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W D Gann -
How to Use His Unique Methods to Make Big Trading
Profits
In the entrance to the New York Stock Exchange,
stands a life-sized picture of W D. Gann (1878 - 1955) and this is a testament
to his standing amongst traders worldwide. Today he remains one of the most
influential traders of all time.
W D Gann Methods and Trading
Performance
W D Gann employed a staff of 25 draughtsmen to draw charts
of all the stocks on the New York Stock Exchange, as well as a variety of
commodities. He would then use the charts to look for trading opportunities.
Gann in fact made huge trading profits from his technical analysis of
the markets.
There are reports, which indicate that his trading
techniques amassed him a fortune of over $50 million dollars, and many of his
trades are on record.
W D Gann Trading Philosophy
W D Gann
was a prolific writer, and wrote extensively outlining his thoughts and trading
methods in a series of books and courses. Some of his ideas were empirical
studies, while others were more mystical in nature. Gann's major contention was
that certain laws governed not only the markets, but nature as well, and were
universal in scope.
The Influence of Price and Time
One of
Gann's most important contributions was the concept of combining price and
time. Gann believed that crucial price movements happened when price and time
converged. These points usually indicated an important trend change was
imminent.
However, if price and time were not coordinated, or did not
converge, then time always held priority over price.
Therefore time, was
considered by Gann as the ultimate indicator, because all of nature was
governed by time.
In "Wall Street Stock Selector" Gann said. "Just
remember one thing, whatever has happened in the past in 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 they have in the past. This
is the working out of a natural law" "It is action in one direction, and
reaction in the opposite direction. In order to make profits, you must learn to
follow the trend, and change when the trend changes."
Gann and the
Importance of Trader Psychology
Many commentators focus on W D Gann's
thoughts on price and time, Swing trading methods, Gann angles, and his work
with the Fibonacci number sequence.
However, you should not
underestimate Gann's analysis of trader psychology and his insights into the
emotions of hope, greed, and fear.
Gann was well aware that emotions
caused the bulk of traders to lose money:
"We cannot escape it
(emotion). In the future, it will cause another panic in stocks. When it comes,
both traders and investors will sell stocks, as usual, after it is too late, or
in the latter stages of a bear market"
He was aware that human nature
was constant and influenced the majority of traders:
"Therefore, in
order to make a success, the trader must act in a way to overcome the weak
points that have caused the ruin of others"
This is what W D Gann set
out to do. It is a fitting tribute that successful traders around the world are
still using his techniques and methods today. Without a doubt, many consider
W.D. Gann to be one of the most influential traders of all
time.
Learn More about a Legendary Trader
Why not attend one
of our FREE Seminars held in London and cheshire.
click here to book on-line or telephone 0161
285 4488.
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