the leverage mode would extend the losses to x5 amount purchased. NIO to hit $25 next week anyway so hang fire and hodl deposit some extra and pick some cheap shares up as price drops a touch more.
Reason for price drop is because of share dilution which, was mentioned back in June. Shorties pushing it as if its something new and lets be honest, do you really believe Institutional holders didn’t know about this yet still give a higher price apprecation? Big timers shaking the weak hands so hang fire it will all be good
It’s not NIO though, that starting sentence is just a lead in and unconnected to the accidentally going long on BOXL with all the funds. (Yep I thought it was about NIO at first)
BOXL is currently bleeding out from the recent end July pump but it’s near being over sold and should get a small reversal to exit out break even.
Unfortunately that is not the case with T212 CFD’s , They make more profit via their man-made spread, The spread isn’t the same as Invest or ISA. The spread difference can be huge as other CFD users have suggested (i have Level 2 data so no the difference).
So since I went all in on BOXL it’s swung 9% in my favour, great right 9% plus leverage and I’m all in, I must have killed it…
Oh if I sell now I’ve still made a loss due to the ridiculous spread wtf?
This is why I stick to fx and futures (and the fact every time I’ve attempted a trade on Tesla I’ve lost )
@Lewdy Though I don’t trade stock CFDs, I did just have a look at BOXL and that does look like a nasty spread! @Hectares do the spreads on small caps tend to improve in a session as that may be an option?
Yes i have found the spread improves through the course of the day for both small/large cap, is this your experience @chantal and @pipo
It is difficult trading CFD on T212 as the spread is a killer (worst i’ve had so far is $7 difference) and seems to occur in the most profitable situations when long or short so i tend to hold longer, which isn’t a good strategy.
Oh look BOXL has made it in to today’s “T212 Top Winners page” +10.2%
I bet the guys who bought it at closing price of the last session are rubbing their hands with glee…
Nope, their sell price is still in the red, how is it even possible to profit with a spread like this?
it’s difficult, that’s why approx 80% lose money. Also the spreads are paying for the Invest and ISA sides to be free, so thanks to all those CFD users from me. cheers.
I usually stay away from low volume penney stonks, but a few times when I tried to hedge my actual INVEST stock (Scottish Mortgage - basically the only stock I have) on CFD I was scared away because of the spread. I guess it’s down to volume again even though it’s not a penney stock. It’s like one of the most famous investment trusts in the UK. I haven’t had a many issues with big boy stocks like the popular USA Tech ones etc.
Hey! I remember you were into CFD, I’m just looking into it to trade on volatility. Pls can you provide some pointers or lessons learnt?
Hi, i may not be the right person as i only trade stocks. Probably worth asking others in the forum too for additional feedback
Painful lesson don’t bag-hold, close losing trades fast when day trading as there are more opportunities to play (easier said than done).
I’d suggest considering how you like to trade? (momentum, earnings, RSI, day trade, swings, over-bought/over-sold etc), downloading for Free the WeBull phone/desktop app for thorough US stock movements and stock tools (level 2 is less than £2 a month!), youtube live feeds of Trade-Ideas and Benzinga (if day trading), focus placing your money within brokers which have US stocks and extended hours due to volatility (UK stocks can’t compete)… Also i’ve opened up Spread Betting accounts (CMC and IG), amazing!.
Biggest lesson using T212 If trading US stocks, Avoid T212 CFD as Long positions restricted, Spreads are much wider than the other 5 brokers i have accounts with, spreads often floating during volatility which reduces profits/increases red positions, leverage/margin can go from 1:5 down to 1:2 without notice, charts are horrific, minimum stocks added to the platform, no additional stocks included in extended hours for months… basically T212 CFD is Not fit for purpose, search the forum typing in CFD’s and you’ll find more complaints that satisfied customers.
feel free to inbox me if you have additional questions, all the best in the meantime