Gann - performance that has made millions out how!
Legendary trader WD Gann amassed wealth of $ 50 million in the first half of last century, although he died in 1955, his commodity trading methods are still used today with great success by savvy traders.
Here we will look at the basis of the method and why Gann was so successful and what can be learned from them.
Trading Gann's method
Gann trading method takes the emotion from trading and all good methods are:
Liquidates losses quickly and hold on lucrative long-term trends.
Method Gann would have done it and had a record that is truly staggering.
Before we look at how Gann made money, let's look at some of his predictions.:
1st He predicted improvements in business in 1921 and Bull Run in stocks.
2nd In 1928 he predicted the end of the bull market in stocks in a year in advance of the 1929 crash. He then bought shares in the Dow at an all time low in 1932.
3rd In 1935, 98 trades in cotton, grain, and rubber, 83 trades showed a profit.
These trades were confirmed independently and tracked from start to finish.
Gann is a unique method
Although Gann was a technical trader, he introduced concepts that were unique and are still applicable today.
Why?
So he based his methods on the interaction between price and time.
Gann assumed that crucial price movements and therefore the trend changes happened when the price and time converged.
If the cost and time are not in the Union, then the time is more important than price.
Time was the ultimate indicator of trading, because as Gann said all of nature was governed by time.
In "Wall Street Stock Selector" Gann said:
"Just remember one thing, what happened in the past the stock market and Wall Street will happen again. Advances in bull markets will come in the future, and panics will come in the future, just as in the past. This is a work of natural Law "
Work Gann price and time was not his only unique contribution to trading, it is also used as concepts as Gann angles and numbers of the Fibonacci sequence in his trading, which were revolutionary at the time.
Gann produces a large volume of work and his insights into trader psychology and his unique way of trading saw him make some amazing gains in trading career.
What can you learn from Gann
All the traders would do well to study a unique and disciplined trading methods Gann, because they can (and do) help predict important trend changes and trading them for profit.
Gann was a legendary trader and studying his methods will help you look great profit potential.
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Tuesday, July 12, 2011
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