Anatomy of a failed trade

To illustrate the proper use of his money management rules, John C Burford walks through a recent gold trade that failed.

On Friday, I left you with an exercise to find a possible gold trade and I hinted you should look for tramlines operating. This is always my starting point when I look at a chart.

If I can also find appropriate Fibonacci levels and possibly authentic Elliott wave labels, then I probably have a great trade on my hands.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.