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The 12 rules:
4 `: c; C0 }6 y/ h 01. Determine the trend 02. Buy at single, double and triple bottoms 1 g8 w* g, b* |% r# r0 U1 ?- o- h
03. Buy # w& J6 {4 w6 l$ Y$ C0 z7 h
and sell on percentages 04. Buy and sell on three weeks' advance or
3 c2 ^, w* p# t* E$ T* e decline 05.
* N1 r; c8 Q9 C+ o! ?8 Y Market moves in sections06. Buy or sell on five to seven point moves 1 D: ^; I, b$ I8 a; J3 _
07. Study 4 }, z, _. u& |2 ]' v4 @
volume to determine change in trend 08. Study factor and . _5 U! t/ }5 Y& F$ G9 Z& m9 r
periods to , F# D" w/ l- |; N' O5 Q7 X* E+ H- c
determine change in trend 09. Buy on higher tops and bottoms10. A
4 ^* ^2 G7 o b& _, o change in
( z7 X0 X# D5 d9 o' p trend often occurs just before or after holidays 11. Buy on a second
6 k8 q2 ~! ?8 W H; u! h, x; g3 ] reaction , U4 H6 r! M2 k8 ~
at a higher bottom. When it reacts only two days, it is in a very
4 w3 ]% j# B& m- M* B7 C: W& h strong
& F8 Y. L. h' h- Q position. 12. Price gains in fast moves doesˇnt last very long.
7 l3 l( M0 ^* b
) K! D* l$ h' F5 _3 R Gann's 24 rules. g- K6 G- T! }% _$ h( C/ a
2007/11/27 09:59: Q; Y; q$ p5 [0 ]1 Q. y. V
The 24 rules: 01. Never risk one tenth of capital in one trade 02. # N# a$ J0 N! b. O" ]! h
Always use stop loss orders 03. Never overtrade 04. Never let a
5 u0 R' U( R, }4 ^4 n& N3 ^ profit run into
2 n7 ? |9 J$ b* W a loss 05. Do not buck the trend 06. When in , get our or donˇt
3 t; Z& v. O3 X# z O! |! T get in 07.
( @, u6 n0 {- O: }0 h5 e8 v Trade only active stocks 08. Equal distribution of risk in four or E( x! Q' ]( q, L
five stocks 9 X. Q+ t4 f5 r6 n
09. Trade market order 10. Donˇt close your trades without a good
9 ]! @. z: ]1 h/ @1 { reason 11.
( j3 ^& H7 k6 J! |' u Accumulate a surplus 12. Never buy just to get a dividend 13. Never z* C4 K. Y" X. V& R3 d/ ^
average a
1 D! N) e( u0 W0 f0 Z loss 14. Never get out/in of the market because of impatience or
& e# J4 n0 v; K% I$ Q' T anxiety 15. 7 F% l( \) Z" O; Z' E1 B
Avoid taking small profits and big losses 16. Never cancel a stop ( T. M8 B. u% R0 B6 O: U3 X6 Q# `: B) Q
loss order % J; j2 M0 |& L9 X+ H
after you placed it 17. Avoid getting in and out of the market too . O$ L; Q5 G1 p' V
often 18. Be
; B6 ]1 h8 s5 X3 ^ just as willing to sell short as you are to buy. Let your object be & H5 v4 Z E# R9 f# N9 X1 x
to keep ^0 y4 S* _* ~1 U5 H
with the trend and make money 19. Never buy/sell just because the ' X9 I. r$ M% `
price is ! _' d( b D' F0 O/ N$ m( e
low/high20. Wait till the stock is very active and has crossed + u1 I1 W8 p- R: ?2 |. Q* d
resistance 7 t" {% N+ _) N( J1 K
levels before pyramiding 21. Select stocks with small volume of . j" b3 b& e& e7 A5 E, }) c( Y( r
shares
! I% c7 h; ] L$ W outstanding to pyramid on the buying side 22. Never hedge one stock
6 P! Y' m1 P2 @% I; H( R3 ` by 0 D/ Q' L( ^1 h: n6 ?. S& W
another23. Trade with a plan and do not get out without a definite
+ E* E' Y# [4 M indication
2 l/ q# q+ F; {* T1 [* G8 Z of a change in trend 24. Avoid increasing trading size after a long
* w0 I$ E# D) g0 ^, k' O* C$ Y period of
$ q' F) b6 s- S" ~, y/ { success9 u- ?* c7 p0 u" o+ n5 u8 B
5 `8 n/ x2 j8 A- Z5 h, c R5 _( r
Read his "romance" novel "Tunnel Thru The Air or Looking ) ]" Y9 V8 } [3 q7 a
Back from 1940" published in 1927. Gann said "Kowledge is more % O1 G* v+ P6 d
important (powerful) than capital" and "Verify EVERYTHING and hold
2 \, G+ |0 h2 b on to true and good!". |
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