Avoid CFD Trading - Investing For Beginners

In this video we talk about the difference between CFD trading and actual stock trading, why beginners should avoid CFDs and where a beginner can go to invest properly.

Investing is a minefield if you don’t know what you are doing. Many beginners are drawn in by cool adds online that suggest you can make loads of money easily in no time at all.

The reality is that investing will usually take a long time to build wealth but most importantly it can be done, if done the right way from the very beginning. If done wrong however, you will lose an absolute tonne of money.

There is a major difference between Stock trading and CFD trading. Unfortunately, it seems that CFD brokers have enormous marketing budgets, and beginner investors often come across these before they come across a proper investment platform. Without knowing what they are doing they lose a small fortune and are put off from investing for life.

With CFD trading about 82% of customers lose money and the average loss is £2,200 per client. It’s so bad the FCA have been cracking down on the practice with new regulations such as limiting leverage.

You’ll notice on CFD broker websites large warnings about how many of their customers lose money. We think these warnings are great because it instantly tells us whether this is a genuine share dealing site or whether it’s a platform we would want to avoid.

Let’s check it out…

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T&Cs: These videos are provided for information and entertainment purposes only. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this video may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

[birb]

I started with a cfd broker, accidentally, but I learned the ropes and it worked really well for me, and is still my primary trading method. cfd's can be great. You just have to be sensible with your stop loss, and never be greedy. Take that confirmed profit when it's in front of you. Great vid :)

[krisvanhimbergen]

You don't only invest with money. You need to invest your time as well, and that's the same with cfd's. Do your homework, read a lot, and most of all know when to sell!

[Josh_Roberts]

Luckily i quit cfd trading while i was £2058 ahead.

[cobymars]

I'm a cfd trader and I find it better then forex or stocks... Like any market it comes down to proper risk management and therefore any new trader in any market should first learn risk management... It does not matter the strategy... Risk management... Get it right first!

[tradingmelon]

CFDS are for trading Equities are for investing it’s dumb to not trade CFDS you can short the market just as easy as you can take a long position
aswell you can use Leverage

[cameronrickard]

Pattern recognition, stock picking, when to buy or sell, what to do when the market is crashing? A few important things to answer before every newbie should ask before getting placing a trade without guide. I was lucky to have enrolled in my trade program when I did I've been receiving so much knowledge most newbies should know from it. Now I'm more into six figure investments this year. Thank you Noud

[OIdiesCentral]

Just because you own the actual shares of a stock, you can still lose your shirt if that stock tanks.

[Alisher]

I lost a lot of money doing CFD trading when I started, but then I discovered stock investing the proper way now, I made the money back

[tomycanis]

How about using CFDs with no leverage like for instance when you're buying cryptos on E toro it's by default CFDs we don't own the underlying asset because of regulations in my country. Is it ok to hold CFDs long term ( years) as long as there's no leverage ?

[hzfepcx]

I feel like this video has nothing to do with CFDs vs stocks, but long term investing vs short term investing. We have all heard day trading is risky, but id love to hear if there is added danger with day trading cfds vs day trading stocks.

[edwardleonard]

I was a victim of CFD trading and thanks for sharing.

[netobertuso]

CDF is not for beginners, is a very good way to make money.

Golden Rule:

1. Have very efficient risk management, at least 2 (gain) x1 (loss), mine is at least 3x1, with the movement of your stop if you have a profit.

2. Know why you are making that trade, have criteria for entering a trade.

3. know when stop, follow your rules, don't let your emotions influence you.

[bensmallman]

Thanks for the video, I started with trading 212 and didn't fall for a CFD. Main reason is I watched your videos so thanks for the guidance 😀

[pip]

Thank you for your very helpful advice... I recently had someone phone me, informing me that as I had shown an interest with investing, and said they were CFD traders, and wanted me to log into their site and sign up, then I'd be shown their trading screen. I resisted their "pressure" tactics, and agreed that they could phone me after the weekend with my decision. I'm glad I delayed, as it's given me the chance to see this vlog. I now know what I'm going to say... Wow... that could have been a disaster in the making... !
Much more research needed...

[oliverstockwell]

CFD trading is brilliant. It's just a shame so many people jump into it with next to no knowledge or experience and lose a load of money and give it a bad name.

[brisben]

I love how the ad before and after the video is for Plus500! 😂

[slowlongrun]

Sound advice guys!👍You also picked up on a point that other youtubers also mentioned about possibly using CFDs to hedge stock positions held on investment/broker account (as a supplement), with proper experience and understanding, of course 😁

[thepythonteacher]

I am a cfd trader and make good money but im paitient and get in and out I never hold onto anything or jump on bandwagons.

[PatoLorenz]

Hey, great video. I have a question, if I buy CFD without using any leverage would that be risky ? I’m asking because on the platform, I trade you can only buy ETFs as a CFD trade. I’m not sure if I should invest or not, I know I will never go above 1X leverage.

Thank you in advance for answering my questions.

[OntologySlays]

Marketing budget is the liquidation funds from the exchange countertrading people stops on their platform