Understanding WD Gann: Mastering Trading with Timeless Rules

all right traders are very warm welcome to you all i am devang from the financial analyst

and today as i promised you we are here with this uh wd gan master course or series of

lectures conducted by me to make you understand what is my understanding of the works of wd can

i want to explain i want to clear out some doubts before i move forward what we i will try to put out a video or

two every single week so we can move in a good flow we can understand what's really happening

but you have to understand a lot of these videos are going to go above people's minds

so i do not want you to stress about it it's taken me a long long time to really understand

one percent of what he has tried to bring to the table i'll give you a very good example a lot

of people ask me how can we start understanding the work again i would say the best way to do so would be to start

reading his his books all that he has written in the chronological order it took me 10

readings of truth of the stock tape to really understand what he meant

it took me 10 readings of the same page on tunnel through the air to give me 10 different perspectives of

the same idea why am i telling this all to you because this is not going to be of course

gans teachings gans ideologies is not a course it's taken him and i'm going to quote what he said

he said it took me 20 years of exhaustive study to learn the cause that produces the

effect it's not your technicals 101 that you see on the charts

this is much more above that i'm again going to tell you something why am i stressing is because this is all about

gan and you need to understand what you're getting your shoes into

it's going to be an absolute free training why i'm doing this for you is because i believe a lot of people now

in all over the world are i believe you can sell anything in the name of gan if i come to you and say i have a course

of gan i could charge anything for it right because no one really knows what is gan all about

and there are very few people in this world who really know what what his work is all about and

right now gan is like a publicity stunt that is why i want to bring something free to the table so you understand what

my what my understanding is and you can make your minds towards it so please

request is don't go to the market and buy courses of gan because i would say they're all fars

they're all fast number two gan was one person who earned about 50 million dollars

over his trading career in the stocks in the commodities market before he died in 1955 1956

so and i'm assuring you that 50 million dollars back in 1950s would be a handsome sum

it would be a really good sum to get milk in your glass and and uh bread in your plate much more

than that let me show you that so you have to understand that gan he was a member of the 33rd degree

freemasonry if you don't know that i want you all to search about it why am i saying it again

and again why we are going such deep into the work of gan into the life of gan

is because i know for a fact going forward today today's about simple things today is about some rules that

you need to follow over this journey but as i keep going further on with the squares and the

and the prize the master calculators you have to understand things are going to get

really really difficult and it's going to go above your high above your minds so it's it's okay

if you don't understand them in one go because i didn't i'm telling you right now i didn't there

were times that i would i would get so pissed off with myself and say

why do you really want to do it but when when those times happen i have done things for the community for

the markets that i'm really proud of which i'll bring to the table my best example could

be today something that i started as i said i started today i found what would be the

closing of nifty and bank nifty to the point about five six points away so

let me tell you a little bit about him said him gann was a member of the 33rd degree freemasonry

and uh in the 33rd degree if that's the highest accolade that you could have got back in those times

it started from the i would say seventh eighth degree actually and uh in the 33rd degree it was a

secret community that that met to discuss really beautiful ideas

and in that community you had albert einstein thomas alva edison as members

imagine who were inducted as members at that point of time and gann was one of them so you have to

imagine the gravity of the matters that we will discuss going forward in this course

i also expect you to watch these videos again and again and again because every time that you watch these

videos you'll have a different perspective so i'm gonna make a playlist and you can

always look back on that so a little bit about the works of gan where life afghan actually

and uh gan always said if you read his books he always said that i have found and

quote the secret time factor which enables me to find tops in bottoms in the market

one year or more in advance and the bitter truth he never gave that time factor away he

or he he died unfortunately with that the secret calculation that he had

of that time factor so there have been people who've been very very close to what gan did

by the way gan uh he's always mentioned that he was very he was very fascinated with india

and egypt and a lot of his learnings have been done from these two countries which makes me think i live in india but

i still have not got so close to what he said maybe in the future who knows god is always kind you have to accept

that but the square of nine what you all call it some people call it the master calculator

different names all the squares that he has brought to the table have to have actually so he learned a

lot of astrology from india uh so he he's all he always mentioned about that

the square of nine if you actually look it from the top right it's actually looks like a pyramid

and that is the idea which he got from egypt so that is something i wanted to

introduce before i start moving forward with those complicated things in 1954 gann came out with a commodities

course he called it the commodities master class master course

and at that point of time in 1954 that's one year before his death he or he still he still it's all it's

all documented he said that i spent twenty thousand dollars in one year before his death on

research so he was working right before his death on research because he had so much on

his plate that's the man i'm talking about in 1954 the commodities master course it

was rised at 5 000 in 1954 and if you convert that right now to current currency terms

