Gann Trading

Who was Gann?

William Delbert Gann was born on a farm in Lufkin Texas on June 6, 1878. He was the oldest of 11 children, with 8 brothers and 2 sisters of Sam Houston Gann and Susan R. Gann.
The Ganns lived in a small house with no indoor plumbing and with not much of anything else. They were poor and Willy had to walk 7 miles to get to school for three years. Working on the farm was more important than going to school so W.D. never graduated from grammar school and never went to high school.

He had a special responsibility as the oldest boy and that may have well been the reason of his lifelong dedication to hard work. Being a Baptist he also was raised in a strong religious faith.

A few years later W.D. worked in a brokerage office in Texarkana and attended business school at night. He married Rena May Smith and had 2 daughters Macie and Nora. The family later moved to New York City.

He worked for a Wall Street brokerage firm and later divorced his wife and remarried at the age of 30 to Sarah Hannify. They had 2 children, Velma and John.

He began publishing a daily market letter “The Supply and Demand” letter with forecasts on stocks an commodities. He published books and his first book “Truth of the Stock Tape” was very well received.

W.D. made great profits during the depression which he predicted would end in 1932. He started investing in real estate and bought several properties in Miami, Florida.

He became a legendary trader by studying market cycles. He was a very active Bible scholar and he discovered cycles in the Bible that he applied to the market. He found that over 90% of traders who enter the markets without knowledge and study usually lose in the end. Gann also lost a significant amount of money and admitted his trading was based on hope, greed, and fear. Later on, in his books and courses, he cautioned all traders about these emotions.

Early on, Gann began to note the periodical recurrence of rise and fall in stocks and commodities. This led him to conclude that natural law was the basis of market movements. He then devoted ten years to the study of natural law as applicable to the speculative markets. During that time he traveled to England, Egypt, and India to gain knowledge in ancient mathematics and astrology. In the British Museum in England he conducted extensive research on market cycles. In an Egyptian temple it is believed he found the basic construction of what was to become known as his Square of 9 Chart. After exhaustive research and investigation of the known sciences, he discovered the Law of Vibration enabled him to accurately determine the exact prices to which stocks or commodities would trade within a given time, and that each stock or commodity had its own rate of vibration.
At age 27, Gann was a well-known name in the Southwest. His views on the analysis of cotton prices were so well respected that a Texarkana newspaper, The Daily Texarkanian, ran a story on Gann’s cotton predictions.

In October 1909, Richard D. Wyckoff, Owner and Editor of The Ticker and Investment Digest asked Gann for an interview to document his trading ability for one month. The interview was granted, and Gann’s trades were monitored for 25 market days during the month of October in the presence of a Ticker representative. At that time the markets also traded on Saturday. Gann made 286 trades in various stocks, both long and short. There were 264 trades that resulted in profits and 22 in losses. 92.3% of the trades were profitable. The capital used doubled ten times resulting in 1000% gain on his original investment during those 25 trading days. What makes this even more phenomenal is that Gann did this with an average time between each trade of about twenty minutes. In one day Gann made 16 trades in the same stock, 8 of which were in either the top eighth or the bottom eighth of that particular swing. Such a performance is unparalleled in the history of Wall Street. As stated by James R. Keene, the famous speculator of that era, the man who is right 6 times out of 10 will make his fortune.

Some people believe that after his sensational performance Gann regretted having granted the interview, as it was stated in the printed article that he did not know the results were to be published. When the article was printed in The Ticker Investment Digest, Gann was besieged with people asking how he was able to pick tops and bottoms as he had demonstrated. His only answer to them was he used The Law of Vibration to make all his calculations. At this conjuncture there were only two choices: l) to give away his secret discoveries and risk destroying the markets, or 2) to detract from his method of picking tops and bottoms by writing books and courses about mechanical trading systems, the use of geometrical angles, the use of Time and Price Charts, such as the Octagon Chart (Square of 9), Master 12 Chart (Square of 144), Hexagon Chart (the cube), Square of 90, Square of 52, 360 Degree Circle Chart, and many other trading techniques.

So, Gann hid away his true trading methods and developed a smokescreen to not give away his secrets and avoid public scrutiny and keep a professional status in the business he was in.
But what we want to know is: “What was this method?” “Did someone discover it?” “Is it easy to trade?” and “Can I do it?”

The answer to all that is Yes! We from Mywavez.net know the truth behind Gann! Watch our Analysis…