William Gann Trading Rules

William Delbert Gann Trading Rules

William Delbert Gann (1878 – 1955) was a famous trader who introduced new technical analysis tools like the Gann angles, the Hexagon etc. Gann forecasting model is based mainly on geometry and mathematics but also in astronomy. Gann introduced the the stock market angles {Basis of My Forecasting Method -1935). The most important stock market angle according to Gann is 45° angle or 1X1, which represents a single unit of price under a single unit of time. William Delbert Gann is said to gained 50 million USD during the Great Depression. Only in 1933, is said to have gained 4,000% on his capital (422 winner trades in a total of 479 trades).

Picture: Gann's Personal Soybean Chart (May 1948)

William Delbert Gann Trading

 

Here are Gann pieces of advice for stock-investors.

Jesse Livermore's Trading Tips

Jesse Livermore's 17 Trading Tips and 7 Rules

Jesse Livermore (1877-1940) was a famous American stock- trader. Livermore was also known as the ‘Boy Plunger’ and the ‘Great Bear of Wall Street’ because he had made a fortune by short-selling the market during the American stock market crashes of 1907 and 1929.

These are the 17 trading rules by Jesse Livermore written in 1940.

 

Jesse Livermore's Trading Tips

  1. Markets are never wrong – opinions often are. Don’t trust your own opinion and back your judgment until the action of the market itself confirms your opinion.

  2. Nothing new ever occurs in the business of speculating or investing in securities and commodities.

  3. Money cannot consistently be made trading every day or every week during the year.

  4. The real money made in speculating has been in commitments showing in profit right from the start.

  5. Never buy a stock because it has had a big decline from its previous high.

  6. Never sell a stock because it seems high-priced. As long as a stock is acting right, and the market is right, do not be in a hurry to take profits.

  7. I become a buyer as soon as a stock makes a new high on its movement after having had a normal reaction.

  8. Never average losses.

  9. The human side of every person is the greatest enemy of the average investor or speculator.

  10. Wishful thinking must be banished.