cfd , etf - eh?

D

dubcuo

Guest
been told i should look into investing into the areas, but am totally ignorant on these areas.. i was going to do some day trading as the various websites make it abit easy, but the tax outlets draw me in, can anyone guide me to a laymans terms version of how i can get involvded? thanks.
 
Look the way you put this point across makes it sound easy. It is not. You need to start at the basics -- simple as that.
 
mercman said:
Look the way you put this point across makes it sound easy. It is not. You need to start at the basics -- simple as that.
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Absolutely agree. Trading and investing is not easy!!! You will need to spend many hours, days, weeks and months learning the basics. Any professional athlete will tell you it's easy, but it's not easy to get to that level.
There are literally hundres of web-site with free, basic information on all financial terminology.
 
I would avoid CFD's. It breaks the old rule you would have learnt in school. Dont borrow to buy equities.
 
I would have to side with Paddy26 here. Leveraged investments through CFD accounts are not for the average investor plain and simple. Leverged investments declining in value force the investor (trader) out of the game through margin calls and are, therefore, a form of gambling with pretty much the same odds. For the vast majority, it will end in tears. It was, afterall, the unwinding of leveraged CFD accounts in Dublin that caused the first wave of serious private investor losses in 2007. Luckystrike might be better at it (trading) but it would not be right to suggest that a novice should even try it. But if you do, do it with a tiny part of your capital.
 
CFD trading is much riskier than trading shares as it's margined trading and you could lose more than you have (source: http://www.independentinvestor.co.uk/cfd/), but if you have some spare time and would like to diversify from share dealing CFDs could be just for you as they give you something extra, such as leverage and you don't have to pay stamp duty.
 
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