William Gann is a legend in the world stock and commodity markets. Born in Texas in 1878. Gunn began an investigation of commodity markets in 1902. In 1908 Gann moved to New York and opened his own brokerage firm, WDGann & Co., is located on Broadway. After many years of successful trading Gann moved to Miami, Florida, where he continued his work and research until his death on June 14, 1955. Rule number 1: Strive for success.
The first one of the most important rules of successful traders is striving for success. This means that you should make efforts and work hard to improve their trade. You need to have both short-and long-term prospects of its presence in the market. They should always be relevant and should be viewed daily in your daily plan, you must also keep a diary. This is done to your mind is accustomed to the time and price movement. After all, the market situation changes all the time.
Rule number two: one on the market you do not have to
You must succeed on their own and go to it yourself, at your own risk. It all depends on you. Markets, your broker or other brokerage firms are not obliged to warn you what will be news and what to expect this. Gunn was never signed any of the ballots of the recommendations or news. He did everything himself. Markets give you only the right to participate in them, to buy or sell. But no way they do not care, whether you do or do not have money. You only need to know your own trading method and how to act in any given situation. Your trading method should be clear to you, and help you determine the market structure, in terms of time and price movements.
Rule number 3: Your Plan - a road to profits
When you enter a trade you must have a clear plan for the entry and exit from the market. The plan must be clearly defined so that when trading you do not bother and did not lead to confusion, sitautsii deuce on the market. You should know exactly what to do. Gunn knew exactly what he was doing at the time of trade. You should be on the market all the time and monitor the unfolding situation, because it is difficult to know when the next chance to enter the market and make money. You must have a purpose - to make money in the market constantly, as many traders are using all kinds of oscillators and other indicators do not know exactly what they need to wait on them. In the end, they are guided by rumors of his hope and fear.
Rule number 4: Ratio of profit to risk
Trading in the market should determine in advance the possible losses for each of the transactions. Where will be placed stop-loss and, possibly, take-profit. The profit margin should be at least 3 times higher than the risk. Log in to the market based on the timing and objectives for the price. If the price was not met by a certain hour cycle, you must immediately withdraw from the market.
Rule number 5: Trade in seclusion
Never, under any circumstances, do not disclose their trading positions. Your focus should be fully configured to yourself and no one should distract you from this class. When you open your stance and talk about it, it immediately starts to undermine your confidence and concentration. Ultimately, this is nothing you will not.
Rule number 6: Margin
For because of the high margin, many traders can not normally make or trade remains ineffective. In no case enter into the position if the hazard ratio is more than 10% of your capital.
Rule number 7: The Double Top
The presence of double peaks offer the best method of selling in the market. Something that shows a double top is that the price of the next test and if the maximum power of bulls have been exhausted, begins Down trend. If you were in a bullish position, you need to prepare for the sales and make adjustments to your plan. The distance between the double apex is of great importance. More distance is more important. It is also worth considering the fact that the peaks appearing on the monthly charts are more significant than the figure of "double top" on the daily charts. That's why you should always work on promising long-term schedule and monitor the situation there.
Rule number 8: Double hollow
Similarly, the double top, double bottom is a great opportunity for trade. Most of the big bull trends emerge from this formation is
Rule number 9: The sequence of Fibonacci numbers
Gann never spoke about the Fibonacci sequence, but he used them. It was one of his secrets. Everything in nature, as well as in markets subject to the Fibonacci numbers. The relationship of these chisel.382, .500 and .618. Markets always move on to these numbers 1, 3, 5, 8, 21 and so on.
Rule number 10: The Right Broker
You should choose a broker who complements you and thinks like you. The broker should take your order and execute it with full speed. In modern commerce, it is important that your order is executed in a few seconds. Electronic commerce increases the speed of the order. Their only job is to provide better conditions for trade.
Rule number 11: Diversification
You have to diversify their capital so that you were not just one market. For example, if you are a trader of raw materials you should also have a grain, metals, and meat. This will help protect you from negative influences of the market. In the stock market, you can have different positions in different industries.
Rule number 12: Your trading position
There are three kinds of different positions that you may have. Long, short or neutral, ie out of the market. Do not be afraid to be out of the market. When cycles are changing, there are times when you are out of the market, since the normal signals you still can not get it.