Journey to CFD crypto trading - Episode 001 - Setting up

davidke20 (74)in #forex • 6 years ago (edited)

Let me reintroduce that I've been trading with FOREX market since 1999, and started making my first pot of gold in 2001(but ofcourse I slowly gave it all back). After many years, I hook up with trading again with my friends @namchau and @miowmiow. Anyway, fastforward to political situation changed, and the project called off. We no longer required to setup a super trading company that may cost us an arm and leg. Added, since last year I've been diving into Steemit, and also brought in @namchau into the picture for awhile.

I've been contacted by a friend offering me some ETH see if I would be able to buy from him. Since I don't really BUY into crypto, I started to scratch my head and wondering where should I dig my money from as my fiat currency has been heavily invested into business, funds and FOREX. Technically, I only have enough cash flow for my daily life with my salary from my job. As I gone through price feed and checking on price, I realized that I'm doing exactly like check price feed from broker when I wanted to trade foreign currency. The only thing difference is, we're talking about crypto now. The only crypto has a value to me right now is STEEM because I'm using Steem Blockchain to generate crypto income. Now let's set that trading with my friend part aside. What am I looking for today is, is it possible that we trade crypto with CFD(contract for difference). If you do not currently know what is a CFD, here's a video for your reference.

More written detail in investopedia

Like the video mentioned above, trading CFD is margin trading, could be dangerous when one does not understand the concept of leveraging. We will come back to this later state to experience with our demo account. But first, let's setup a demo account to start getting familiar with trading crypto in CFD way. I made a search with Google and here comes a list of results shown on my screen. I have randomly selected one of them with Meta Trader 4 trading platform supported, and downloaded one for demo account purposes. As for how did I download and why do I use it, I'm not going to explain it here. This is not a trading advise nor workshops. Merely stating the fact that I am starting to explore this part of the trading capabilities and documenting my studies.

Account creation done, and I'm putting in my detail, hit the next button and new account number and password is ready. I am using notepad to record these credentials, save a copy on my hard drive and email another to myself so I can use them to login from my phone.

Once login completed, on the lower right corner will have the data transferring detail updating. So I'm good to go, can start setting up my trades for tomorrow.

Default charts are ready. I am going to remove those foreign currencies and leave them with crypto alone. Here is what I do, go to the left side of the screen which has a show of the quote board, right click on my mouse and select Symbols.

I am selecting cryptos so I can have crypto CFD price feed for my trading.

I closed all my other charts and left BTCUSD on the screen. I adjust the time frame to H4 (4 hours candlestick chart) and also turn the magnifier smaller so I can see more history

Followed by adding Relative Strength Index indicator and also MACD on to the screen.

Chart setup is done. I have selected the colors I like most. Now I am going to save the this as default template, in future whichever chart I am calling out will be on similar setup.

Once done, all I gotta do is proceed to the left side of the Market Watch, right click and select Chart Window, MT4 will automatically open the chart with the previously saved default setup for me. Super convenient.

Setup done. I will be able to access of these charts anytime when I hop in the platform.

I'm firing up a test buy on EOSUSD with 0.01lot. See how it goes

Instantaneously, the CFD order flies into "market". Note to myself, CFD doesn't fire my order to the market anyway. Usually bucket shops take these contract as a gambling chips.

That's all for exploring with crypto CFD day one.

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