Introduction
Welcome to the WD Gann Master Course, where we delve into the intricate world of trading strategies inspired by the legendary trader, WD Gann. As someone who has extensively studied Gann's teachings and principles, I want to share my knowledge and understanding of his work while guiding you through a series of lectures and practical rules designed to help you succeed in the markets. Gann's approach goes beyond the basics of technical analysis; it encompasses a deep understanding of market movements influenced by time factors, cycles, and psychological aspects.
In this course, we will explore Gann's life, his notable works, the fundamental principles of his trading methods, and the 24 never-failing rules he outlined for traders. My aim is to ensure that you leave this course empowered with insights and tools to navigate financial markets confidently.
Understanding WD Gann: A Brief Overview
WD Gann was not only a successful trader but a visionary who made significant contributions to market analysis. Having earned around $50 million during his trading career in the stock and commodities markets, Gann was known for predicting significant market movements with impressive accuracy, often years in advance.
Gann's methodologies were rooted in mathematics, astronomy, and astrology, leading him to formulate innovative trading concepts such as the 'Square of Nine' and 'Time Factor'—keys to understanding market timing and price levels. To grasp Gann's teachings comprehensively, it is necessary to appreciate the complexity behind his approach and recognize that initial misunderstandings are common among traders unfamiliar with his methods.
Gann's Influence and Philosophy
One of the fascinating aspects of Gann's life is his connection to various intellectual circles, including his ties to the Freemasonry. His analysis wasn't limited to financial forecasting; he was also known for predicting historical events with incredible precision. For instance, Gann forecasted the abdication of a European monarch and the major downturns in the financial markets, showcasing his exceptional ability to intertwine market behavior with broader historical patterns.
Key Principles of Gann's Trading
Gann devoted a significant part of his life to research, dedicating over 20 years to perfecting his strategies. Here are some foundational principles behind his trading philosophy:
- Understand the Time Factor: Gann stated, "I have found the secret time factor which enables me to find tops and bottoms in the market one year or more in advance." Understanding time in trading is vital, as it helps traders predict market cycles and potential reversals.
- Patience Is Key: Successful trading requires patience and discipline. Rushing into trades or making impulsive decisions often leads to detrimental outcomes.
- Safety in Trading: Gann emphasized the importance of preserving capital as a means of achieving long-term success. This principle underlines the need for risk management and strategic decision-making in trading.
The 24 Never-Failing Rules for Successful Trading
As we progress through this course, the core of Gann's teachings boils down to 24 essential rules that every trader should embody. These rules serve as integrity checks, ensuring all trading activities are conducted wisely and cautiously.
Rule 1: Capital Allocation
- Divide your capital into ten equal parts. Never risk more than one-tenth of your capital on any single trade. This strategy not only protects your account but allows you flexibility in making multiple trades.
Rule 2: Always Use Stop Orders
- Gann strongly advocated for using stop-loss orders to protect your trades. A trader without a stop loss is often too influenced by emotions that lead to larger losses.
Rule 3: Avoid Letting Profits Run Into Loss
- Once profitable, always adjust your stop-loss to at least your entry price. Doing this ensures that gains are secured and not lost due to market reversals.
Rule 4: Be Disciplined in Trading
- Never allow a losing trade to dictate your trading strategy. Establish clear criteria for entering and exiting trades, and stick to them.
Rule 5: Don't Buck the Trend
- Follow the market trend in your trading. Avoid buying or selling against the prevailing direction, as this is likely to lead to losses.
Rule 6: When in Doubt, Get Out
- If you lack confidence in a position or if market conditions become uncertain, it's better to exit and reassess rather than holding on in hope.
Rule 7: Trade Only in Active Stocks
- Investing in active stocks that show regular movements is preferable over stagnant, dead stocks. Liquid stocks allow for efficient entry and exit.
Rule 8: Equal Distribution of Risk
- Identify several stocks to trade simultaneously instead of concentrating on one. This strategy helps mitigate potential significant losses.
Rule 9: Never Limit Your Orders
- Place orders at the market price as opposed to fixating on a specific limit price. This can often result in missing out on opportunities.
Rule 10: Protect Your Profits
- Follow Gann's advice to let profits run while cutting losses. Never exit a trade without a sound rationale.
Rule 11: Accumulate Surplus
- After successful trades, sett aside profits for unexpected needs. This surplus can act as a buffer and help you weather downturns in trading performance.
