|
Home / Finance / Investing
W D Gann – How to Use His Unique Methods to Make Big Trading Profits
By:Stephen Todd
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.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: gann, FOREX, charting, finance, investments, pensions, trading, financial trading, financial trading
Article Source: http://www.articles2k.com
To learn more about using Gann trading methods please visit our web site: http://www.gann.co.uk
|
|
| Top Investing Articles |
- 1). Day Trading With The Camarilla Equation By : Steve Waller
Origins of the Camarilla Equation
Discovered while day trading in 1989 by Nick Stott, a successful bond trader in the financial markets, the 'Camarilla' equation uses a truism of nature to define market action - namely that most time series have a tendency to revert to the mean.
The equation produces 8 levels that are meant to predict these reversal points allowing the trader to profit from them.
|
- 2). HYIP’s versus Autosurfs: Which Is Better For You? By : Hyip-Status.com
A high yield investment program is essentially an investment in which you have the choice of how much you can invest in the program, hoping for a high yield. Any amount can be invested in a HYIP, and in fact small amounts works rather well for HYIP’s, but there is an advantage (and disadvantage) to using large investments.
An autosurf is better known as a “traffic exchange”; a person buys advertising that is placed in rotation with other advertisements.
|
- 3). How to Interpret and Profit from Financial Statements By : Pleeds
Financial statements are a useful tool for judging the health of a company, and for comparing it to its competitors. They show what the company owes and owns, the profits or loses it has made over a given period, and how their position has changed since their last statement. Generally if you can tell which direction a company is heading in, you can also forecast future stock prices with some accuracy.
|
- 4). Taking Control of your Finances. By : Debra Lohrere
To find money to invest for your future, you need to make sure that your outgoing expenses are less than the income that you are receiving. You need to develop an excess that you can have free to invest.
Now before you start to think….”well I don’t have any excess left…if I was earning more money….then I would have some free”. Let me dispel this myth…and tell you that it is a known and excepted fact that the amount of money that people earn has little if any bearing on whether or not they have an excess left to invest.
|
- 5). High Yield Investing Is Like A Game Of Poker By :
We often get newbies emailing us asking whether or not investing in HYIP's is worth the time and the risk. This is a great question and the short answer is "it all depends".
First of all, the main question you must ask yourself before investing in any HYIP is: "Do you plan on investing money that you will definitely need in the future?" In other words,.
|
|
|
- 7). Different Kinds Of Investments By : Juan José
These days, you can’t retire without using the returns from investments. You can’t count on your social security checks to cover your expenses when you retire. It’s barely enough for people who are receiving it now to have food, shelter and utilities. That doesn’t account for any care you may need or in the even that you need to take advantage of such funds much earlier in life.
|
- 8). A Cooling Real Estate Market and Investing in Pre-foreclosures By : John Appleseed
With the housing market cooling and demand for mortgage loans shrinking, banks and other lenders are turning to nontraditional and sometimes riskier mortgages to bring in additional business and make up their dropped off business.
Many lenders have turned to mortgage products designed to lower monthly loan payments and to help borrowers qualify more readily for larger loan amounts, while others require little in the way of documentation during the approval process.
|
- 9). FOREX Investing Compared to Other Investment Opportunities By : Cindy Brooks
With over $1.5 trillion changing hands daily, it might be advantageous for you to investigate the extremely lucrative business opportunity involving currency trading.
Once the domain of major banks and corporations, this field is now an open playground for the ordinary individual.
The following information gives you a comparison of different investment opportunities in comparison to Forex trading Forex could be the perfect opportunity for you if you are willing to have an open mind and investigate.
|
|
|
| New Investing Articles |
|
|
|
|
- 3). What Is An Investment Club? By : Roy Phay
Investment clubs are very hot in the market nowadays. Thousands of individuals are investing through clubs, and many of them find a great deal of success.
|
|
|
|
|
- 6). Investing in St. Louis Real Estate By : Robert Palmer
It is common for investors to express uncertainty over their ability to manage their portfolios during prolonged periods of market volatility. But prudent investors understand that making sound investment decisions shouldn’t be based on the market’s twists and turns. Rather, these decisions should stem from an understanding of investment fundamentals and an awareness of the mistakes others have made.
|
- 7). How Investment Options Works The For Buyer By : Ian Dennis
A call investment option is a financial contract involving two parties, the buyer and the seller of this type of investment option. Often it is simply labeled a "call". The buyer of the option has the right but not the obligation to buy an settled quantity of a particular commodity or financial instrument from the seller of the option at a certain time for a certain price.
|
- 8). The Dow Jones Industrial Average: Failing the Average Investor By : Steve Selengut
In addition to a well thought out Investment Plan, successful Equity investing requires a feel for what is going on in the real world that we all refer to as "The Market". To most investors, the DJIA provides all of the information they think they need, and they worship it mindlessly, thinking that this time tattered average has mystical predictive and analytic powers far beyond the scope of any other market number.
|
- 9). How to Spot Market Turning Points Using Free Legal Insider Information By : Steve Todd
How would you like to be able to take advantage of insider information and trade with the most successful traders in energies commodities, stocks and commodities?
Well you can - with the commitment of traders report, published by the CFTC. This report shows insider commercial trading positions by professional hedgers!
The commitment of traders report is available FREE, but hardly any traders use it - yet it can predict tops and bottoms, with amazing accuracy, when used correctly.
|
- 10). Market Timing – A Danger to Your Financial Success By : Steve Todd
Market timing are the two most dangerous words in investing - especially when practiced by novice traders.
Market timing is the strategy of attempting to predict future price movements through use of various fundamental and technical analysis tools - and when used to predict trending moves, ends in disaster, and losses.
Many investors feel that market timing is the same as trend following and the two go hand in hand, they don’t.
|
|
|
