8/3/2019 WD Gann Golden Rules
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WD Gann Golden Rules
In his books WD Gann established 24 trading rules, the most
important of which are the following:
1. Divide your risk capital into ten equal parts and use it in
different markets.
2. The safest buy is that after a secondary reaction, when the
stock has exceeded a weekly high and the largest
downward correction has been made.
3. Use a stop-loss order for each trade and never risk more than
ten per cent of your capital.
4. Never allow a profit to run into a loss.
5. Use a break-even stop when the position is three to five
points in the profit zone, depending on volatility.
6. Use a trailing stop order to protect your profits. Let the
market decide.
7. Do not trade against the trend of a market and only trade in
liquid markets.
8. Do not buy any additional stocks from a loss position to
reduce the average loss.
9. Increase a profitable position only if the market has broken
through a resistance and volume is low.
