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The 12 rules:
0 F7 B! `7 o- t 01. Determine the trend 02. Buy at single, double and triple bottoms
: F. \* B$ G& ~4 Z) p 03. Buy
. G4 f9 O4 t8 D# s- c$ C1 a3 K and sell on percentages 04. Buy and sell on three weeks' advance or . i- I# \- A1 D4 z3 e/ M
decline 05. - ^+ Y1 X* J2 x
Market moves in sections06. Buy or sell on five to seven point moves ^& U6 ]; H G) T# u' l$ Z
07. Study
* z9 i% B, z e; Q" N, |0 `6 N; T volume to determine change in trend 08. Study factor and 3 |; E5 ]. q6 r5 G$ {2 U
periods to / a7 F: ^5 m; O& l8 B' ~4 L* Y
determine change in trend 09. Buy on higher tops and bottoms10. A
4 n7 H7 H: b) B1 ^2 V/ ^: @" q/ T& ? change in 3 p- T: X4 w* Z5 H
trend often occurs just before or after holidays 11. Buy on a second
( `8 ?. I5 |* x2 e- \- Q reaction
4 b% _3 R6 n; u& g1 S% L at a higher bottom. When it reacts only two days, it is in a very + c# P+ Q* G0 Q, \0 @6 j3 ?( z
strong 0 }( p5 d* T7 N3 I5 J7 G* n
position. 12. Price gains in fast moves doesˇnt last very long.
+ n' c% S+ o$ f; m- e
1 p- I' ^% J, @+ m: g& D Gann's 24 rules5 _& f; e4 ]) a' A( g4 y
2007/11/27 09:59, {* I- `* B5 ^& u& P3 m( e7 B/ W
The 24 rules: 01. Never risk one tenth of capital in one trade 02. ! o) W% j( ^/ \$ I2 M* r
Always use stop loss orders 03. Never overtrade 04. Never let a / z6 j" z/ W$ I% |2 E; L+ W% P
profit run into " k5 r% _0 ^. C
a loss 05. Do not buck the trend 06. When in , get our or donˇt * Z3 C0 b& r: a- h
get in 07. " B) d( g: g9 a' ? b6 A
Trade only active stocks 08. Equal distribution of risk in four or
- }. H; G8 S$ d! d- }) w five stocks ! n/ e2 O4 S. d. o: d! t8 k
09. Trade market order 10. Donˇt close your trades without a good
- f1 j8 e& p! }& A+ ~+ r reason 11.
; x# c( t6 @, X# y Accumulate a surplus 12. Never buy just to get a dividend 13. Never
( O9 O4 |6 Y( a# L5 | average a 9 |; z$ m V# G: Z+ _
loss 14. Never get out/in of the market because of impatience or
" y1 s. u+ L( _9 y- _) y2 c4 n anxiety 15. 1 S. f+ [8 l6 V$ F* m
Avoid taking small profits and big losses 16. Never cancel a stop / ^; f% O W% e- }* T2 Y- n
loss order , b4 l0 ]& v$ L, ?- d" J' F
after you placed it 17. Avoid getting in and out of the market too 3 o" Z1 n: j) ~: [: ~$ ]& K
often 18. Be 3 k, d* `" t* [; w* J
just as willing to sell short as you are to buy. Let your object be C; s/ u& F k i
to keep
* z" _( u. w3 q; O, N with the trend and make money 19. Never buy/sell just because the
4 n+ a* {/ j1 W+ K( ]2 t price is ; f" b, H, S u, ?. W2 l9 m
low/high20. Wait till the stock is very active and has crossed
8 t# \& A, Z2 K% _ resistance # S6 L' z( Z% u8 k0 r( w) Q
levels before pyramiding 21. Select stocks with small volume of % w. X, P6 Y; P. ^# w; A/ f
shares . K4 l* J7 H1 ?+ K V
outstanding to pyramid on the buying side 22. Never hedge one stock 6 ^' O( ?' P2 w5 w) `. L! i, b& r4 f
by
6 ?3 V% f0 w6 J9 f another23. Trade with a plan and do not get out without a definite
4 p6 c$ F# G9 y indication
0 q5 G6 W( t1 F& K of a change in trend 24. Avoid increasing trading size after a long
# ~7 E* i# v3 D' X- o. } period of ! z" u9 g6 k. ^& q+ G
success/ J$ H! L. V5 i0 f4 Z, {
; r" Q" o6 j4 ]3 }8 x! X Read his "romance" novel "Tunnel Thru The Air or Looking 2 Z5 w8 V7 N2 H3 _9 ~/ b! x
Back from 1940" published in 1927. Gann said "Kowledge is more 1 e" J l# f" c! S( Z) u. D
important (powerful) than capital" and "Verify EVERYTHING and hold
+ g& X: T9 R* Z# w" [ on to true and good!". |
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