Gann's 21 stock trading operation code:
1, each time the market to buy, sell, losses should not exceed one-tenth of the funds.
2, always set up stop-loss to reduce transaction errors may result in losses.
3, never excessive trading.
4, never to hold positions incur losses.
5, never gone against the tide and the. Market trend is not apparent, would rather wait and see the outside.
6, there is doubt, leave that open. When the market firm, Do not hesitate to intervene in the market
7, only traded in active markets. Trading was light when not operating.
8, never set a target price of access to the city to prevent access to city limit, but only subject to market movements.
9, without proper justification, not to the flat position, can only make a bit to protect profits.
10, Lien Dhan, both in the Dzech market, may extract some of their profits to prepare for emergency needs.
11, hope to buy the stock dividend income only to avoid interest. (Making the market the first post)
12, when the sale was lost, avoid gamblers type coded, to seek cost-sharing.
13, not to lose patience with the market, do not lose patience and open.
14, willing to lose would not win, guard against. Transactions do not earn less pay to do
15, when the market stops falling bit, not indiscriminately canceled.
16, made more mistakes, the market to wait for the opportunity, should not be trading too close.
17, to do more short freely, not only do unilaterally.
18, not because the price is too low to absorb, do not price too high because of short selling.
19, never hedge.
20, try to avoid engaging in the pyramid was not overweight.
21, without proper reasons, to avoid the indiscriminate sale of the shares held by strategic change.
can cause heavy losses to investors in the three main reasons.
1, over the limited sale of capital on. That operation too frequently, in the short and ultra short-term market is demanding operating skills, and investors do not master these skills before, too much emphasis on short term and often lead to small losses.
2, investors have not set up to control the stop loss.
3, lack of market knowledge, is traded in the market lost the most important reason. Because some investors do not attach importance to the study of knowledge of the market, but take it for granted that markets work, or subjective to be Ru Oh, do not distinguish between true and false market information, the results received error misleading, suffered a great loss. There are other investors in some of the books just to have the knowledge to guide practice, indiscriminately applied, resulting in huge losses. Here to emphasize that market knowledge, practical experience.
Gann 12 trading rules
1, determine the market trend 2, the single bottom, double bottom or the buying of three low-level 3, the percentage of the sale based on market fluctuations 4, a three-week rise or 5 down trading, market volatility section 6, by 5 or 7:00 volatile trading 7, Volume 8, the time factor 9, when there are high and low points, or buying a new high of 10 points, 11 of the most secure transactions fast market price fluctuations
1, determine the trend: For stocks, the average composite index is most important to determine the market trend. Bnalysis should be based on three days when the average wave map and map-based nine. Three-day chart of the rules is that when the lowest level for three days break, then the market will be down, when the highest level of the three-day break, then the market will be a new high.
Second, end in a single, double bottom or bottom to buy three
Gann second trading rules are very simple, when the market is close to the previous bottom, top or important resistance level, according to a single base, double bottom the end of the market or three forms of trading.
this rule means that once the bottom of the market it is important to support the position, may enter the market to absorb. In addition, when used to break above the top, then the resistance of a support, when the price dropped to that level or slightly below the top level is an important buying opportunity. On the contrary, when the market reaches past the top, and the emergence of single top, double top or even three, are short selling opportunity. In addition,
When the market broke under the previous top price bounce back after the trial of the former top level, all short selling opportunity.
However, investors should pay particular attention if the market end of the fourth or the fourth top, they will not absorb or short selling of electric
machine, according to Gann's experience, the market four reach the peak and the broken, or four opportunities to break down in the end will be very large. In market trading, investors must bear in mind set a stop order, I do not know how to stop loss should not enter the market. Stop order is generally based on double top / 3 rate and at the top of the above.
3. Bccording to the percentage of the sale
third trading rules, but according to the percentage of the sale. Gann that conform to city as long as the situation, there are two methods of trading the market:
1) If the market conditions at the top taking 50%, is a buying point.
2) if market conditions has risen 50% in the end, is a selling point
three weeks after four-adjusted market
Gann his fourth in the design of trading rules, financial markets do a very wide range of statistics, he will the market rebound, or transfer the whole of the sale
be two:
1) When the main trend of the market up, if the price adjustment occurred three weeks, is a buy time.
2) when the market's main trend down, if the price of a three-week rally there is a selling opportunity.
When the market correction or a rally against the trend, the Gann that time in the following situation must be to monitor market developments:
1) When the market up or down more than 30 days, the next peak or to monitor market potential bottom time should be 6-7 weeks.
2) if the market rebound, or to adjust more than 45 days to 49 days, to note the next time should be 60-65 days, according to Gann's experience, from 60 to 65 days to adjust to an adverse economic rebound or the maximum average time range.
7, the market volume
use of volume records to determine market trends, mainly the basic to the following two rules:
First, when the market is near the top of the time, volume often greatly increased, the reason is: when investors rushed into the market when insiders are large or distributed large shipments of hand, resulting in significant increase in market turnover, when the influential people to send goods after the bad news emerges, is the market see When the top. Therefore, often accompanied by large volume market top there.
Second, when the market has been down, but volume continued to reduce gradually the time, then sell the power market has been near the end, the activities of investors to cash in nearly complete, the market bottom appears, but a rebound is just around the corner market.
volume analysis of market trends in the use of time reversal, have the following rules must be integrated with application, may receive the predicted effect:
1) time period – to be in line with market volume analysis of the time period Otherwise, less effective.
2) support and resistance – when the market reached an important resistance level support, while the volume of the performance of the state with the peaked or bottomed out, the city will increase the potential opportunity of the downturn.
Figure 11 help determine the market volume peaked or bottomed out. Large turnover usually means peak, low volume usually means bottom.
8, the time factor
When the market is in an upward trend in the adjusted time than the time before an adjustment for long, said the market down but changing its stance. In addition, if the decrease in price than the one before the price range for large high-speed, then, that the market has entered a phase of changing its stance.
when the market trend in the decline, if the market rebound in time for the first time beyond the time of the previous rally, said the city trend has been reversed. Similarly, if the market price rebound rebound rate than the previous price range, also said the price or space has gone beyond the balance to trend has emerged.
9, when there is high level or a new purchase
1) When the market opened a new high, said the potential market up, to catch market to buy.
2) B break when the price of a new base, said the market trend down, to catch up sell.
However, before application of the above simple rules, Gann that must pay particular attention to the time factor, with particular attention to: 1) by the former Department of the top in the end of time; 2) from the Ministry of time before the bottom in the end; 3) important by the key at the top to the bottom of the time;
Gann rules here, but implies that if the market high or low, said the trend of unfinished, investors can estimate the market potential of the time the next transfer This time can be described in the previous
Tags:
