Wednesday, June 15, 2005
Thursday, June 09, 2005
FRB: Testimony, Greenspan--The economic outlook--June 9, 2005
FRB: Testimony, Greenspan--The economic outlook--June 9, 2005
We are all ears, O wise one. Your words move markets as usual. You calm our anxious hearts with the voice of reason. The dollar resumes its rise.
We are all ears, O wise one. Your words move markets as usual. You calm our anxious hearts with the voice of reason. The dollar resumes its rise.
Thursday, June 02, 2005
Gann's Advice
"You should learn to trade on knowledge and eliminate fear and hope. When you are no longer influenced by hope or fear, and are guided by knowledge you will have the nerve to trade and make profits.
". . . If you study price movements correctly, they will tell you more about what the market is going to do than any broker, newspaper, or so-called inside information. The time period is the most essential, because time tells what prices are going to do.
"LEARN To Be Independent: The greatest help that I can give you is to show you how to help yourself. If a man or woman depends upon others for advice, or for inside information and follows what others think about Commodities, he will never make a success in speculation--or anything else. You must learn to be independent. Learn to do by doing, and to know by study and application. When you are following something that you KNOW, you will have the confidence and courage to be successful.
"The most important thing outside your health for you to protect is your money. Therefore, take time to study. Prepare yourself to handle your money yourself and do not depend forever and entirely upon others.
"Knowledge is not enough. You must put into use what you learn in order to benefit. You will learn by doing. Action and execution at the proper time bring profits.
"NERVE. A man can have the finest gun in the world, but if he hasn't the nerve to pull the trigger he will never kill any game. You can have all the knowledge in the world, but if you haven't the nerve to buy and sell you cannot make profit. Knowledge gives a man nerve, makes him bold and enables him to act at the right time. When a man fails to buy or sell at the right time, the result is that he becomes afraid. Fear is a detrimental influence. When he has too much nerve and buys on hope at the top, he is guessing. When influenced by hope alone, he cannot expect profits.
"GOOD Health. . . . I have tried to trade when I was in bad health, always resulting in failure, but when I am in good physical condition, I act at the right time, making a success. If your health gives away, the most important thing is to work to get your health back in perfect shape, for HEALTH is WEALTH.
"To stand in a brokerage office or sit in a brokerage office and try to beat the market by reading the ticker and watching every quotation that comes out, is the most foolish thing a man could do, and the greatest waste of time, and the man who thinks that is the way to make money trading in commodities is making the mistake of his life. Those of us who have tried it, know. Expert tape readers are few and far between. It is the study of a lifetime, and while the tape does show the trend of the market, there are so many minor changes and quick reversals that the average man cannot tell whether the main trend has turned or whether it is only a minor change that will last a few hours, a few days, or a few weeks before the main trend is resumed again.
"You make a greater success when you sit at home or in your office, quietly follow your charts and trade on definite indications.
"I am not guessing or giving you a wild theory. I have gone through the mills. I have had every ticker in my office for years. I have thought I could not get along without them, and lost plenty of money by having them in the office and getting in wrong because the ticker showed some minor trend and threw me off the main trend which I had figured. I made a greater success when I took all the tickers out of my office and have not had a ticker in my office for the past ten years.
". . . A man cannot watch the tape and not be influenced by hope or fear.
--W.D. Gann, 1942, How To Make Profits Trading In Commodities
I think he's trying to tell me something. When I read him in 1985 I thought he had some good stuff to say, but after 20 more years, he seems wiser.
--
". . . If you study price movements correctly, they will tell you more about what the market is going to do than any broker, newspaper, or so-called inside information. The time period is the most essential, because time tells what prices are going to do.
"LEARN To Be Independent: The greatest help that I can give you is to show you how to help yourself. If a man or woman depends upon others for advice, or for inside information and follows what others think about Commodities, he will never make a success in speculation--or anything else. You must learn to be independent. Learn to do by doing, and to know by study and application. When you are following something that you KNOW, you will have the confidence and courage to be successful.
"The most important thing outside your health for you to protect is your money. Therefore, take time to study. Prepare yourself to handle your money yourself and do not depend forever and entirely upon others.
"Knowledge is not enough. You must put into use what you learn in order to benefit. You will learn by doing. Action and execution at the proper time bring profits.
"NERVE. A man can have the finest gun in the world, but if he hasn't the nerve to pull the trigger he will never kill any game. You can have all the knowledge in the world, but if you haven't the nerve to buy and sell you cannot make profit. Knowledge gives a man nerve, makes him bold and enables him to act at the right time. When a man fails to buy or sell at the right time, the result is that he becomes afraid. Fear is a detrimental influence. When he has too much nerve and buys on hope at the top, he is guessing. When influenced by hope alone, he cannot expect profits.
"GOOD Health. . . . I have tried to trade when I was in bad health, always resulting in failure, but when I am in good physical condition, I act at the right time, making a success. If your health gives away, the most important thing is to work to get your health back in perfect shape, for HEALTH is WEALTH.
"To stand in a brokerage office or sit in a brokerage office and try to beat the market by reading the ticker and watching every quotation that comes out, is the most foolish thing a man could do, and the greatest waste of time, and the man who thinks that is the way to make money trading in commodities is making the mistake of his life. Those of us who have tried it, know. Expert tape readers are few and far between. It is the study of a lifetime, and while the tape does show the trend of the market, there are so many minor changes and quick reversals that the average man cannot tell whether the main trend has turned or whether it is only a minor change that will last a few hours, a few days, or a few weeks before the main trend is resumed again.
"You make a greater success when you sit at home or in your office, quietly follow your charts and trade on definite indications.
"I am not guessing or giving you a wild theory. I have gone through the mills. I have had every ticker in my office for years. I have thought I could not get along without them, and lost plenty of money by having them in the office and getting in wrong because the ticker showed some minor trend and threw me off the main trend which I had figured. I made a greater success when I took all the tickers out of my office and have not had a ticker in my office for the past ten years.
". . . A man cannot watch the tape and not be influenced by hope or fear.
--W.D. Gann, 1942, How To Make Profits Trading In Commodities
I think he's trying to tell me something. When I read him in 1985 I thought he had some good stuff to say, but after 20 more years, he seems wiser.
--
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