WD Gann quoted in The Ticker and Investment Digest of December 1909 says "Being in the brokerage business myself and handling large accounts, I have opportunities seldom afforded the ordinary man for studying the cause of success and failure in the speculation of others. I found that over ninety per cent of the traders who go into the market without knowledge or study usually lose in the end".
WD Gann whom had over half a century of experience in trading financial markets goes on to explain what he believes to be the requirements for success in speculation or investment. His five points are listed as follows;
One of the vital and most important factors for making a success in speculation or anything else is KNOWLEDGE. The well-posted man or the man who knows his business is the man who succeeds. Therefore, put it down as a rule that hard work in acquiring knowledge will surely bring success in speculation or business.
After you have acquired knowledge you will need to learn PATIENCE, if you have not already learned the value of patience. You must learn to wait for a definite indication of a change in trend before buying or selling. You must not guess or gamble on hope or fear. You must have ability to act and to act quickly at the right time, acting after you have acquired knowledge and know it is the time to act.
You must have the COURAGE to act. Courage and boldness will come after you have acquired knowledge because you will have confidence in proven rules and confidence in your ability. Therefore, the acquiring of knowledge will give you the courage for action at the time when the real opportunity comes.
A man who will not work hard and STUDY and pay in advance for success will never get it. If you will put in the time, study, and go over the records of the past market movements, you will be convinced that the rules work and that you can make money by following the main trend of the market.
5. Chart Reading
Eighty-five per cent of what any of us learn is from what we see. It has been well said, "One picture is worth a thousand words." That is why CHART READING or the reading of various formations (patterns) at different periods of time isso valuable. The future is but a repetition of the past. The same formation (pattern) at tops or bottoms or intermediate points at different times indicate the trend of the market. Therefore, when you see the same picture or formation in the market the second and third time, you know what it means and can determine the trend.
do not have to accept my word that the rules I give you will work in the
future as they have in the past but you owe it to yourself to prove by
past records that these rules work; then you will have the faith to
follow them and make money.
WD Gann 1909
Learn more about how to get the best free forex training here.
Find out how to pick the better forex courses here.