This one mistake will sabotage your trades

Our subconscious drives can sometimes lead us into making bad trades, says John C Burford. That's when tramlines come in handy.

Last Wednesday, I watched an interesting programme on TV and I don't often say that. It was an investigation into the placebo effect. I have long been interested in this effect and how a sugar pill can often produce better health outcomes than a supposed wonder drug. I suppose it appeals to my contrary nature.

Most placebo experiments have centred on the test patients and the doctors not knowing which pill was which the classic double-blind study. But in the experiment on the programme I watched, both patients and doctors knew in advance which pill they were using drug or sugar (actually, it is usually corn starch). And the amazing result was that patients still did better with the placebo.

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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.