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The 12 rules: - Z+ V* N2 q* @+ A
01. Determine the trend 02. Buy at single, double and triple bottoms
# c( Z; G) v/ ~; L7 x 03. Buy
1 M5 F/ D( H3 |9 Q, o @9 W& W+ E Y and sell on percentages 04. Buy and sell on three weeks' advance or / l! G. Z7 _- W7 ?
decline 05.
d+ f% {+ y; S& [. F Market moves in sections06. Buy or sell on five to seven point moves 0 j5 J8 j5 ~: x. U+ g/ V2 J
07. Study
' V4 X, O; Q _% {! ~9 E volume to determine change in trend 08. Study factor and 4 f/ m/ P/ f9 D1 y4 v
periods to ; q7 V0 B0 R3 E
determine change in trend 09. Buy on higher tops and bottoms10. A
a& Z& t- w, [) {5 g1 { H$ T2 w change in & x; w; T- z* ?9 E
trend often occurs just before or after holidays 11. Buy on a second
0 z, |, N; R5 I, ], Y reaction
- f, Z" g0 t0 W X3 \ at a higher bottom. When it reacts only two days, it is in a very
& C8 q( p8 I9 J/ y. L$ m strong
# q( O, p1 ~* a, h) o position. 12. Price gains in fast moves doesˇnt last very long. 5 o3 E9 _0 C2 h# p' a
5 a, K! ]# O1 L8 x1 g6 c# w) [ M2 Q* h* X
Gann's 24 rules
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The 24 rules: 01. Never risk one tenth of capital in one trade 02. T1 p: i, ` C
Always use stop loss orders 03. Never overtrade 04. Never let a # z9 O! w5 r" o# b/ R
profit run into
( A2 l1 R% N! f3 b a loss 05. Do not buck the trend 06. When in , get our or donˇt
( D! i) V' `; H2 ~5 n" A get in 07.
; v6 @; I8 L3 b, b* I8 I$ l Trade only active stocks 08. Equal distribution of risk in four or
" [, u2 D; U7 M, O five stocks ( l# p+ r8 I& g7 f
09. Trade market order 10. Donˇt close your trades without a good
L5 y& H) w4 N7 O( R( H' m2 m reason 11. ) o+ ^! Z" K) u
Accumulate a surplus 12. Never buy just to get a dividend 13. Never " ] L; ]- E" ]/ O& X7 i
average a
6 G( O# H. U3 H& O$ J loss 14. Never get out/in of the market because of impatience or
, Q+ E) E; F" d5 _& `. l anxiety 15.
! u& n0 r: \; W Avoid taking small profits and big losses 16. Never cancel a stop - U2 I! ?8 T6 b1 g2 D9 @) `
loss order
" p+ O7 c# k$ R- F3 R2 K after you placed it 17. Avoid getting in and out of the market too & f4 U* T+ ]' b( N7 Z
often 18. Be 9 X0 r' q& w5 g x" ]) K" u- R, w
just as willing to sell short as you are to buy. Let your object be , n" P1 \2 Y5 @. P% A& Y9 f
to keep , v' d3 b8 J! Y% }3 H* Q, j' ^
with the trend and make money 19. Never buy/sell just because the 0 D: W" }: n5 S" {2 a1 H9 D
price is 4 Y- ^1 [5 }$ Z. I0 m
low/high20. Wait till the stock is very active and has crossed ) C* i F6 d5 v q
resistance
% o/ } W' f! z7 `. a levels before pyramiding 21. Select stocks with small volume of
8 O$ B9 a; b+ U C/ W shares * |' L" t. U3 g0 ?
outstanding to pyramid on the buying side 22. Never hedge one stock
; m- M u1 R' O" e* a by ! H/ J8 ?0 S4 R9 H
another23. Trade with a plan and do not get out without a definite 8 D. l* m4 p) q" V7 t3 r
indication - @7 Y m: F9 P. f. Z2 ~
of a change in trend 24. Avoid increasing trading size after a long 4 s; X5 J5 J* |
period of 6 o3 C' k- x/ J! R' f
success; Z& k2 t! n$ L" H* v6 b
3 T: Q$ q2 E# J+ R5 D0 H# K. ~
Read his "romance" novel "Tunnel Thru The Air or Looking 0 n3 e/ t: S* F) [+ d1 y
Back from 1940" published in 1927. Gann said "Kowledge is more & R. e0 Y$ V* N; s7 N( V0 [
important (powerful) than capital" and "Verify EVERYTHING and hold
7 t: n1 D7 _6 O% d. d( N3 [ on to true and good!". |
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