This is the fastest, easiest, laziest way you can make a lot of money in some minutes... or... you may lose a lot of money.
Plus500 is a online trading platform allows you to trade contract for difference (CFD). In order to know how to make this easy money, we need to have a look at CFD first.
What is CFD?
Contract for difference is a tradable instrument that mirrors the movements of the underlying assets.
CFDs were originally developed in the early 1990s in London as a type of equity swap that was traded on margin. They were initially used by hedge funds and institutional traders to hedge cost-effectively their exposure to stocks on the London Stock Exchange, mainly because they required only a small margin and because no physical shares changed hands avoided the UK tax of stamp duty. But soon people realized that the real advantage of this trading instrument is not the exemption from tax but its high leverage.
Wait a minute, what's leverage? Well, basically leverage helps you to play big game with small money, you put $30 in the game, you may gain the control of $3,000 value contracts (contracts, not stocks, if you bought CFD, you don't own the stock or whatever the underlying assets, you are playing a different game). You maybe envy those people who trade thousands and thousands of dollars on market everyday? You maybe believe that you can do better than those who throwing big money in the market but you don't have enough capital to enter the game? Well then CFD is your game. With a little money, you gain the enter ticket to the real big game.
But, as always, there's a but, it's also extra risky! With high leverage you may lose multiple times more than you normally could, it may actually be more dangerous than gambling, so be extra cautious!
I learned about plus500 and CFD from a friend, and since then I've been playing the demo as if it's a "gambling" game. I've been having a lot of fun so far, now I just wanna share with you some of my experience in trading virtual money in demo so that you have an idea about the game.
First rule of CFD is, you should always and only play short run! How to define "short run" depends on how much money you put in and what kind of assets you are playing with. For me I almost only trade NASDAQ index. The index as a whole has more fluctuation and therefore it offers you more opportunities to speculate. Buy/short, and then sit upright, use all your energy to stare at the screen, because the earning/loss may double in any second. You can't play "buy and hold" strategy like normal stock trading, because even the stock is meant to grow, a small fluctuation in the half way of the climbing may already wipe you out of the game, quick as that.
I've been through many many times "game over", once the loss exceeds the deposit in your account, the game will be reset, and you'll get $20.000 virtual money to play from scratch. Once I had a really long rally, I kept earning for almost a month during a "trading competition" with a friend, and it went pretty well, I made at least 1k almost everyday, and eventually I was defeated by my greed. I thought I was "too big to fall" and got a little cocky in the game, also, when you started losing money you always tell yourself "it's just a little fluctuation, soon it will turn around", well, in most cases yes, you can make quick money by speculating between waves, but just sometimes the market seems go only one way up or one way down, if you bet on the wrong side then you were doomed.
Betting on small individual stocks really challenges my patience, because they tend to move more subtly, like 4.1 to 4.2 instead of 4345.35 to 4355.94 in NASDAQ. If there's not enough movement you may just get "trapped" and guess what, if you hold a contract overnight, you are charged for extra commission! That's why I don't do individual stocks, but my friend always bet on penny stocks, guess different people have different strategy for them.
About commission, does Plus500 charge any commission? Nope. But actually when you make a transaction, the commission is already included, for instance, you bought at price of 100, now it went up to 101, but your account shows that you are still a bit away from breaking even the loss, it's because there's commission, you need to be able to go through one step further to maybe 102, then your account is balanced, then 103, you start making money. That's why if you put very small money in individual stocks, you probably always lose money.
Recently I just restarted trading after quite a long pause, I've been trading from scratch with $20.000 fake money since 6th April, till now it's just a week, I've already tripled my deposit:
*this image above is a trading I made this morning.
*this image above shows part of my history record since April 6, almost only earning. so far made a total profit of 38K, now I have over $66.600 in my account as shown in the image.
Alright, that's my story with Plus500. Have a try, it's a lot of fun in the demo, but be careful if you really decide to trade real money.
I did an experiment, just while I'm writing this article, I put $28 randomly in NASDAQ and now I'm losing $20 after approximately 30 minutes.
