CFDs, or Contracts for Difference, are financial instruments that allow traders to speculate on the price movements of an underlying asset without actually owning the asset. CFDs are typically used to trade stocks, commodities, currencies, and other financial instruments. They are a popular tool among traders because they allow for leverage, which means that traders can gain exposure to a larger position with a smaller amount of capital. However, leverage also increases the risk of losses, so it is important for traders to carefully manage their risk when trading CFDs.
“Bull markets are born on pessimism, grow on scepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. If you want to have a better performance than the crowd, you must do things differently from the crowd.” – Sir John Templeton