Learn How to Become A Successful Investor Like WD Gann

‘That which has been is what will be,
that which is done is what will be done,
and there is nothing new, under the sun.’
Ecclesiastes chapter 1, verse 9 states:

Is it true that there is nothing new in the marketplace?

W.D. Gann thought so. Specifically, he believed that the law of action and reaction means that history must repeat. In all markets. Over and over again. Markets are driven by human beings. And human beings do not change. They repeat their behaviours, cycle-after-cycle.

That was the theory, anyway.

How did it stack up in practise?

When it comes to the teachings of Gann there are two sides. One that thinks he is far and away the greatest market oracle of all time. Nuclear physicist-turned Wall Street investment banker Asoka Selvarajah calls W.D. Gann:

‘The greatest genius that the financial markets have ever seen… His achievements in this arena in every way match those of the greatest scientists of our century or any other.’

Then there is the camp that believes has been overhyped over time. Or was even a fraud to begin with.

Whatever the case, Gann left a track record that’s pretty damn remarkable…

Here’s what we DO know about William Delbert Gann…

He was born on a cotton farm in East Lufkin Texas on June 6, 1878. He spent his teens working in the family business as a clerk in their cotton warehouse.

Somewhere around the turn of the century he started trading — both stocks and commodities. Although we don’t have records of this period, he obviously had success, because in 1908 he took his trading to Wall Street. Fairly soon after that he started his own brokerage on 18th and Broadway.

From then Gann was an active trader, on and off, for 56 years. So there’s a fair bit of solid track record data to go on.

Gann’s legend started growing almost instantly after moving to New York City.

In the month of October 1909 alone, he made 286 trades in one trading session. Only 22 of these were losing trades. A 91% success rate. The press started following him closely. A journalist from the respected Ticker and Investment Digest spent time on the trading floor observing every trade Gann made over several weeks. He later wrote ‘I once saw him take $130, and in less than one month run it up to over $12,000. He can compound money faster than any man I ever met.’

Gann was in it for more than just money though.

Rocket expert Wernher von Braun once observed: ‘The natural laws of the universe are so precise that we have no difficulty building a spaceship to fly to the moon and can time the flight with the precision of a fraction of a second.’

Gann, too, was convinced this precision had predictive powers when applied to the markets, the political cycle, even the whole course of human history….

So while he traded like a demon, he kept studying like one too…

Gann concluded that, having many more centuries of data to analyse, he would take his studies to England. After returning, he skipped past Wall Street and went straight to New York’s Astor Library. He spent just under a year there.

A friend of Gann’s, Clarence Kirven, wrote: ‘He is the only man I ever knew that I thought had worked as much as Mr. Thomas Edison.’

That hard work led Gann to the following conclusion:

Read the rest of this article at The Daily Reckoning