Contracts for Difference: Starting a Day Trading Home Business

Day trading online with CFDs (contracts for difference) is an increasingly popular way for entrepreneurs to start a home-based business. Not only is it potentially a great source of income, but it also helps sharpen your analytical and decision-making skills, which you can then apply to other areas of your life, and use on your CV. If you haven’t discovered CFD trading yet, but are interested in participating in financial markets, this article will give you an introduction to day trading, plus strategy tips.

What Is Day Trading?

Day trading means the buying and selling of a financial asset within one trading day. An online day trader will find trade opportunities, enter into the market and jump out before the market closes for the day, to secure her profits. Day trading strategies can be used in many markets; however, the most common and suitable markets for day traders include the Forex market and stock market.

Day trading can be an exciting way to earn income; nevertheless, it’s not easy because taking advantage of small price movements in volatile markets like Forex requires you to master trading skills, and to be well-funded. Therefore, if you want to live like a day trader, take your time to learn, practise trading, and test your day trading strategy carefully before trading for real.

What Is A CFD?

CFD is short for Contract For Difference. It’s an instrument that lets you speculate on the price movement of a financial asset: up or down. Although this may sound complicated to a beginner, most online brokers provide comprehensive guidance and have clear, easy-to-use interfaces to help new traders feel comfortable quickly.

There are many benefits when using CFDs to day trade, such as:

  • You can trade without having to own the actual asset.
  • You can use leverage to magnify your gains; however, it also means your losses will be more if your prediction is wrong.
  • Day trading via CFDs is low-cost.
  • Most CFD brokers offer a variety of tradable assets.

What Are Characteristics of A Day Trader?

To become a day trader, you must have a solid trading knowledge foundation. Below are the prerequisites to day trading:

  • Trading knowledge and experience: day trading is not for novices, so don’t try with real money if you think you don’t have enough trading knowledge, experience, and confidence yet. Use a demo account until you’re ready to trade for real.
  • Sufficient capital: day trading often requires a large amount of capital. However, don’t risk more than you can afford.
  • An effective, carefully-checked strategy: trading without a strategy is suicidal. Therefore, spend your time developing and perfecting a day trading strategy. Remember to test it carefully before you go live.
  • Strict discipline: Success is impossible without discipline. If you have a good day trading strategy but don’t stick with it, you won’t be successful.

Is It Possible To Make a Living by Day Trading?

There are two primary types of day traders: Institutional and Retail. Institutional traders are professionals working for companies, with ideal trading conditions: a direct connection to a trading desk, professional real-time software, large amounts of capital and leverage, etc. Meanwhile, retail traders who trade with their own money usually have limited capital, resources, and tools. They often use technical analysis and swing trades to collect profits on small price movements in highly liquid assets.

Most of us are retail traders, so it’s hard to compete directly with institutional traders. However, it’s not impossible. You can still become a successful day trader if you:

  • Choose a market that you have a good understanding of;
  • Control the size of your investment and leverage effectively;
  • Use stop losses;
  • Remain focused when you trade;
  • Improve your strategy using a journal;
  • Test your strategy carefully with demo accounts;
  • Keep learning and moving forward.


Day trading via CFDs has democratized the world of online trading, opening up work from home business opportunities to many people, where once trading was mostly the preserve of professionals working for financial institutions. However, beginners should approach day trading with caution. Short-term price movements are usually hard to predict, therefore, mastering day trading techniques requires lots of effort and time. If you decide to become a day trader, choose a reputable CFD broker and start practising day trading on demo accounts. Don’t forget to follow the abovementioned tips. If you are persistent enough, you’ll eventually become a successful, and profitable, trader.


  1. My developer is trying to persuade me to move to .net from PHP.
    I have always disliked the idea because of the expenses. But he’s tryiong none the less.
    I’ve been using Movable-type on various websites for about a year and am nervous about switching to another platform.
    I have heard great things about
    Is there a way I can transfer all my wordpress posts into it?
    Any kind of help would be greatly appreciated!

  2. Have you ever thought about creating an ebook or guest authoring on other blogs? I have a blog based upon on the same subjects you discuss and would really like to have you share some stories/information. I know my viewers would value your work. If you are even remotely interested, feel free to shoot me an e mail.

  3. I think other web-site proprietors should take this website as an model – very clean and great style and design, as well as the content. You are an expert in this area!

  4. It’s my belief that mesothelioma is usually the most dangerous cancer. It has unusual properties. The more I actually look at it the harder I am convinced it does not act like a real solid flesh cancer. If perhaps mesothelioma is a rogue viral infection, then there is the prospects for developing a vaccine along with offering vaccination to asbestos open people who are at high risk of developing foreseeable future asbestos associated malignancies. Thanks for giving your ideas about this important health issue.

  5. you’re really a good webmaster. The site loading speed is amazing. It seems that you’re doing any unique trick. Moreover, The contents are masterwork. you’ve done a magnificent job on this topic!

  6. Hey! Quick question that’s totally off topic. Do you know how to make your site mobile friendly? My blog looks weird when browsing from my iphone4. I’m trying to find a template or plugin that might be able to resolve this issue. If you have any suggestions, please share. With thanks!

  7. A motivating discussion is worth comment. I do think that you
    should write more about this issue, it might not be a taboo matter but usually people
    don’t talk about such topics. To the next! Cheers!!

  8. I’m extremely impressed with your writing skills as well as with the layout on your blog. Is this a paid theme or did you customize it yourself? Either way keep up the nice quality writing, it is rare to see a great blog like this one nowadays..

  9. Very nice post. I simply stumbled upon your weblog and wished to say that I have truly enjoyed browsing your weblog posts. After all I’ll be subscribing in your rss feed and I hope you write again soon!

