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Speculation A Profitable Profession (1927) by WD. Gann : Summary

 

" Speculation A Profitable Profession " is a book written by William Delbert Gann in 1927. The book outlines many of Gann's trading strategies and techniques, and it has become a classic in the field of technical analysis. 

Here is a bullet point summary of the main points covered in the book: 

  • Gann believes that trading should be approached as a profession, rather than as a gamble or a game.
  • The key to successful trading is understanding market cycles and using technical analysis to identify support and resistance levels in the market.
  • Gann argues that a trader's mindset is critical to success, and that traders should avoid emotions like fear and greed.
  • The book covers various chart patterns that Gann used to identify market movements and make profitable trades, including the head and shoulders pattern, the double top and bottom pattern, and the triangle pattern.
  • Gann also discusses the importance of volume in trading and how it can be used to confirm price movements in the market.
  • The book explains Gann's approach to market forecasting, which involves the use of astrology, planetary cycles, and other esoteric methods to predict market movements.
  • Gann emphasizes the importance of discipline and patience in trading, and he advises traders to stick to their trading plan and avoid impulsive decisions.
  • Gann also discusses the importance of risk management and position sizing, and he recommends that traders use stop-loss orders to limit their losses.
  • The book concludes with a discussion of the importance of continuous learning in trading, and Gann recommends that traders should always be open to new ideas and approaches.

While the book does cover some of Gann's more esoteric methods for market forecasting, such as astrology and planetary cycles, these methods are not necessarily considered the "secret" of the book. Rather, the book's value lies in its comprehensive approach to trading and its emphasis on the importance of using technical analysis and sound risk management practices to make profitable trades.

Overall, "Speculation A Profitable Profession" provides a comprehensive overview of Gann's trading philosophy and techniques, and it remains a valuable resource for traders interested in technical analysis and market forecasting. The book's emphasis on the importance of treating trading as a profession and the use of technical analysis to identify market movements has had a lasting impact on the field of technical analysis, and many of Gann's ideas and techniques continue to be used by traders and analysts around the world.

In conclusion, "Speculation A Profitable Profession" is a classic work of financial literature written by William Delbert Gann in 1927. The book provides a comprehensive overview of Gann's trading philosophy and techniques, emphasizing the importance of treating trading as a profession and the use of technical analysis to identify market movements. Gann's ideas about chart patterns, volume analysis, market forecasting, and risk management have been highly influential and continue to be used by traders and analysts around the world. The book also underscores the importance of discipline, patience, and continuous learning in trading, and provides valuable insights into the mindset and habits required for successful trading. Overall, "Speculation A Profitable Profession" is a valuable resource for anyone interested in technical analysis, market forecasting, and the art of successful trading.

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