[RT] Some Thoughts from W. D. Gann

[super romeman <super_romeman@xxxxxxxxx>]

In keeping with the spirit of the season, I have put together a small offering of thoughts from market master W. D. Gann.
He writes in his first book, Truth of the Stock Tape:
"The big profits are made in the runs between accumulation and distribution. Therefore, you make more money by waiting until a stock plainly declares its trend than by getting in before it starts. It is just like a race. It often takes fifteen or twenty minutes to get the horses away from the post, but once 'they’re off' the race is over in two minutes. It is the getting ready that takes the time, the run is soon made, once the firing line is crossed. What difference does it make whether you buy a stock 10, 20 or 30 points above the bottom so long as you make profits?
"The same with selling short. It makes no difference how much the price is down from the top. When it breaks out of the distributing zone, it is a safe short sale and you will make quick profits. Get the idea of prices out of your head. Forget about the bottoms and tops; trade to make profits, not to try and catch the bottom or top eighth. The insiders do not do it, and you can not hope to do better than the man who makes the market." (pp. 125-126)
"The sooner a loss is stopped the better both for your capital and for your judgment. As long as you stay in the market and a trade goes against you, your judgment gets worse all the time; in fact, you have no judgment." (p. 156)
"When extremes occur and everybody is radically bearish and can see no hope for prices ever advancing, or when prices are abnormally high and everybody believes that conditions are such that there is no hope for prices ever going down, that is the time to go against human judgment and follow the tape and charts, for they will point to the correct course of prices according to the natural law of supply and demand." (p. 169)
"The most important thing of all is the Time factor, which I use in making up my annual forecasts. It is not my object here to give away that secret, but I am showing you plain enough and giving you rules enough that, if you follow them, you will be able to make a success in the stock market. The price you pay for this book means nothing. One idea that I give you may be worth thousands of dollars to you in the next five to ten years' time, if you will only follow it. If I only succeed in teaching you how to avoid losing your money for the first three to five years, and you can keep even and get experience, then there is no estimating the value of this knowledge, for after a few years' experience and study, you will then be able to make money rapidly." (p. 116)
"I have written what I believe is required for your success. It is practical and based on the result of my years of labor and experience. Read this book over several times, for each time you will learn something new and get new ideas of your own which will benefit you. If you will follow the instructions carefully and trade conservatively, never buying or selling a stock without a reason nor being in too big a hurry to get in or out, I feel sure that you will make a success and after a few years will have cause to thank me for starting you on the right road to Successful Speculation and Investment." (p. 185)
If you are interested in reading more, this book and about 15 or 20 other original writings by W. D. Gann have been posted at no charge at: 
http://groups.yahoo.com/group/gannstudygroup 
With best wishes for the New Year,
romemanDo you Yahoo!?
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