Research Methods: The CFD Group LLP Research Methods: The CFD Group LLP
Research Methods: The CFD Group LLP
Research Methods: The CFD Group LLP
 
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Research Methods

During the last 10 years the internet has resulted in huge amounts of information becoming available to traders and investors, but you still need to interpret that data and sift through the huge amount of conflicting opinion before deciding on whether a trade is right or wrong.

There are no magical answers and we believe the best route is to concentrate on the traditional methods of fundamental analysis. Sentiment changes on almost a daily basis, but if you have a solid knowledge of what you are buying and why it becomes a lot easier to feel comfortable about your trades and the rationale behind them. This does not mean that you are going to get it right every time, but it does mean that when it does go wrong you will have full knowledge of the facts and can decide whether it is right to retain that holding of cut your losses and run.

What we aim to do is provide you with as much of the facts as we can and let you know what trades we feel are sensible and why. To do this we use traditional fundamental data as well as use our established contacts in the City to find out other relevant information. We then combine this with some charting data to establish a good entry and exit point to a stock with a realistic stop loss.

 
Experience and facts make a good combination

What makes us different from the rest is that firstly we have a lot of experience of managing large amounts of money in the City and no matter what experience does count. By combining our experience with the latest company data and news we are able to come up with sound recommendations.

The last thing we will do is send you the name of a company and say buy or sell without any background information or perhaps just a chart to beef up the note. Yes there is no doubt that a chart does and can help especially if you are trading very short term, but would you not also like to know what the company does, what its latest results suggest and what expectations are over the coming months.

If you don't know this how do you respond to an unexpected news announcement concerning the company's trading or perhaps an acquisition. With The CFD Group LLP we aim to provide a comprehensive view of what you are buying and not just a name.

 
Elephants don't gallop

A famous investor and trader once said 'Elephants don't gallop' and this is why we trade the FTSE100 stocks and not small capitalisation companies. Why? The answer is simple we don't want to be advising traders on stocks where we might be able to double or lose your money in a day. Yes racy stocks are great and a fabulous way to get rich, but they are also a fabulous way to get very poor and that is not what we are about. There are lots of other CFD brokers that will happily take your money and give you significant exposure to all kinds of stocks, large and small, but at the end of the day we don't want to be asking you for more money to cover margin calls. We invest in big easy to understand companies with a reliable record and the potential each time to make you a small gain and if we get enough of those trades right during the course of the year we would hope to achieve a good return for you.

We have seen it time and again. The promise of great riches results in a trader taking on huge risks and eventually they end up with an empty bank account.

Trading is a zero sum gain. For every winner there is a loser and to be successful you need to get more right than wrong and preserve your capital. Without your initial capital you can't come back into the game so why risk it on one or two trades that will either make or break you. By sticking to large caps we feel there is far more opportunity to make good gains and preserve your capital.

 
Enjoy Trading

Trading should be an enjoyable activity. What better than to learn about your target company, invest your money and make a profit.

Too many people come and go in this industry having made silly decisions and blown their cash in a couple of trades. At The CFD Group LLP our aim is to give you the facts and help you to make money and enjoy trading at the same time.

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Risk Warning: Trading Contracts for Differences (CFDs), Futures and spread betting carries a high level of risk to your capital, and is not suitable for all investors. Only speculate with money you can afford to lose. Trading or placing any bets can result in consumers incurring liabilities in excess of their initial stake. Please ensure you fully understand the risks, and seek independent advice if necessary. The CFD Group LLP is an Appointed Representative of Equitrade Markets Ltd, a company authorised by the FSA to provide advice on spread betting, CFDs, futures. options and rolling spot foreign exchange.