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The 12 rules:
N- d- c/ F8 ^8 L& ` 01. Determine the trend 02. Buy at single, double and triple bottoms
8 r/ V$ r) B9 Y2 u* _2 z7 Z 03. Buy
8 S& m' u; N% D- {2 l! H& ^ and sell on percentages 04. Buy and sell on three weeks' advance or
7 c; j/ P6 I8 g K: r2 \) W3 C decline 05.
) P! G4 `1 Y; U& {: H9 A& N Market moves in sections06. Buy or sell on five to seven point moves i+ ]/ T6 l% h$ \
07. Study # I0 f5 X4 @& I2 z# [2 H4 W7 L3 ~
volume to determine change in trend 08. Study factor and
1 G9 d6 U* M% h ? periods to
0 N" M1 r7 ]+ u determine change in trend 09. Buy on higher tops and bottoms10. A
1 L3 L$ X4 T, v, v E$ ~6 v( F change in
, J5 d' \; L$ r' t* H# m trend often occurs just before or after holidays 11. Buy on a second . B' n9 Y, [# C3 j! Z) G) s+ e5 e
reaction 2 U3 c2 \$ r0 U3 b( ?: p% K1 N
at a higher bottom. When it reacts only two days, it is in a very 8 d. u, \6 i1 k
strong
' k6 x/ k7 x1 ~" j/ |9 N d1 x position. 12. Price gains in fast moves doesˇnt last very long. " Z9 C. [( n6 I( Q! V
% u1 N' J/ P$ M0 b' |& \! `+ m Gann's 24 rules8 d" k6 |9 `0 r7 s$ B5 g8 P
2007/11/27 09:590 p+ q# e7 b# Q0 d' E( } v3 {
The 24 rules: 01. Never risk one tenth of capital in one trade 02.
6 S0 ~: [: D1 |+ u- Y Always use stop loss orders 03. Never overtrade 04. Never let a
( Z$ F8 n* F3 i: k, ?* H, V# u0 H: Y profit run into
$ r! n4 Z- \! _ a loss 05. Do not buck the trend 06. When in , get our or donˇt 6 ?0 R; n: `- a% }
get in 07.
9 ]+ i5 o5 n2 k" }( Q+ I: v Trade only active stocks 08. Equal distribution of risk in four or
$ M2 B# E7 ^8 l7 h8 G five stocks
6 \3 [' O& f* @& {3 b. ] 09. Trade market order 10. Donˇt close your trades without a good
7 S. k7 K- D6 h. f9 g* O" p& [ reason 11.
+ E/ p1 ^" Z: z2 \& U/ v" \" q Accumulate a surplus 12. Never buy just to get a dividend 13. Never
% ^$ Q7 x/ V* U7 J* I) ~ average a 2 P. K5 B, E* k+ a
loss 14. Never get out/in of the market because of impatience or * U" W6 F& [! P2 ~0 n
anxiety 15. " }: Q! x7 h$ I. L9 O' h& \& t9 I/ Z
Avoid taking small profits and big losses 16. Never cancel a stop
7 Y5 U6 s% x1 A1 V2 O- O loss order 4 _" p4 A( f0 y4 ~) n; t. w
after you placed it 17. Avoid getting in and out of the market too
4 ?6 I8 r4 @2 p z" F# G often 18. Be 7 J! G6 Q( o# { V: {5 V5 C3 X
just as willing to sell short as you are to buy. Let your object be
) ~ t9 o4 F: \. Q- b' l to keep
( W \2 n# B5 g1 H/ Y with the trend and make money 19. Never buy/sell just because the
& g8 A' a: h. `/ I6 N9 o* O price is
H. w( I. h* \% n f9 ]( \ low/high20. Wait till the stock is very active and has crossed 4 Y# C3 ~# \+ V/ r
resistance
( ?; m% Q- I% \ levels before pyramiding 21. Select stocks with small volume of
& V/ Z& e5 y2 `! l" u, D% Z shares
" Q* J; {: T8 f: e+ e/ Q outstanding to pyramid on the buying side 22. Never hedge one stock L! J) n8 T% k# S# [ H
by
7 S$ q" G @: m" C- E$ [ another23. Trade with a plan and do not get out without a definite + U: N' ?/ H9 J. I: u; ^
indication * Z6 R$ L% l+ p! l% f, r
of a change in trend 24. Avoid increasing trading size after a long + M5 @5 X/ A% ]4 @
period of
6 |0 u4 v5 u2 v7 V% y" b! S' t6 c success S. B3 }& p: q+ m: x/ x
& I ^ J" p5 `2 e& z
Read his "romance" novel "Tunnel Thru The Air or Looking 4 C- f. t+ b( `/ a- z
Back from 1940" published in 1927. Gann said "Kowledge is more 6 w$ g" _1 G& l% t3 O B, b" w
important (powerful) than capital" and "Verify EVERYTHING and hold " D% l: e) z @4 x/ P6 b
on to true and good!". |
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