Anyone clued up about CFD trading?

joeyjojo · 27 Aug 2013 at 15:31

This thread is painful reading. Maybe the OP needs help from the financial blokes on getting out.

Spit · 27 Aug 2013 at 17:07

kalath1032 said:
I love it when people think share price graphs will tell them the future! I hope you spend as much time looking through their financial reports!

Its not about telling the future its about having an edge and reading the psychology of the market. Financial reports only tell you the health of the company and not the overall trend.

mr tommo · 27 Aug 2013 at 17:27

As above graphs can be useful and are just another tool. More so with day trading or short term. Obviously you would never look at a graph to see if a company will be worth double this time next year. But if you are looking at trading fluctuating prices over a few days/week in between any sales/news releases it can be very useful.

dowie · 27 Aug 2013 at 17:51

Spit said:
Its called technical analysis.

I'm aware of what it is - its the assertion he made that I took issue with.

[TW]Fox · 27 Aug 2013 at 18:08

mr tommo said:
You do realise with that kind of leverage they will be asking you to add more funds as soon as the share price dips slightly? That's presuming you don't have any cash sitting in the account.

With your stop loss at $14 you'll be down around £1000?

Pre-orders, expected sales and just about everything else will already be factored into the current sp without doubt. The only way this will go up is if sales FAR exceed expectations. Considering the franchise is one of the most successful in the world, has already launched 7 or 8 versions of the game in the past, I'm fairly sure they will know their market well.

I'm sure there will be MM's all around the world ready to drop this price on release date while they short it. It's the stockmarket, common sense only works if you are in for the long term.

I am simply staggered that he went from asking OcUK GD about whether to trade CFD's on his favourite computer game company to actually buying things in a market he knows nothing about and doesn't understand on the basis of flawed reasoning in the space of a few hours.

I thought it would be an amusing thread after Post #1 but this is something else!

One · 27 Aug 2013 at 18:35

IMO if you actually want to make money on the stock market in teh short term then you need to dedicate a lot of time to it, so much you'd probably be better off changing your career to become a stock broker.

Interestingly I was looking at buy some shares a while ago, I already have an investment fund with F&C (global smaller companies) but I pay in £100 per month, as soon as I saw the effort involved, and more importantly the fees involved (which would kill any profits I made) I started to look at index trackers with the thought in mind I should drop my F&C monthlies to £50 and then share the other £50 with the index tracker. The idea being I go with a FTSE100/250 tracker and that the dividends are what will make me the most money with me probably never selling the shares until I'm retired or some unforeseen emergency.

Is there any really old data? Most places shows graphs that go back 5 years, some show 10 years, I've never seen any that how more than that though, are there any available? I'd love to see what an index tracker has done over say 30 or 40 years.

As I'm a small fish in a big pond though I invest knowing that I have every possibility or losing all monetary value of the shares. I save 5/6ths of my spare money in ISAs/savings accounts and only 1/6th gets invested.

Johnnytoxic · 27 Aug 2013 at 18:53

This Syria stuff is not helping !!

Stupid warmongering lying western governments.

Spit · 27 Aug 2013 at 19:37

Destination · 27 Aug 2013 at 20:07

Johnnytoxic said:
This Syria stuff is not helping !!

Stupid warmongering lying western governments.

This is not true, the share price of the US manufacturing company who make cruise missiles has had a wonderful spike over the previous few days.

[FnG]magnolia · 27 Aug 2013 at 21:57

HEY GUYS DOES ANYONE KNOW HOW THESE FANCY MARKET THINGS WORK?

(2 seconds later)

NEVER MIND I'VE JUST BOUGHT A LOAD OF SHARES BECAUSE MY FAVOURITE VIDEOGAME MIGHT SELL SOME COPIES! #insiderknowledge

dowie · 27 Aug 2013 at 22:55

desires said:
IMO if you actually want to make money on the stock market in teh short term then you need to dedicate a lot of time to it, so much you'd probably be better off changing your career to become a stock broker.

a 'stock broker' is a salesperson - being one is not going to necessarily help you extract any money from the market, they earn a living extracting commission from their clients

Danthus · 27 Aug 2013 at 22:57

[FnG]magnolia;24839507 said:
HEY GUYS DOES ANYONE KNOW HOW THESE FANCY MARKET THINGS WORK?

