Set up at least two different accounts in your name to trade under. Have one main account for your real trades and one demo account as a test bed.
You should never make a trade under pressure and feeling emotional. Emotions, such as panic, fear, anger, revenge, greed, euphoria, apathy and desperation, can have detrimental effects on your Contract for difference trading. While it is impossible to completely eliminate your emotions from your decision-making process, minimizing their effect on you will only improve your trading.
Avoid emotional trading. If you routinely get angry or panic, or let greed dictate your trades, you stand to lose lots of money. You will massively increase risk and be derailed from your goals if you let emotions control your trading.
Make sure that you adequately research your broker before you sign with their firm. You want a broker that has been performing at least on par with the market. You also want to choose a firm that has been open for more than five years.
Contract for difference is not a game and should be done with an understanding that it is a serious thing to participate in. If a person wants to try it out just for the thrill of it, they will not enjoy the outcome. Gambling away your money at a casino would be safer.
Limiting risk through equity stops is essential in contract for difference. Using this stop means that trading activity will be halted once an investment has decreased below a stated level.
If the system works for you, you may lean towards having it control your account. This strategy can cause you to lose a lot of your capital.
By allowing a program to make all of your trading decisions, you might as well forfeit your entire account. This can result in big losses.
Find a good broker or Contract for difference platform to ease trades. If you are constantly on the click to read go, choose a Contract for difference platform that will integrate with your smartphone. This implies that you will be more nimble, and react faster. You won't lose out on a good trade due to simply being away from the Internet.
To succeed on the contract for difference market, it can be a good idea to stay small and start out with a mini account during the first year of trading. It is important to learn the ins and outs of trading and this is a good way to do that.
Now, you need to understand that trading with Contract for difference is going to require a lot of effort on your part. Just because you're not selling something per se doesn't mean you get an easy ride. Just remember to focus on the tips you've learned above, and apply them wherever necessary in order to succeed.