How to take profits in the FTSE

Knowing when to take profits - and not miss out on potentially bigger profits - is one of the hardest dilemmas traders face. Here, John C Burford explains one strategy that lets you have it both ways.

With downward pressure on shares continuing, the best thing a short-term trader can do is to look for a good exit strategy for their short-term positions.

Just as in long-term trading, where market turns are accompanied by sentiment extremes, taking short-term profits on your shorts is best when short-term sentiment is bearish.

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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.