5 Golden rules for responsible trading of CFD - I became rich using this method and now I make over $10,000 monthly.
More information
Scott Evans

5 Golden rules for responsible trading of CFD

Rule No. 1 - Follow money management

If you do not want to be affected by a long string of unprofitable trades that ruins your account, you must follow money management. That means you must firmly set the highest percentage of your account deposit which you can invest into a single option. This percentage should ideally be low. Less experienced traders should set it to 2%, or fifty times less than the amount of money you have on your broker account. More experienced traders can choose to trade with digits such as 4% or 5% of their account.

If your trades are unprofitable in the long term, you will at least begin to pay attention, stop early enough and don't lose your entire account. In the opposite case, that is your trading is profitable, your account will not grow so fast but with more confidence.

Not all brokers offer cheap options. At many places, the minimum trade amount is $50! That is inaccesible for beginners unless you wish to deposit 50×50 = $2500, or risk with a small bankroll.

Rule No. 2 - the skill of holding back

You open the trading platform, get ready to trade but all you see are the prices moving nowhere. Nothing interesting happens, no remarkable trading opportunity. What will you do? Will you just impassively watch the screen or directly leave?

Yes! If a suitable opportunity for trading doesn't come for a long time, there's no point in trading. In that case it is wise to either leave and come back later, or to wait and continue watching the markets. If the markets aren't moving in any direction, mathematics speaks in favor of the broker. Do not trade and wait instead. You need to choose profitable trades only, never trade just to "spin money". If you wish to spin money, you are better off visiting the closest casino.

Rule No. 3 - Choose one of many trading opportunities

If you already see some interesting trade opportunities and there's multiple of them, try to choose only the most profitable single one. By reducing three or four planned trades into the one you trust the most, you will often filter out the trades that wouldn't pay off. Your trade volume will be reduced but your ROI - return on investment - will be increased.

Rule No. 4 - Be clear about what you want to trade

A common mistake made by newbies is chaoticness: the trader is watching too many graphs at the same time, making too many combinations, jumping from one graph to another without a clear goal. Simply said, the market will be over his head. This is usually a road to perdition.

Whoever wants to trade successfully must be clear about the goal he/she has when entering the market and what situations he/she wants to trade with CFD. Until you are a professional, you cannot do everything at the same time. I personally have good experience with always focusing on just one thing, one type of situation on the market.

You can trade with trends, that means situations when the market goes steadily up or down for a certain amount of time. In this case, the trader bets on continuation of the set trend. There are also anti trend strategies which are on the contrary bets on the reversal of the current trend. You may also sometimes hear the term "breakout" which is a situation when the market is stable for a long time and then suddenly breaks lose and starts to radically rise or fall.

Rule No. 5 - Risk decomposition

If you have invested $20 into an EUR/USD CFD, then $20 into an EUR/GBP CFD, you'd better not invest another $20 into an EUR/CHF call option. Why is that? You would suddenly have three trades and in total $60 bound to the rise of the euro. If euro drops, all three trades would go wrong and it would cost you all of $60. You do not want to risk a triple loss. Due to this reason some traders have a limit: a maximum of two trades on one currency can be opened at the same time.

Risk diversification among multiple assets makes sense and may pay off. After all, professional traders from investment funds have risk diversified really well, among dozens of various assets. Thanks to this they can reach relatively stable yearly profits with their trading strategies. It is worth noting that they use much more sophisticated financial instruments than CFDs which are indended mostly for small investors.

Make money in three easy steps!

Start now

Make money in three easy steps!

My method cannot be used everywhere. Most banks and traders do not know what this method is about. And even when they do know about it, they would never, under any conditions, provide it to ordinary people. That's why it's very important to choose a reliable licensed broker who will allow you to make money. These are my two favourite brokers. Register with one of them - or even both of them. They both offer advice, video tutorials and a personal adviser - absolutely free.

Try out the strategy with a demoversion:

  Make Money Robot

A basic robot that allows you to trade binary options automatically even if you are a beginner
My quick tip: I recommend to trade currency pairs, for example EUR/USD or CNY/USD.
Minimum deposit: $200

  Binary Option Robot

This program can play instead of you. :-) All you need to do is to install it, register and make a deposit. The robot will then automatically recognize how to bet and it bets and clicks on everything for you.
My quick tip: I recommend this tool especially for complete beginners because you only have to turn your computer on and the software makes money on its own.
Minimum deposit: $250

  vivi (154.113.16.*) wrote

Does it work for Nigeria

I'd like to try this, but I'm really really broke. And I need details on how it works. I'm from Nigeria.

  Dennis mutembei (154.79.141.*) wrote

About the credit card    Olympic trade

Am a Kenyan and our currency is the Kenyan shilling so how do I withdraw money from the Olymptrade after winning or how should I get the credit cards to earn money

  kareem jide (197.156.250.*) wrote

a fresher     Olymptrade

new to it , kindly please help me

  May Liosi (103.43.144.*) wrote


I am from Papua New Guinea and I would like to know more on this opportunity.

  Dayyan Ahmed (110.36.183.*) wrote

How to make money online for a teenager?

Hi,my name is Dayyan Ahmed. I am a teenage boy who needs to help my family financially, i belong to a middle class family and am currently doing Alevels so I thought of trying something to earn enough to hold my own expenses,to get my burden off my parents and to learn about what to do to earn money easily. Thankyou for your time reading my comment. Have a good day sir!

  nickley mwanamwale (165.56.52.*) wrote

i would love to learn how to make money    nickley mwanamwale.com

i would love you to teach me how to make money, am 21 years and am from zambia

  omokolade sunday (197.210.54.*) wrote

does it work here in Nigeria ?

How do i register from here in nigeria? Need your reply right now.

  Abdoul Rachid (41.203.141.*) wrote

Information    i dont have

Hello, how was your day. Can your tell me more about this system of making money.
thank you in advance

  Trevor Edwards (41.113.85.*) wrote

HELP    Binomo

Hi Scott,
I really need help to understand your strategy. I was able to win 5 trades yesterday on the USD/CHF Pair. But your strategy eludes me.

  anthony (141.0.12.*) wrote

make money    opera mini

How to make money

All comments (on new page)

 Add new comment!

Ask anything or share your experience
You will receive detailed instructions to your email.