WD Gann– The Trading Legend
William Delbert Gann who is commonly known as WD Gann or Gann used to implement Geometry and Astrology along with mathematics of ancient era to predict the happenings in the financial market which is still followed by many traders and his disciples.
WD Gann passed away in the year 1955, but again, still his trading strategies are used to make money from the stock market as they are very relevant and unique at the same time.
But, this man faced utmost criticism as well for his rare trading strategies from the doubters. But that doesn’t stop him from writing some of the bestselling books ever in the field of stock and financial market.
WD Gann was born on the 6th of June, in the year 1878, It was in the town of Texas known as 'Lufkin', Gann’s parents were a strict believer of Methodist church family culture, and thus from a very tender age, he used to read Bible and by the age of 21, he almost by hearted the whole of Bible.
Bible played a significant role in his life as from the Bible only he realised the concept of time cycles. Being a gifted mathematician, who even used to excel in mathematics in schools.
He always had an attraction for the numbers and from Bible, and he understood the importance of repetition of significant events & numbers.wd gann
Early days in the Stock Market
The year was 1902 when Gann first introduced to the market of numbers and intuition that is a financial market. He was 24 years old then when he started trading in the commodity market.
He began with trading cotton as he hailed from the land of cotton and seen his father all his life to working in the cotton mill to earn them living.
But who knew then that these small trades in cotton in the financial market would make him one of the legends in trading over the next few years!
In 1906, he went to Oklahoma City and started working as a broker under a firm where he used to deal in the trading accounts of significant clients. Here he realised that most of the people who fail in the stock market were because of entering the same without any knowledge.
By the age of 27, within three years of his first commodity trade, WD Gann was a big name in the Southwest. Numerous people followed his prediction over cotton prices.
Becoming a Writer
In the year 1919, WD Gann started publishing his thoughts on a daily forecast of stock as well as a commodities market. It was used to get published in ‘The Supply and Demand Newsletter’, in which, Gann also used to write about yearly predictions of the markets.
After four years of the successful daily market letter, Gann started publishing another letter where he used to provide selective recommendations on markets. His writing career took off, and he wrote many famous books which are still followed by many famous traders.
Few of his most important books are The Tunnel Thru the Air - it is a book which contains few of his most significant ideas to trade in the market. Then ‘45 Years In the Wall Street’ is a renowned book of Gann which is still read by many.
Other books written by Gann are ‘Speculation a Profitable Profession’, ‘Wall Street Stock Selector’, ‘The truth of the Stock Tape’, ‘Stock Trend Detector Scientific Stock Forecasting’, ‘How to Make Profits Trading in Commodities’, ‘The Magic World’, ‘Face Facts America- Looking Ahead to 1950’.
The most important contribution of WD Gann in the trading is his concept of time cycles which is commonly known as cycles. In chapter 1 of Book of Ecclesiastes, verse 9, which Gann used to quote often refers to the cycles in time which means what comes in goes around and nothing is new as every essential event has a historical reference point.
Gann also believed the same that everything which occurs in the financial market which is significant has some historical connections. Here his knowledge of geometry and ancient mathematics along with astrology was implemented to find out how the essential numbers repeat themselves.
Gann often stated that to be successful in the trading market, and traders need to explore the historical events in the market. He used to say that if he had all the past historical data of the market, he could have predicted the future developments in the trading market as every vital number/events repeat themselves over a fixed period.
One of the most critical time cycles is 60 years cycle according to him. He stated that after every 60 years, significant events repeat themselves. This 60 years can be broken down to three 20 years cycle, so at the end of the third 20-year cycle, repetition occurs.
He referred to the panic following in 1869 and exactly after 60 years in 1929, again the most significant bull market of 1921 to 1929 ended which created panic amongst the traders and general public once again.
When some critics say WD Gann used to make money out of luck and he didn’t make that much money out of trading which he made by selling his books and providing trading courses, few, on the other hand, supports his trading ideologies and still, many traders follow them as well.
But the concept of time cycles is relevant is general as traders in any financial market follow the technical charts which based on historical events in the market only.