Rule 12: Avoid Buying solely for Dividends
- Watch carefully regarding dividend payouts since stock prices adjust accordingly. Assess stocks for their fundamentals, not just dividend returns.
Rule 13: Don't Average Losses
- Never average down—this could lead to larger losses. Only average positions when they are profitable, applying discipline in loss scenarios.
Rule 14: Exercise Patience
- Never exit a position because of impatience. Focus on executing your well-thought-out trading plan.
Rule 15: Avoid Small Profits with Big Losses
- Prioritize protecting your capital. Seek substantial profits over small wins, and cut losses quickly—but allow winning trades to run.
Rule 16: Don't Cancel Stop Orders
- Always adhere to your predefined stop-loss orders. They are critical for capital preservation.
Rule 17: Avoid Over-Trading
- Be selective with your trades. High-frequency trading can lead to mistakes and unnecessary losses.
Rule 18: Engage in Short Selling
- Don't shy away from short selling during downtrends. It can provide profitable opportunities when used strategically.
Rule 19: Don't Trade Based on Price Alone
- Avoid making trades simply because prices seem low or high. Always consider fundamental analysis.
Rule 20: Be Cautious with Pyramiding
- Ensure you buy additional shares only after confirming a breakout. Regular monitoring and analysis of market movements are crucial.
Rule 21: Maintain Conviction
- Uphold your strategic rationale. If data indicates a position is no longer sound, be willing to exit before market conditions deteriorate.
Rule 22: Ensure Rational Reasons for Changing Positions
- Adjust your position only when there are sound reasons for doing so, such as reversals indicated on significant charts.
Rule 23: Avoid Increasing Trading Risk
- Productivity is essential; never let success lead to overconfidence or excessive risk. Sometimes, it’s wise to step back.
Rule 24: Evaluate Performance Regularly
- Consistently reflect on your trading journey. Fine-tune your approach based on outcomes and continue learning.
Conclusion
In summary, WD Gann's teachings provide invaluable insights into trading effectively. His 24 rules serve as a guiding principle that emphasizes the importance of risk management, patience, and strategic thinking. Remember that trading is an ongoing journey of learning, where perseverance and adherence to sound practices contribute to success.
As we move forward in this course, I encourage you to engage with the material, revisit the concepts discussed, and apply them consistently to your trading endeavors. Together, let's unlock the power of Gann's wisdom and make significant strides in our understanding of the financial markets. Don't forget to subscribe and leave your feedback as we embark on this educational journey together!
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
touches 50 you exit you accept the loss you accept that the idea was wrong but you can't keep like you can't say
here 50 again let's move to 40. it's over to 30. you can't do that that's what people do in the index
that's what you do when you're in a high leveraged position in bitcoin for example
we we have a sl at a particular point when it is triggered we don't accept the loss we say let's put it a little bit
more down 10 percent more down and then it keeps going down and down and down and down that's what gan said
never ever average a loss always accept a loss see how it is linked
point number 17 he said avoid getting in and out of the market too often i think it's it's valid it's valid
people do a lot of trades people do a lot of overtrading i always i'll give you an example what
happens markets are going in your favor you become bullish when you see a five-minute shooting star
you sell earn money for that 5-10 minutes then again you become bullish you're being too intricate you're being
too intricate rather than that can't you just sit in a position for a long period of time
so rather than trading in and out in and out on and on and off try to be if you if even if you're a
scalper even if you're a scalper have three to four scalping orders or five six seven
scale knowledge you can't have you can't keep trading every single move because even if the even if one
move goes wrong in scalping you have a high leverage position you can go really long
you can wipe out your profits made for that day or for that week so you have to be very very disciplined
is the word i can use here always be disciplined and if you see what himalaya does what i do
we don't trade we don't a lot of days we don't trade when we don't understand the market
that's what gans are i'll show you that he said that when you don't understand the market don't trade
don't trade that and these rules are written in 1949 is still aptitube right now
point number 18 he said be as much as willing to sell short as you are to buy objectives to
make money and go with the trend again that's something that people understand when the markets are going up
we have to be a buyer right we're going with the trend but when the markets were coming down in the last couple of months
you had to be short when the covet crash happened in the month of feb to 23rd march
you had to be short you can't keep buying and bug the trend you can't keep buck
you know you can't just bug the trend you can't go against the trend you have to go with the flow
and you can't keep over trading and buying every small rally that's happening because
if the major trend is down that's what dao said that's what jesse liver also said if the trend is down be with the
trend go short a lot of people understand that people who are investors they don't understand
that because we have the habit only of buying when i started the markets about six years back
