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The contents of this blog do not constitute investment advice. Trading CFDs and Forex can be very risky and you can lose much more than your initial deposit. Seek professional advice before making any trades.

Review: Diary of a CFD Trader by Catherine Davey

Catherine Davey is a regular writer of trading articles. Perhaps to prove that she could put her money where her mouth is she decided to spend three months (14 weeks) trading CFDs and write a diary of her progress to show that it is possible to make money this way.

As she soon discovers it isn’t as easy as she initially though. Her account decreases at quite a rapid rate and she wonders if she has made a big mistake.

The book contains details of the trades that she makes – most of these are CFD share trades on companies listed on the Australian stock exchange. She does a small amount of commodity trading as well. She mainly uses technical analysis to spot support and resistance patterns and gives tips on how you can use technical analysis to spot these patterns yourself.

The book doesn’t just concentrate on the technical side, she also talks about the emotional side of trading. Throughout the book she had regular sessions with a trading coach who tried to look into her reasoning for trading and make her think like a better trader.

There are a variety of other characters in the book such as a director of a CFD company who she calls for advice and other friends who know about trading.

Although not the most exciting book ever written I do think it is worth reading. She talks frankly about many of the mistakes that she makes. You can often learn a lot more from people’s mistakes than what they do right. She keeps making the same mistakes, often related to bad account management.

I personally don’t intend to trade in the same way that she does but I still found her account useful and have made a note of a whole series of things not to do!

Score: 7/10


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