LONDON, December 30, 2011 /PRNewswire/ --

When it comes to trading and financial spread betting the information produced by margins, markets, profits and losses can become overwhelming. To keep things straightforward for traders, City Index has outlined their 5 essential tools for speculating and trading securely on the stock market.

Spread betting and financial trading expert Sandy Jadeja is a strong believer in keeping things straightforward. "I don't believe that the markets are random," states the Chief Technical Analyst of City Index. "I believe that you can use simple tools to extract regular profits from the markets. Whenever I use complex strategies I lose money and when I use simple strategies I make money."

With this in mind, here are five tools to simplify your financial trading.

Stop losses

Stop losses limit your downside potential by automatically closing a spread bet as soon as the market passes through your chosen trigger value. Guaranteed stop loss orders are more efficient risk management tools than standard stop loss orders, as they guarantee to close your trade at the exact trigger value you have set, regardless of market gapping.

Mobile trading

With many markets available to trade 24 hours a day, mobile trading is an effective way to keep in touch with - and react to - the spread betting and CFD trading markets. Last year City Index's City Trading™ mobile app was voted FT and Investor's Chronicle Innovation of the Year and Best Mobile Trading Platform by Shares Magazine.

Financial news

From Bloomberg and the FT to MarketWatch and the Investor's Chronicle, keeping abreast of the latest financial news can help you react more effectively to trading opportunities that present themselves.

Market commentary

With so many markets to choose from, it is crucial that you know all you can about those that you decide to trade. The daily market commentary from the financial trading experts at City Index will help you to analyse the spread betting markets and take a clearer view on the direction of future price movements. You can also keep up with the latest daily market updates on the City Index YouTube Channel at http://www.youtube.com/user/CityIndexLtd.

Education

City Index offers free seminars, webinars and a demo account designed to help you hone your analysis skills and trading strategy without risking your capital until you are ready. Find out more at http://www.cityindex.co.uk/learn-to-trade/

The markets are constantly changing and when trade volumes are low, this can cause unpredictable fluctuations in stock prices, making it difficult to speculate on the value of stocks or trade with confidence. However, trading is not the gamble that many might consider it to be.

By recognising the impact of currencies, economic and social change as well as a number of other key factors, traders can better understand the movement of the markets. The empowerment of real-time trading via mobile devices and automated processes can also help traders to minimise their losses and maximise profits as part of a well-planned strategy.

To learn more about spread betting and CFD trading, visit http://www.cityindex.co.uk/

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

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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 for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, contracts for difference (CFDs) and, in the UK, spread betting.

SOURCE City Index