it will be probably about fifty thousand two hundred thousand dollars that is one single commodities master course

yes gan was a commodities and a stock trader and uh the beautiful thing about that

course was it was a personal instruction by the master himself so

you have to understand gan was all about safety in the market always you've heard this

word or phrase from me throughout my videos if you watch them gan was all about safety in the market

yes there was a fair share of enjoyment that you get when you find a top or a bottom in the market

but it's not betting everything on that top and bottom which i'll discuss about over this over this video in the later

part of this video it's not always about finding out the top and the bottom it was about safety in the market as i've

been saying it's about you being safe it's about you being able to sleep in the night

and having that bread on your plate and and the milk in your class and being comfortable

that's what gan wanted to prove through what he had done always remember you have to have

attention to detail going forward or right now if you're in the markets i use that term on my

telegram channel a lot you will find out a lot of terms or my trading style as you all

know inspired by can and you will see over the course of time a lot of things that

you read on my telegram channel or a lot of things that you see on my youtube videos are actually

the findings that i've done from his work so attention to detail sit patiently in

a trade don't panic is something that i've learned

majority of the times from his readings a lot of people ask me devon what do you gain out of gan

and uh you know i as i said couple of times before it was it is a stressful job and even now

because i i i want to be i'm still i'm not even i'm not even five percent there i'm not

even five percent there but the truth is i can i do i can bring something to the table

and i can educate you in something that i am aware of which you might not be aware of

in this markets i would say in india because i'm not very aware of the global markets i know people in australia are

very good with it but overall in the other markets we always have talked about the price

factor but we've never talked about the time i know only a few handful

two three people in this country who talk about the time factor and through this video i will try to connect

with them in the future you will see that happening but the very handful of people who talk about the

time factor i'm very shocked and i'm very i'm very sad

why the time factor is never discussed why so why do what do i gain out of gan i

would say i gain a sense of fulfillment i gain a sense of fulfillment because i get a road map

going forward i know what's really going to happen forward when i i'm implementing what i've learned from

from his work i know what's going to happen i have that road map laid down for me

imagine the last 10 days what you've been reading on my youtube channel that markets are going

to go up and up and up i have the roadmap everyone's so worried about intraday but

i have the roadmap when i found the major tops in bottoms in 2020

it's all in front of you you all must be aware of that that's why you're already here

when i found the 21st december major top no one could have done that i found that one month in advance i've

had a sense of fulfillment i had a sense of fulfillment i found the 31st august stop of the indian financial

market that was a major top i found the 24th september minor uh the the mine the major low of the indian

market back in that autumn season i have done it i have done my fair share i found the minor highs

of uh of september 15 september 2020 i have done my major share of uh work for the community and i have surely

benefited out of them that's why you're here watching this channel that's why i'm at 13 500 subscribers

right now because of those findings that i've done so sense of fulfillment is something i i

always get when i when i implement what i've learned a little bit more about gan

before we move on to the actual training yes it's going to get today it must be a little bit boring but

i hope why am i bringing this out to the table again and again is because you have to understand

unless until you know the person i always believe unless until you know the person

you can't really understand the work that you bring to the table so you have to understand in detail who

the person was he died he was born in the eighteen hundred late eight hundreds and he

he passed away sadly in 1955 and as i said earlier he pulled in excess of 50 million dollars

in that trading career in stocks in the commodities market and his predictions by the way

a lot of people who's watching this video are you know with regards to financial

markets but let me tell you something i'm going to read that read something out to you also

is predictions were not always with regards to the stock markets but not always with regard to the financial

markets and that is what got me interested in the works of gann because when you read

someone saying you know this person's got the top and bottom it's fine it's really lovely but when

when a person can actually forecast or foretell what's going to happen outside the financial

world that is something which i believe was truly truly brilliant and i found that

all if you read the truth of this uh sorry tunnel through the air uh

the book that he's written and uh he was he was known he was known he predicted to the day

the abdication of the kaiser which started the war between 1940 1918 to the day

and he did that six months in advance that was absolutely stunning if you read about that no one could have

no one could have thought that why would the war start in the in the german german side

he predicted that six months in advance he predicted the top of the dow jones in 1929

six months in advance to the second decimal point that was how accurate he was and

one of the beautiful things that you might have heard these are some uncommon things but couple of beautiful

things that you might have heard of wd again would be the story of 1909 when you had

an sec reporter sit beside him so they were locked in a house and one of the sec reporters he sat

beside him for 30 days i believe about 27 28 trading days and gan would do trading in front of him

and this has been documented let me tell you you can always go on google and search about that

or you can read about uh this in journals given 100 years back and in 1909 he died in 1955 in 1909 a

reporter sat beside him for 28 trading days and documented his entire trading

because at that point of time was getting so much attention and wall street the new yorker everyone

was you know wondering is this guy who he says he is and once that reporter sat out

can in these 28 days bought a 92.5 percent accuracy and the in the most interesting thing

that i take out of this is in this 28 days he took about 286 rates or 296 trades roughly about that

figure he got a 92.5 percent accuracy and he would how would he make a profit he would throw he would take a trade in

a particular stock for 16 moves for up and down and up and down

in a single day 16 moves in a particular stock and eight of those moves would be major

highs and major lows of that day that was stunning 16 times i'm going to repeat myself

