Wednesday, February 27, 2013

W.D. Gann’s 28 Trading Rules


1. Never risk more than 10% of your trading capital in a single trade.
2. Always use stop-loss orders.
3. Never overtrade.
4. Never let a profit run into a loss.
5. Don 't enter a trade if you are unsure of the trend. Never buck the trend.
6. When in doubt, get out, and don't get in when in doubt.
7. Only trade active markets.
8. Distribute your risk equally among different markets.
9. Never limit your orders. Trade at the market.
10. Don't close trades without a good reason.
11. Extra monies from successful trades should be placed in a separate account.
12. Never trade to scalp a profit.
13. Never average a loss.
14. Never get out of the market because you have lost patience or get in because you are anxious from waiting.
15. Avoid taking small profits and large losses.
16. Never cancel a stop loss after you have placed the trade.
17. Avoid getting in and out of the market too often.
18. Be willing to make money from both sides of the market.
19. Never buy or sell just because the price is low or high.
20. Pyramiding should be accomplished once it has crossed resistance levels and broken zones of distribution.
21. Pyramid issues that have a strong trend.
22. Never hedge a losing position.
23. Never change your position without a good reason.
24. Avoid trading after long periods of success or failure.
25. Don't try to guess tops or bottoms.
26. Don't follow a blind man's advice.
27. Reduce trading after the first loss; never increase.
28. Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.

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