i wasn't comfortable with the idea of short i still have people in my community when
i give an idea of short to them they say we can't short because we be very uncomfortable
we're not comfortable with the idea of share going down that is something which can be a big hurdle going forward
right now we're in a bull market imagine when a beer market starts because when the beer market starts
maybe let's say five years down the line cycles change then markets are going down and down and
down so every rally will be shortened into and when you're buying those rallies
you're making a big loss so you have to be comfort if you trader if you are a trader intraday swing
whatever long term you have to understand that you have to be as much comfortable as you are a
buyer as you are a seller also short selling basically means you make money or you
profit when the market comes down so you have to be comfortable with that idea our main idea is to make money
whatever direction that does not matter hopefully that point is also clear point number 19 never buy just because a
price is low or sell because the price is high isn't that what you are witnessing
nifty right now every day when you comment on my video that nifty is at 15 600 can i short why
because i'm selling short as i say as gan said what is that reason that you are doing why are you
entering a trade give me a reason and the reason is i'm selling short just because price is high
i've told you one thing again and again laggards remain laggards cheap remains cheap expensive remains
expensive the sooner you understand that the better off you will be
the more profitable you will be so don't if if nifty has broken out you have to understand if nifty has broken out
it's going to go up and up and up you average the losses you average the tips that come in but you don't short
just because the markets are at highs i hope you're understanding that one point i think which i i have missed
about uh the averaging a loss which just came to my mind he said never uh i think it will still
be discussed fine yeah it's the point number 20. i thought i missed something i have so many points to discuss so i
always think i'm over the place point number 20 be careful about pyramiding at the wrong time
very very important for an investor very very important it's not for it's also for the internet trader see
pyramiding averaging a loss averaging is is very similar terms piramiding basically means if you bought a stock at
100 and the price moves to 120 and then it takes a dip you you buy
more shares there why you wanna you you are very bullish and at the same time you never put
everything in one go what gan said at one point of time you can't put everything in the same basket so he said
so gan said be very careful about pyramiding at the wrong time he said wait until the stock is active
don't first of all trade in dead stocks remember that point and he said that always
pyramid when it crosses the resistance level before buying more very very important
don't you think a lot of us what we do is we have a resistance here
we bought it here when the markets are moving towards resistance we buy it over here why because we want to be the first
person to catch the move what did i tell you about jesse livermore most people lose their money
in the first eighth of the move or the last eighth of the move understand that if you're still below
resistance you will still still see panic and selling pressure coming in but the moment you break the
resistance like nifty has it will go up and up and up and up and that is when you can pyramid
if you're a long-term investor wait for a breakout to happen then pyramid rather than buying a loss
averaging a loss hoping that you will come cost to cause that is the poor approach i'm not saying
it's wrong again in markets nothing is wrong it's about how you trade how you manage your risk it's always
about but this approach i feel is very important right now for example with the psu banks
i never parameter psu banks at bottom i never will buy nokia.com right now but when nakri breaks out
that is when i will start to pyramid are you understanding what i'm saying same with nifty now when nifty starts to
fall it will fall one day i've told you because the vix is too low when the nifty starts to fall i will
start to pyramid nifty june expiry or august expiry exactly expiry
hope you're understanding 0.21 is something i don't want to get into it's again a little bit complicated
point but something which is not very uh i would say useful for an intraday ground level trader grassroot level
trader 22 number point is never h now this is something uh i do you always a lot of people ask me diwali how do you
have so much conviction have you ever asked that question to me let me know in the comments i get this
that's the most frequent question asked people tell me i wanna i wanna join your course for two things
patience and conviction i always have three rules in my life patience conviction precision
that third thing is never talked about but uh patience is something i have learned
through covet and conviction is something i've learned through gan gan taught me never hedging
to never never hedge so i'm not saying option selling hedging is wrong i'm not saying option buying
hedging families are wrong i'm nowhere saying that please everyone has a different style but i
have learnt that i made the most money when i don't hedge when i hedge i don't have a view i am
indifferent where the markets go and i'm not able to earn the optimum amount if you don't want to hedge
position sizing has to be important so you don't wipe out your account please understand that when i'm playing
naked positions when i have conviction on a trade position sizing is also important so
that when i get a loss i don't wipe off my account so don't don't try don't unlink the
