Hope and Fear in the Markets
W.D. Gann’s Timeless Rules for Trading . . .
HOPE AND FEAR
By W. D. Gann
“I repeat this because I have seen so many people go broke trading on hope or fear. You will never succeed buying or selling when you hope the market is going up or down.
You will never succeed by making a trade because you fear the market is going up or down. Hope will ruin you, because it is nothing more than wishful thinking and provides no basis for action.
Fear will often save you if you act quickly when you see that you are wrong.
“The fear of the market is the beginning of wisdom”
Knowledge which you can only obtain by deep study will help you to make a success. The more you study past records the surer you are to be able to detect the trend of the future.”
George’s Commentary: Nobody wants to admit to having fear, yet, beneath most trader’s activities lies a fear of loss or of missing a profit opportunity. We’ve also been encouraged or programmed to rely on Hope as if it were ‘real’. It isn’t.
It’s a speculation built on probabilities at best and, on nothing but other’s (or our own) opinions at worst. Mr. Gann addresses that here. Discipline against Hope and Fear is one of the most effective and fundamental steps we can take to become better traders. – GR Harrison