WD Gann Trading Rules Part-I

W D Gann laid very fundamental strong set of rules for trading in any markets. Though these rules were written in 1930s and the markets were much different and those time, however these rules are still valid and applicable and traders who can follow these rules may ensure a successful trading career.
Many legendry traders follow WD Gann Trading Rules and Gann Trading Techniques in today’s markets and have achieved success and so can other traders. Also, please ensure you read the last para as that will be very crucial to follow these rules and set them in your sub conscious mind gradually.

Capital sub division. Divide your trading capital in 10 equal parts and never risk more than one- tenth of your capital on any one trade. Trading Capital means trading capital and William Gann was trying to say that you must still have ensured your financial security before coming to the financial markets by keeping a major fund safe for future needs. So if your net worth is USD 100,000, then you must have secured 90% for your future and used 10% as trading capital and hence only USD 1,000 which is 1% of the total net worth should be used for each trade.

Continue Reading