(2 seconds later)

NEVER MIND I'VE JUST BOUGHT A LOAD OF SHARES BECAUSE MY FAVOURITE VIDEOGAME MIGHT SELL SOME COPIES! #insiderknowledge

SELL LOW BUY HIGH

Nerusy · 27 Aug 2013 at 22:59

Boy a lot of people are ganna look silly when he makes the ££££££££££££££££££££££££££££££££££££££££££

[FnG]magnolia · 27 Aug 2013 at 23:13

Next week's Johnytoxic thread : SHOULD I INVEST IN STALKER COINS?

[TW]Fox · 27 Aug 2013 at 23:15

Nerusy said:
Boy a lot of people are ganna look silly when he makes the ££££££££££££££££££££££££££££££££££££££££££

If he does though it will be more or less unrelated to his decision to invest - a random event if you like. It is now purely luck not judgement that will dictate what happens to his money.

The market already knows GTA5 will be a sell-out world wide.

Johnnytoxic · 27 Aug 2013 at 23:16

Hard day of learning today. ouch.

Its for your entertainment guys, hahaha haha ha ha.......ha........

Nerusy · 27 Aug 2013 at 23:29

[TW]Fox;24839976 said:
If he does though it will be more or less unrelated to his decision to invest - a random event if you like. It is now purely luck not judgement that will dictate what happens to his money.

The market already knows GTA5 will be a sell-out world wide.

Some say pure luck is the only way to get the alpha! (bar the inside info)

Perhaps OP evaluated how many more copies would be sold than average consensus.

Tough day at around 4% loss today OP, but all indicies got hit hard today, rebound tomorrow for sho!

dowie · 27 Aug 2013 at 23:30

Nerusy said:
Boy a lot of people are ganna look silly when he makes the ££££££££££££££££££££££££££££££££££££££££££

he might well make money - the game might well sell even better than anticipated by the rest of the market - if he'd had some way of predicting this more accurately and decided that his higher prediction and resulting increase in revenue isn't fully priced in then it could be a +EV bet irrespective of what the chart looks like.
The problem is that he's just decided 'the game will sell well' so the price should rise.... in reality everyone already knows the game will sell well, people already have predictions of how well... the question is to what extent.... its perfectly possible for the game to sell fairly well, but not quite as well as people were estimating, and the stock price to fall.
There is a reasonable chance he will profit on this trade - whether that profit is sufficient for the risk he took when putting on this position is another matter... making money on this trade will prove/confirm nothing in the end - as far as the OP is concerned this is simply a coin flip.

Nerusy · 27 Aug 2013 at 23:31

dowie said:
he might well make money - the game might well sell even better than anticipated by the rest of the market - if he'd had some way of predicting this more accurately and decided that his higher prediction and resulting increase in revenue isn't fully priced in then it could be a +EV bet irrespective of what the chart looks like.
The problem is that he's just decided 'the game will sell well' so the price should rise.... in reality everyone already knows the game will sell well, people already have predictions of how well... the question is to what extent.... its perfectly possible for the game to sell fairly well, but not quite as well as people were estimating, and the stock price to fall.
There is a reasonable chance he will profit on this trade - whether that profit is sufficient for the risk he took when putting on this position is another matter... making money on this trade will prove/confirm nothing in the end - as far as the OP is concerned this is simply a coin flip.

You guys talk as if OP is a hedge fund manager. We're all just having a bit of fun here, lighten up!

fendi · 28 Aug 2013 at 02:14

buy premium bonds!!!!!! yeah. someone on here said they make an awesome return. like way more than a return from their savings account. got to be in it to win it.