A Contract for Difference lets you trade price moves without owning the asset. You can go long or short. You post margin, and the broker lends the rest. Leverage multiplies results. A tiny move can feel like an earthquake. The spread is your first cost. Overnight funding is your second. Both nibble at returns. 
I watched Tom, a smart engineer, open his first CFD on gold. “Looks easy,” he said. He doubled his size after a quick win. Then a headline hit. Price slipped like a bar of soap. His stop was market-based, and slippage turned a cfd trading malaysia positions small bruise into a black eye. He learned faster than most. He sized smaller the next day. Sizing rules keep you in the game. Risk 0.5% to 1% per trade. A 1:20 CFD on a $10,000 account means a 2% move can wipe you out if you’re maxed. Don’t max. Place stops where your idea fails, not where they “feel” safe. If your broker offers guaranteed stops, know the fee. Spreads widen during news, so leave room or step aside. Know your costs. Spreads vary by asset and hour. Commission may apply. Funding charges accrue if you hold past the cut-off. Some indices adjust for dividends. Read the spec sheet like it’s cash on the table. It is. Also check margin call and stop-out levels. If equity dips, positions can close without a polite warning. Plan entries like a pilot checklist. Define your bias. Pick a trigger: break, pullback, or mean reversion. Set a stop. Set a target. Set a time stop too. If it drifts for hours, scrap it. Aim for a clean R-multiple. Two to one is fine. Three to one is great. Keep a log so your edge becomes visible and unique. News whipsaws hurt. Use an economic calendar. Nonfarm payrolls, CPI, central bank days. Either trade the reaction with tiny size or stand down. Liquidity thins before big moments. Limit orders may help. Slippage can still bite. That’s part of the deal. Choose a regulated broker. Look for segregated funds and negative balance protection. Test the platform with a demo. Then go live with small dollars. Watch how your hands behave during a win. Watch them during a loss. If you feel heat in your face, cut size. FOMO and revenge trading don’t need fancy cures. They need fewer contracts. A quick playbook: One thesis per trade. One stop. One target. No mid-flight tweaks unless data changes. Walk away after placing it. Protect capital with the utmost care. Capital is oxygen. Strategies are lungs. No oxygen, no run. Keep the next trade boring, clear, and small. Then repeat until your stats make you smile more than they make you sweat.
I watched Tom, a smart engineer, open his first CFD on gold. “Looks easy,” he said. He doubled his size after a quick win. Then a headline hit. Price slipped like a bar of soap. His stop was market-based, and slippage turned a cfd trading malaysia positions small bruise into a black eye. He learned faster than most. He sized smaller the next day. Sizing rules keep you in the game. Risk 0.5% to 1% per trade. A 1:20 CFD on a $10,000 account means a 2% move can wipe you out if you’re maxed. Don’t max. Place stops where your idea fails, not where they “feel” safe. If your broker offers guaranteed stops, know the fee. Spreads widen during news, so leave room or step aside. Know your costs. Spreads vary by asset and hour. Commission may apply. Funding charges accrue if you hold past the cut-off. Some indices adjust for dividends. Read the spec sheet like it’s cash on the table. It is. Also check margin call and stop-out levels. If equity dips, positions can close without a polite warning. Plan entries like a pilot checklist. Define your bias. Pick a trigger: break, pullback, or mean reversion. Set a stop. Set a target. Set a time stop too. If it drifts for hours, scrap it. Aim for a clean R-multiple. Two to one is fine. Three to one is great. Keep a log so your edge becomes visible and unique. News whipsaws hurt. Use an economic calendar. Nonfarm payrolls, CPI, central bank days. Either trade the reaction with tiny size or stand down. Liquidity thins before big moments. Limit orders may help. Slippage can still bite. That’s part of the deal. Choose a regulated broker. Look for segregated funds and negative balance protection. Test the platform with a demo. Then go live with small dollars. Watch how your hands behave during a win. Watch them during a loss. If you feel heat in your face, cut size. FOMO and revenge trading don’t need fancy cures. They need fewer contracts. A quick playbook: One thesis per trade. One stop. One target. No mid-flight tweaks unless data changes. Walk away after placing it. Protect capital with the utmost care. Capital is oxygen. Strategies are lungs. No oxygen, no run. Keep the next trade boring, clear, and small. Then repeat until your stats make you smile more than they make you sweat.