FXP Stock Trading

W D Gann

William Delbert Gann (1878-1955) was one of the most successful stock and commodity traders in history. He has become a legend among open-minded traders the world over. He was famous not only for his legendary trading abilities but also for his financial market forecasts, which achieved a spectacular track record of accuracy.

Gann started trading in stocks and commodities in 1902, and in 1908, he moved to New York City, where he opened his own brokerage firm. His early trading career was far from successful, and he went bust more than once. This impelled him to look deeper into the markets. A unique analyst, his investigations led him to reach some startling conclusions, although controversy surrounds the claims of his trading successes and whether he did indeed reveal his real methods or took his secrets to the grave.

Gann reputedly made over $50 million in profits from his market forecasting and trading. In the early twentieth century, the U.S. dollar was worth far more than in the new millennium, so in current money this would be roughly $500 million. After five decades of success with his forecasting and trading, Gann moved to Florida, where he continued writing, publishing, teaching, and studying the markets until his death in June 1955.

Gann also was a prolific writer whose books include the following:

• Tunnel Through the Air

• Truth of the Stock Tape

• Wall Street Stock Selector

• How to Make Profits Trading in Commodities

• 45 Years in Wall Street

• How to Make Profits Trading in Puts and Calls (an early text on trading options)

• Face Facts America BASIC ASSUMPTIONS

Gann based his predictions of price movements on three premises:

1. Price, time, and range are the only three factors to consider.

2. The markets are cyclical in nature.

3. The markets are geometric in their design and function.

By studying the past, we can predict the future. Gann believed that human nature was constant, and this showed up in repetitive price patterns that are identifiable and that therefore can be acted on to increase profit potential.

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