WD Gann: Rules for Trading
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tech/a
No Ordinary Duck
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Re: 8-9% rise in XJO index can this be overbought ?
Many talk the talk but cant walk the walk.
Old hands are generally under estimated.
Many talk the talk but cant walk the walk.
Old hands are generally under estimated.
tech/a
No Ordinary Duck
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Re: 8-9% rise in XJO index can this be overbought ?
This OLD hand believes that "timing and entry" as the adage above says wont GUARENTEE success,what you do in the way of Risk management and Money Management will determine if your profitable.Its not just a matter of setting stops and determining position size either.
Nor does it matter what you choose as your trading tool.
Fundamental analysis,Technical analysis,Elliot wave.Fibonacci,Steidlmayer,Gann or a dart board.
Perhaps some pictures to explain my point.
There are many more examples like this that I've traded.
ALL,QBE,PMN.
Perhaps its not wise to judge.
Battman64 said:
This OLD hand believes that "timing and entry" as the adage above says wont GUARENTEE success,what you do in the way of Risk management and Money Management will determine if your profitable.Its not just a matter of setting stops and determining position size either.
Nor does it matter what you choose as your trading tool.
Fundamental analysis,Technical analysis,Elliot wave.Fibonacci,Steidlmayer,Gann or a dart board.
Perhaps some pictures to explain my point.
There are many more examples like this that I've traded.
ALL,QBE,PMN.
Perhaps its not wise to judge.
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Re: 8-9% rise in XJO index can this be overbought ?
"Buy Low and Sell High"
This simply means that you identify an area of Support
ie Gann, Fibonacci, previous proven areas - double bottoms 50% etc
Buy low when the market is moving away from this area.
Place a stoploss a few points away (under the area of Support)
If you are wrong happily take a small loss or reverse.
When right use a trailing stoploss to take a large profit
when the market turns.
Or trade to:
"Sell High and Buy Low"
This simply means that you identify an area of Resistance
ie Gann, Fibonacci, previous proven areas - double tops 100% etc
Sell high when the market is moving away from this area.
Place a stoploss a few points away (above the Resistance)
If you are wrong happily take a small loss or reverse.
When right use a trailing stoploss to take a large profit
when the market turns.
This is trading what You see with great Risk Management.
"Buy Low and Sell High"
This simply means that you identify an area of Support
ie Gann, Fibonacci, previous proven areas - double bottoms 50% etc
Buy low when the market is moving away from this area.
Place a stoploss a few points away (under the area of Support)
If you are wrong happily take a small loss or reverse.
When right use a trailing stoploss to take a large profit
when the market turns.
Or trade to:
"Sell High and Buy Low"
This simply means that you identify an area of Resistance
ie Gann, Fibonacci, previous proven areas - double tops 100% etc
Sell high when the market is moving away from this area.
Place a stoploss a few points away (above the Resistance)
If you are wrong happily take a small loss or reverse.
When right use a trailing stoploss to take a large profit
when the market turns.
This is trading what You see with great Risk Management.
Re: 8-9% rise in XJO index can this be overbought ?
TWENTY-FOUR NEVER-FAILING RULES By W D GANN
1. Amount of capital to use: Divide your capital into 10 equal parts and never risk more than one-tenth of your capital in any one trade.
2. Use stop loss orders. Always protect a trade when you make it with a stop loss order 3 to 5 points away.
3. Never overtrade. This would be violating your capital rule.
4. Never let a profit run into a loss. After you have made a profit or 3 points or more, raise your stop loss order so that you will have no loss of capital.
5. Do not buck the trend. Never buy or sell if you are not sure of the trend according to your charts.
6. When in doubt, get out, and don’t get in when in doubt.
7. Trade only in active stocks. Keep out of slow, dead ones.
8. Equal distribution of risk. Trade in 4 or 5 stocks, if possible. Avoid tying up all your capital in any one stock.
9. Never limit your orders or fix a buying or selling price. Trade at the market.
10. Don’t close your trades without good reason. Follow up with a stop loss order to protect your profits.
11. Accumulate a surplus. After your have made a series of successful trades, put some money into surplus account to be used only in emergency or times of panic.
