 Gann's theory focuses on the study of market measurement. Through the comprehensive application of mathematics, geometry, religion and astronomy, Gann has established his own unique analytical method and market measurement theory. Because his analysis method has a very high accuracy, sometimes to an incredible extent, many researchers of Gann theory pay great attention to Gann's market measurement system. But in addition to the market measurement system, Gann has also established a set of operating systems. When the market measurement system fails, the operating system will timely remedy it. The reason why Gann's theory can achieve very high accuracy is that the market measurement system and the operating system are used together to complement each other.
Gann published his last important book, 45 Years on Wall Street, in 1949. At this time, Gann was 72 years old. He frankly disclosed the way to win in the market for decades. Among them, the twelve trading rules of Gann are an important part of Gann's operating system. Gann has also formulated twenty-one trading rules of Gann in its operation. Gann operates in strict accordance with the twelve trading rules and twenty-one trading rules.
Gann believes that trading must be conducted according to a set of established trading rules, rather than buying and selling at will, blindly guessing the development of the market. With the change of time, the market conditions will also change. Investors must learn to change with the change of the market, and can not recognize the dead end.
Gann warned investors: Please carefully study the market before you invest, because you may make wrong buying and selling decisions that are completely opposite to the market, and you must learn how to deal with these mistakes. A successful investor is not without mistakes, because in the face of the ever-changing and uncertain market in the securities market, anyone can make mistakes, even serious mistakes. But the key to success is that the successful person knows how to deal with the mistakes and does not make them continue to expand; The losers, however, are hesitant and indecisive, allowing for wrong development and causing greater losses.
Gann believes that there are three major reasons for investors to suffer heavy losses:
1. Overbuying and selling on limited capital. That is to say, operations are too frequent. Short term and ultra short term operations in the market require high operating skills. Before investors master these operating skills, overemphasizing short-term operations often leads to considerable losses.
2. Investors did not set a stop loss point to control losses. Many investors suffered huge losses because they did not set appropriate stop loss points. As a result, they allowed their mistakes to develop indefinitely and suffered more and more losses. Therefore, learning to set a stop loss point to control risk is one of the basic skills investors must learn. Some investors, even some market veterans, set a stop loss point, but did not resolutely implement it in actual operation, resulting in huge losses due to wrong thinking.
3. Lack of market knowledge is the most important reason for losses in market trading. Some investors do not pay attention to learning market knowledge, but take it for granted or subjectively think how the market is going to be, and will not distinguish the authenticity of the information. As a result, they are misled by mistakes and suffer huge losses. Some investors only rely on some knowledge learned from books to guide their practice, indiscriminately applying it, causing huge losses. Gann emphasizes market knowledge and practical experience. However, this kind of market knowledge often takes quite a long time to really experience. (Shareholders College: http://www.58188.com )
The market measurement system of Gann theory is abstract and hard to understand in many places, but Gann's operating system and trading rules are clear and clear, which is very easy to understand. Gann's operating system is based on following the market, which is totally different from his prediction system. Gann clearly separates the trading operating system from the market prediction system, so that he can engage in speculation in a turbulent and crisis era and remain invincible.
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