Here’s how to refine your money making strategy on Plus500

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Here’s how to refine your money making strategy on Plus500

Plus500 is a global trading platform which specialises in offering Contracts for Difference (CFDs). These financial instruments allow traders to profit (and also risk potential losses) from asset price movements without needing to own and store the asset itself. Whilst there are dedicated guides to understanding CFDs, for this guide it is sufficient to know that while traders can profit both when the price rises and when it drops, there is also a significant risk for losses.

Though Plus500 is a very user-friendly platform, CFDs are complex financial products, thus the platform is not suitable for beginners/ un-experienced traders.

How Legit is Plus500?

There are several factors which give the platform legitimacy. For starters, Plus500 and several of its international subsidiaries are registered and regulated. As a result, a portion of investors is protected under an investor compensation scheme. In addition, the platform has a positive online reputation and has the trust of some of the world’s best-known payment providers.

Main Features

The Plus500 platform is full of useful tools and resources. The following are just a few of the most popular features you will find at your disposal when you open a Plus500 account.

Demo Account

The Plus500 demo account is available to all registered users and can be an indispensable tool to novice investors. Unlike some other platforms, this demo account does not have an expiration date or amount, so you can use it for as long as you need to. Once funds fall below the €200 mark, your account gets automatically replenished.

With the demo account, you get to invest in all markets offered by the platform, using a user interface which is identical to the real one. In addition, you also get the same charting tools and access to any other resources available on the real platform. In fact, the only major difference is that with the Plus500 demo account you are investing without risking any money.

Wide Choice of Commodities

Plus500 Commodities
Screenshots are shown for illustration purposes only. Actual product may vary.

Plus500 offers one of the most comprehensive lists of assets and commodities. With a verified account you will be able to invest in:

The platform offers over 2,000 different securities and multiple asset classes, all accessible directly from a single platform and account.

Education

To help novice as well as experienced investors, Plus500 offers a complimentary Trader’s Guide. In this educational section of the website, you will be able to view several video tutorials. Amongst the most important topics, you will learn all about CFDs, how to trade on the platform, and investing in different types of trends. Combining the knowledge you acquire from this section with the platform’s demo account is a great way to develop a sound investment strategy.

UX

Plus500’s minimalist and sleek design provide a user-friendly experience to all traders. The platform is considered to be amongst the best mobile trading platforms, making trading on the go a convenient reality.

Using Plus500 Software to Your Advantage

To understand how to use the Plus500 platform you should read our detailed Plus500 platform review. Opening, modifying, and closing trades is very easy, whether you’ve been trading for a lifetime or have just begun.

Before trading with real money it is highly recommended that you try out some basic investments on the demo account. In this way, you will become familiar with the position of different options and an understanding of what each one does.

When you open a position you need to decide whether you intend to go long or to sell short. If you believe that the asset’s price will increase you should buy, whereas, if you believe it will decrease you should sell. No matter which option you go for, you should include risk mitigation tools to automatically manage your investment.

Plus500 offers several of these tools, but the most popular are the Stop Loss and Take Profit. Both these options are limits which you set on your trade. Once either limit is reached, your position is automatically closed. As a result, you won’t need to monitor your investment constantly.

The diverse range of assets in each market make diversifying your investment portfolio relatively easy. In keeping with the basic strategies of investing, you shouldn’t invest your entire capital into one position. Instead, you should invest in a range of assets to cushion any losses suffered in one market.

Price Action

Successful investing is a combination of art and science. As an investor, you need to understand how markets react and how external incidents or decisions influence the price of different assets. Price action is an important element to spot the ideal time to open or close a position. 

Using Candles in Plus500

Plus500 Candle Chart
Screenshots are shown for illustration purposes only. Actual product may vary.

One of the more popular charting tools on Plus500 is the candle chart. These charts provide significantly more information than a simple line chart, which is why so many traders use them as the basis of their decisions. Through candle charts, you can arrive at your price action conclusion. 

The candle is made up of a body and a stick. The body can be coloured green or red, depending on whether the price closed lower or higher. Each candle shows the asset’s price for a particular amount of time, with the stick showing how high or low the price has gotten to in this time.

By using candle charts on Plus500 you can identify trends and take decisions immediately. The platform provides you with access to historical data, allowing you to see how markets have reacted in the past, as a guide to how they might react in the future.

Plus500 Reviews

CFD trading on Plus500 gives traders access to leverage, allowing them to open bigger positions with less capital. Investing in this way is considered to be high risk since you can lose money much quicker than with traditional investing. In line with its licencing requirements, the platform informs all visitors and users that 80.5% of retail investor accounts lose money when trading on this platform.

Online reviews of the platform are mixed, with some applauding the range of tools and features and others criticising the slow customer support. According to its social media team, the platform has seen an unprecedented number of new users, and this has slowed communication. However, the team assures its users that support service should return to normal shortly.

Concluding Thoughts

As far as CFD trading platforms go, Plus500 scores highly across the board. Apart from offering a diverse and comprehensive selection of assets and securities, you can fund your account using an equally diverse range of payment methods, including PayPal. The platform is safe, regulated, and extremely user-friendly, suitable to both novice and experienced investors.

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