Gann’s Trading Rules

Gann’s Trading Rules
    •    Never risk more than 10% of your trading capital in a single trade.
    •    Always use stop-loss orders.
    •    Never overtrade.
    •    Never let a profit run into a loss.
    •    Don ‘t enter a trade if you are unsure of the trend. Never buck the trend.
    •    When in doubt, get out, and don’t get in when in doubt.
    •    Only trade active markets.
    •    Distribute your risk equally among different markets.
    •    Never limit your orders. Trade at the market.
    •    Don’t close trades without a good reason.
    •    Extra monies from successful trades should be placed in a separate account.
    •    Never trade to scalp a profit.
    •    Never average a loss.
    •    Never get out of the market because you have lost patience or get in because you are anxious from waiting.
    •    Avoid taking small profits and large losses.
    •    Never cancel a stop loss after you have placed the trade.
    •    Avoid getting in and out of the market too often.
    •    Be willing to make money from both sides of the market.
    •    Never buy or sell just because the price is low or high.
    •    Pyramiding should be accomplished once it has crossed resistance levels and broken zones of distribution.
    •    Pyramid issues that have a strong trend.
    •    Never hedge a losing position.
    •    Never change your position without a good reason.
    •    Avoid trading after long periods of success or failure.
    •    Don’t try to guess tops or bottoms.
    •    Don’t follow a blind man’s advice.
    •    Reduce trading after the first loss; never increase.
    •    Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.
This entry was posted in Investing General. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *