Place/Date: – July 16th, 2021 at 1:12 pm UTC · 4 min read
How Does It Feel Being a Novice in CFD Trading?
A contract for difference, known as CFD, is a trading strategy usually preferred by more experienced traders. The trading takes place on the margin of the price fluctuations of different instruments – currency pairs, shares, commodities and cryptocurrencies. The trader doesn’t own the asset, instead he invests in an agreement between him and a CFD broker. What is important is the value of the asset between the time the contract opens and closes.
CFDs are not traded in physical places or on major exchanges. Instead, investors can trade in CFDs on online trading platforms, where the online exchange acts as the broker in the agreement. A network of brokers organise the demand and supply in the CFD market, and reflect this in their prices accordingly.
Bitop comes on the stage here as a provider of one of the most beginner-friendly experiences in the cryptocurrency exchange universe. For this purpose, Bitop provides its customers with a few very useful tips especially for beginners who are toddling (!) their steps to this new adventure and experience:
Quite a few of the traders in this market lose a lot due to their greed as they think more about making money than about protecting what they have. Bitop brokers will provide the best advice and help their clients understand how CFD works and how to manage their funds. Losses are often inevitable, but they should be kept at their minimum wisely.
Leverage Should Be Controlled
Leverage can bring you profit, but it can quickly turn against you. Bitop brokers would advise their novice clients to start from zero and increase the leverage according to the size of their accounts. It is better to keep it small to avoid higher risks.
Bitop can help you create a trading plan which will maintain the discipline. Stick to this plan, invest your time to research and learn more about the trading strategies and techniques.
Can a Beginner Make Money with CFD Trading?
Yes, and this is where Bitop comes to help you start and enjoy your trading experience. But before that you should learn some golden rules for trading.
Solid Basic Knowledge
It is important to learn about the business before starting to invest in the CFD trading industry. This is a very dynamic market and you need to adapt, make precise observations and try to recognise the different signals. Being emotional doesn’t help at all. So, hide your emotions and excitement somewhere far from you and use your logic instead. Bitop provides perfect examples of demo trading where you can test yourself for some period of time before jumping in the deep waters of real trading.
Develop Your Own Strategy with the Help of Bitop Brokers
Bitop will guide you in the process of developing your own strategy so that you can read the profitable trade signals. Maintaining support and resistance levels is something which comes with practice.
Learn to Live with the Idea that Losses are Inevitable even with the Most Experienced Traders
For beginners it is important to be extremely careful about the losses. It is a mind game to learn to deal with the losing trades without any fear. Losing is just a part of nearly any business. It is vital here to learn to maintain a decent risk-to-reward ratio.
Get a Basic Knowledge about the Chart Patterns
Different types of chart patterns are widely used by professional traders. Once you pile up more trade experience you will start noticing the major changes in the trend. This will bring you more confidence and you will be able to read the reliable signals.
Diversify Your Trades and Investments
We all know the advice not to put all eggs in one basket. Diversifying your portfolio will allow you to protect your capital. Bitop offers a wide range of crypto currency you can choose from. Sometimes when you lose at one position or crypto currency you can win at another. The important thing here is not to expose your capital too much and invest only a small portion of it.
Learn from the Expert
And here again Bitop can be your ideal partner. Using the recently introduced One Click to Copy Trade function, novices as well as professional traders can follow the world’s top traders and learn from their experience. In order to do this you can synchronise your trading with the preferred trader. You can also follow several traders at the same time.
If we have to wrap up the whole trading experience – be patient, keep your emotions in check, do your research and be disciplined!
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