WD GANN: The Time to Stay Out of the Market

“This is something important for everyone to know. You cannot make money by trading in the market every day or by getting in and out every day. There comes a time when you should stay out, WATCH and WAIT until you determine a DEFINITE CHANGE IN TREND.”

“Long periods of rest and relaxation protect your health and help your judgment which will result in profits later.”

“A study of market movements will convince you that the market has its periods of rest. Often the market has a resting period when it is in a Bull market and does not react much, but it consumes considerable time before the upward move is resumed.”

“The same thing applies in a Bear market. Often a Commodity will decline and stop, move up and down in a comparatively narrow range and not have much advance, but it is simply holding, hesitating, resting, and getting ready for another downward move.”

“In these periods of narrow trading markets, you will make money by staying out of the market and waiting for a definite indication of trend. Once you are out of the market, you can judge it from an unbiased standpoint and form a clear picture of its future course, but when you are in the market, you are often influenced by your hopes and fears because you want to see the market go your way.” – WD GANN 1942

 

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