CFD’s are instruments that in terms of the high iq wealth mindset are incompatible. The case for this is made up of various factors & conditions.
Firstly beating the market (S&P500) in itself in terms of individual stocks in itself is a massive task that in many individual investors circumstances is not one that is optimal. The reasons for this is the difficulty, probability, time of money argumentation and requirements of having to manage a portfolio in this manner are one that can in many cases make sense to not pursue and instead go along with a market tracking ETF or Index. The biggest common example an average of individual again has time restrictions and more prompt obligations to attend to that will lead a more optimal return on investment of their total energy. Now this does not apply to everyone however unless you have at least roughly 2 hours on average for every day to spend analyzing, understanding, and monitoring your portfolio the evidence of becoming a passive investor is clearly logically superior.
Now that that is out of the way I bring you why CFD’s are firstly hardly an investment strategy or investment period and akin to high variance speculation.
How CFD’s work:
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