Does anyone on Silver Stackers actively trade CFDs for silver? Interested in hearing about your experiences as a trader - not many people are forthcoming about such instruments on here.
I'd be interested too. I recently set up a CFD account with CMC Markets but it's pretty hard to get your head around it.
Just went short on 100 ounces @ $35.40, we'll see where the price goes in the next few weeks as I'm hoping for that next fall down to $27.
Silver just doesn't seem to be ready to jump off into the 40s again so soon after that huge move downwards. I'll be holding for a few weeks until the Fed makes it's announcement about the "end" of QE2 and then I'll be re-accessing the situation. If you have a look on any price chart for silver you'll see $27 is the next resistance level. It's been holding at around about $35 (which was another resistance level) so for it to move downwards that's the next barrier. Yes, it's occurred to me that the AUD might be weaker when I go to reload in physical. Silver in AUD is currently in the lower 30s so it wouldn't make much sense for me to rebuy when the AUD is weaker and but the silver market in USD has moved down. Once it drops below parity I'll be reconsidering the spot price and the exchange rate.
Have traded quiet frequently via IG markets, Silver CFD's. Can also trade other Silver vehicles via other platforms for actual 'paper' ownership. It doesnt really matter anyway, if you are only intending to speculate CFD's should track the spot price of Silver, and I've had pritty good correlation thus far. Be careful with CMC, they regularly stuff up rollovers and price gaps, and unless you catch them out and ring up to get it changed they wont give a toss that they have effectively stolen from you. Also there is a huge 'beleif' that market makers such as CMC, hunt your stop losses. I can not count the amount of times the price in what im trading has touched my stop loss and gone the other way, way beyond coincidence, chance and paranoia!! IG only lets you trade in baskets of 1000 ounces with Silver, so each cent is $10 worth. Have traded deriratives for years now and have been through the phases of learning how to use indicators, moving averages, breakout trading, price action, news related, ect. In a nutshell none work 100% of the time, they just give extra information for traders, and remember all indicators are lagging indicators, as they calculate previous data. A great method of speculating for short periods of time, candlestick trading and recognising patterns, price action. It requires you to actively monitor your trade and have the mental strength to absolutely clos out losing trades at your chosen risk/loss level. For Silver my risk/loss has been about 30 cents, and average time held probally less than an hour or two. I always target at least 60 cents, giving me a risk reward ratio of 1:2. However, if i see the trend beginning to reverse i will close the trade out or move my 'mental' stop loss to break even +3 cents profit. If anyone is interested to learn some short term trading tech's or about platforms, risk managment PM me, can get several screen shots of trades I've made lately ect. I realise stackers will hate the idea of speculating, but please realise it is gaining money profit, which can always be used to purchase actual pm's ect Never ever, ever, put money into a CFD account that you cant afford to lose. You can leverage up to 200:1 which can get mighty dangerous. Id suggest never going past 10:1. It's never fun getting over confident and seeing tens of thousands melt away before your eyes
IMO IG Markets used to do this to me all the time... exactly as you described.. hence why I dont speculate anymore. They just steal your cash.
I dont use stop loss targets with them either, same thing happened first few times Really interested to meet up with a few ppl with the same platform and check to see if the prices are the same. Otherwise good to use when managing that side of things.
I can still log in to IG markets (just don't get the extensive charts/data cause I'm inactive). So if you ever need me to check a spike/price for you feel free to PM me I'd be happy to do it
