WD Gann: Rules for Trading

[Milk Man]

Reading some of the commodity books I've found that some of these guys who trade commodities often know stacks about agriculture, weather and the effect a bad sardine(?) catch in Sth America will have on the price of soy beans.

It has to with El Niño/ La Nina. Maybe youve heard of it?

If theres a cold current running up the west coast of South America then theres more plankton:fish:whales in it (saw it on a blue-whale doco).

The effect on the other side of the Pacific is warmer waters off the East coast of Australia therefore better rainfall therefore better crops (mostly- rain at the wrong time can ruin certain crops!) Sometimes it pays to be a farmer- maybe i'll have a look at futures!

I never actually considered the fish catch before- we usually go by the Southern oscillation index (SOI) which gives a fair idea of the El Niño (bad) and La Nina (good) cycles.

 

[RichKid]

It has to with El Niño/ La Nina. Maybe youve heard of it?

If theres a cold current running up the west coast of South America then theres more plankton:fish:whales in it (saw it on a blue-whale doco).

The effect on the other side of the Pacific is warmer waters off the East coast of Australia therefore better rainfall therefore better crops (mostly- rain at the wrong time can ruin certain crops!) Sometimes it pays to be a farmer- maybe i'll have a look at futures!

I never actually considered the fish catch before- we usually go by the Southern oscillation index (SOI) which gives a fair idea of the El Niño (bad) and La Nina (good) cycles.

A lot to learn! Yes, have heard of El Niño's effects, the fish catch links up with something else to affect commodities- it's all connected! It was in Stanley Kroll's book on Futures Trading, excellent read imo.

 

[mit]

Trader Vic uses the same example in his book. Another excellent read.

MIT

 

[Milk Man]

Yeah there's another strange occurence that makes the price of milk go up-
Pigs flying backwards through the sky!

 

[Battman64]

"There is always a demand by consumers for commodities,
which is not the case with stocks" WD Gann

 

[Battman64]

"You can forecast tops and bottoms of commodities with greater certainty than of stocks." WD Gann

 

[TjamesX]

Now I don't know much about his teachings, but thats just it .... I tried to find out and I couldn't find anything meanigful or some sort of wrap up of what they were.

In summary what are they!!!??

Why are they always surrounded in mystery?

Is it more like a cult/religion?

Have I opened a can of worms?

 

[Battman64]

You probably have Tj
I will refrain from comment until others have their say.

 

[yogi-in-oz]

Re: Gann Traders .....



Hi folks,

March equinox marks the start of the northern
spring and southern autumn, as well as the
start of a New Year for Gann traders .....

happy new year, gannsters

yogi

 

[Battman64]

Re: Gann Traders .....

Hi folks,

March equinox marks the start of the northern
spring and southern autumn, as well as the
start of a New Year for Gann traders .....

happy new year, gannsters

yogi

Thank you yogi,

"Happy New Year"

 

[Bronte]

Re: Gann Traders .....

Thank you yogi,

"Happy New Year"

Thank you

 

[Bronte]

I've heard the same. I felt a bit the same about Elliot waves but all of the Elliot fans who have posted live calls have convinced me to keep an open mind and maybe buy a book on it one day. I haven't seen any live Gann calls as of yet. (Hint, Hint Battman64!)
MIT

You have now Mr MIT

 

[Bronte]

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.

For Freddo and onemore

 

[Freddo]

Bronte,

Thanks for the 24 tips, I know those.
I was after a little more on how you calculate support and resistance
levels... Please

I did well on the SPI today, I am thinking of changing 22nd March to my birthday.

Regards

Freddo

 

[onemore]

Bronte

They are very good risk management rules.But im like Freddo i want to learn more about these Gann SUP/RES levels you use on the Spi.
You said there is a lot of bull.... out there on Gann so how does one learn the correct way?

Like i said before you guys/girls dont give out much detail about your Gann trades on the Spi thread.You use it mainly as a journal for your trades which is ok but not very helpful for us novices .


