Another lesson in money management from the euro

John C Burford illustrates the importance of stop-losses in this 'wash' trade from the currency markets.

When I last left the euro on Thursday 19 May, it was making a relief rally off the 18 May low at 1.4050 to the US dollar.

Recall that on the long-term chart, this level represents very strong support and resistance. It is the 'line in the sand' at this stage of the market.

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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.