12. Never buy just to get a dividend.
13. Never average a loss. This is one of the worst decisions a trader can make.
14. Never get out of the market just because you have lost patience or get into the market just because you are anxious from waiting.
15. Avoid taking small profits and big losses.
16. Never cancel a stop loss order after you have placed it at the time you make a trade.
17. Avoid getting in and out of the market too often.
18. Be just as willing to sell short as you are to buy. Let your object be to keep with the trend and make money.
19. Never buy just because the price of a stock is low or sell short just because the price is high.
20. Be careful about pyramiding at the wrong time. Wait until the stock is very active and has crossed resistance levels before buying more.
21. Select the stocks with small volume of shares outstanding to pyramid on the buying side and the ones with the largest volume of stock outstanding to sell short.
22. Never hedge. If you are long one stock and it starts to go down, do not sell another stock short to hedge it. Get out at the market; take your loss and wait for another opportunity.
23. Never change your position in the market without good reason. When you make a trade, let it be for some good reason or according to some definite plan; then do not get out without a definite indication of a change in trend.
24. Avoid increasing your trading after a long period of success or a period of profitable trades.
__________________
Thanks Mofra for typing this in another thread.
TWENTY-FOUR NEVER-FAILING RULES By W D GANN
1. Amount of capital to use: Divide your capital into 10 equal parts and never risk more than one-tenth of your capital in any one trade.
2. Use stop loss orders. Always protect a trade when you make it with a stop loss order 3 to 5 points away.
3. Never overtrade. This would be violating your capital rule.
4. Never let a profit run into a loss. After you have made a profit or 3 points or more, raise your stop loss order so that you will have no loss of capital.
5. Do not buck the trend. Never buy or sell if you are not sure of the trend according to your charts.
6. When in doubt, get out, and don’t get in when in doubt.
7. Trade only in active stocks. Keep out of slow, dead ones.
8. Equal distribution of risk. Trade in 4 or 5 stocks, if possible. Avoid tying up all your capital in any one stock.
9. Never limit your orders or fix a buying or selling price. Trade at the market.
10. Don’t close your trades without good reason. Follow up with a stop loss order to protect your profits.
11. Accumulate a surplus. After your have made a series of successful trades, put some money into surplus account to be used only in emergency or times of panic.
12. Never buy just to get a dividend.
13. Never average a loss. This is one of the worst decisions a trader can make.
14. Never get out of the market just because you have lost patience or get into the market just because you are anxious from waiting.
15. Avoid taking small profits and big losses.
16. Never cancel a stop loss order after you have placed it at the time you make a trade.
17. Avoid getting in and out of the market too often.
18. Be just as willing to sell short as you are to buy. Let your object be to keep with the trend and make money.
19. Never buy just because the price of a stock is low or sell short just because the price is high.
20. Be careful about pyramiding at the wrong time. Wait until the stock is very active and has crossed resistance levels before buying more.
21. Select the stocks with small volume of shares outstanding to pyramid on the buying side and the ones with the largest volume of stock outstanding to sell short.
22. Never hedge. If you are long one stock and it starts to go down, do not sell another stock short to hedge it. Get out at the market; take your loss and wait for another opportunity.
23. Never change your position in the market without good reason. When you make a trade, let it be for some good reason or according to some definite plan; then do not get out without a definite indication of a change in trend.
24. Avoid increasing your trading after a long period of success or a period of profitable trades.
__________________
Thanks Mofra for typing this in another thread.
Re: 8-9% rise in XJO index can this be overbought ?
Some great trading rules by W D Gann
I have highlighted the relevant rules.
Taken from "45 Years in Wall Street"
Published in 1949
Gann goes on to say:
"When you decide to make a trade be sure that you are not violating any of these 24 rules which are vital and important to your success. When you close a trade with a loss, go over these rules and see which rule you have violated; then do not make the same mistake the second time."
Some great trading rules by W D Gann
I have highlighted the relevant rules.
Taken from "45 Years in Wall Street"
Published in 1949
Gann goes on to say:
"When you decide to make a trade be sure that you are not violating any of these 24 rules which are vital and important to your success. When you close a trade with a loss, go over these rules and see which rule you have violated; then do not make the same mistake the second time."
tech/a
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Re: 8-9% rise in XJO index can this be overbought ?