  10. I wish to show appreciation to this writer for bailing me out of this type of matter. As a result of looking throughout the world wide web and getting concepts that were not pleasant, I figured my life was gone. Living without the presence of approaches to the issues you’ve sorted out all through the report is a critical case, as well as the kind which could have adversely damaged my entire career if I had not noticed your web page. Your actual capability and kindness in touching all things was useful. I am not sure what I would’ve done if I hadn’t come upon such a thing like this. I can also at this moment look ahead to my future. Thanks a lot so much for the specialized and amazing guide. I won’t think twice to refer your web sites to anybody who needs guidance on this subject.

  11. Just wish to say your article is as amazing. The clarity on your post is just excellent and i could think you’re knowledgeable in this subject. Fine along with your permission allow me to clutch your RSS feed to stay up to date with approaching post. Thanks a million and please continue the gratifying work.

  12. Thank you for sharing excellent informations. Your site is so cool. I am impressed by the details that you have on this web site. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for extra articles. You, my pal, ROCK! I found just the info I already searched everywhere and simply couldn’t come across. What a perfect web site.

  13. Thanks for your write-up. I would like to say that the very first thing you will need to accomplish is check if you really need credit improvement. To do that you will need to get your hands on a copy of your credit score. That should not be difficult, considering that the government mandates that you are allowed to obtain one no cost copy of your real credit report yearly. You just have to consult the right people. You can either find out from the website for that Federal Trade Commission or perhaps contact one of the major credit agencies immediately.

  14. Great blog! Do you have any suggestions for aspiring writers?

    I’m hoping to start my own blog soon but I’m a little lost on everything.
    Would you suggest starting with a free platform like WordPress or go for a paid option? There are so many options out there
    that I’m completely confused .. Any recommendations? Many thanks!

  15. I carry on listening to the news lecture about receiving free online grant applications so I have been looking around for the most excellent site to get one. Could you tell me please, where could i get some?

  16. Spot on with this write-up, I truly suppose this web site wants rather more consideration. I’ll most likely be once more to read far more, thanks for that info.

  17. I’m not sure exactly why but this web site is loading incredibly slow for me. Is anyone else having this problem or is it a issue on my end? I’ll check back later on and see if the problem still exists.

  18. Spot on with this write-up, I really assume this web site needs much more consideration. I’ll in all probability be again to read much more, thanks for that info.

  19. This is very interesting, You’re a very skilled blogger. I’ve joined your rss feed and look forward to seeking more of your great post. Also, I’ve shared your website in my social networks!

  20. Youre so cool! I dont suppose Ive learn anything like this before. So good to seek out anyone with some authentic ideas on this subject. realy thank you for beginning this up. this web site is one thing that’s needed on the net, somebody with somewhat originality. useful job for bringing one thing new to the internet!

  21. I would like to thank you for the efforts you have put in writing this blog. I am hoping the same high-grade website post from you in the upcoming also. Actually your creative writing skills has inspired me to get my own blog now. Really the blogging is spreading its wings fast. Your write up is a good example of it.

  22. Thanks for your post. I also believe that laptop computers have become more and more popular these days, and now will often be the only kind of computer found in a household. This is due to the fact that at the same time potentially they are becoming more and more affordable, their processing power keeps growing to the point where there’re as strong as pc’s through just a few years back.

  23. Thanks on your marvelous posting! I certainly enjoyed reading it, you could be a great author.I will always bookmark your blog and definitely will come back sometime soon. I want to encourage that you continue your great writing, have a nice weekend!

  24. I like the helpful info you provide in your articles. I’ll bookmark your weblog and check again here regularly. I’m quite sure I will learn many new stuff right here! Good luck for the next!

  25. Thanks for your interesting article. One other problem is that mesothelioma is generally the result of the breathing of fibers from asbestos fiber, which is a carcinogenic material. It really is commonly viewed among personnel in the building industry that have long experience of asbestos. It is also caused by residing in asbestos insulated buildings for a long period of time, Genes plays a crucial role, and some individuals are more vulnerable towards the risk than others.

  26. Thanks for your post. What I want to point out is that while searching for a good on-line electronics store, look for a web page with entire information on important factors such as the level of privacy statement, safety measures details, any payment methods, along with other terms plus policies. Generally take time to read the help plus FAQ pieces to get a much better idea of what sort of shop works, what they can do for you, and just how you can make use of the features.

  27. I haven’t checked in here for some time as I thought it was getting boring, but the last several posts are really great quality so I guess I will add you back to my daily bloglist. You deserve it my friend. :)

  28. Another issue is that video games usually are serious naturally with the key focus on studying rather than enjoyment. Although, it has an entertainment facet to keep children engaged, each and every game is often designed to work towards a specific set of skills or area, such as mathematics or scientific disciplines. Thanks for your publication.

  29. Thanks for your recommendations on this blog. One thing I wish to say is that often purchasing gadgets items over the Internet is not new. In reality, in the past decades alone, the market for online electronic products has grown considerably. Today, you will discover practically any specific electronic tool and devices on the Internet, which include cameras as well as camcorders to computer parts and video gaming consoles.

  30. A person essentially help to make seriously posts I would state. This is the very first time I frequented your web page and thus far? I amazed with the research you made to create this particular publish incredible. Excellent job!

  31. Hey there! I know this is kind of off topic but I was
    wondering which blog platform are you using for this website?
    I’m getting sick and tired of WordPress because I’ve
    had problems with hackers and I’m looking at alternatives for another platform.
    I would be fantastic if you could point me in the direction of a good


Please enter your comment!
Please enter your name here