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The 12 rules:
+ d1 z7 L- V# [/ r$ G 01. Determine the trend 02. Buy at single, double and triple bottoms
: f( |1 k) `, X$ D' g5 m- P, ?1 g/ x7 F 03. Buy
) ]5 M4 G, f* l# ?) ?# L% u" W r( w and sell on percentages 04. Buy and sell on three weeks' advance or
# n* n" H( L; t, T decline 05. 3 J! X b5 C2 O
Market moves in sections06. Buy or sell on five to seven point moves
3 k1 e7 Q- a5 ]+ j+ C [ 07. Study 8 F. D5 y# v! C6 q% b
volume to determine change in trend 08. Study factor and
5 g; i; X, G# }+ l- C \ periods to 8 P. k+ R# F5 E- V; X
determine change in trend 09. Buy on higher tops and bottoms10. A * ?; o* O; A6 w$ ~2 Z2 x
change in , u& ~; ]) V& k, g% l* x- z6 K
trend often occurs just before or after holidays 11. Buy on a second
! f; ^9 O; U. x/ z reaction
8 f8 a' b- |7 j8 U2 ? at a higher bottom. When it reacts only two days, it is in a very - x6 u( B4 E0 I& P$ f5 |
strong 7 N( ^! g% i* g# n% p
position. 12. Price gains in fast moves doesˇnt last very long.
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Gann's 24 rules5 u" Z( m! C( _- M: D8 d% k9 P
2007/11/27 09:593 f) r) d0 V5 @ G0 ~# {( K: R5 Z
The 24 rules: 01. Never risk one tenth of capital in one trade 02. ) ~2 c- ~* S0 k& f' ]
Always use stop loss orders 03. Never overtrade 04. Never let a
3 U# f! E! ]4 P2 i, w8 ] profit run into 5 Y; E5 O( a4 V6 n$ }" n+ q: g
a loss 05. Do not buck the trend 06. When in , get our or donˇt
9 u9 K" ?! [2 b5 W8 Y& O get in 07.
- n& Q2 H s7 W/ q0 B" v Trade only active stocks 08. Equal distribution of risk in four or
" [/ Z# W$ r0 \7 ?- \ five stocks . R6 O" w6 ?8 ^5 F8 d
09. Trade market order 10. Donˇt close your trades without a good " o7 d5 d4 r4 r+ N* u* l
reason 11.
! Z/ x! k* u9 v/ s5 L j Accumulate a surplus 12. Never buy just to get a dividend 13. Never
) {& S' C. B8 m; k" P; L1 C average a
9 p+ l6 z: b$ l' N2 o8 `! H loss 14. Never get out/in of the market because of impatience or
# y3 @7 e/ ^' L0 }: | anxiety 15. ! {0 i q. u# q! n, |6 H
Avoid taking small profits and big losses 16. Never cancel a stop 4 [- J2 m9 F2 d2 X5 r% a- V. }8 V
loss order + q) I$ } K8 K" ?
after you placed it 17. Avoid getting in and out of the market too
6 G Q$ N- `8 A" a; K; P! B B often 18. Be % y* W# a: s( F/ u) i0 @, C) }
just as willing to sell short as you are to buy. Let your object be
- r& K6 v+ n2 g6 ~, V% \ to keep
" J4 w: L6 }4 U with the trend and make money 19. Never buy/sell just because the
1 d3 r6 Z0 S5 v1 Q+ E price is 8 \3 o& ~; p. z8 w/ z
low/high20. Wait till the stock is very active and has crossed " L" ]. |3 H9 Q p: x0 W: ^
resistance + k( |( G& S- ~! Z2 i: _6 m
levels before pyramiding 21. Select stocks with small volume of
* b4 i* v# Y" N shares
8 W c7 X; P$ N* Z% y8 y9 l/ i outstanding to pyramid on the buying side 22. Never hedge one stock
S- d) m9 K7 U" m9 b, m: D0 H by
: t8 Q- F3 U9 C5 n. P5 i& w another23. Trade with a plan and do not get out without a definite
4 W- [6 B B+ T9 S% z indication 9 B7 E- B# ^; O! @" K/ Z# @1 ~% _4 H
of a change in trend 24. Avoid increasing trading size after a long ) F8 F8 X v7 `$ ]
period of & ~4 N( c+ _5 T+ L8 v& L; e
success
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Read his "romance" novel "Tunnel Thru The Air or Looking ! u q: G) @; Q% _3 U0 ]$ C# n
Back from 1940" published in 1927. Gann said "Kowledge is more
5 o* e$ h! o6 I* ^/ r7 B4 _ important (powerful) than capital" and "Verify EVERYTHING and hold
8 M! {# b5 n& B on to true and good!". |
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