|
|
The 12 rules: ; C7 p3 C2 j1 B
01. Determine the trend 02. Buy at single, double and triple bottoms 7 j! n0 p; W$ M6 w
03. Buy ' Y4 f2 Y! j2 q9 M
and sell on percentages 04. Buy and sell on three weeks' advance or
) l& c' y! S5 a+ Z% o6 C$ g0 o decline 05. & B, l a5 q+ F; g: S
Market moves in sections06. Buy or sell on five to seven point moves 9 e* c& D$ u8 z+ X& y8 _
07. Study
2 y- {0 \2 ]8 A/ I volume to determine change in trend 08. Study factor and 4 ~$ d( v+ |: F4 g6 C+ x
periods to ) ]7 k) }2 c8 d/ g t' b! J
determine change in trend 09. Buy on higher tops and bottoms10. A : H+ j; @0 U% E' X6 E5 n) {
change in 4 `/ G: ^' W6 w0 M5 {, t2 h
trend often occurs just before or after holidays 11. Buy on a second 7 ]- O9 N" U' g$ p
reaction + ?) \" y: g7 ~6 A9 p1 c
at a higher bottom. When it reacts only two days, it is in a very n! h$ |) F. b- z3 ]! l! K# L
strong
4 [, W. W* _$ e2 D, G position. 12. Price gains in fast moves doesˇnt last very long.
% ^' C2 Z; \ R1 Z
, L" |4 E1 @. ^7 n" Y Gann's 24 rules
2 o6 Y: R+ }3 Q3 _3 ~ 2007/11/27 09:59
3 F" B" m2 M1 b4 w The 24 rules: 01. Never risk one tenth of capital in one trade 02. . X1 R' y( _7 R% ^! K% L6 z0 k
Always use stop loss orders 03. Never overtrade 04. Never let a
" b; B6 @) E/ D profit run into ' Z! v1 j3 x2 J4 Y- h
a loss 05. Do not buck the trend 06. When in , get our or donˇt $ m8 v/ m/ O ~3 P$ G7 f; N# u9 _
get in 07. ( w& B: P9 m: X; I$ V5 A+ H8 M5 O
Trade only active stocks 08. Equal distribution of risk in four or
9 z4 }3 A0 W5 W, d4 T6 n/ g8 m) z five stocks
d4 A8 x2 {: x# N' L: Q 09. Trade market order 10. Donˇt close your trades without a good
. X9 Y& A) d/ g& N1 A. X& R" ^) S reason 11. ' E3 `. |# ]: p& f2 i, t
Accumulate a surplus 12. Never buy just to get a dividend 13. Never
1 [. J1 J4 X, c average a 7 r( Q' ~: B0 ? l
loss 14. Never get out/in of the market because of impatience or 2 [3 A1 W8 R( ?1 @: v, Q
anxiety 15.
% O9 L5 T( V( E+ c6 p Avoid taking small profits and big losses 16. Never cancel a stop
# y' t1 I/ U# P* _5 _ loss order
# G" k6 i$ T* ]9 v after you placed it 17. Avoid getting in and out of the market too & m Z" I7 y2 e& b9 V d
often 18. Be
" E8 ~' ?: Z' s% ~' i) H$ f just as willing to sell short as you are to buy. Let your object be 9 W8 ~- Q5 }5 S2 O& E1 w. q" {4 O
to keep
4 S/ K3 V& d% F9 ?0 p5 [ with the trend and make money 19. Never buy/sell just because the
" i% I4 I9 k$ w( b# n4 J U4 p price is
; o! P' q- l J* k+ K. I+ }' ^ p2 r0 I low/high20. Wait till the stock is very active and has crossed
[5 V* }' r8 f9 b' Z' H- C resistance 9 X0 q3 n9 P( y
levels before pyramiding 21. Select stocks with small volume of
- A( P" q4 X' ?. V shares & U* ^. t* `4 E
outstanding to pyramid on the buying side 22. Never hedge one stock 0 w I8 [- J7 ]
by
8 m! ]: H3 T: [9 d& e8 j: s- Y another23. Trade with a plan and do not get out without a definite
: v9 S) X, [, n. @: T indication
% V4 q h4 ?$ S' e1 \# I1 H of a change in trend 24. Avoid increasing trading size after a long * ? I4 s6 A) T
period of 7 v: ]/ Z/ ^! N( P. l* u$ }3 U: K( S( c
success
% O4 D# J7 {( p- ?( r
3 g! Q+ y0 O; b- x2 G! C Read his "romance" novel "Tunnel Thru The Air or Looking
! @0 ]& N7 q4 M& U Back from 1940" published in 1927. Gann said "Kowledge is more
% G9 k+ S% _$ O3 i" q- @/ k important (powerful) than capital" and "Verify EVERYTHING and hold
9 ~+ p. r4 h( \! N8 k0 _3 {# V on to true and good!". |
|