CFD Trading Tips for New Traders Entering the Marketplace

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April 18, 2012
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CFD Trading Tips for New Traders Entering the Marketplace

LONDON, April 18, 2012/PRNewswire/ --

    Seasoned CFD traders constantly analyse and question every position they take on a
market's price, knowing that losing is part of the process of trading, just as much as
netting a profit is.

    Traders aim to limit their losses through thorough planning and analysis; of which you
can find out more about below.

    With CFD trading provider City Index [http://www.cityindex.co.uk/cfd-trading ], we
take a closer look at the steps new traders can take to help limit their losses and
increase their profit potential.

    It is imperative that traders both new and experienced remember that trading CFDs on
leverage comes with high levels of risk as your losses could exceed your initial deposit.

    CFD Trading Strategy

    Prior to placing your first CFD trade, you must create a comprehensive trading
strategy which takes account of planning your trades, including entry points, stop losses
and limit orders; but also a format whereby you can keep track of and measure the success
of each trade as well.

    Seasoned CFD traders trade across various City Index trading platforms
[http://www.cityindex.co.uk/trading-platform ] - including browser-based and mobile - using
their trading strategy with the aim of limiting risk and locking in profits (by way of
stop loss orders).

    Their strategy is supported by thorough analysis of their chosen markets, which we
discuss in more detail below.

    CFD Trading Analysis

    New traders will not yet know which form of analysis works best for them; but for some
more seasoned traders, they combine the tools available for both technical and fundamental
analysis to gain a clearer picture of their chosen market's future price movements.

    Technical analysis will see you utilising charts and price trends; whilst fundamental
analysis focuses around financial news, events and even rumours within the industry.

    Through thorough analysis such as this, you can gain valuable insights into the
behavior of your chosen CFD markets
[http://www.cityindex.co.uk/cfd-trading/cfd-markets.aspx ], allowing you to make logical
trades that have a greater potential to result in a profit, compared to those where you
trade on impulse and run the risk of netting a loss.

    Why Trade CFDs with City Index

    Trading CFDs with City Index
[http://www.cityindex.co.uk/cfd-trading/start-trading-cfds.aspx ] allows traders to access
their professional trading platform where you can trade on not only CFDs, but spread bet
markets - simultaneously.

    Access their range of trading education tools and resources including free webinars
and seminars, as well as a demo trading account to help prepare you for trading on over
12,000 financial instruments.

    CFD trading and spread betting are leveraged products which can result in losses
greater than your initial deposit. Ensure you fully understand the risks.

    About City Index:

    Today more and more individual traders are discovering the benefits of derivatives,
and many of them are discovering them through a City Index trading platform.

    As a group, we transact in excess of 1.5 million trades every month in over 50
countries. We provide access to a wide range of instruments including margined foreign
exchange, CFDs and, in the UK, financial spread betting [http://www.cityindex.co.uk ].

    We constantly look to improve the performance of our platforms and expand our range of
services. The result is our customers benefit from innovative trading tools with
transparent pricing, competitive spreads, and a high standard of customer support. Visit
http://www.cityindex.co.uk for details.

Source: City Index

Joshua Raymond, City Index, +44(0)20-7107-7002, joshua.raymond@cityindex.co.uk

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