CFD Trading Strategies

Tune in to long-term profit on trading strategies

Trading CFD offers a potentially high profit to the trader, but the unpredictability of the markets always leaves a certain percentage of the risk. Experienced traders are looking for opportunities to minimize risks while maximizing profits. To do this, they resort to the use of proven trading strategies.

Trade strategies at first glance may seem complicated. But in fact, if you put a little effort and patience, they are easy to understand, since they are all based on the principles of logic. The GuardianStock training center has a variety of sources in which trading strategies and the principles of their application in working with the CFD market are described in an accessible form.

Learn how to work with CFD trading strategies at the GuardianStock Training Center

The training center is available online and completely free for registered users of GuardianStock. It was developed by specialists in the field of education along with professional analysts and trade experts of GuardianStock. Their goal was to simplify the learning process as much as possible, to make it interesting and aimed at working with more than 500 trading assets that are available for trading CFD on the GuardianStock platform. We strongly recommend that you visit the training center for everyone who is interested in CFDs and foreign exchange markets. Do this before you start investing. Modular courses cover all aspects of online CFD trading, from the very foundations to the professional level of trading and investing.

Tune in to long-term profit on trading strategies

Financial markets (and foreign exchange in particular) are extremely volatile and continuously react to external events. Just one official statement, a report and even simple rumors can trigger a trend reversal, cause a rapid growth or fall in the price of an asset. The beginner may think that the movement of the market is a real chaos. But there are common patterns of asset behavior. It is often possible to foresee the future price movement, at least to some extent. Traders who are able to predict price movements and trend trends can probably expect long-term profit. The only way to achieve this is by using combinations of trading strategies. Modify them by trial and error, and adapt to current market conditions.

If you choose a disorderly and impulsive approach to trading in the CFD market or the foreign exchange market, then you are a gambler. But luck can be changeable, and the probability of success can be only 50 to 50. Most traders who do not use trading strategies and analysts in the CFD and foreign exchange markets do not even realize their investment potential. They inevitably lose interest after several weeks or months of haphazard CFD trading or unsuccessful investments in currency trading.

Key CFD trading strategies in foreign exchange markets

There are several effective trading strategies, and some of them have been used for more than half a century. Anyone who seriously intends to work with CFD should at least have a superficial look at the most famous of them. The following strategies are perfect for beginning traders. They can be developed and expanded, creating advanced strategies that will not let you miss any trading opportunity.

Bollinger Lines
Bollinger Lines is the simplest but most effective trading tool for online CFD deals. He offers you points for opening positions for buying and selling. The price of the asset is displayed by the line on the chart, followed by the other two: the upper blue and the red lower. When the asset price touches the lower limit, you should open a buy position. Accordingly, when the price reaches the upper blue border, a position for sale opens. Bollinger lines are probably the best strategy for trading CFD for those who are trading for the first time and are willing to try this tool.


RSI - Relative Strength Index
RSI (Relative Strength Index) is another simple and effective trading strategy for beginners. It helps to determine the relative strength of the markets and to understand which trend prevails: bull or bearish. The rule of thumb is this: when the RSI line rises above the 30-point mark, you should open a buy position. When the RSI line falls below the 70-point mark, you should open a position for sale.


MACD indicator
The MACD indicator (convergence / divergence of moving averages) is a strategy that may seem rather complicated. But in fact, it is one of the simplest and widely used in the world of online CFD trading and in foreign exchange markets. Designed back in 1979, it is used to track trends on a schedule that displays two moving averages and a histogram. This is a more refined method than the standard schedule with moving averages. Experienced traders use it as an additional tool for more complex trading strategies.


Target Fibonacci Levels
The Fibonacci tool is the identifier of the maximum and minimum values of a trend (bull or bearish) for a certain period of time. Traders try to determine with what probability the asset will move in one direction or another. Fibonacci lines on the trading chart reflect the likely movement, which allows traders to open positions to buy or sell. Fibo lines are perfect for determining points for opening stop loss orders or profit taking.


ParSAR (or Parabolic SAR) is an indicator that is used to determine the momentum. Using it, you can find out at which point the momentum will change direction. Often this strategy is combined with the MACD Indicator to maximize the accuracy of trading opportunities. The only drawback of ParSAR is its vulnerability to certain market circumstances. If the asset is traded with sharp ups, which are followed by sharp falls ("whipsaw", or "pullback"), ParSAR can deliver confusing signals. Registered traders will find more detailed information on these and other strategies in the Training Center. Lessons and video courses on commerce are available for free, as well as demonstrations of the application of strategies in practice and specific examples.


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