Thanks ...onemore

 

[yogi-in-oz]

Re: WD Gann:Rules for Trading ... his astrostuff ...



Happy New Year Gannsters,

Just for the record ... would like to see
XJO drop like a stone, from 5386 .....

-----

Astrostuff:

When we count off days of a previous rally
or decline, we are really measuring a TIME
cycle, which may (or may not) repeat itself,
in the marketplace .....

..... counting days also relates to other,
"Big Picture" stuff, like world events.

Sometimes, we see events fall on days, that
have a special significance to us, like today,
the March equinox and change of season.

This time last year, we saw the drama
unfold, as the Pope missed his first Easter
service in 26 years .... he died, in the next
week.

That event was harmonically tied to the
11 September 2001 attacks on USA.

Such harmonics exist over time, between
many major events and 2006 is no
different, with some major harmonics
relating to past events, in the coming
months.

Such time cycles allow us to project time
forward to key dates, where we may also
witness further significant events.

As in the example above, the two events
need not be related in any way, but the
TIMING of such events can sometimes, be
accurately forecast.

For example, from the Bali bombing in 2002,
we are approaching a period, where we will
see 3 major harmonics, relating to that
time frame:

25032006 ... also 1st anniversary of Pope's death
and 3rd anniversary of Iraq invasion.

24052006 ...

08062006 ... also 2nd anniversary - Venus Transit
and Reagan's death.
------

Astrologically 2006 is also a carbon copy of
1987, with an eclipse of the Sun falling on
the September 2006 equinox.

While market highs were made in August
1987, strength in the market ebbed, until
"Black Monday" - 19101987, then a 500
point drop in one day.

This year, we also have another astroevent,
a stellium, around 07112006, which is also
harmonically related to the market lows of
13032003 ...

At this time, it would not be surprising to
see a major natural event, such as an
earthquake, hurricane or tsunami, around
the west coast of USA ..... though, it could
just as easily be a man-made blunder ...!~!

happy days

yogi




=====

 

[tech/a]

Bronte

They are very good risk management rules.But im like Freddo i want to learn more about these Gann SUP/RES levels you use on the Spi.
You said there is a lot of bull.... out there on Gann so how does one learn the correct way?

Like i said before you guys/girls dont give out much detail about your Gann trades on the Spi thread.You use it mainly as a journal for your trades which is ok but not very helpful for us novices .


Thanks ...onemore

Onemore

Seems all involved in Gann enjoy the fathering of mystery.
Its only for the chosen few and understanding Gann Support/Resistance has cost these people $1000s in time effort and in some cases courses.
To ask for a simple explaination is way beyond normal expectation.

Youll find next weeks lotto results easier to extract---Sorry I stand corrected---Last weeks lottery results---much more accurate.

At this time, it would not be surprising to
see a major natural event, such as an
earthquake, hurricane or tsunami, around
the west coast of USA ..... though, it could
just as easily be a man-made blunder ...!~!

Hmm would like to see that as Hurricane season is July/October.

There is one brewing of the west coast of Aust---nice call!

If you look hard enough youll find correlation in anything you like.

 

[yogi-in-oz]

Tech/a,

Yes, we have all heard it all before from you and
repeatedly, we have proven you wrong, many times .....

..... let's just agree, to stay out of each other's threads.

Reason being, this trader may not be as tolerant with
you and your ego, as others have been on this forum.

byeee

yogi

 

[It's Snake Pliskin]

Yogi,

How many moons does Mars have?

How many moons does Earth have?

Would trading be different on these two very different planets if they were both inhabited alike, but with different environments?

Regards
Snake

 

[Bobby]

Tech/a,

Yes, we have all heard it all before from you and
repeatedly, we have proven you wrong, many times .....

..... let's just agree, to stay out of each other's threads.

Reason being, this trader may not be as tolerant with
you and your ego, as others have been on this forum.

byeee

yogi

Hey yogi,

How have you & the we's proven Tech wrong ?.

Bob.