W.D. GANN *** 28 VALUABLE RULES ***

W.D. GANN  *** 28 VALUABLE RULES ***

1) AMOUNT OF CAPITAL TO USE- DIVIDE CAPITAL INTO 10 EQUAL PARTS- NEVER RISK MORE THAN 1/1O

2) USE STOP-LOSS ORDERS

3) NEVER OVERTRADE

4) NEVER LET A PROFIT RUN INTO A LOSS. AFTER YOU HAVE PROFIT PUT STOP SO THAT YOU WILL HAVE NO LOSS OF CAPITAL

5) DO NOT BUCK THE TREND NEVER BUY OR SELL IF YOU ARE NOT SURE OF TREND

6) WHEN IN DOUBT , GET OUT, AND DONT GET IN WHEN IN DOUBT

7) TRADE ONLY IN ACTIVE MARKETS

8) EQUAL DISTRIBUTION OF RISK

9) NEVER LIMIT YOUR ORDERS OR FIX BUYING OR SELLING PRICE TRADE AT THE MARKET

10) DO NOT CLOSE YOUR TRADES WITHOUT A GOOD REASON. FOLLOW UP WITH A STOP-LOSS ORDER TO PROTECT YOUR PROFITS

11) ACCUMULATE A SURPLUS . AFTER YOU HAVE MADE A SERIES OF SUCCESSFUL TRADES. PUT SOME MONEY INTO A SURPLUS ACCOUNT TO BE USED ONLY IN EMERGENCY OR IN A TIME OF PANIC

12) NEVER BUY OR SELL TO GET A SCALPING PROFIT

13) NEVER AVERAGE A LOSS

14) NEVER GET OUT OF THE MARKET JUST BECAUSE YOU HAVE LOST PATIENCE OR GET INTO THE MARKET BECAUSE YOU ARE ANXIOUS FROM WAITING

15) AVOID GETTING IN AND OUT OF THE MARKET TOO OFTEN

16) NEVER CANCEL A STOP-LOSS ORDER AFTER YOU HAVE PLACED IT AT THE TIME YOU MAKE A TRADE

17) AVOID TAKING SMALL PROFITS AND BIG LOSSES

18) BE JUST AS WILLING TO SELL SHORT AS YOU ARE TO BUY

19) NEVER BUY JUST BECAUSE THE PRICE IS TOO LOW OR SELL IF IT IS TOO HIGH

20) BE CAREFUL ABOUT PYRAMIDING AT THE WRONG TIME. WAIT UNTIL THE COMMODITY IS VERY ACTIVE AND HAS CROSSED RESISTANCE LEVELS BEFORE BUYING MORE , AND ONLY IF IT HAS BROKEN OUT OF A ZONE OF DISTRIBUTION TO SELL

21) SELECT THE COMMODITIES THAT SHOW STRONG UPTREND TO PYRAMID ON THE BUYING SIDE AND THE ONES THAT SHOW DEFINITE

DOWNTREND TO SELL SHORT

22) NEVER HEDGE

23) NEVER CHANGE YOUR POSITION IN THE MARKET WITHOUT A GOOD REASON - HAVE A GOOD REASON TO PUT ON A TRADE

24) AVOID INCREASING YOUR TRADING AFTER A LONG PERIOD OF SUCCESS OR A PERIOD OF PROFITABLE TRADES

25) DONT GUESS WHEN THE MARKET IS TOP.  LET THE MARKET PROVE IT IS TOP. DONT GUESS WHEN THE MARKET IS BOTTOM. LET THE MARKET PROVE IT IS BOTTOM. BY FOLLOWING DEFINITE RULES, YOU CAN DO THIS

26) DONT FOLLOW ANOTHER MANS ADVISE UNLESS YOU KNOW THAT HE KNOWS MORE THAN YOU DO

27) REDUCE TRADING AFTER FIRST LOSS; NEVER INCREASE

28) AVOID GETTING IN WRONG AND OUT WRONG; GETTING IN RIGHT AND OUT WRONG; THIS IS MAKING DOUBLE MISTAKES