Set up at least two different accounts in your name to trade under. Have one main account for your real trades and one demo account as a test bed.
Do not rely on other traders' positions to select your own. Foreign exchange traders are human; they do not talk about their failures, but talk about their success. A contract for difference trader, no matter how successful, may be wrong. Do not follow the lead of other traders, follow your plan.
Avoid emotional trading. If you routinely get angry or panic, or let greed dictate your trades, you stand to lose lots of money. You will massively increase risk and be derailed from your goals if you let emotions control your trading.
As a newcomer to Contract for difference trading, limit your involvement by sticking to a manageable number of markets. Otherwise, you risk becoming frustrated or overly stressed. Just maintain your focus on one or two major currency pairs. The EUR/USD is the most highly watched currency pair and has the lowest spread, making it ideal for newcomers and experienced market watchers alike.
It is a common belief that it is possible to view stop loss markers on the Contract for difference market and that this information is used to deliberately reduce a currency's value until it falls just under the stop price of the majority of markers, only to rise again after the markers are removed. This is an incorrect assumption and the markers are actually essential in safe Contract for difference dig this trading.
Putting in accurate stop losses is more of an art than a science. When you are going to trade stay on an even keel. Put together different strategies. You will need to gain much experience before Contract for difference trading becomes familiar to you.
Relative strength indices will help give you an idea of the average losses or gains of certain markets. Knowing the averages of gain or loss in a market may not affect your investing but does give you an overall feel for a specific market. Avoid putting your money in areas that are not turning a profit.
When you are new to Contract for difference, you may be tempted to invest in several currencies. Only use one currency pair when you are launching yourself into it. After you have a bit of experience and knowledge under your belt, there will be plenty of time to try out trades with various currencies. For now, stick to one currency pair or you might quickly find that you're playing a losing game.
Don't expect to create your own unique strategy to wealth in contract for difference. Contract for difference experts have been trading and studying the market for years. You probably won't be able to figure out a new strategy all on your own. Research successful strategies and use them.
To succeed on the contract for difference market, it can be a good idea to stay small and start out with a mini account during the first year of trading. It is important to learn the ins and outs of trading and this is a good way to do that.
Now, you need to understand that trading with Contract for difference is going to require a lot of effort on your part. Just because you're not selling something per se doesn't mean you get an easy ride. Just remember to focus on the tips you've learned above, and apply them wherever necessary in order to succeed.