FOREX CFD TRADERS

February 23, 2020 

You already know how tough it is to trade Forex profitably.  There are hours and even days when charts remain flat.  Prices can spike when you least expect it and either they take you out at your stop loss or they make 30-40 pip moves when you aren’t in any trades.  You can have a couple of great winning days in a row and then BAM! You give it all back plus some when price action starts working against you.

It’s kind of like spending all day in Gladiator School.  You’re damned lucky if you can get out with your skin intact on most days.

But as an experienced Forex trader, this also means you’ve picked up some valuable skills along the way, and it would be an absolute shame if you didn’t put those skills to good use when you have the chance.

And this is that chance.

Why?

Because many Forex brokers have recently started adding CFDs to the list of available charts you can now trade through your Forex broker (and Yes, several of them accept US and Canadian based clients).

A CFD is a Contract For Difference, which is a fancy way to say it’s a way to “bet” that the price of an  item will go Up or Down.

There is a lot more to it, but all that really matters for our purposes is that Forex Brokers have been adding a lot of different CFDs lately, and by doing so they’ve given their clients the absolute best shot at banking winning trades they’ve EVER had!

Specifically I’m talking about CFDs like the S&P500 (which is called the US500 by your broker), Crude Oil (called USOil or WTICrude, which are the same chart) and NASDAQ (which is called both the NAS100 and NASTECH in the Forex world, depending on the broker).

Given the amount of leverage you have available to you as a Forex trader, you can get into a Micro level S&P trade for only about $16 per contract.  A Micro Oil trade only requires around $3 while the NAS100 takes a whopping $43.

This means virtually anyone who has an account with a broker that offers these CFDs can get into these trades.

The NAS100 pays out at $1 per pip when trading a Micro lot.  And with multiple average daily moves of 20-40 pips, you could clear $100 a session trading a single micro-lot.

Now compare that to traders who open actual Futures accounts to trade the S&P500 or the NASDAQ.  The recently approved Micro accounts require a minimum of $400 just to open a trade, then you need additional cash in your account to deal with any draw-downs.

And to trade a full contract on the S&P 500 or NASDAQ through a futures broker would take anywhere from $5,000 to $10,000 or more, depending on your broker’s requirements.

Suddenly, trading micro lot CFDs for only $3 to $43 through a Forex broker doesn’t sound so bad, does it.

In a word:  PREDICTABILITY.

The Holy Grail for all traders, whether they know it or not.

And I’m not talking about predicting if price will go up or down (although you’ll see shortly that’s fairly simple to do as well with CFDs).

I’m talking about being able to predict WHEN the market is going to get hot.

You know how you can waste hours sitting in front of your Forex charts, hoping and praying that something will happen to give you an entry?

You can waste hours, and even days, and never make a single dime if the markets are flat.

The American-based CFDs get hot exactly at 9:30 a.m. eastern time (New York time), Monday through Friday except for major holidays like Christmas and New Years.

The CFDs based in France, Germany, the UK, Japan, Australia, etc., all get hot at the exact moment the “market” opens for their respective CFD as well.

And that is as close to a stone cold guarantee as you’ll ever get in trading.

You see, these CFD’s are actually traded around the clock, just like Forex pairs, in what is called Off-Market or After-Market Trading.

But at 9:30 a.m. eastern time, when the actual indices markets which are based in the United States open for business, the volume on the S&P trades, for instance, rises ten-fold or more.

This can and does translate into moves of 5, 10, even 20 points on truly volatile days.

And just so you know, a “point” move in Indices equals a 10 pip move in their Forex version.

That means you could be looking at 50, 100, even 200 pip moves in the first few minutes of trading after the markets open at 9:30 a.m. eastern.

No more wasting hours in front of your PC or staring at your phone, waiting for something to happen.

At 9:29 a.m. eastern you need to be ready to trade, because the markets are just seconds away from being open for business, and some significant price moves will probably be there for the taking.

Just because you’re a “day trader” doesn’t mean you should be forced to spend all day in front of your charts.

Trading CFDs gives you total control over when you trade and frees up the rest of your day to focus on the other things in life you find important: family, friends, hobbies, hell, even taking 3 hour naps in the afternoon if that’s what you enjoy.

In a word, yes.

Brokers that happily accept US based clients such as Hugo’s Way offer CFD trading on a variety of different indices, some from the US, some from Europe and some from Asia and Australia.

What this means is no matter where you live, there is a session (Asian, London or New York) where at least a couple of Indices CFDs have an actual market that opens for business during your available sessions.

This gives you a legitimate shot at trading during the “hot” hours just like the traders who focus on the US indices.

Trading CFDs gives you the ability to limit your time in front of your charts, which translates into more free time to spend doing the things you love.

But more importantly, CFD Trading gives you the chance to finally start growing your trading account and using your profits for the things you want, instead of watching that money disappear again and again and again because the Forex currency markets are suddenly acting stupid again today.

You know what I mean.

You get two or three days where price action does pretty much exactly what you think it should, based on news events and indicator signals.

Then, for no apparent reason, price action does a 180 degree turn and starts doing exactly the opposite of what you’d expect.  And you don’t dare switch to trading the opposite of what your method calls for, because you’ll just end up losing more when price action turns back to normal, again without warning.

Look, I seriously doubt you got involved in Currency Trading because you were looking for creative ways to lose money.

Yet that seems to be the end result for traders who insist on focusing all of their time and energy and trading funds exclusively on Currency pairs.

Hopefully you’re not one of them.

But if you are, you can either keep doing what’s obviously not working (focusing solely on currency pairs) or you can put in a little time and effort (and very little of each, I might add) learning to trade CFDs and finally start seeing some positive returns on your investment.

Because let’s face facts: if what you were doing as a Forex trader was working, you wouldn’t be reading this right now, would you.

If you were trading with a system or method that was consistently winning, you wouldn’t quit using it and stop consistently making money to go looking for something new to try, would you?

No.

You’d be scaling up your lot sizes and making crazy serious bank with your current trading rules.

Now I realize that so far, all this has been is a bunch of chatter.

Talk is cheap.

So let me show you some proof for a change..

Earlier I mentioned I put this same package of indicators and trading rules together a year ago for an old student who started using NinjaTrader.  A surprising number of my other students grabbed a copy when it hit the market and started trading the Indices.

Several of them took the time to write some very nice testimonials on how well this method worked for them in the Futures markets, trading charts like the S&P 500, Crude Oil and NASDAQ.

SEE IT HERE