Legendary trader WD Gann amassed a fortune of $ 50 million in the first half of the last century, although he died in 1955, his commodity trading methods are still used today with astonishing success by skilled traders. .
Here we will look at the basis of Gann’s method and why it was so successful and what you can learn from them.
Gann trading method
Gann’s trading method takes the excitement out of trading like all good methods:
Pay off losses quickly and maintain long-term profitable trends.
Gann’s method did just that and had a track record that was truly impressive.
Before we see how Gann made money, let’s take a look at some of his predictions:
1. He predicted improvements in business in 1921 and the Bull Run in stocks.
2. In 1928 he predicted the end of the bull market in stocks a year before the 1929 crash. Then he bought shares in the Dow at a record low in 1932.
3. In 1935, out of 98 cotton, grain, and rubber trades, 83 produced profits.
These operations were independently verified and followed from inception to completion.
Unique Gann method
Although Gann was a technical trader, he introduced concepts that were unique and still applicable today.
Why?
Because he based his methods on the interaction between price and time.
Gann posited that the crucial price movements and thus trend reversals occurred when price and time converged.
If price and time were not linked, then time was more important than price.
Time was the ultimate indicator for trading, because, as Gann said, all nature is governed by time.
In the “Wall Street Stock Picker,” Gann stated:
“Just remember one thing, anything that happened in the past in the stock market and Wall Street will happen again. Advances in bull markets will come in the future, and panic will come in the future, just like in the future. past. the elaboration of a natural law “
Gann’s work on price and time was not his only unique contribution to trading, but he also used concepts such as Gann angles and the Fibonacci number sequence in his trading, which were revolutionary at the time.
Gann produces a large volume of work and his knowledge of trader psychology and his unique way of trading led him to make astonishing profits in his trading career.
What can you learn from Gann
All traders would do well to study Gann’s unique and disciplined trading methods as they can (and do) help predict major trend reversals and trade them for profit.
Gann was a legendary trader and studying his methods will help you look for great profit potential.