What To Look For In A CFD

[ChaseLa]

When choosing a CFD to buy or short what do you look for.

Do you just look at the chart and come to a conclusion whether to buy or short ?

Do you check the news surrounding the CFD/Share ?

Between IG and CMC there are over 5000 shares I can trade and I can't decide where to start looking.

If your looking at a list of 5000 shares how do you choose one ?

 

[malaguti]

When choosing a CFD to buy or short what do you look for.

Do you just look at the chart and come to a conclusion whether to buy or short ?

Do you check the news surrounding the CFD/Share ?

Between IG and CMC there are over 5000 shares I can trade and I can't decide where to start looking.

If your looking at a list of 5000 shares how do you choose one ?

you could start with a watchlist. when looking at 5000 potential opportunities, each one of those needs to be assessed..horizontal support/resistance; trend lines; divergence of indicators perhaps; recent price action; longer term trend; emerging patterns etc etc
So think of all that analysis you would need to do for each of those..too much and yet in order to buy or sell you would be foolish not to have done this analysis

Your watchlist should narrow down your search, perhaps only look at stocks within a sector that are outperforming the overall market or only choose those that are trending consistently well. whichever method you use to filter your watchlist, you might want to then consider only taking trades from that watchlist.
Eg, I trade UK equities of which there are thousands to potentially trade. I narrow that down by only selecting the FTSE 100. So immediately I have narrowed my search to a fraction of the total number.
I then narrow that 100 down to less than 10. you might want to consider something similar

 

[CityMasterTrader]

Wow, where to start?

There are a million ways to choose trades out there, many of which are profitable if you can stay disciplined and implement the strategy correctly.

Personally, I’m a believer in combining news and technicals. If you see a good trade with strong indicators, check the news to ensure that there’s nothing skewing the price pattern, or about to skew the price pattern. As a basic example, if you see a strong level of support on a stock and it’s due to report tomorrow, don’t touch it – the results will throw the price behaviour off completely. Likewise, if there’s a good level of resistance that’s formed over the last 6 months, yet the company went through a rights issue 2 weeks ago, don’t touch it – the resistance is no longer relevant.

I could go on and write an essay… but I won’t!