WD Gann Trading Rules Part-II

In Continuation with Previous Article

Avoid taking small profit and big losses. Even with accuracy of 80% a trader might remain in a loss if he is taking big small profit and small losses. Options sellers operate at accuracy of above 99%, where the profits are small, while the 1% cases of loss could be big that they wipe out all the profits. Mark Douglas talked about a trader who had only 5% of winning trades, but his profitable trades were phenomenally profitable, while he was very quick to get out of a losing trade. His 5% profitable trades were able to pay off for all the 95% losing trades and also bought him into net Profit in the end of each financial year.

Never cancel a stop order after you have fixed it after entering the trade as you fixed that stop because of some purpose. Stop gets hit come and again read this list of WD Gann Trading Rules.

Avoid getting in and out of market too often, very similar to over trading rule.

Continue Reading