“If you’re at the right starting point and you know how history repeats itself, it’s as easy to predict 100 years or even 1,000 years as it is to predict one or two years.
What has been, will be again;
What has been done will be done again.
There is nothing new under the sun.”
William Delbert Gann, the mysterious trader known as “the most famous investment theorist of the 20th century,” is best known for his book “Gann’s Theory” (aka “Gann’s Theory”) and for making $50 million.
In addition to being a trader, he was also a financial astrologer, selling financial astrology courses almost exclusively for the rest of his life.
Gann was born on June 6, 1878, on a cotton farm outside Lufkin, Texas.
He was born to Irish immigrant parents, one of 11 children, and his family was poor.
Bearing the responsibility of the eldest son of the small Gann, since childhood has the ambition to prosper the family.
Because to help the family, Gann primary school on the third grade suspended school, this diligent upward child, in addition to hard farm work, also in the train as a vendor, it is a period of hard years, who knew that the farm of the poor children will one day in the United States financial mecca of Wall Street shine, become the 20th century American stock, futures trading market an immortal legend.
Who would have known that his theory of technical analysis and the magic calculation tools he had worked so hard to create could be passed down for a hundred years.
The early 20th century was an active time for Gann, who went through the First World War, the stock market crash of 1929, then the famous Depression of the 1930s, and saw the Second World War.
During these long years of economic turmoil, he is said to have made more than $50 million in profits.
Gann began working on trains at the age of 16 and later joined a cotton trading firm as a broker.
At the age of 24, Gann made his first lucrative cotton futures contract.
Over the next 53 years, he made $50 million in profits from the financial markets, or $1 billion in today’s money.
According to statistics, in 1909, Gann’s trading skills began to attract attention, in 286 trades, he only lost 22 times, a success rate of 92.3%.
Gann earned more than $50 million during that era, but on closer examination, it appears that Gann gave all of his profits back to the stock market in the later years, and then supported his wife and his cheating son by writing, selling and teaching books.
His son, John L. Gann, told The New York Times in 1980 that his father, who traded stocks as a young man but largely stopped trading and supported the family by writing books and lecturing, died with $80,000 and a modest home.
John L. Gann is an analyst with the Bank of Boston.
His famous father, he says, was never able to make a living from trading and could only write textbooks to support his family.
When his father died in 1950, he had just over $100,000 in assets, including his home.
Gann wrote many books in his life, such as Gann Investment Philosophy, Gann’s Law of the Stock Market, 45 Years of Gann Wall Street, How to Profit from Commodity Futures Trading, and the most famous one is 45 Years of Gann Wall Street.
When asked about his investing secrets, Gann, a Wall Street financial astrologer who believes in the Bible, says God’s “magic language” has guided him to success.
Under the guidance of God, it was financial astrology that led me to victory.
Gann believed that every product in the financial market had a corresponding star in the vast sky, and the mastery of the movements of the celestial bodies would serve as an effective guide to human transactions.
After that, until his death in 1955, Gann did his best to propagate the doctrine he believed to be true.
The Gann’s Angle line, which perfectly explains market movements, he suggested that for the top of any market (either the highest or the lowest point), a diagonal line can be drawn with an Angle of 45 degrees.
If the existing market moves in the diagonal, the market will continue to move upward.
Conversely, if all the existing moves are below the diagonal, the market will continue to decline.
The most famous is the Gann spiral diagram, also known as the Gann spiral matrix, which is a square matrix with all the numbers in continuous counterclockwise order, centered on 1.
In this matrix, each period varies by 8, 16, 24, 32…
It is undeniable that Gann theory is still popular among many traders, among which “21 Gann Rules of buying and selling” is regarded as a secret book.
Divide the money into ten equal parts, limiting the risk of each trade to one tenth of the total amount of money.
When trading, be sure to place a stop loss.
Don’t overdo or overdo it to avoid violating the rules on capital volume.
Never turn the position into a loss, the profit increases, adjust the stop loss price.
Don’t swim against the market.
If you can’t judge the trend of the market, should be on the sidelines.
When in doubt, you should liquidate your positions and leave.
Don’t jump into the market when you’re in two minds.
Trade only in active markets.
Stay away when trading is light.
Just follow the trend of the market, go with it, don’t set a target price in and out of the market – don’t want no illusions.
If there is no appropriate reason to open positions, can adjust the stop loss to protect the profit.
After a successful battle, part of the profits can be withdrawn or transferred to another account for emergency.
Don’t buy or sell just to get a dividend or to earn a spread.
In the loss, do not gambler’s style to spread the loss, this is the trader can make the biggest mistake.
Don’t close a position because you’ve lost patience, and don’t enter because you can’t wait.
Don’t be greedy for small profits and suffer big losses, don’t do more losses than profits.
Set a stop loss when entering the market, should not be withdrawn at will.
Buy and sell less frequently, make more mistakes and wait for an opportunity to enter the market.
Be willing to go long, be willing to go short, and buy and sell freely.
Don’t buy because the price is too low, and don’t short because the price is too high.
Never hedge, if do, face a fall, do not sell cover positions, should leave the field to acknowledge losses.
Don’t make pyramid trades at the wrong time, wait to break or break the key level to increase.
Don’t change your buying and selling strategy for no reason, and don’t get out of the market before a definite turn.
What do you think about that?
This article is reprinted from Huishang Media
