CFDs allow small outlay for big bets

(26-05-2013, 09:49 PM)Temperament Wrote: Wow! Very scary to me leh!
We all know the odds or edges in a Casino are fixed. From your explanation of CFD operation by Brokerages, they can vary as and when they seem appropriate. It's really very "frightening" to me.
Thanks.

Uncle Temperament

If you think CFD brokerages can peer into your account when you trade CFDs, then you should hear about the role of market makers and think about how they know about all our stock holdings positions and prices entries.

http://en.wikipedia.org/wiki/Market_maker
http://beginnersinvest.about.com/od/begi...makers.htm

This is one reason I never abandon the concept of value investing despite doing abit of bi-directional trades. Ultimately, the concept of buying undervalued good companies and allowing the market to recognise their true values is time indefinite.

Humans are psychological creatures, therfore easy to be manipulated by external parties who hold big funds. (Check out your market makers whenever you buy a stock and who filled your orders. Then think about who hold big funds.)
But the concept of value investing is fundamentally true and emotionless.
Thus why WB is so darn good.

(26-05-2013, 10:35 PM)arthur Wrote:

(26-05-2013, 09:49 PM)Temperament Wrote: Wow! Very scary to me leh!
We all know the odds or edges in a Casino are fixed. From your explanation of CFD operation by Brokerages, they can vary as and when they seem appropriate. It's really very "frightening" to me.
Thanks.

Uncle Temperament

If you think CFD brokerages can peer into your account when you trade CFDs, then you should hear about the role of market makers and think about how they know about all our stock holdings positions and prices entries.

http://en.wikipedia.org/wiki/Market_maker
http://beginnersinvest.about.com/od/begi...makers.htm

This is one reason I never abandon the concept of value investing despite doing abit of bi-directional trades. Ultimately, the concept of buying undervalued good companies and allowing the market to recognise their true values is time indefinite.

Humans are psychological creatures, therfore easy to be manipulated by external parties who hold big funds. (Check out your market makers whenever you buy a stock and who filled your orders. Then think about who hold big funds.)
But the concept of value investing is fundamentally true and emotionless.
Thus why WB is so darn good.

I understand your explanation of the role of market makers. i had read about it-a book written by Dr. Michael Leong. How he traded making use of the live B/S cuing data. And even then the live data can be "manipulated" by "false" B/S entries and withdrawals to confuse you as a trader. It is actually like playing poker to me.
i don't think i can really learn it. No! Not for me.