Zynga - CFDs - brag(?) thread?

no offence, but i'd rather not give away that IP.

i spent over 6 years looking for a provider that could give me everything i want and i finally found a firm in the UK that could supply the leverage i needed without the insane overnight margin rates that aussie providers charge.

admittedly, i pay 0.25% in AND out and my short interest rate goes up to 5.2% @ 40:1 (std 4.0% at <20:1) so the privelege doesnt come cheap but its a trade off i am happy to work with. its not all peaches and cream out there....!

i did something similar to you on TRY in 2007, left it overnight (thursday) without knowing about increased margin requirements. friday i was very distracted and came back friday night to find that not only did my margin go up, but it gapped below my stop and i was stuck watching it all weekend in a/h only to have to chase the trade monday.

i sold out at an account wipeout plus a further $950 margin call and vowed to never touch cfds again until i knew all the risks.
 
wobbycarly said:
How easy/hard is it to get access to US stock CFDs from Aus? It even seemed a bit awkward to get access to Aussie CFDs when I looked into it. Was I just looking at the 'wrong' provider?
Click to expand...

Rob, I use GFT to trade Australian equity CFDs and I am really happy with their platform. You can get a free trial I think too where you can have a play for about a month or so without using any real money. You can use it to trade forex, commodities and overseas equities too.
 
joanmc said:
Rob, I use GFT to trade Australian equity CFDs and I am really happy with their platform. You can get a free trial I think too where you can have a play for about a month or so without using any real money. You can use it to trade forex, commodities and overseas equities too.
Click to expand...

i've also heard good things about GFT for ASX stocks.
 
Aaron,

Loving your work all be it very risky!!!

I had 3 excellent trades that i took which went very well for me, i studied like mad for years looking at different indicator set ups etc but these 3 i took because of market fear nice and simple.

The first was Northern Rock a UK Building Society, people were queing up outside to take their money out and it was all over the news and i shorted the hell out of it and walked away with an amazing profit. Trading on their stock was actually suspended at 1 point things became that bad.

The second was Royal Bank of Scotland, similar timing to Northern Rock the UK banking sector was a mess and people were dumping stock left right and centre.

My most recent one was BP after the Gulf of Mexico disaster which again went very well, i also shorted the American company who produced the Blow Out Protector (BOP) which "Caused" the incident but the flack was placed purely at BP's door and their stock went unharmed and i exited with a small gain.

I trade purely on CFD's and i only ever risk 2% MAX on any 1 trade of my total bank. I set my stop to this 2% amount using the last historical Fib support or resistance (Plus a small factor to give me some breathing space) that way i can set and forget.

I also use a trailling stop to lock in profits on the way.

With the BP fiasco i added in positions as it continued to fall as i locked in profits behind which gave enormous returns but was not easy to do from a mindset point of view, i told myself it was a new trade each time.

Regards

ScottyB
 
joanmc said:
Rob, I use GFT to trade Australian equity CFDs and I am really happy with their platform. You can get a free trial I think too where you can have a play for about a month or so without using any real money. You can use it to trade forex, commodities and overseas equities too.
Click to expand...

Thanks, may check it out. Always good to lose pretend money first! :p
 
Aaron Sice said:
oh absolutely - my gosh you could lose your house betting $100 the wrong way with no stops.

i have a very low risk tolerance - hence why i wait.

i had a 0.5% stop out on this one, it was either going where i wanted it to go or i was out, was NOT going to sit and wait on a losing position.

so i set my entry at $665.00, opened @ $665.25 so i was filled.

my stop (remember i'm short) was 668.35 - it was either going to fall intraday or i was out, but it didn't get much above $666.

like i always say, hope is not a strategy.

as per the attached, i saw the red circle happening (convergence of the 20DMA and the 50DMA) took the punt and went to bed.

i've brought my stop down to $658 to cover my bum for the open tonight and we will see how that fares - a/h trading shows a drop of a further $1.47 so i dont think it will gap up - stocks this liquid at these price levels tend not to gap by more than a few dollars in a normal day (normal = no news).
Click to expand...

Thanks Aaron

Have you considered using warrants such as Citibank mini-warrants. You get the leverage, dividends and cannot lose more than you put in. I am not sure how these compare to CFDs but would imagine the leverage is much lower.

see https://au.citifirst.com/downloads/CitiFirst_Instalment_MINIs_v05_screen.pdf
 
i think mini warrants are another term for portfolio margining, whereby you buy enough of the opposing option and they give you the stock the way you are trading.

in other words, if you're going long, you buy enough puts to cover your physical stock and you are lent stock (with interest, long is about 6.00%)to do with as you please.

its fun but it doesnt work in reality. you actually need 1.5x the number of puts to cover your long and twice the number of calls to cover your short to be fully hedged, and the more options you buy the further your profit realisation point moves away from you.
 
i'm closing out of AAPL at open tonight, indicators are getting messy.

it may drop over the weekend, but it may gap up too. i've set my exit for $627 so i kind of hope i get filled.

at that price, that's a 242% position profit @ 40:1 leverage.
 
some of you may want to know this and some of you may not, but HUI (gold bug index) is now closely tracking IWM (Russell2000 ETF) and SPY (S&P500 ETF).

if one moves, you may be able to expect the other to follow.

food for thought.
 
i got filled within the first hour of trading, out at $627 flat.

thats 3 trades in 3 years and i'm just gonna sit pretty for a bitsie.
 
Aaron Sice said:
GOOG looking good for a short - watching
Click to expand...

GOOGLE'S stock plunged suddenly today after a contractor prematurely released the search company's third-quarter earnings report.
Click to expand...

The stock fell $US68.19, or 9 per cent, to $US687.30 before trading was halted to give investors a chance to digest the results.
Click to expand...

Read more: http://www.news.com.au/business/com...le/story-fnda1bsz-1226498998674#ixzz29gmxLvFo


I reckon you are in the wrong business. You shouldn't be in property...You would make way more money running your own hedge fund ;)

Cheers,
Oracle.
 
i've only just got in to say i'm shorting GOOG after last night's results - and i've been beaten to it :lol:

20DMA crossed the 50DMA - I was wanting to short on Wed night at the convergence but I forgot!!!!

GOOG looking very weak - possible target $590.

i'll be taking a 40:1 from $635 going short.
 
i might also short SPY (S&P500 tracker) tonight - it's looking reasonably weak but the Russell2000 (IWM) is looking even worse and short of a spike in the SPY tonight, i think the Russell will drag it down.

in fact, i think i'll short IWM as well.
 
my SPY trade is closed out for 115% profit, on a short from $145.60 taken on Oct 19 to a close out last night of $141.50.

i'm still short GOOG and IWM - expecting IWM to follow SPY tonight.

see attached.
 

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