Batts
There is some great stuff here.
Not every single adage is applicable to every single trading style.
I prefer to trade this way.
Buy high and sell higher
If I traded short.
Buy low and sell lower
But definately information that is of great benifit to any trader.
Losses are part of business---any business---how you minimise and react to loss is more important than attempting the impossible and eliminating ALL loss.
Batts
There is some great stuff here.
Not every single adage is applicable to every single trading style.
I prefer to trade this way.
Buy high and sell higher
If I traded short.
Buy low and sell lower
But definately information that is of great benifit to any trader.
Losses are part of business---any business---how you minimise and react to loss is more important than attempting the impossible and eliminating ALL loss.
Re: 8-9% rise in XJO index can this be overbought ?
Rule No.18. Be just as willing to sell short as you are to buy.
More money can be made on the bear side, usually in a much shorter space of time.
"Up on the stairs, down on the elevator"
Why do you not trade short?
Rule No.18. Be just as willing to sell short as you are to buy.
More money can be made on the bear side, usually in a much shorter space of time.
"Up on the stairs, down on the elevator"
Why do you not trade short?
tech/a
No Ordinary Duck
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Re: 8-9% rise in XJO index can this be overbought ?
I choose not to.
Re: 8-9% rise in XJO index can this be overbought ?
TWENTY-FOUR NEVER-FAILING RULES By W D GANN
(see post #5 for full list of rules 1 to 24)
__________________
Just thought I should mention that Gann gave us FOUR more rules when trading commodities.
TWENTY-FOUR NEVER-FAILING RULES By W D GANN
(see post #5 for full list of rules 1 to 24)
__________________
Just thought I should mention that Gann gave us FOUR more rules when trading commodities.
RichKid
PlanYourTrade > TradeYourPlan
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Battman64 said:
Battman64,
A suggestion: Why don't you post some current charts of the SPI in the Derivatives forum with your comentary and trade descriptions/tactics and the SPI traders/observers will probably make themselves known. Or you can continue with your description of Gann's rules and its application to commodities in this thread.
Please stay on thread as I've already had to create this thread as you went off topic in the last thread you posted in. Your cooperation is much appreciated. I am interested in both the topics mentioned above so you can post asap, I'm sure there are others who will be interested.
Thanks!
PS Please see the asf code of conduct (link at foot of each page) and posting guidelines (thread at top of each forum).
25. Don't guess when the market is top. Let the market prove it is top.
Don't guess when the market is bottom. Let the market prove it is bottom.
By following definite rules, you can do this.
26. Do not follow another man's advice unless you know that he knows more
than you.
27. Reduce trading after first loss.; never increase.
28. Avoid getting in wrong and out wrong; getting in right and out wrong; this
is making double mistakes.
From: "How to make Profits in commodities" By W D Gann 1942
Don't guess when the market is bottom. Let the market prove it is bottom.
By following definite rules, you can do this.
26. Do not follow another man's advice unless you know that he knows more
than you.
27. Reduce trading after first loss.; never increase.
28. Avoid getting in wrong and out wrong; getting in right and out wrong; this
is making double mistakes.
From: "How to make Profits in commodities" By W D Gann 1942
Knobby22
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I've heard that Gann's method doesn't work and Gann died broke.
It appears to involve a lot of mumbo jumbo to me. Does anyone trade successfully with this method?
It appears to involve a lot of mumbo jumbo to me. Does anyone trade successfully with this method?
I think for a beginner "45 years in Wall Street" is easier to read and understand.
Perth is where I trade from and teach Gann's techniques.
Only one person a day, one on one tuition.
Gann works for me and a few people that I have taught over the last two years.
I do have a private website and I am presently heavily booked.
My only hope is that people talk about me fifty years after my death......
Perth is where I trade from and teach Gann's techniques.
Only one person a day, one on one tuition.
Gann works for me and a few people that I have taught over the last two years.
I do have a private website and I am presently heavily booked.
My only hope is that people talk about me fifty years after my death......
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