CFD stands for Contract for Difference. It is an agreement between two parties who wants to exchange the difference in opening and closing price of a contract. CFD trading are derivatives products that allow you to trade on live market prices and the movement of it. You could actually do this without owning the thing your contract based upon. CFD trading strategies in general basically focuses on speculating and predicting future prices movement of the market. Despite the real markets are rising or falling, it could be use to trade by just using a small part of the total value of the contract.
CFD trading strategies in general make use of chart patterns to analyse the movement of the prices. Although there are many indicators and ways being invented to analyse charts, the pattern analysis is still the basic concept for a trader to use as a prediction tool for future prices. Through this, it is not only the recognisable pattern that plays an important role. A trader needs to check other factors, indicators and volume of trading in order to achieve good results from the activity.
There are some strategies of what to do and not to do in CFD trading. You should be asking the broker on how your account will be classified. Most of the brokers will classify your account as intermediate which marks as having a high degree of knowledge and experience. You must also remember that shares move dramatically and there are times that it may also be suspended. Therefore, get all the knowledge possible but also expect losses sometimes. What you should not do is to be irrational and think you will profit quickly. This will leads you to more losses as when you go ahead with the trading expecting to get quick money in return more than analysing the situation.