Hi

My plan is to open an account with the minimum 2k needed @ deal4free.com and trade in CFDs. Initially I will only concentrate on LONGs, as this seems to be less riskier than the SHORTs. My understanding for a LONG is:

1. You pay interest @ LIBOR + 1.5% on daily basis.
2. There are no commissions
3. 5 to 10% margin
4. Dividends will be credited

Is there anything else I ought to look for? I believe the SHORTs are the opposite.

My intention is not to spend more than 150 per trade. Then I got to work out how long can I have the position open before I call it a day. The intention is to make a quick net profit of 100 within 30 days of opening each position.

I have downloaded the trial software. It freezes everytime I try to run it.

So to summarise, I do not have deep pockets. I can not afford to get Level 2 at present as I have to look after each penny. I am only interested in UK stocks at present.

Any thoughts?

Thanks in advance, Manoj

Thanks Mike. The e-mail address is correct.

Ranaweeram - have u taken the plunge on the cfds yet?
rgds
zarif

Zarif. I opened the account today, and waiting for the CD-ROM to come through the post. If you are a well experienced CFD trader, I would welcome any advise you may have on stop losses. Should this be fixed at 5, 10 or 15%? Cheers, Manoj

Ranaweeram

Couldn't miss this post as I was in a similar situation a year or more ago. There are loads of caveats in this but the most important thing you need to know is "Stay in the game".

This might sound as though I'm trying to be clever but I've heard it from so many people and know it's true from my own experience.

Rule No 1: Trade really small to start with. You won't win much, but you won't lose too much either - and believe me everyone does lose at first. Consider it your education.

2. Gradually increase your position size when you start winning.

3. A small position will allow a wide stop loss which for swing trading over several days is neccessary.

If I may add to Seymours' wise words:
Look at the price you enter the trade and then look at your stop (wherever it is) and ask yourself if you can afford to lose that amount. If you can't, move the stop or wait for a better trade. Don't assume you will win. Being flat (not trading) is also a valid position.
Good luck.

A mistake I made early on - always make sure you leave at least 25% of the fund in free equity, that way you should always have the cash so you decided when to close a position, and not be forced to. Also they will not ask you to top up the cash.

Also don't trade more than 5 shares - less if you can do it. Less to track, and less likely to miss a potential problem!

Ref stop losses.

Work out your stop loss before you enter a position
and stick with it.

Rather than look at a % stop loss, work out the support level
for the stock you are buying and place your loss below this
price.

I assume you will be looking to buy near support levels and
sell near resistance levels?

Melnibone.

Thanks everyone for excellent advise. CD-ROM has not arrived yet, so have to stay till tomorrow to start the game. Initially, I am planning to stick with stocks I know, i.e. BBY (favourite, traded three times in last five months, fluctuates between 200 and 220), TLW, BARC and LLOY. Will use this thread upto date with my progress and hopefully less failures, Cheers, Manoj

Ranaweeram: I am a s/b player but would love to see haw u are getting on as the next step for me is cfds aswell.

rgds
zarif