Profit Taking Techniques

[cpatte7372]

Hey KingCAMBO,

The trading plan is wicked mate. Thanks a lot.

Would you happen to have a similar plan for stocks?

Cheers

Carlton

[KingCAMBO]

Hey Carlton,

It could be done with stocks, sure. But that would defeat one of the base elements of the plan - which is how to get the most "leverage" out of your working capital. With stocks at 50% margin and futures at less then 10% margin, which makes more sense?

That said, to do it with stocks the principles would remain the same. Just change the dollar amounts and adjust size accordingly. Then build from there. You would probably want to pick one stock in particular and specialize in that.

best of luck,
KC

[cpatte7372]

KingCAMBO

Thanks again mate. I'm studying your plan - Gonna make it work for me.

Cheers mate.


Carlton

[fabrizio]

Nothing New under the Sun

From the "Famous" page 43 of Original edition of WD GANN'S " How to make Profits in commodities" Pub. by Lambert , 1942

TWENTY EIGHT VALUABLE RULES

1) Amount of capital to use: Divide your capital into 10 equal parts and never risk more than one tenth of your capital on any trade

2) Use stop loss orders. Always protect a trade when you make it with a stop loss order 1 to 3 cents, never more than 5 cents away, cotton 20 to 40, never more than 60 points away.

3)Never OVERTRADE . This would be violating your capital rules

4)Never let a profit run into a loss .......omiss...........raise your stop loss so that you will have no loss in capital......omiss......

5) Do not Buck the trend. Never buy or sell if you are not sure of the trend according to your charts and rules

6)When in doubt get out and don't get in when in doubt

7) Trade only active markets. Keep out of slow , dead ones.

8) Equal distribution of risk. Trade in 2 or 3 different commodities, if possible. Avoid tying up all your capital in any one commodity.

9) never limit your orders or fix a buying or selling price. Trade at the market.

10)Don't close your trade without a good reason. Folow up with a stop loss order to protect your profits.

11) ACCUMULATE A SURPLUS . AFTER YOU HAVE MADE A SERIES OF SUCCESFULL TRADES PUT SOME MONEY INTO A SURPLUS ACCOUNT TO BE USED ONLY IN EMERGENCY OR IN TIMES OF PANIC.

12) Never buy or sell just to get a scalping profit

13) NEVER AVERAGE A LOSS. THIS IS ONE OF THE WORST MISTAKES A TRADER CAN MAKE

14) nEVER GET OUT OF MARKET BECASUSE YOU HAVE LOST THE PATIENTE; OR GET INTO THE MARKET BECASUE YOUR ARE ANXIOUS FROM WAITING

15) Avoid taking small profits and big losses

16) NEVER CANCEL A STOP LOSS ORDER AFTER YOU HAVE PLACED IT AT THE TIME YOU MAKE A TRADE

17) Avoid getting in and out of the market too often

18) Be just willing to sell short as you are to buy. Let your object be to keep with the trend and make money

19) Never buy because the price of a commodity is low or sell short because is high

20) Be careful about piramiding at the wrong time. Wait until the commodity ius very active and has crossed Resistance Levels before buying more and until it has broken out the zone of distribution before selling more.

21) Select the commodities that show strong uptrend to pyramid on the buying side and the ones that shows definite downtrend to sell short

22) Never Hedge. If you are long on a commodities and it stats to go down do not sell another commodity short to hedge it. Get out at the market ;take your losses and wait for another opportunity.

23) Never change your position in the market withgout a good reason.......omiss........

24) Avoid increasing your trading after a long period of success or a period of profitable trades

25) Don't guess when the market is TOP. Let the market prove it is top. Don't guess when market is Bottom. Let the market prove it is bottom. By following definite rules you can do this.

26) DO NOT FOLLOW ANOTHER MAN'S ADVICE UNLESS YOU KNOW THAT HE KNOW MORE THAN YOU DO.

27) REDUCE TRADING AFTRE THE FIRTS LOSS; NEVER INCREASE

28) Avoid getting in wrong and out wrong,; getting in right and out wrong

[cpatte7372]

fabrizio,

I have just printed out the bullet points you have kindly provided, below. They're on my wall in front of me, in bold letters, as a constant reminder.

Thanks ever-so-much mate.

Cheers

Carlton

P.S.
I hope one day I will be able to help you out.

[fabrizio]

Carlton

Pleasure to support you.

PS: ( Buy the Book!)