picture of W D. Gann (1878 - 1955) and this is a testament to his
standing amongst traders worldwide. Today he remains one of the most
influential traders of all time. W D Gann Methods and Trading
PerformanceW D Gann employed a staff of 25 draughtsmen to draw charts
of all the stocks on the New York Stock Exchange, as well as a variety
of commodities. He would then use the charts to look for trading
opportunities.Gann in fact made huge trading profits from his
technical analysis of the markets. There are reports, which indicate
that his trading techniques amassed him a fortune of over $50 million
dollars, and many of his trades are on record. W D Gann Trading
PhilosophyW D Gann was a prolific writer, and wrote extensively
outlining his thoughts and trading methods in a series of books and
courses. Some of his ideas were empirical studies, while others were
more mystical in nature.Gann's major contention was that certain laws
governed not only the markets, but nature as well, and were universal
in scope. The Influence of Price and TimeOne of Gann's most important
contributions was the concept of combining price and time. Gann
believed that crucial price movements happened when price and time
converged. These points usually indicated an important trend change
was imminent.However, if price and time were not coordinated, or did
not converge, then time always held priority over price.Therefore
time, was considered by Gann as the ultimate indicator, because all of
nature was governed by time.In "Wall Street Stock Selector" Gann
said."Just remember one thing, whatever has happened in the past in
the stock market and Wall Street will happen again.Advances in bull
markets will come in the future, and panics will come in the future,
just as they have in the past. This is the working out of a natural
law " "It is action in one direction, and reaction in the opposite
direction. In order to make profits, you must learn to follow the
trend, and change when the trend changes." Gann and the Importance of
Trader PsychologyMany commentators focus on W D Gann's thoughts on
price and time, Swing trading methods, Gann angles, and his work with
the Fibonacci number sequence.However, you should not underestimate
Gann's analysis of trader psychology and his insights into the
emotions of hope, greed, and fear.Gann was well aware that emotions
caused the bulk of traders to lose money:"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"He was aware
that human nature was constant and influenced the majority of
traders:"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"This is what W D Gann set out to do. It is a fitting tribute
that successful traders around the world are still using his
techniques and methods today. Without a doubt, many consider W.D. Gann
to be one of the most influential traders of all time.
Source: wd-gann.com
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