Don’t be fooled by market stories

People who trade the markets off the back of what they've seen in the news are setting themselves up for a fall, says John C Burford. Here, he explains a better way to trade.

On Wednesday, I wrote about the way people perceive markets wrongly. Because you can't think about markets in the normal cause and effect' way we're familiar with.

Imagine a snooker table with only the white and black ball remaining. Now imagine the player takes a series of shots with his action exactly the same every time, and the balls in exactly the same position for every shot.

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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.