16 moves 16 moves he would trade eight of them major highs and major lows he knew what was happening

right now when we're looking at the chart how do we think we think that you know a breakout has happened

now the left hand has left hand side has said breakout has happened so the right hand side means this will

the market will go higher but can is because of that time factor that he died with

is believed to know what was that left-hand side of the market that's how i can explain this to you he

knew what was happening he knew what was the cause and he always he always fell back on the bible for

that if you read his books he always had that verse quoted

every single time he always said he always fell back on the bible so he was a very good at maths

mathematician he always believed in maths and a lot of his works

on the market is based on his studies on maths so that is something that was brilliant

same with david bowden a 1987 australian trader who is also very good at math so i believe maths is

something that could really get you a step forward so what i'm saying is he knew what was

the left hand side because if you knew the cause he knew the effect

that is something that i wanted to add so before we move forward with this actual training that i'm about to impart

to you i just want to read something some excerpts from tunnel through the air a

book that he has written in 1927. now i'm gonna i'm going to talk about

this a lot over the course of time there's a book written in 1927 i'm repeating myself because

when i read this book it took me a long long time to understand but when i read this book i had to

always you know open open back the cover and see when was this book copywritten

when was this book actually written because of the beautiful foretelling gann has actually done

and i'm going to read out something for you something very very beautiful because when i was reading this book

i really believed that this was in 1950s 1940s but i'm going to repeat it again the

book was written in 1927. page 82 page 82 what did he say let's let's read about that

he said that uh uh there is some part i really want to read out to you

which uh yep it's over here read this part over here with me it shows that the wars are not yet over

and that europe will have troublesome conditions and in fact the entire world must yet

pass through a very evil period between 1926 and 1932. it's very very exact if you know what

really happened at that point of time exact he didn't mention 1950s he didn't mention 1960s

he had that range laid out to him and the book was written in 1927. he said that it also confirms that both

the major and minor cycles indicate that years 1928 and 1930 to 1932 will be years of famine

depressing business conditions and panic not only in europe but also in the united states

and the maximum evil of the thousand-year cycle which will not be which will be not be

completed until 1932 and 1934 he found out the the dow jones slide that happened in

1932 and the book was written in 1927 and he said that this will bring serious

troubles to the us and he said that another bad period will be

in the united states 1940 to 1944 to the exact date you all know the world war ii that happened

and the book was written in 1927. if you think i'm repeating myself yes i am because you have to understand the

gravity of the work that has been accomplished by wd can

i'm going to read if you think this was not very interesting i'm going to read something else for you

that is going to grab your attention right away another page that i have from the page

number 278 tunnel through the air this is something that absolutely blowed my mind absolutely

he said that the united states fearing that the japan would make the first attack on the

pacific coast either around los angeles or san francisco

rushed battle to the pacific this proved to be the one of the greatest mistakes of the war

as soon as the battleships cruised to the pacific japan attacked from the air with the noiseless airplanes and began

dropping deadly bombs from great heights the anti-aircraft guns were powerless to reach the bombing planes

at such great heights defeat was swift and only a few of the battleships come escaped complete destruction from the

first attack if you are good with your history you know what he's talking about

and the book was written in 1927 exact year exact dates exact event that happened

20 years back forecasted that's the beauty of the work that he has

accomplished so i hope i've got your attention before we move forward i hope i've got

your attention if you're enjoying this master course if you're enjoying uh what you're about to entail

let me know in the comments the more the comments the more the likes the more uh i would say motivated i am

to bring more content like this to the table i want to go really deep i want to go really deep with all of you

but i would love to see if you can show me some love on youtube because that's going to help

my video reach a lot of people i want to introduce the time factor to people whatever i understand

whatever i have understand i want to introduce the time factor to the people and that can be only achieved if i get

the support from you so if you're new subscribe if you're already an old member

share it as much as possible so today today is all about the 24 rules that i am concerned about

uh before we start forward before we go forward with the intense material there are 24

rules that you need to follow this was written by gan uh in 1949 uh in one of his last books

six years before he died i already covered a couple of points with you in one of my videos also because when

i'm trading these rules are something that are very very important but over the course as i said it's not

