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
      21,279
    • Total Posts
      90,908
    • Total Members
      41,391
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    H3ct0r2003
    Joined 06/02/23 18:40
  • Posts

    • Look Ahead to 07/02/23: RBA; GB Retail Sales; BP, BNPP earnings Australia’s central bank is likely to deliver a fourth consecutive quarter-point interest rate hike, after further tightening by the Fed, the ECB and the BoE. Brace for UK retail, earnings from BP (BP) and BNP Paribas (BNPP). Also, look out for US trade balance figures and Halifax house price data ahead of key UK growth data out later in the week.    Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Monday 06 February 2023        
    • Hi, I am practicing certain strategies in demo account. I have created few screeners but when i tried to buy or short sell different stocks shortlisted based on screener conditions, i am getting different kinds of errors. Some stocks you can buy but can't short-sell and so on. I searched in the forums and i understand different restrictions such as market cap should be so and so. Are these rules defined somewhere?  for e.g. one forum reply says market cap should be above 10 billion otherwise you will get second message in below list. However even i try to short sell a stock that has £30 billion market cap, i get the same error.  1. IG is not accepting opening trades on this market, you may only place an order to close. 2. Market you have requested is not longer available online Any suggestions on the above will be greatly appreciated. Thank you.
    • Charting the Markets - February 6, 2023 FTSE 100, DAX and S&P 500 tiptoe lower following strong US jobs report. EUR/USD and GBP/USD are topping out while EUR/GBP rallies. And gold, Brent crude, and natural gas head lower, as payrolls strengthen the dollar.                         This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
×
×
  • Create New...