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The 12 rules: & S' l" X! }2 _
01. Determine the trend 02. Buy at single, double and triple bottoms
+ D4 K7 {5 g1 a8 p 03. Buy ) h1 s c/ _0 S5 o+ _
and sell on percentages 04. Buy and sell on three weeks' advance or
5 h' c! e. O4 c5 j. N decline 05. 5 K% b. b c" a# N9 a$ p
Market moves in sections06. Buy or sell on five to seven point moves
' L- T* O5 C1 p- P 07. Study 0 I; ]$ N$ x, X" @9 t+ {
volume to determine change in trend 08. Study factor and ; V7 L3 D9 }$ E1 ~% E5 R/ b
periods to ' k% }4 j8 {% ~/ q
determine change in trend 09. Buy on higher tops and bottoms10. A
! R4 g& M @- t: G% ~1 N {; } change in ; \5 o, e" o0 k9 n
trend often occurs just before or after holidays 11. Buy on a second , s/ o p$ h; w
reaction
# v _3 v' z3 F7 g* o1 d4 Y- m4 l2 L% ^ at a higher bottom. When it reacts only two days, it is in a very 5 @& J3 f" }+ Z& \, U
strong ( V* z8 k) q* h3 n1 v3 q
position. 12. Price gains in fast moves doesˇnt last very long. / Z, ]6 P# _% P6 ]' S3 @
, S2 | Z$ B3 h7 `% ? Gann's 24 rules
- e+ k2 u6 z* ~& u8 ~2 L: U 2007/11/27 09:59
! e1 g8 }3 F9 ~" B The 24 rules: 01. Never risk one tenth of capital in one trade 02. 5 e: `# w$ ?/ _- G3 s
Always use stop loss orders 03. Never overtrade 04. Never let a / _$ ^( w8 t+ F
profit run into
# c8 I+ G8 G7 K$ ^0 } a loss 05. Do not buck the trend 06. When in , get our or donˇt
+ R; R# C, ^& K- k. N get in 07.
+ A8 n! s- Y4 y: X# B4 k Trade only active stocks 08. Equal distribution of risk in four or - c6 c2 i1 f/ ]* {7 w
five stocks
6 U" _. c- o" r% {" |. G7 I$ q 09. Trade market order 10. Donˇt close your trades without a good & U# q M5 g: D, O" T' G
reason 11.
3 F( [+ Q; p: Y' ^# E' e+ u Accumulate a surplus 12. Never buy just to get a dividend 13. Never 2 x" v- v: e6 {, D# w) J
average a
2 d' A! O$ t0 P2 A% L' @1 s% { loss 14. Never get out/in of the market because of impatience or
* Z% A( M% T4 M8 J! [ anxiety 15. . T9 b2 h' }, g9 g4 w7 k. B' o0 a
Avoid taking small profits and big losses 16. Never cancel a stop G; n7 ]4 j1 j
loss order 1 j. h% r6 u$ F5 D0 }
after you placed it 17. Avoid getting in and out of the market too
7 M" ]' Q# P4 l% _' _ often 18. Be
1 o5 g4 l7 e) \( y1 o just as willing to sell short as you are to buy. Let your object be * v4 K+ |, a* S: o6 P
to keep
- z* @( T2 ? x9 |7 @& x; q/ C with the trend and make money 19. Never buy/sell just because the
7 F2 V- Z5 p m! F* Y; N7 c/ e, ^ price is
" z# M) a8 {4 @' G; p9 T$ J7 V low/high20. Wait till the stock is very active and has crossed
8 V$ g. z- F" ^/ b9 P8 T resistance
5 j9 \8 y5 m. q' _ ]; \. r* t levels before pyramiding 21. Select stocks with small volume of 7 w, f5 D# w: {3 [
shares
) x) K. b# m) T2 X t+ h. d% W outstanding to pyramid on the buying side 22. Never hedge one stock $ Z8 s8 V" ^8 p4 R8 S0 h+ T
by 3 L) v8 n, Q$ F# s" S1 o3 n; N
another23. Trade with a plan and do not get out without a definite
' ~' j# C# u7 d* K4 ^( H, e: O indication
A. O& O% Q4 E9 b of a change in trend 24. Avoid increasing trading size after a long
, Q% B0 f) h! e+ k% |! N# A$ h period of
2 K6 G& J M# ?5 v/ h success
+ _8 H6 R5 H+ N$ n$ q
; I6 e; t/ V; ^/ |4 n Read his "romance" novel "Tunnel Thru The Air or Looking ; C/ N! A) T; Z* n+ z- L, g% }! q
Back from 1940" published in 1927. Gann said "Kowledge is more
3 ]0 b+ c' I; E- _# V important (powerful) than capital" and "Verify EVERYTHING and hold
! A3 `) q: F2 Z. `' V" I on to true and good!". |
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