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The 12 rules:
5 U6 n1 P5 E& S+ i 01. Determine the trend 02. Buy at single, double and triple bottoms
; I y: C2 A0 Q" e/ z. I* { 03. Buy
' P) k- V# q; l+ t1 D and sell on percentages 04. Buy and sell on three weeks' advance or
; Q/ B" c9 |! n3 B& @" Y+ y decline 05.
) g: k9 D) q4 K" `( j& m3 I Market moves in sections06. Buy or sell on five to seven point moves
" }; M+ m7 \! X3 {, k 07. Study
& D0 F0 Z3 R- S8 H+ U, V0 k" o volume to determine change in trend 08. Study factor and - W9 O# O6 V) Z+ r2 J1 Z9 \+ b* F
periods to , o8 V' L* ~; {# X, c. h$ \6 A6 x
determine change in trend 09. Buy on higher tops and bottoms10. A
8 n. W+ T" l# m2 O& L change in
7 w2 P, b; H. N/ T* [) _3 w/ N1 m trend often occurs just before or after holidays 11. Buy on a second * e* f$ Q+ F1 @
reaction $ _4 S- H+ H( o; y" G! Z( A, M
at a higher bottom. When it reacts only two days, it is in a very
! { m' M# Z2 {/ }4 h% o7 n ] strong 4 E- A( p. h0 q, E2 x% o. C
position. 12. Price gains in fast moves doesˇnt last very long.
! _7 @ T# M2 N+ n5 v" a* ^, p, I
" p; E* M$ |+ R+ a Gann's 24 rules
& j- v) k" a2 `5 Y. F 2007/11/27 09:59
6 ?( R2 M, _6 ~4 Q. y8 ? The 24 rules: 01. Never risk one tenth of capital in one trade 02.
& w& s, P) s: x5 N) T Always use stop loss orders 03. Never overtrade 04. Never let a % R: S% ]9 D8 e D: s1 U
profit run into O6 p1 P0 j$ Z
a loss 05. Do not buck the trend 06. When in , get our or donˇt - V. e- m& ]7 S3 H0 r
get in 07. 9 w" z3 g$ u1 C4 I( a
Trade only active stocks 08. Equal distribution of risk in four or & |+ K9 ]7 b! [: c! p/ v& e# W/ n
five stocks 5 @- }# P/ H2 y9 M7 _1 _% I
09. Trade market order 10. Donˇt close your trades without a good # G; \) _1 o9 Y; U& X' N+ [" b
reason 11. ) O% U! y* T6 m1 p+ o
Accumulate a surplus 12. Never buy just to get a dividend 13. Never - v) m8 m2 M6 }3 o% [/ t
average a $ h+ x2 |' v# X/ c7 k2 k" [5 P' ~
loss 14. Never get out/in of the market because of impatience or ) F7 h3 a& a+ b/ V' z
anxiety 15.
! `# w7 M8 s! S3 f' {% D! x1 n Avoid taking small profits and big losses 16. Never cancel a stop
/ `( T6 p* w2 g& `3 O+ k loss order : G) l) L9 _' U4 d% ^8 h
after you placed it 17. Avoid getting in and out of the market too
3 u+ X, j F* L1 D! K often 18. Be
( ^/ q: g, g. ], n7 s0 E just as willing to sell short as you are to buy. Let your object be
; K) L; b5 }- Y$ X' s0 E/ K to keep
" I' d$ I3 m' s5 q with the trend and make money 19. Never buy/sell just because the 2 \" x0 u) t: N y" a1 L7 r1 @
price is ' s( s! g8 P1 x& T0 g% G D
low/high20. Wait till the stock is very active and has crossed
: ~% O4 S/ j: l) y$ ^ resistance 5 [5 A$ J! i" N5 E j& r* x
levels before pyramiding 21. Select stocks with small volume of
6 B0 {- Q# j6 g! J7 U* _+ O shares
4 v2 k# I# b$ b outstanding to pyramid on the buying side 22. Never hedge one stock
6 o* M4 Q! h, Y& i( k3 |8 Y+ U. ~% k8 S* J by
& e, x3 l! o0 q* p+ M* _2 E; b another23. Trade with a plan and do not get out without a definite $ E6 P. [# c5 _6 z& \3 P
indication
: f8 G. Y0 v( P of a change in trend 24. Avoid increasing trading size after a long 4 n' p' b9 p+ o
period of
5 M u9 L# T3 b$ A3 i- n" ~0 U6 ^( f success! c3 S: Y+ t$ D+ I+ l* S0 r
# D* y, ~. n) y, o Read his "romance" novel "Tunnel Thru The Air or Looking ! G' U- y0 y, F, a. p
Back from 1940" published in 1927. Gann said "Kowledge is more
; [4 A- a9 s X. H: n important (powerful) than capital" and "Verify EVERYTHING and hold
! Q5 v. R: a" d/ e on to true and good!". |
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