picture of W D. Gann (1878 - 1955) and this is a testament to his
standing among 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
diversity 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 confirmation. 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 thoughts 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
vital 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 vital trend change was
imminent.But, if price and time were not coordinated, or did not join,
then time permanently 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
dredge up 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 result 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.But, you should not underestimate Gann's
analysis of trader psychology and his insights into the emotions of
hope, greed, and dread.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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