Wednesday 25 June 2008

First Trade with CityIndex

After opening a CFD trading account with CityIndex at the seminar we recently attended, I funded the account with $250 via BPay. A few days later the money still hadn't been credited to my CityIndex account balance, so I had to email customer support to find out what was going on. Apparently CityIndex has been having problems processing BPay payments (!), but everything was fixed up after a couple of days. The $250 bonus was also credited, so I had $500 available for trading. My first trade was to sell one US crude oil CFD, and I closed the position a few minutes later for a one pip profit, netting me a massive US$1 profit ;)

I haven't decided yet what I'll use this CFD account for in the long run - last year I would have used it to sell Australian Index CFDs to hedge my Australian stock portfolio, but it's too late for that now (hopefully - I'm assuming that we're close to the bottom of the bear market in Australia). I was thinking of using it to buy CFDs for Berkshire Hathaway instead of buying the stocks using my Comsec-Pershing account, but it isn't one of the US stocks currently available for trading with CityIndex. So, for the moment I'll just browse through the available CFDs and trade whatever tickles my fancy. As long as I only trade the minimal position each time and follow a strict stop-loss strategy I should lose too much by experimenting.

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