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W D Gann – Made $50 Million Dollars
What Was The Secret Of His Success?
W D Gann is one of the most famous traders of all
time.
If you have never looked at his trading methods then this article
is for you.
Gann's innovative approach to trading is outlined in this
article and we will give you an insight into how his trading methods can help
you become a more profitable trader.
W D Gann was a technical trader
and employed a team of draughtsmen to draw charts of stocks on the New York
Stock Exchange, as well as numerous commodities.
He then studied these
charts and his view was:
"What happened in the past will happen again"
Gann then looked at the patterns in these chart for trading
opportunities.
Gann believed that markets were cyclical by nature and
what had happened in the past would happen again.
The reason for this
was, human nature and all areas of trading were subject to a recurring law,
which repeated itself over time.
Trading Philosophy.
Gann was
a prolific writer and presented his thoughts and trading techniques in numerous
books and courses.
Some of his ideas were empirical studies, while many
were mystical in nature. Gann’s view was that certain laws governed not
only the markets, but nature as well, and were universal in scope.
Price and Time.
Gann’s most important contribution to
the investing world was probably his concept of time and price and the
interaction between the two.
Gann believed that crucial price movements
occurred when price and time converged. These convergences usually indicated an
important trend change was imminent and traders could trade for profit at these
points.
If price and time were not in synch however, or did not
converge, then time was always more important than price.
Time, was
considered by Gann to be the ultimate timing indicator and he believed, all of
nature was governed by time.
To quote Gann:
"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.
" Trader psychology
was one of the keys to repetitive price patterns in Gann's view.
Gann
contributed many original ideas and innovative techniques such as:
Swing trading, Gann angles, the Fibonacci number sequence and the
golden ratio and many more, but his major contribution to the investing world
were his thoughts on investor psychology.
His insights into the
emotions of hope, greed, and fear and how they caused traders to lose, are
informative and support his theory of recurring market behaviour.
One
of his most famous quotes was:
“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 fully aware that to succeed
in trading investors needed to understand why other traders lose and to win a
trader must become disciplined and trade without emotion.
“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 only a brief introduction to Gann, but his legacy lives
on.
Today, many traders around the world, are still using his
innovative trading methods to help them improve their trading performance.
W D Gann is one of the most interesting figures in trading history and
all traders, novice or professional, can gain an extra edge in their trading by
studying his methods.
Discover Gann for yourself and see how he can
help you gain an extra edge in your trading for greater profitability.
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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