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The 12 rules:
, z3 C( B5 p% O' v0 a- a, v. _ 01. Determine the trend 02. Buy at single, double and triple bottoms
5 _4 e O. w9 I% [. ^ 03. Buy 6 {! f" R1 Q6 q" R$ ^9 O
and sell on percentages 04. Buy and sell on three weeks' advance or
" p S/ Z% }/ |0 h! f4 f decline 05. % f" x& b) K" S1 N
Market moves in sections06. Buy or sell on five to seven point moves 4 k% \7 t! t( s* W
07. Study ( P+ {: ] o N+ m1 |& N" X$ L
volume to determine change in trend 08. Study factor and 6 k- w1 ~* d9 y/ C1 j8 U( M
periods to " s9 M( I+ m6 L; I0 F& [+ h
determine change in trend 09. Buy on higher tops and bottoms10. A 2 E0 w4 p, K) L0 y- [( O8 v2 s
change in
9 @8 p% u% b8 {4 i8 |6 z1 l trend often occurs just before or after holidays 11. Buy on a second 1 ^4 h- n N4 f. H
reaction
0 b/ V- ~) F/ `+ P0 y+ j at a higher bottom. When it reacts only two days, it is in a very % t& b! f9 i2 i. l) B; u- ~ ?
strong 5 [2 V, V. P+ @5 O; n1 C& }3 s1 [
position. 12. Price gains in fast moves doesˇnt last very long. ! t8 F G0 d$ i! E& b6 N
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Gann's 24 rules
& A" [( e7 h2 x5 V 2007/11/27 09:59
' l4 z9 f5 O6 y! U+ r) H The 24 rules: 01. Never risk one tenth of capital in one trade 02. ' Y$ y) N7 t; C/ e! e: i1 R8 T+ t- ]
Always use stop loss orders 03. Never overtrade 04. Never let a ' ~0 \' {5 R, Z# v5 S, v4 f
profit run into
0 ?0 U. {. }! G5 [ a loss 05. Do not buck the trend 06. When in , get our or donˇt
, q' e W8 x/ } get in 07.
6 ?( s9 J, C% v& W9 J# g Trade only active stocks 08. Equal distribution of risk in four or
2 h% h) `# K) R5 Q4 p* W five stocks
' ? j8 r5 S6 V) W4 t$ u 09. Trade market order 10. Donˇt close your trades without a good
5 H E' S8 H& p, U Z& p/ t5 X$ f reason 11. 9 _7 m: r3 q3 z; O) W+ r) J% T" A
Accumulate a surplus 12. Never buy just to get a dividend 13. Never
/ b/ j/ Z& t4 g average a + {- x+ F t" a! g
loss 14. Never get out/in of the market because of impatience or
* { A5 U% B/ ]! l' s( p1 j anxiety 15.
; K& b( z5 X# f2 P4 ?+ a Avoid taking small profits and big losses 16. Never cancel a stop
% t* b5 S3 M/ O8 D1 L5 j loss order 0 E: A7 Z6 H6 o8 `' f' t% ?
after you placed it 17. Avoid getting in and out of the market too
3 w: c' ?0 X$ u9 `) ~ often 18. Be 9 A5 j: Q# b1 u0 ]$ ?
just as willing to sell short as you are to buy. Let your object be
. }+ l& y. @* w0 K& F7 s7 V' ] e% N to keep 3 B& I7 P* { p$ V8 M/ t
with the trend and make money 19. Never buy/sell just because the
* H9 f& P* D3 r/ G4 V1 _6 l price is
# s8 n" j. {2 c: z1 v. J5 q low/high20. Wait till the stock is very active and has crossed , l- Z) j% y: j
resistance
3 b- c# I) s8 l/ {+ h. u levels before pyramiding 21. Select stocks with small volume of
. ?$ ?5 O5 ?; @, W7 }0 d shares : q2 H. X( _8 k
outstanding to pyramid on the buying side 22. Never hedge one stock
5 @/ r8 B V* b" R: H9 ?* p5 W by
, C# E: [) G* X# E1 r$ _4 I- k \6 a another23. Trade with a plan and do not get out without a definite
) q$ Q5 q* v) f7 k indication
f& ^/ Q5 K+ ^2 r of a change in trend 24. Avoid increasing trading size after a long ' s) N' X- n! C9 F. g2 z4 F
period of
1 C, O* x4 y' p5 u$ a8 y success
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$ D n: ^, a: ^! g6 l" O* w Read his "romance" novel "Tunnel Thru The Air or Looking
% @- L! }6 P1 K5 C Back from 1940" published in 1927. Gann said "Kowledge is more % S2 o+ F# `" G; o- }' x
important (powerful) than capital" and "Verify EVERYTHING and hold
/ w+ A; m3 C! h5 _3 a# m; Q9 e on to true and good!". |
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