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Discipline For CFD Success

Online investment site IndependentInvestor.co.uk has suggested CFD traders need to exercise discipline in the trading process in order to avoid the common pitfalls of reckless trading, particularly with margined products.

2011-01-19
LONDON, ENGLAND, January 19, 2011 (Press-News.org) Online investment resource IndependentInvestor.co.uk has suggested that one of the keys to successful trading is the implementation of a disciplined approach to making trading decisions, both in terms of cutting from losing positions and engaging in the proper way with research into individual CFD markets.

With the high profile of the risks associated with CFD trading, the urge towards an emphasis on discipline in trading is designed to shore up trading profitability, by both eliminating a portion of risk while minimising losses when they inevitably arise, and is designed to help traders of all varieties better understand the mindset of successful trading.

A spokesperson from Independent Investor suggested that while it was difficult to entirely eliminate the occasional reckless mistake from your trading, exercise restraint and a disciplined, distant approach to deciding on trading strategy could have a significant impact on both short and long-term trading success.

"CFD trading is by definition a risky business, and risk is in some respects a positive �EUR" after all, without the potential for losses, traders would be naïve to expect such significant returns. However, that's not to say that losses can't be minimised in a variety of ways, and adopting an informed, disciplined approach to making trading decisions is one of the most basic yet fundamental ways in which the risk profile can be reduced."

"With the significant weight of leverage working against you, it can be easy to lose heavily with CFDs if you're not careful. That's why it's essential for traders to think with a clear and objective head, rather than to become emotionally or irrationally tied to a particular trading approach. At IndependentInvestor.co.uk, we aim to encourage more sensible trading practices across the board, and we feel the focus on discipline is an important one in helping breed success."

IndependentInvestor.co.uk provides information and resources on a range of trading topics, including contracts for difference, spread betting and share dealing, aimed at helping educate and inform private traders in a clear, coherent and targeted manner.

About:

IndependentInvestor.co.uk is an independent CFD resource, specialising in helping traders of all stages learn more about the processes and techniques involved in successful CFD trading. From the best strategies for trading off the back of volatile markets through to defensive, loss mitigating techniques, IndependentInvestor.co.uk strives to help traders learn more about efficient, profitable trading.


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[Press-News.org] Discipline For CFD Success
Online investment site IndependentInvestor.co.uk has suggested CFD traders need to exercise discipline in the trading process in order to avoid the common pitfalls of reckless trading, particularly with margined products.