The Dow Jones reaches my target

Predicting which way the market will move isn't enough, says John C Burford. You should always have an exit strategy.

One of the miracles of trading aids is the Fibonacci tool, which is available on your trading platform. Few of my charts do not display the Fibonacci levels. I find them instrumental for showing me the levels where counter-trend moves are likely to reverse.

When I have this invaluable information, I can plan my exit from a trade well in advance. And if I'm not already in a trade, I can use them to plan a low-risk entry. That's because the Fibonacci levels allow me to set my protective stop close to the level I have focused on.

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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.