Various Types of CFD Trading & Its Strategies | Which is Best?

Once your trading skills have been sharpened, you can enter the lucrative markets of contracts trading. CFDs are derivatives that enable you to speculate on the price rise or fall of financial instruments like currencies, options, indices, shares, etc. When equipped with the proper approach, you can make a hefty winning in this field. Like every domain in trading, even CFD trading needs a solid strategy to conquer.
 

With multiple timeframes considered, there are a number of strategies at your disposal in the world of CFDs. 

Of the several that traders employ, here are the top 3 CFD Trading Strategies: 

CFD Trading Strategies Explained

1) Going Short: Going short is an incredibly simple strategy while CFD trading in Sri Lanka, but let not its simplicity fool you into thinking it is ineffective. While going short, you sell high and buy low. Starting off, this can be a great CFD plan, as the implementation is rather simple. The chances of this strategy failing are very low and will happen predominantly when your position takes a higher value than the entry price. A sharp stop-loss can keep away this risk!
 

2) News Trading: Global activities have a huge impact on CFD market movements. You will be dealing with commodities that are heavily influenced by factors like politics, import/export imbalance, etc. One of the best ways to emerge victorious in all your CFD trading ventures is observing these activities. With an economic calendar, you can keep track of the speculated happenings, and draft your way around the market accordingly. Along with this, the news provides a stellar means of knowing major event happenings. When you make judgments based on news, chances are high you will be on the profitable side of the coin!
 

3) Hedging: Hedging is the perfect Forex trading strategies for an unstable market. Keep in mind that this strategy requires skill, and there can be absolutely no room for mistakes. By hedging one investment for the other, you aim to offset the risk caused by the investments made.
 

Braced by the right trading strategy, you can dominate your trades effortlessly! CFD trading in Sri Lanka is growing by the day and becoming increasingly profitable. Get yourself a stellar broker like WesternFX, and success will come by in no time. Call us now and avail our world-class CFD brokerage. Assisted by our professionals, you will scale the peaks of contracts markets.