* Overtrading: Overtrading is a result of addiction to trading
, urge to gain lost profits, overconfidence due to several wins and easy accessibility. It can lead to huge losses that can sometimes cause inevitably harsh circumstances.
* Large Trading: Sometimes investors get carried away with continuous successful wins and start investing large amounts which in turn can result in huge loss of money and confidence.
* Lack Of Understanding: Many a times investors lack proper knowledge of which products or companies to invest in, they simple follow the market trends which might sometimes be misleading, resulting in great financial loss to the trader.
* Gambling From The Personal Account: This is considered to be one of the biggest risks involved in CFD trading. Sometimes the loss is so huge that the actual CFD account is wiped out, making the investor pay from his pocket, that is, his personal account, which is in no way a sign of good and wise trading. One must always make sure to invest only after having a deep understanding of his financial limits in order to avoid such humungous losses.