about finding tops and bottoms but it is about finding safety in the market so these are some rules that you

need to fall back on and you will see over the course when i read these rules when i explain these

rules you have to note them down and you can't forget them because everything i discuss

on telegram has to be backed up by these rules if they're not you will never be a good

trader that is my promise but just pay some attention and listen to these rules that

i've written that can as written out for you they call them 24 never failing rules

let's start with the first rule he said that the amount of capital let me zoom it in for you rule

number one he said the amount of capital to use he said divide your capital into 10 equal parts

and never risk more than one tenth of your capital on any trade very important the biggest problem that

i see right now in the markets in india or with the community that i'm handling right now

is a lot of people blow their accounts they become so bullish or so bearish on an idea and

when their idea goes wrong they have nothing left i'll give you a very good example right now

everyone wants to go short why because the markets are at highs everyone starts shorting shorting shorting shorting and

when the actual shot happens no one has the money to back it up and everyone says kr we thought markets

will come down but they never but they never did when we had the money and when they actually came down we had

no money to play with so a lot of people wipe out the trading account at the right time

it's all about you surviving that's what gan said gan said if you have a one lakh account i'm assuming let's say you have

one lag account he said divide your capital into 10 parts that would mean 10

000 per part and he said never risk more than 10 000 on a trade why because then it would

take 10 trades which would go massively wrong in a row consecutively to blow up your

account and that's very difficult to happen if you put everything in a trade

you could low up your account but when you put 10 different uh 10 trades 10 amounts it's very

difficult to blow up your account because something or the other it's going to work out for you

and that is what's going to create a difference if you are still skeptical about it you could

always divide it into i would say you could never risk five percent of your capital

just put five thousand uh in a particular trade if you have a one lakh account

yes you would earn less profits but it's not about earning money right now it's about you understanding the market

and you surviving in this market right now that's what gan said so if you risk five

percent of your capital on a trade it would take 20 trades to blow up your account if you risk two and a half

percent it takes 40 trades so based on that try to understand

never ever put your entire trading account at risk no matter how bullish how bearish you are no matter who tells

that to you the second thing that he said was always use top orders always and always and

always i think if you want to learn something today but learn that

please he said always use stop loss order this is about 60 years back at that point of time he used stop loss

orders i think the biggest problem right now is ego ego i mean a lot of people when they

have an idea they become so egoistic about it that they want to hold that trade no matter

what they always hope that you that that you know what what's gonna happen is that

the markets are gonna come down let's say this is a support level that i've

identified hundred rupees and they have a stop loss below the support they always believe that

if they if they don't have a stop loss they always believe that the markets are going to come down

hate their stops hundred stops and then they go up they always believe that gods will always turn the trades according in

their favor always remember as you sow so shall you reap god helps those who have themselves

always have stop loss orders in focus if you don't have a stop loss means you're being egoistic about a

trade and markets will punch you hard and it will make you bleed is what i'm trying to bring to the table

he said always protect a trade when you make it with a stop loss order three to five points away

and this is being backed away by the point number four which i've been telling you again and again

in the live market i say never let a trade run into a loss never let a profit run

into a loss example so i'm gonna he said that after you are in a profit of three points or

more raise your stop loss to cost to cost so that you will have no loss of capital

very important and today i got a message on instagram i was roughly reading them i said he

said that i'm in a loss on kotec because the premiums have decayed and if and i've already explained these

rules to you i i've always said let's say you bought kotec at a premium of 63 rupees

and if kotak moves to 70 rupees if kotak moves three bucks away from your cost you at least get yourself

that cost to cost so even if the premiums decay you rattle you're at cost to cost

you don't risk your capital please understand every trade does not have to go right

if ghana had 92.5 accuracy it meant that he never hit a stop he hit a trailing sl he never made a loss that way i hope

you're understanding if you remember that colgate trade we took 1715

we moved till 1723 trail sales keep on trailing sl so that even if the trade comes down you

make a small profit but you don't make a loss people are egoistic about that and they always wait

and wait and wait and they say that you know markets are going to give a great move today and that never happens

that never never happens so never let a prophet run to a loss he also said something very very

important he said never over trade that's beautifully said i'll explain two cases here

what i have understood over the years how about is over trading he said this will be violating the capital

yes it will be because we can't use more than five ten percent of a capital on a particular trade

so what is what is over trading over trading can have two meanings number one could be if if you have a one

lakh account you put everything in a particular trade that's called over trading

because you're so egoistic about a position you actually make a big loss you think you make a big profit but

majority of the times you make a big loss over trading can also be interpreted as

having everything in the markets that's also over trading you have a one lakh capital and at the same time right

