Preparing for rainy days while trading in cfd

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When you are trading in Singapore on CFD, you should prepare for rainy days. There are days when your positions in trading will go against you and thus, you need to keep enough cash/equity in your account, in case you require putting extra margin.

There are some brokers who don’t give out margin calls; they will liquidate your positions in case you fall below the requirements of the margin. It is something which might happen when you least expect it thus, you have to do the best you can to avoid it.

CFD trading is capable of giving you access to a wide variety of assets and markets, and thus, there are ample opportunity of diversifying. And you should totally do that. When you think oil stocks are going to be the next thing, you don’t have to go and putting your eggs in one basket by trading in oil only.

In case you do so and you are wrong, you will lose a lot because the assets will be correlated and are likely going to move in the same direction. And in a wider perspective, it is not wise relying on CFD trading alone for a living. Try diversifying in other trading.