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W.D Gann Mastercourse | E01

The Financial Analyst・66 minutes read

W.D. Gann's complex works emphasized mathematical analysis, time factors, and market safety, showcasing remarkable foresight and accuracy in predictions. His trading advice includes risk management, trend-following, and patience to optimize earnings and avoid common trading mistakes.

Insights

Gann's works are intricate and require dedicated study due to their complexity, taking him 20 years to fully comprehend, emphasizing the importance of thorough reading and understanding of his teachings.
Gann's emphasis on time factors in the market, his reliance on mathematical analysis, and his accurate predictions showcased remarkable foresight, underlining the significance of mathematics, historical patterns, and market trends in successful trading strategies.

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Who was W.D. Gann?
A trader and mathematician emphasizing market analysis.

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Summary

00:00

Decoding WD Gann's Financial Wisdom

Devang from the financial analyst presents the WD Gann master course to explain Gann's works.
Videos will be released weekly, but the content may be complex and require multiple readings.
Gann's teachings took him 20 years of study to understand fully.
Gann's works are not easily comprehensible and require dedicated reading of his books.
Gann earned $50 million in trading before his death in 1955/1956.
Gann was a member of the 33rd degree Freemasonry, a secretive community with notable members like Einstein and Edison.
Gann emphasized the importance of understanding time factors in the market.
Gann's Square of Nine, inspired by Egypt, is a key tool in his work.
In 1954, Gann released the Commodities Master Course for $5,000, equivalent to $50,000-$200,000 today.
Gann's focus was on market safety and not just predicting tops and bottoms.

14:19

Gann's Mathematical Predictions and Trading Strategies

In a single day, there were 16 moves in a specific stock, with eight of them being major highs and lows.
The trader focused on understanding the left-hand side of the market to predict future movements accurately.
He heavily relied on mathematical analysis, often referencing the Bible for guidance.
W.D. Gann, a mathematician and trader, emphasized the importance of mathematics in market analysis.
Gann's book from 1927 accurately predicted global events between 1926 and 1934, including economic downturns and wars.
Gann's forecasts included specific years for major events, such as the Dow Jones slide in 1932 and World War II.
Gann's detailed predictions, made in 1927, showcased his remarkable foresight and accuracy.
Gann's advice included dividing capital into 10 parts and never risking more than one-tenth on a single trade.
He stressed the importance of always using stop-loss orders to protect investments.
Gann's rules also highlighted the significance of not overtrading and following market trends diligently.

28:18

"Trading Tips for Success in Stocks"

Great men throughout history shared similar ideas across different times and languages.
It is crucial to decide whether to follow these ideas or not.
Do not go against the trend, as Gan advised to never buy or sell if uncertain about the trend.
News cannot alter the trend of the market, as companies do not disclose negative information willingly.
In a primary downtrend, refrain from buying and maintain short positions.
When in doubt, exit the trade, as illustrated by a trader's experience shared on Instagram.
Trade only in active stocks, avoiding slow or dead ones, as emphasized by Gan.
Most money is lost in the first and last eighth of a move, highlighting the risk in penny stocks.
Equal distribution of risk is essential, advising to trade in only four or five stocks to avoid overcommitting capital.
Always trade at market price, not limiting orders, to seize opportunities and avoid missing out.
Do not close trades without a valid reason, follow up with stop loss, and let winners run while cutting losses.
Accumulate surplus from successful trades for rainy days and to fund future trading activities.
Avoid buying solely for dividends, as the share price may adjust post-dividend distribution.
Never average a loss, as it is a detrimental mistake in trading.

41:19

"Trading Tips: Cut Losses, Let Profits Run"

In 2020, Snowman was bought at 60 rupees and reached a high of 75 within two days after being shared on YouTube or Discord.
Averaging a losing trade is a common mistake; it's crucial to cut losses and let profits run.
Jesse Livermore emphasized the importance of not averaging losses and learning from experienced traders.
In a bull market, there is no resistance, and in a bear market, there is no support; psychology plays a significant role in trading.
It's essential to have patience in trading and wait for the right market moves, as only a few significant moves occur in a year.
Avoid taking small profits and big losses; cutting losses quickly is crucial, while letting profits run is beneficial.
Being humble and accepting mistakes is vital in trading; never be egoistic and always remember you are a servant of the market.
Once a stop order is placed, never cancel it; stick to your trading plan and avoid panicking during short-term price fluctuations.
Overtrading and constantly getting in and out of the market can lead to losses; discipline and patience are key in trading.
Be willing to sell short as much as you are to buy; go with the trend and focus on making money objectively.

54:07

Navigating Market Transitions for Profitable Trading

In a bull market, the challenge arises when transitioning to a bear market, where rallies become shorter and buying during these rallies can lead to significant losses.
Traders need to be comfortable with both buying and selling, including short selling to profit when markets decline.
Avoid buying solely based on low prices or selling based on high prices, as trends can persist, and understanding this can lead to more profitable trading.
Carefully consider pyramiding, buying more shares as prices rise, ensuring it aligns with market movements and breakout levels to maximize profits.
Patience, conviction, and precision are key rules for successful trading, with a focus on not hedging positions to maintain a clear view and optimize earnings.
Changing positions should only occur with a valid reason, typically when trends shift, such as with double tops or bottoms on weekly charts.
After periods of significant success, avoid increasing trading activity to prevent overconfidence and maintain a balanced approach to trading.
To manage abnormal profits and prevent overtrading, consider creating a surplus account and taking a break from trading to reset and maintain a neutral mindset.

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