now at 9 20 am in the indian market time 20 trades are open you put 5000 in a trade and 20 trades are open

even that is over trading so gan said never ever over trade you should know when to stop you have to

be patient you have to pay attention to detail that's where you want to be successful

so i would always suggest you going forward always have some surplus cash lying around the account

because we need to pyramid trades like i did today with banco broda i paramount some trades so you always

have to have something in your account for the rainy days you can't over trade because the position size is

too much for us to handle and that makes us wonder so much how to pay how we always look at the sgx nifty

at night the nifty futures after the markets close because we're so over stressed so

if you're overstressed in the markets i would suggest you reduce your over trading that can all

probably help you out i hope you're understanding that then further on rule number five he said do

not buck the trend what does that mean he said never buy or sell if you're not sure of the trend

according to your charts absolutely beautiful he said what does this mean let me explain it to you very

well a lot of people buy the news they sell the news i'll give you an example

let's say the chart is in a primary downtrend this is also something what jesse livermore said

there's also something that dao said in his tenants which is known as the dow theory they're all linked they're all

linked all the great men had similar ideas put in different

uh in diff during different times in different languages but they all had the same ideas

and it's up to us whether we want to follow those ideas or not so what does this mean do not buck the

trend gan said that never buy or sell if you're not sure of the trend a lot of people what time what happens

is we read the news and a beautiful piece of news comes in and we buy the news why because we expect that the news

is going to change the trend always always understand this the news cannot change your trend

let's say the trend is in a primary downtrend making lower swing tops making lower swing lows

and we expect a big profit that has reported is going to change the trend let me ask you something very very

honestly do you think the management of a company is going to come to the newspaper is going to come to the tv

channel and tell something bad about the company have you ever heard

the management coming on cnbc or coming on economic times et markets and telling that the company

is going to go bankrupt they never do that why would they ever do that that is

something which you are getting stuck in accumulation and distribution what you think is good is actually bad

news and what you think is bad news is actually good news so what gan has been saying is if the

market is in a primary downtrend if the market is going down don't buy keep short and if the market is going up

you have to be in the direction of the upward movement you keep on buying on dip

that is what he said just don't change the position of the market accordingly because of the news has come

out that's what he's actually trying to bring to the table i hope you're understanding the point

that i'm trying to explain number six he said when in doubt get out and don't get in when in doubt haven't

you heard this a lot of times on my telegram but now i hope you pay attention to this

more so gan said that whenever you're in doubt whenever you're not sure about what's

happening today i got this message and i was so happy to read this on instagram and let me know in the comments if you

were the person who sent this message and this person said i don't remember his name he said that i was in a 600

loss on a nifty nifty bank trade and i was in doubt and he said as you said when in doubt get

out i exited at 600 rupees loss i didn't want to have sleepless nights absolutely beautiful and i'm happy to

see people are following these standards that we're bringing to you guys these are long lost principles that you

have not been familiar with i hope that today tomorrow when you come to the markets

you know what you are doing whenever you're in doubt get out that's what david bowden said a very

similar uh i would say a change in words he said that it's always

better to be out of the markets wishing that you were in than being in the markets wishing you

were out powerful statement but similar meaning whenever you think things are fishy

get out and always come back in the market when you know you have a definite plan

in mind and when you know what's that what's that road map to execute that plan

because then only you can make the money rule number seven a long list of tools but i hope you're

learning something new and you can always let me know in the comments uh if you are

rule number seven he said trade only in active stocks keep out of slow and dead ones powerful

statement something we don't realize i i see a lot of people i've talked to more than thousand people in the last

couple of months thanks to the community that we have built now thanks to support of you guys but um i i

see a lot of people so much interested in small caps small not small caps i would say so much interested in

penny stocks everyone thinks that the penny stocks uh this company abc for example

who term would be a turnaround story would give would be a multi-bagger no one realizes that when you when you

trade in penny stocks it's a one out of 100 chance which can turn into a multibacker so you

have to be invested in 100 stocks and and put allocate the capital accordingly so that when that one

company goes into a multibagger you're actually in that position so what i'm trying to say

that's what jesse livermore said jesse livermore also said the same thing in his book reminiscent of the stock

market he said that most of the money is lost in the first eighth of the move

and the last eighth of the move one eighth of the move very powerful what we do is as individuals as retail

traders we see a stock trading at five rupees 10 rupees it's a dense talk

it's not moving nothing no trigger about it no catalyst about it we just get an idea here this could be a

multibagger and we put money there it's still a dead stock it's still not moving we just want to be

at the bottom find the bottom and be the first people to take advantage and jesse levermore said that

as well as gan they said that the the most money lost is in the first eighth of the move

one eighth of the move of the time so rather than getting the bottom of the stock gan says

