Activtrades â€“ CFDs and swing trading Swing trading is a process by which CFD traders avoid the more volatile markets which arenâ€™t trending, and instead focus on those which are clearly Activ Trades in a specific direction. Swing trading using CFDs is all about finding those stocks which could potentially move by a significant amount, within a relatively short space of time. This type of trading uses technical analysis in order to identify financial securities whose price is likely to change, and provides target and time values for both the entering and exiting of the trade. In swing trading, the CFD trader will usually hold their position for at least a few days and sometimes even for weeks on end.
One of the biggest advantages of using CFDs for this type of trading is that the trader needs very little money to enter into a market, and will be able to leverage their limited funds so as to control a significantly larger holding that they would otherwise be able to afford. One slight issue with using CFDs in this way is that whilst the trader is holding their position, they will be charged interest on the borrowed amount for that holding; however the interest percentages are relatively small when compared with the amount of profit which can be made.
CFD traders considering trading with activtrades, should begin swing trading with a definite plan in which their target price has been defined, as well as the price at which they will admit defeat and acknowledge that the trade has failed. Swing traders are often compared to those who do day trading, as both traders hop to make a profit from trading a CFD in a short space of time. However swing trading requires the trader to perform a much more intensive technical analysis, so as to find the shares which have the largest price momentums in the short-term.