The factors affecting CFD shares are the same ones that affect the underlying stock. The price can move because of company news and earnings reports, wider economic factors, a change in the company's industry, new laws or government initiatives, trade relations and tariffs, and overall market sentiment.
Sometimes, rumours or the anticipation of an event or announcement can cause prices to fluctuate, even if these things never actually materialise.
If you do technical analysis, you can look at the CFD charts and the underlying stock. If you perform fundamental analysis, you will look solely at the stock's news, financial reports, and balance sheets.
The right trading platform can help you perform the necessary research and monitor the market.
Frequently Ask Question
When starting, you should select a platform (MetaTrader 4 and IRESS are excellent options) and ensure you know how to place orders, read charts and indicators, and use risk management tools.
So, if you are an active trader with limited capital, CFDs are better than stocks for your goals.