it's better for you to rather than finding the bottom let the stock actually become an active

stock from a dead stock let it move five six percent then get into the stock so that you know that

it's surely gonna move now that's a much better way rather than finding bottoms and tops

i hope you're understanding what i'm telling you guys don't keep on finding bottoms and bottoms and bottoms but try

to let the stock first become an active stock then get into it because when the stock moves five

percent people think you have to move qatar okay it's gone but if the stock moves five

percent and your idea is right it could again move 50 60 100 it could still move winners remains

winners losers remain losers remember that statement

the eighth rule that he discussed was equal distribution of risk this is something very similar to the

capital rule that we've done we said only trade in four or five stocks if possible

avoid tying up all your capital in a stock this is something i see a lot of time problems with retailers who have

small accounts and uh market is cruel to small accounts because

you see so much money on everyone every that everyone's earning everywhere that small account people want to put

everything in a particular trade first of all you follow that rule i've taught you one tenth of capital second

of all equal distribution of risk understand this rule the only trade in four or five stocks if

you're trading intraday four or five was max you can't have four or five trades more

than that in a day even if you if you're trading in a lexus swing if you have a one lakh capital

don't trade 20 stocks don't trade one stock also with one lakh rupee investment

don't trade 20 stocks also that's too bad but trade in four or five stocks and take it very very slowly because

it's all about diversification you can't have everything in the market you can't have everything

at one point time in the market you need a surplus which i'll come to later so be careful with that if you have a

small account be patient markets will surely deliver if you're patient along this journey you

will you will see how the markets reward you patience is a virtue remember that

the ninth rule that he said is never limit your orders or fix a buying or buying or a selling

price always trade the market now this is again something that could be rebutted everyone has a different

style but i'm going to talk about what gans are 50 years back 60 years back he said always trade at the market price

see this has some twitches that could be done it read it requires some more understanding of the markets

so for example let's say your stock is trading 100 rupees and you you fix some fix a limit price here

i will buy only at 98. stock open at 100 tomorrow morning and you say i will only buy

98. what you want is you saying here two rupees expensive i can't remember but i will only buy 98

and the stock rushes along and you miss your opportunity that's what gan said gan said always trade the market order

always take the market order but that does not mean if if the ma if yesterday's price is 100

and today it opens 110 you buy the market that's not what it means so this has

limited applicability i would say that's the applicability but you can always twitch it according to

your understanding so that's what he said always check the market never miss an opportunity for one two

rupees or according to your uh the asset that you're trading never miss an opportunity for one rupee or one

percent but be in the trade because if you're in the right trade it can give you a great

amount of money and one percent will not matter at that point of time the tenth is

something very important which i which i will explain with regards to the current market example he said don't close your

trades without a good reason follow up with the stop loss and protect your profits combine that with rule

number four never let a trade run into a loss cut your losses

but let your winners run don't close your trades without a good reason a lot of people have been messaging me

and they're saying can we exit this company can we exit that company i as i always said give me one good

reason for that for people who are going short in the market give me one good reason for that

people are going along in the market who want to exit give me one good reason to do that

are you understanding what i'm saying if you want to exit a trade let's say you bought reliance

at 2 000 it went up till 2200 whatever the price 21 70 20 180. a lot of people say yeah we've got about

10 what to do now can we exit i'm saying yeah the moves just happened give me one good reason why to exit

if you have a reason good but if you don't have a reason trail the sl and hit a stop loss hater trailing stop

loss but don't exit a trade a lot of people do this when the let's say a

intraday trade also intraday trade for reliance i i would say in the last two days reliance moved one

percent a lot of people booked profits and moved in the last one month it's move one percent will find

a lot of people pay attention to their pnl accounts okay i've got 10 000 5000 rupees profit i'm done

but remember if a trade you have to focus not on the amount you're earning but on that trade idea and for example

reliance we've been telling you again again the breakout has just happened it's going to go up and up and up and up

so if you're in that trade you have to be trailing your stop losses and be in that

trade for a longer period of time get the maximum out of the trade by trailing stop losses

that's what gan said so the 10 rules i have done till now they're important why because

when we go forward with this master course you have to keep these points in mind

and these are the basic tenets because when i teach you further things the more complicated ones

we will have to execute some certain plans and when we do that these are the things which will help you

be focused and help you protect your capital because we will be wrong that's why we have stops

