W D Gann – Made Millions Trading What Can you Learn From Him?
Gann died in the fifties yet his legacy lives on and traders all around the world use his unique methods to gain a trading edge.
When you enter the New York Stock Exchange his standing is confirmed among traders by the life size portrait that greets you. So what can you learn from him.
Let's find out?
1. A method based on logic
W D Gann was a chartist and in those days employed draughtsman to draw charts for him on a variety of stocks, commodities and currencies and he then looked for recurring patterns to warn him of trading opportunities.
Gann had a logical method be believed in and this allowed him to follow his method with rigid discipline and it made him money.
He made money, in fact huge profits and that is the acid test of any system.
For those wanting to learn his methods he left all his thoughts and strategies for others.
2. An understanding of trader psychology
Although he is noted for his innovative tools Gann was one of the first traders to study trader psychology in depth.
Gann stated:
"We cannot escape it (emotion). In the future, it will cause another panic in stocks. When it comes, both traders and investors will sell stocks, as usual, after it is too late, or in the latter stages of a bear market"
So he concluded that:
"Therefore, in order to make a success, the trader must act in a way to overcome the weak points that have caused the ruin of others"
Logical really and his trading method was based around taking advantage of emotions in others to make money.
Human nature is constant and never changes that's why mass psychology can be seen showing up in repetitive chart patterns.
3. Innovative tools
Of course it is one thing to know chart patterns repeat but you need the tools to help you act.
Gann postulated that time was the overriding factor in determining price as the markets like all of nature was governed by time.
This was just one innovation but he had many other unique tools and Gann angles, the Fibonacci number sequence and the golden mean were all used to help make profits.
Final words
Gann was an innovator and you may not believe everything he believed in, but he did what all good traders do.
He had a method that he believed in and his confidence allowed him to apply it with iron discipline to make big profits over time.
He also knew his trading edge and trusted it even in the bad times as all traders must do.
If you are a new trader or an experienced trading veteran, you can learn a lot from Gann and he left all his thoughts in writing for traders to enjoy and apply to help them make big longer term profits.
When you enter the New York Stock Exchange his standing is confirmed among traders by the life size portrait that greets you. So what can you learn from him.
Let's find out?
1. A method based on logic
W D Gann was a chartist and in those days employed draughtsman to draw charts for him on a variety of stocks, commodities and currencies and he then looked for recurring patterns to warn him of trading opportunities.
Gann had a logical method be believed in and this allowed him to follow his method with rigid discipline and it made him money.
He made money, in fact huge profits and that is the acid test of any system.
For those wanting to learn his methods he left all his thoughts and strategies for others.
2. An understanding of trader psychology
Although he is noted for his innovative tools Gann was one of the first traders to study trader psychology in depth.
Gann stated:
"We cannot escape it (emotion). In the future, it will cause another panic in stocks. When it comes, both traders and investors will sell stocks, as usual, after it is too late, or in the latter stages of a bear market"
So he concluded that:
"Therefore, in order to make a success, the trader must act in a way to overcome the weak points that have caused the ruin of others"
Logical really and his trading method was based around taking advantage of emotions in others to make money.
Human nature is constant and never changes that's why mass psychology can be seen showing up in repetitive chart patterns.
3. Innovative tools
Of course it is one thing to know chart patterns repeat but you need the tools to help you act.
Gann postulated that time was the overriding factor in determining price as the markets like all of nature was governed by time.
This was just one innovation but he had many other unique tools and Gann angles, the Fibonacci number sequence and the golden mean were all used to help make profits.
Final words
Gann was an innovator and you may not believe everything he believed in, but he did what all good traders do.
He had a method that he believed in and his confidence allowed him to apply it with iron discipline to make big profits over time.
He also knew his trading edge and trusted it even in the bad times as all traders must do.
If you are a new trader or an experienced trading veteran, you can learn a lot from Gann and he left all his thoughts in writing for traders to enjoy and apply to help them make big longer term profits.