other rules what what he means by never had is let's say you're long on a stroke and if it starts to go down
that does not mean you short sell another stock what he is saying is let's say you were
long in mahindra and mahindra and mahindra starts to come down that does not mean you are still long in
mahindra and you go short in iso motors same sector because that's coming down if you want to go short in aisha motor
he says that exit loss accept loss don't average loss except you're wrong and then you can
come in short selection motors but first accept a law somewhere else that is what gan said
so again it's it's up to you what you want to do on this approach if you're an option seller you hedge you
always are on both the sides you make a range different salaries i'm not going to get
into that but uh something i follow i i don't want everyone to start
aggressively buying naked calls and puts tomorrow that's all my concern but if even if you
do nothing wrong with it right i don't know what why people say it's wrong it's
nothing wrong with it if you know what you're doing and if you're positioned well you know
imagine if you only have 10 percent of your capital in a trade naked trade what's wrong in that
i've taken i think the last couple of days every single day i've taken naked bank nifty calls i've not been
lost for the last five six days what's wrong in that if and if you can see i'm putting only
100 quantities which is four lots and i'm actually very very low on the quantity even if i
take a loss it's not going to be a big amount for me because of my capital now my capital my
risk is different as compared to you so you have to manage that for yourself so when you go naked make sure
everything is not in that date that is something what i'm trying to explain and 23 something we already
discussed never change a position without a good reason what's a good reason good reason could
be um if the trend changes i think that's something he said when i mean
when you make a trade let it be for a good reason what i've been explaining again and again
if you're long or nifty fine if you're short why give me the reason and he always says what's the definite
reason to change the trade when the trend goes wrong when the trend changes and the
most of the trends change with double tops and double bottoms triple tops and triple bottoms
that is something you learn over the course over this master course i'll teach you
what what i mean by that over balance of price and time we'll get into all of these things
but it's important for you to understand the trade when the trend changes when you get a double top double bottom on
weekly charts that's when the trends change that is when your trade goes wrong
or when you enter a trade in that direction but otherwise if you're in a trade
don't keep changing the stance just because one day the train goes down or two days the trade goes down you can
never be point two point hundred percent of the times just remember that point and finally
avoid increasing your trading after long periods of success
last rule but i do that i always recommend that to all of my bold clients all of my architect clients what this
rule means is let's say for the last 10 days or let's say you had a five five lakh trading account
and this week you want three lakh rupees that's an abnormal profit for you you want about what sixty percent of your
capital that's a very abnormal profit i would i would always assume a good normal profit is a ten percent a month
fifteen percent a month because i wanna beat nifty i wanna beat nifty i wanna beat the
alternative sources of investment if i can do that i'm successful if i can't i'm not successful
so what i'm trying to say is if you make an abnormal return if you have an increase if you are
increasing if you are in a long period of success every day successful i always tell this to people i remember
this words i told people and after the big loss because when you make a big big profit number one your account keeps on
increasing number two that over confidence sets it you're up to be right
and we'll be right tomorrow also in that point of time make a surplus account put your um put your amount and put it
in the surplus account so your account does not become overpositioned try to understand when you start with
the one like account and becomes five lakh five lakh is very difficult to manage
with the same technical knowledge that you have one lakh is much easier than five lakh
because we are not we everything we become too optimistic we become too overconfident that is something you
don't want so once if you earn big if you want abnormal two things make a selfless account
put your money there number two avoid trading for a couple of days get your mindset right be again
neutral in the market then get back to your trading and this way as i said it's all about safety in the
market and you can survive and see the busts and the booms again and again and again
year after year after year those are the 24 rules that i want to talk about of gann that was the introductory session
today i hope you uh are on board this trade as i said i hope you
understood the idea and the ideologies that gan has that he brings to the table now when i
come next we will try to get it up a notch and with every single day we'll try to increase
the level of understanding that is required so that's about it for now i hope you enjoyed
uh please let me know in the comments please let me know on the likes button please share if you enjoyed i want to
really increase the community that we have and i don't want to chat a single penny
for that and please subscribe if you're new thank you so much and as always love
also all thank you good night
Heads up!
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