Trading Masters Wisdom – Another Visit with W. D. Gann

IMPORTANT:

Hello Traders,

In today’s weekly wisdom from the Trading Masters, I would like to revisit William Delbert Gann (June 6th, 1878 – June 14th, 1955).

W.D. Gann

W.D. Gann

The quote I would like to take some time to visit today is the following:

 “Do not overlook the fact that the 4th time the averages or an individual stock reaches the same level it is not as safe to sell, because it is nearly always goes through.  Reverse this rule at the bottom.  When stocks decline to the same level the 4th time in most cases it breaks the bottom and continues down.”  – W. D. Gann

One of my favorite books written by W.D. Gann has to be, 45 Years on Wall Street, which I would highly recommend you place into your library and read it 3 times!

I find it very fascinating that individuals want to put to posterity their personal opinions and views, which we later subscribe as fact into future generations.  Their past experiences are here for us to learn from, to glean very valuable information from.  It still falls on us to take the time to read and understand what they meant by their writings.

But they did take the time to record their memories, and put them to pen and paper.  This is what makes their work so valuable to you and me.

On the trading video, I am including with this post, you can see the influence of this “trading rule” in my own personal trading at the 54 minute mark of the trading video.  I had a trade on, which is another W.D. Gann, trading rule, but you will see why I changed my mind and went short at this point in time on the trading video.

Another interesting development arrives at the 85 minute mark … at the 90 minute mark, we see a reversal of the short … and a valid long opportunity … very interesting.

 

I am pleasantly pleased the past experiences of the trading masters and their wisdom can be traded in today’s environment when properly applied.  This was a trading day I could have done much better overall, but I am happy to come away with a win on the trading day.

 

Good Continued Trading,

David ‘Tiger’ Knight

P.S.  As an added bonus for taking the time to read this blog post today, I have included one of W. D. Gann’s personal master works:

The W.D. Gann Master Commodities Course

Enjoy!!

P.S.S.  On this Holy Day of Sacrifice of our Lord Jesus Christ, I leave you with a Bible Verse:  (Romans 5:3-5, NLT)

 

 

About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.

  • Yurpie says:

    92 minute video? Jez I got a life too. I simply can’t keep up with all your posts. I don’t even know what a 10p is.

    Appreciate the efforts and all, but I find I am falling behind on my own projects by following.

  • TradeCraze says:

    Watching the videos are not necessary to reading the blog. They are on here as I feel they are important to me to review as well.

    I could split the video … but it is my personal trading journal for me as well.

    I specified the part of this video to watch. Look above for the time period. It is about 20 minutes of it in total.

    One of the main purposes of the live trading journal/log is to record my progress as I move from $2,500.00 trading account balance and move on up.

    David