CFD - Trading style

Just wanted to ask for an advice. I currently have 50 quantities of TESLA that Im holding as long position, every now and then it generates some “free funds” into my CFD account so everytime I get some “FREE FUNDS” i tend to buy new shares on ISA or INVEST. Is that the best way to buy more shares? It cost me around £1,331.74 in interest to keep these long postiions open but these rates are going up and up I just wonder if anyone has some long positions on CFD that were holding them for long, how do you feel about the rates? I mean my postiions bring home around £5k a month but it cost me £1,331.71 as now to keep them…

I had but stopped using the CFD platform. There has been too many issues.

Be careful with holding large amounts of CFDs long term with T212. You may get an e-mail one day informing you that you have to close your positions! They don’t want people holding CFDs long term as a risk management practice.

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This is my problem. How do you make money to buy more shares without selling anything? The only way to do this is through CFD.

I pay £44.50 a day to keep these positions open.
That’s £1331.74 a month in interest…

I just want to generate passive income which I can then invest so far only CFD is the option for me but is becoming more expensive…

The question is, why do you need to do that? If you leave the money sit in your shares, it will grow over time through compounding. @pipo can tell you all about that. He loves compounding.

Stocks tend to grow in a manner resembling compounding; if this is the case, there is no need to sell to buy more shares. If the shares are growing linearly, sure, force them to grow in a compounding way by selling and re-buying more, if you wish.

To give you an example, I’ve a large position in Scottish Mortgage Investment Trust which I’m hoping I won’t sell for 20 years. No need to make money to buy more - it will just naturally rise.

You can do that through regular investing. Or do you just want the large cash gains you get from CFDs?

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That’s amazing! I would like to find out more about compunding basically my portfolio went up from £15,600 to £27,421 since 18/11/2020 tomorrow is exacly 2 months of trading and that’s not much… so I’ve mad £11,821 so far in total as profit in 2 months + whatever there will be tomorrow. I did took around £2000 from the CFD without closing any positions (FREE FUNDS) I just wonder if you take any money out from whatever you have invested or are you just keeping the money in and not touching it for 20 years? It would have been nice to have long investment as well as passive income that gives you some money each month like CFD does with free funds that you can withdraw anytime or reinvest in more.

That’s a huge return, well done.

My goal is to make 20% on my investments year on year for 20 years. That’s 20% in year 1, then 20% in year two on my initial starting value plus the money made in profits in year one, 20% in year three in the same manner, etc etc.

Another reason for not selling is capital gains tax. Each time you sell, you create a taxable event. When you’re dealing with 10s of thousands, this can be serious money.

I guess it depends on your goals. It sounds like you want to earn monthly income rather than some other goal like retiring early? Just be careful with tax I’d say!

That sounds like a good plan but you limit yourself from having any money monthly I mean living in UK with £1k each month from CFD (FREE FUNDS) it’s almost a basic salary. Longterm investment means you can’t touch a penny from what you’ve invested for 20 years I’m using all 3 accounts avaible on TRADING212. My ISA and INVEST is the long term investment these money I won’t be touching for as long as it takes so every now and then Im buying more and more shares (the money does not come from my salary but from CFD (FREE FUNDS) the strategy for that one is DOLLAR COST AVERAGE it does average the overal price of all my shares and Im having more and more profits each week but I really like the CFD as I can open positions and keep them as long positions (longterm) so I actually longerterm invest on CFD as well but every time the CFD makes me money I take the free funds and reinvest in more shares or (I take £1k each month) as the money grows £1k each month won’t be even that much… I was just wondering if there’s anyone out there who’s doing something similar to what I do :slight_smile: I wish you all best with your invest hope you make plenty of money but having LONGTERM invest as well as monthly passive income wow that’s a life! just the intrest is killing me on CFD but I still get more than what I pay on CFD so for now it’s all good but what of the intrest will double :o that what’s scares me

Just be careful with tax on CFDs.

For me that’s fine! I deposit a small amount each month and then live from my salary. If it means being able to retire in my early 50s with a couple of million, I’m happy with that!

But day trading CFDs to cover your living expenses and fuel your invest account doesn’t sound too bad if you can be successful. You could also look at spread betting on another platform. It’s capital gains tax free and the trades behave very similarly to CFDs. They just look a little different at first so you may need to use fake practice money for a while.

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April is coming up and once I asked on chat and apaprently Trading 212 will send us some sort of document showing how much we’ve earned and then we got to take this to HMRC right? Not sure how they apply tax but apparently this is our responsibility to pay the tax, have you been trading long with TRADING212? I was looking into spread betting apparently you can make some good money on that but you can also loose a lot would definitly practise for long before putting any big capital on it.

Same as CFDs though, you can lose a lot.

Spread betting and CFDs are extremely similar to the point where the risk is the same. You will save on tax however.

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Is there any great platform that you would recommend so I can look into? IG seem to be ok for spread betting as many suggestions on Youtube.

I’m not too familiar with any platforms for spread betting to be perfectly honest. Other than CMC which I’ve tried in practice mode. I couldn’t give a proper recommendation though not having tried others, but CMC seemed fine to me.

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Thank you I will give it a go with few and see how I find them :slight_smile: goodluck and all best with your investment!

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