance. I have relayed the message to our exposure/ risk teams to see if they can be tightened. 

  • Like 1
Link to comment
  • 3 weeks later...
  • 3 months later...
Guest Elizabeth Ruth

 

Hello everyone,are you interested to trade with binary options or you are looking for an expert to trade and manage your account for you or Do you have funds you wish to withdraw from your binary broker? or you are having problems with the withdrawing of your funds and you don't know how to go about it. Kindly get in touch via   adamwilson.trading (at) consultant . com, and he will guide you on how to get back your funds within 72hours

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      22,998
    • Total Posts
      95,339
    • Total Members
      43,618
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Helgi_O
    Joined 25/09/23 20:12
  • Posts

    • Thanks THT. Great data. Pity Brokers do not have software of this calibre that would help traders a lot more, and quick work Price / Time charting. They offer the standard tools.  
    • Hi Skyreach, Thanks for the comment Yep, most charting software does not do it right, this is purely down to the SCALING of computer screens and the software - there is a solution though The perfect way is to find out the scaling for the market you're looking at (they are ALL different) - If you take the SP500 as an example and I think I showed this on my "Are the markets random" thread, the High of Jan 2022 to Oct 2022 was a PERFECT 1 x 1 down angle in terms of Gann - the scaling formula is EXACTLY the same scaling for UP angles Gann angles aren't the be all and end all as they have there limitations but you can use them for certain things - What Gann did was right specific courses for huge amounts of money with confidentiality clauses that explained exactly what the markets were/are doing, those courses have remained hidden from the public, with only a tiny amount of evidence as to what was going on - BUT, Gann was talking about planets and planetary positions on charts in relation to prices and his Gann angles, were approximate planetary lines for the general public to use, not precise, but good enough as the angles are based on %'s of the circle See the following chart: DJIA from 2009 - People would have writen off the 1 x 1 angle after 2011, but look at it in 2022 perfect example of price and time balancing - this is a perfectly scaled chart and angles Notice: the 1 x 1.5 angle (never talked of of published on charting software) it was effective throughout and ran through the 50% level of the "covid" plunge EXACTLY This chart is the DJIA from 1982 to 2000: The 1 x 1 forecast and timed the big 2000 highs, notice the support it provided in 1987+ and notice that the 1.5 x 1 angle ran right though the 50% level of the 1987 crash - in just 2 charts we've seen the 1.5 angle split major crashes precisely and exactly to the 50% level So to come back to your comment about scaling etc and again I've shown this in "Are markets random" thread, but didn't highlight it - If you find a well defined market swing of a number of weeks or months as shown in the chart below - box the swing, split it proportionally into 25%'#s draw angles to intersect those 25%'s as shown = YOU WILL HAVE A PERFECTLY SCALED ANGLE FOR YOUR COMPUTER SCREEN AND CHARTING SOFTWARE  As long as you don't change the scaling on the chart by adding or reducing more price bars etc it will be accurately scaled, you can then COPY the angles and move around the chart - On my charting software I look back over 6 months, if I changed that to say 9 months then the scaling would change and the angles created on the 6 month basis would not be to scale, so as long as i keep the look back to 6 months any angles created will be perfectly scaled etc My software also allows me to view the angle on different timescales without moving it I mentioned planets above Not shown on the chart is the Mars/Jupiter combo at the 2009 low - the SP500 stopped dead at 666.79 points  - the Mars/Jupiter line was at a longitude of 307 degrees on a circle of 360, add 360 to 307 and you get the value of 667 = which was the value in points at which the SP500 "suddenly" stopped dead at and turned around!  This chart proves the conjunction value of mars/jupiter: The first chart is Gann's 1948 Soybeans charts shwoing Mars and Jupiter conjunction at the HIGH Then this is Mars/Jupiter conjunctions in the SP500 from 200 high - not all timings are significant but some are Here's, the trendline as a line from the 2000 high - notice that in 2018 it caught the high around the conjunction date - the thing to consider here is like the 2009 low, PRICE was 2872, the 2018 conjunction was the 8th conjunction since the 2000 high - 8 x 360 = 2880 degrees from the 2000 high = 8 points from perfection As we can see when Mars/Jupiter time and price balanced, the market dropped - only a minor drop in the grand scheme of things, but it did exactly as Gann said it would, trend reversal So although Gann mentioned his gann angles, really was he was saying was "Planetary lines" - which is exactly why when we trade gann angles, they often don't work that well, because we're trading them with the wrong scaling, the wrong reasoning and something else is creating the lines and angle of them, that most people are oblivious to That being said, people can still trade the steeper Gann angles from either the box method of creating them or the proper scaled method of knowing the points per bar figure - markets above the steeper angles often keep on rising  THT
    • Zscaler Inc., Elliott Wave Technical Analysis Zscaler Inc., (ZS:NASDAQ): Daily Chart, 25 September 23 ZS Stock Market Analysis: We have been monitoring this stock as we were mainly looking for continuation higher after what seemed to be an initial move to the upside followed by a corrective downward move. At this stage the main scenarios are two. Either we just made wave (i) of {c} and we are looking to resume higher or else we’ve had a short wave {c} and we could be continuing lower.   ZS Elliott Wave Count: Wave (ii) of {c}. ZS Technical Indicators: 20EMA as support.   ZS Trading Strategy: Looking for longs into wave (iii). TradingLounge Analyst: Alessio Barretta Source : Tradinglounge.com get trial here!         Zscaler Inc., ZS: 4-hour Chart, 25 September 23 Zscaler Inc.,Elliott Wave Technical Analysis ZS Stock Market Analysis: Looking for a potential three wave move into wave (ii) to then have additional confirmation of upside resumption. We currently stand at the 50% retracement, with invalidation below wave (i).   ZS Elliott Wave count:  Wave (ii) of {c}. ZS Technical Indicators: Between averages. ZS Trading Strategy: Looking for longs after upside confirmation.
×
×
  • Create New...
us