11. accumulator surplus that is what i have i'm doing that's what i've been doing for the last

one year thanks to gan and it's been really helping me a lot gan said that after you made a series of

successful trades put your money into a surplus account for your rainy days

what i have done is my main account is icici bank i opened another account in uh au bank whatever i earned from

options whatever i earned from equity this is a surplus amount i always withdrew it and put it in my au bank

account my main bank is ici bank but i kept on creating a surplus and that kept on growing growing growing

that's required for two things number one any rainy days in my personal life because when my money is in a portfolio

when my money is in the options account i'm not going to withdraw it you know if the rainy days come because

i'll be greedy at that time but if i have some surplus account that will be helpful point number two

when you know when you are uh when you have a surplus account

you can always fund your account again so when the account let's say you make a loss you always have some money to fund

your account but if everything is in your trading account you might blow up the entire

account so you have to be disciplined that way this is one very very good advice that i

have learnt and i'm personally doing right now i've created surplus accounts

and in those surplus accounts different modes of investments are going i do have some rds i do have some mutual

funds i do have some ncds i do have some nsa saying certificates it's all going i have surplus accounts

that's what i'm trying to bring to the table number 12 never buy just to get dividend

not very applicable in the indian market scenario but it is still applicable there are some countries which is that

that's more applicable to again that's a 50 year gold concept but still never just come in to buy the

dividend i get a lot of news can i just buy bpcl for dividend

a lot of people don't understand when the dividend is announced or when the dividend is

released to your public the share price will also come down that much if if hp's if vpcl is distributing a 50

rupee dividend 50 rupees dividend the share price will also voluntarily rupees because that no longer is the

income now that is something the amateur people who understand when they read the news

itc 10 rupee dividend they buy the shares but if you just come in for dividend you make 10

rupee on the dividend but 10 rupees loss in the share price so if you're just coming in for the

dividend that's not gonna make sense to you so know your fundamentals right that is

how i can put it number 13 never ever average a loss i think that's a very good advice i've

learned something i've learned i'll give you right examples and this is one of the

worst mistakes a trader can make that's written in 1949 i believe it's very very important why i

took a trade on snowman i took a trade on snowman i made one mistake i never

averaged my law i never trailed my stop-loss i remember we bought snowman everyone did

i believe back in 2020 we bought snowman at 60 rupees it made a high of 75 with a matter of

two days i remember that exact day the trade had been given to everyone on youtube or or on discord or whatever

whatever that community was i didn't have telegram at that point of time now the biggest problem i made was i

never trailed myself i let my profits run into a loss point number one point number two

when that trade turned into a loser so when i went below my cost i kept on averaging my

trade i said that giving you an example ten rupees stock when it falls to eight

you average why so that the price comes to nine and you can exit break even that's what the thinking goes into your

mind here we will actually break even we always this is what jesse livermore again said i want to again uh

rebut i again want to introduce what he said i love to read always keep on reading people ask me where have you

learned how to trade in the markets i love to read attention to detail

i don't do extraordinary things i do ordinary things extraordinarily well because i've learned from the experience

of great traders who accomplished more than i can imagine in my life in their lives jesse

livermore said the same thing about averaging a loss in in his book he said that

most of the people when the trade goes against them they're hopeful that the trade will the

trade will turn into their favor but when the trade goes in their favor they want to cut profits fast

because they are fearful that the trade will go against them and that is the psychology that you have

to reverse i believe that's important when the trade goes with you

why are you being faithful i get so many times reliance moved in the direction right when we give the trade i got so

many messages what's the target of reliance for nifty 14 900 was the price that we

got you in nifty i got so many people what's the target of nifty it's already gone up 600 points

700 points actually and i'm gonna i'm gonna tell you something very simple in a bull market

there is no resistance in a beer market there is no support remember that so please have your

psychology right when you are in a loss it's important to cut that loss

and when you're in a profit trail the position but don't cut it let the profits run that is what

gan said don't average losses averaging should be done when the parade is in profit so what we're doing with

bank of road are the psu banks what we're doing with companies other than that have you heard divang mehra

averaging naukri.com not yet nakri so people ask me what to do with nokri.com you were so bullish i'm still

bullish i'm not rule number what rule number uh 10

never close a trade without a reason i don't have reason it's gone down two three percent i'm still bullish

if you're scared if you're in doubt get out but i'm not in doubt right now i hope you're trying to see how i'm

linking everything to the current markets now that you're learning right now

on my diagram channel so never ever average a loss always average winners and get your

psychology right losses go further down if if a share starts to move down something is wrong

it will keep on going down be fearful but if a trade goes in profit it will keep on going up think like that

change your psyche change your forte when you come to the markets the 14th rule that he said i want to

take a sip of water i think i talked a lot these videos are going to be long please

understand these videos are going to be long because i believe i can't do justice

otherwise if i make it short i'm very sorry about that

let me know if you're finding it useful by the way rule number 14 he said never get out of

the market just because you have lost patience and never get in them or you're anxious from

