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The 12 rules:
, J. v" P* P" p- V% C% X 01. Determine the trend 02. Buy at single, double and triple bottoms . e- l: N$ p* i0 X2 E$ Z3 x
03. Buy
* J8 l% o* G5 L and sell on percentages 04. Buy and sell on three weeks' advance or 9 b( u. J) i, M- a( V& @3 W
decline 05. L1 X- I- Q$ O* f0 g
Market moves in sections06. Buy or sell on five to seven point moves * S; H% Z, R" f& v7 @. {4 b
07. Study
; M4 k4 Y1 ~4 C/ L! f) x1 f/ {- [, S volume to determine change in trend 08. Study factor and
' G' g( K8 V1 O' ~! o periods to ) q# K4 F/ F3 i5 i
determine change in trend 09. Buy on higher tops and bottoms10. A & u: e+ G9 m5 d% y( O
change in
( d! u% o% o6 ?# B- B6 n trend often occurs just before or after holidays 11. Buy on a second
& E) h# M9 k) w% p# @- Y reaction S. A% F+ C; t+ y0 ~6 X' Y
at a higher bottom. When it reacts only two days, it is in a very
! b- R8 p; G! H$ d3 G strong a& y# W2 [' X) V" u. W& {
position. 12. Price gains in fast moves doesˇnt last very long. . p& o' ]! {) O2 {8 @* C; z/ |
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Gann's 24 rules
$ o! B: r w0 c: F4 z" h' }3 `; B) O4 ] 2007/11/27 09:59$ z5 D0 [: t% O4 A6 Q6 \
The 24 rules: 01. Never risk one tenth of capital in one trade 02. 3 L! A+ P/ U& w6 N2 U& N' {
Always use stop loss orders 03. Never overtrade 04. Never let a ; l: P. m" r5 }2 U( x% _" \# H
profit run into ' M5 k* d5 u! J/ Z# y1 B/ f
a loss 05. Do not buck the trend 06. When in , get our or donˇt
. R' \& H; ~ T; c% k1 }2 B9 p" Q get in 07. 8 ~" ^1 O# j9 h/ j
Trade only active stocks 08. Equal distribution of risk in four or 8 N( u, n/ @3 ?
five stocks # [8 X" E# L4 {- a
09. Trade market order 10. Donˇt close your trades without a good
! ?& c0 a+ v3 L7 o2 A reason 11.
5 f0 N& @: S4 o* L- p" I Accumulate a surplus 12. Never buy just to get a dividend 13. Never ( a% i( S9 i+ C8 c: G8 w3 L/ O
average a 5 Z6 Q( m# Z: |, s7 z( m( u
loss 14. Never get out/in of the market because of impatience or
0 x0 d2 Q! w, u anxiety 15.
* m. A5 a9 G- C8 s6 o X Avoid taking small profits and big losses 16. Never cancel a stop
0 c8 G/ p& }6 m$ G9 D6 }0 G loss order 5 r: ]& x4 D* @, T/ w" m
after you placed it 17. Avoid getting in and out of the market too
U% j$ w3 R3 V: @6 r6 M. ~* F' n often 18. Be
2 `& [; n! I( y+ y/ j+ f h$ _- T1 x* k just as willing to sell short as you are to buy. Let your object be ' V5 T* d/ O2 y( q) E. M# g# w. ?# T
to keep
7 E6 r! K3 P; g5 g+ ? with the trend and make money 19. Never buy/sell just because the
2 i. E, f3 `/ z3 o2 g$ w price is * X( ?: k1 v) W! P
low/high20. Wait till the stock is very active and has crossed
& y6 B. t& X" Z( t0 U resistance ' Z S$ t1 {9 R# O. _
levels before pyramiding 21. Select stocks with small volume of
% m7 e7 k# H* }/ A# i1 f; e4 x shares
6 t* K; M! H7 ?: z outstanding to pyramid on the buying side 22. Never hedge one stock
5 Y9 b. v3 G& s/ Z, L by
" Y: S% y) ~# X8 N/ c) j: _9 G4 M( O another23. Trade with a plan and do not get out without a definite 3 c$ ?* ^- k2 Z+ A
indication
4 z9 S8 I9 J+ `7 c" ^ of a change in trend 24. Avoid increasing trading size after a long 8 {# P2 X1 Q) a; \# t) d
period of 9 c, P) i2 s( b$ l7 Z7 i
success
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Read his "romance" novel "Tunnel Thru The Air or Looking
: [4 k7 ]4 A# H- h" {3 [: h Back from 1940" published in 1927. Gann said "Kowledge is more ' j4 q' k( @$ h( o9 w2 |
important (powerful) than capital" and "Verify EVERYTHING and hold * e3 B4 c6 q+ `- B
on to true and good!". |
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