Different CFD Trading Strategies You must know

Deciding to trade and choosing a market to start trading is only the beginning of an enormous undertaking. Like all other endeavors in life, trading is all about making the right decision in the time. An investor with a delicate decision-making skill can be inevitable in the exchange business. The second most important decision a newcomer has to make is choosing the right business strategy for him.

The Most Common CFD Trading Strategies

After signing up for the CFD market, amateurs spend time in learning different industry aspects. Different strategies cover the lion share of the learning program.

By reading this post, you will come to know about all the primary methods to choose the most suitable one for you.

1.Position Trading

This method covers the longer-term approach, where investors usually hold their shares for weeks and sometimes for months. Here, they will trade on daily and weekly timeframes.

Position merchants rely mostly on fundamental analysis, which covers concepts like GDP, NFP, retail sales, and others. Analyzing these factors, investors understand and establish their individual biases. Feel free to navigate here and read more about position trading at Saxo.

Technical analysis may also empower them to determine the most favorable time for making entries. With this method, traders in Singapore don’t have to put much effort and time into their endeavor as deals are longer-term.

2.Swing Trading

Now, this strategy covers medium-term trades. People held their share for around multiple days or weeks when they chose to trade with this scheme. They get to deal with the single hour or four-hour timeframes.

Swing dealers’ primary concern is to catch a swing that means a favorable single move. If you choose this plan, then you will repeatedly execute the below-mentioned tasks.

  • Purchasing supports
  • Selling Resistance
  • Dealing with Breakouts
  • Dealing Pullbacks and fluctuating averages

As you will plunge your nose in resistance and support, you must excel in technical analysis to understand these concepts.

3.Day Trading

Day traders hold their shares for even minutes to hours. It is almost similar to the swing dealing but is swifter. The timeframes this scheme provides is from 5 minutes to 15 minutes. Chasing daily volatility of the market to grater exploitation is the only focus point here.

Simply put, you will make money by leveraging the most volatile moments of your shares. Technical analysis plays big in the context of day commerce. Regardless of the uncertainty, this is the strategy that provides money for almost all months.

This plan cannot project overnight risk as the orders get closed within the day.


Experts do not recommend scalping to beginners as the transaction cost is high in this scheme. It cuts most of the traders’ profit. Scalping is the shortest form of business method. It’s all about leveraging the instant market condition. The primary instrument that helps you to take advantage of the situation is the order flow.

If learned effectively, scalping can be a great source of money. It generates lots of opportunities daily. However, it will make you look at your computer screen for long hours.

5.Transition Trading

This is a made-up name, and you may come across this term in only a few other places. It refers to a method that tells you to enter an order on a low timeframe and keep an eye on the trend. If you see it is turning in your favor, you will increase the expected profit. Place an exit point on a higher timeframe.

This scheme has a tremendous risk-reward ratio. For entering at a lower timeframe, is has a lower exposure to possible risk.


Amateurs tend to waste lots of their capital, even sometimes all of it, by testing and searching for the suitable Forex trading strategies. It would be better to learn them by discussing with professionals, reading about them, and trying them with a demo account.

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