eating or never get in the market because you're anxious from waiting i'll again

repeat what david bowden said in 1987 he said that don't you should it's better to be out

and to be in rather than being in wishing you were out just what i said a couple of points back

see this is what is going on right now the biggest problem a lot of people

when they come join our course at tfa everyone i tell them everyone everything i say you're not going to learn

technicals from me but i want to learn i want you to learn one thing from me and that is patience

let me know if you learned that already if you're in a bold project if you're in the architect program let me know if

that is something i tell you often i always tell people i will never ever teach you technicals

and even in the course if you sign up i think i only have one lecture for technicals

all the other lectures that i've signed up is for psychology or to teach your patients

different ways to do that i believe it's important right now for example naukri.com

it's down to three percent or any other trade that i might have given is going down

people become very uh very nauseous or they become very impatient you know why that happens because they violate

the other rules because they have everything in this trade and now everything is stuck in a

trade when it is a loss they think to themselves why shouldn't i take out the money here and put

everything again in another trade so think why am i not panicking because i only have a small chunk of my capital

m that's why that is why if you have too large a position in any of the trade and

you're worrying about it that means you're oversized over position you have to

check that you have to reduce your size so what i'm trying to say is you have to be patient

as i said learn patience from me how i sit into losses i don't average losses or when they turn into profits that's

when i become active that's when i become active learn that from me so don't be impatient

at the same time don't be anxious again this is something very powerful that gan has told you if you read his

books very very closely very minutely this is something that he's also talked about he said that there are three

or four moves that happen in the market in one year in if you if you watch an index or if

you watch a stock there are three or four times when a move happens in a year

which means that out of 360 days four times the move will happen meaning you will have to be patient and

you have to wait for that move so you have to have that basic tenant of waiting of pay i always say

money is made by waiting and not by trading wait for those days think about nifty right now

three months nifty consolidated and now the move happened and now people are not there in the trade

i'm very it's very sad to say for me to bring it up but now people are not there in the trade when they have to be in the

trade it's gone up 700 points people are still short people are still short

i got asked a message okay you don't talk about why we should book profits i said

go with the flow right now go with the flow right now so every three to four months i would

say after that when this when the season changes uh when that seasonal impact comes into

stocks i'll talk about that you have to wait for my video on seasonal changes and stocks you will be

astonished to see that but every season some move happens but you have to wait

that's the point number 14. number 15 avoid taking small profits and big losses very i've already talked about

that in detail let's not get into that never cut profits fast never cut but cut losses fast

why do you have that thinking in your mind that when the when the markets are going against you it's gonna turn

it's gonna turn it's not gonna turn if the market goes against you exit come exit fast

if it goes back into your favor again enter but when the markets are against you

accept it that's the biggest biggest and the most difficult thing that you could do in the market

except when you go wrong never be egoistic you have to be humble you have to be

down to earth always and always and always remember that be down to earth when you

come in the market always think like this i'm a servant of the market i'm a slave to the market

crude words blunt words but true you can't outperform the markets hundred percent time scan couldn't do that

you did 92.5 you have to accept that you're a slave to the markets and you have to position yourself well so

even if you go wrong you aren't in a big loss try to understand that point number 16

never cancel a stop order once you've placed it absolutely beautifully said why a lot of people i always i always

say this in my course when you do that that when you place let's say the moment you place an order

for example i am buying mahindra and mahindra at 800 rupees example

so when you place that order you must have decided two things number one what is the time period of holding if

you are deciding let's forget about mahindra let's talk about the psu bank so if i

have said i'm going to buy i click buy on bangkok or i buy by the way this rule never put your money in one

stock equal distribution this rule that i talked about that is something we did in the psu

banks we never put everything in one basket but we did it four to five stocks so can

you see how i am actually helping you incorporate these rules without you knowing it that

is what i'm actually doing because i want you to be safe it's about safety in the market

putting glass putting milk in your class and bread on your table i do i always tell people if you come to

me i'm not going to give you through my course 100 returns i'm never going to tell you that

i can give you 10 return when i can't give you 100 return that's something i always said people so

going forward he said that never cancel a stopwater if you enter a trade when i entered the trade trading psu

banks i decided that divang mehra what's your goal i said my goal is i want to make the psu bank the next metal

which means that i'm going to sit in the psu banks for a long period of time which means that i am not interrupting

which means that any short-term price correction any short-term price fluctuation will

not be will not scare me and i will use them to buy more so once i've decided that you can't

panic when that movement happens when bob moves three percent down you can't panic

because when you purchase you also had to stop in mind let's say when i purchased bangkok road

had a 50 rupee sl in mind this is a raw example i don't know what the numbers are

but let's say that 50 is a stop loss now unless until that sl is being triggered you can't exit now if bank overrun