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The 12 rules:
' Z" e0 D/ Y" r6 k6 |2 i 01. Determine the trend 02. Buy at single, double and triple bottoms / M1 G- f; c) W! z
03. Buy 9 R7 D" F3 h0 L. F: W
and sell on percentages 04. Buy and sell on three weeks' advance or
) Z! n3 e" C Q decline 05. - G9 _ c9 G) F! k4 O1 Z
Market moves in sections06. Buy or sell on five to seven point moves
! R Q6 O v& J. q3 s- y; W 07. Study " c/ l' m/ Q$ t' G2 D
volume to determine change in trend 08. Study factor and
' V" E" Z+ L5 o periods to : i7 a, Y( P& Z* J3 p0 p# ~
determine change in trend 09. Buy on higher tops and bottoms10. A 3 @/ L1 I3 W. t/ _8 K
change in 7 p6 a- J1 X0 v. ~
trend often occurs just before or after holidays 11. Buy on a second 8 u. i' H) q1 G8 @$ | r- \
reaction
7 {2 Y/ T; k, U7 i/ ~! d' ?; G at a higher bottom. When it reacts only two days, it is in a very
. ^. P* }4 ]/ h; o* H: e strong - r7 ~ r* M* R% f: y/ w( l
position. 12. Price gains in fast moves doesˇnt last very long. : a8 u8 i0 L6 L6 c" x
2 d0 W* H& \* ], |9 d
Gann's 24 rules: |' g4 }5 C3 B, v, S# J' N
2007/11/27 09:59" d A5 M# I) l) u
The 24 rules: 01. Never risk one tenth of capital in one trade 02.
1 @9 {* B4 J- m0 s: H Always use stop loss orders 03. Never overtrade 04. Never let a
3 {0 B5 I, W5 x3 e9 ? profit run into
8 R, j8 E% N$ v& C7 [ a loss 05. Do not buck the trend 06. When in , get our or donˇt
: B" y/ K$ T. N% o3 ?4 D6 g get in 07. . {( h! r# X" h' f+ w
Trade only active stocks 08. Equal distribution of risk in four or - Y( b3 K5 @+ {/ |; l1 R% A
five stocks
; N2 h6 J* u! k0 b* ]9 @ 09. Trade market order 10. Donˇt close your trades without a good 1 H/ l( d& k" R8 [
reason 11.
( q6 U0 B- h/ O Accumulate a surplus 12. Never buy just to get a dividend 13. Never
K) P2 u" A; B9 Z# g1 q7 P; O average a
* h. d( i& @( ^) n7 V loss 14. Never get out/in of the market because of impatience or ; ^2 ` U7 D1 u9 J: M M- m% x
anxiety 15. + S' J4 g& W2 s/ N9 j/ I9 X$ t6 w
Avoid taking small profits and big losses 16. Never cancel a stop 2 t1 J) T, ]7 r7 B
loss order
) k3 b/ k: R2 X9 ]9 M8 }0 O after you placed it 17. Avoid getting in and out of the market too + w }! D$ e( b/ C1 k y
often 18. Be
) A6 h* v$ w4 ^2 x. }3 O% K8 L2 V just as willing to sell short as you are to buy. Let your object be
8 Z3 E/ Q% U! }* B% o to keep
9 I# b- } z) I# I with the trend and make money 19. Never buy/sell just because the
' @ I9 \. c0 V0 n' f! K price is 5 P6 M7 ]" Z+ S, m( O
low/high20. Wait till the stock is very active and has crossed
& S; y r( M+ \ resistance 3 e+ W4 m: E0 t9 I9 V" I
levels before pyramiding 21. Select stocks with small volume of
# b* c, c% a( w2 S7 c- D shares
: a% ]- Z4 Q, T" U: D outstanding to pyramid on the buying side 22. Never hedge one stock 8 W2 q9 m3 G C& K7 n3 i3 c; c' v
by
: @; {: Y( ]1 f another23. Trade with a plan and do not get out without a definite 8 h+ W) t$ {& }$ |! x7 m V
indication
( M) O8 h! z* T/ m of a change in trend 24. Avoid increasing trading size after a long
. r. l& [5 T$ J2 w, {( K: H# \ period of
2 F" I% u2 Z9 W* h x success/ m2 F3 x1 o& k/ e- j' d& x M
# _. ]9 H7 A# E Read his "romance" novel "Tunnel Thru The Air or Looking
* i( C5 _3 ^. ~7 n Back from 1940" published in 1927. Gann said "Kowledge is more
4 ]; K1 v/ e7 i- X important (powerful) than capital" and "Verify EVERYTHING and hold 6 }& i" g+ N3 ]
on to true and good!". |
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