Gann's trading rules and actual combat

It is very important to carefully understand Gann's Law, because most American traders have grown up in understanding Gann's Law! 1. The risk of each transaction should never exceed 10% of the principal.

That is to say, after you place an order, you are required to lose no more than 10% of your capital. If your capital is $500, you will set a stop loss point of $50; $1000 will set a stop loss point of $100, and so on. This is the maximum stop loss setting, but once you find that you have made a profit of 50 points, don't rush to position squaring, you can decide according to the development of market conditions. If there is a unilateral trend, hold it boldly. If it is a volatile trend, you will achieve maximum profit.

Once you encounter a unilateral trend and the profit is above 50 points, please immediately adjust your stop loss to your cost position and wait for the market to unfold. If the profit is above 100 points in a unilateral market, you can set a 50-point stop win point and wait for the market to continue. As long as the general trend is correct, hold on to it!

2, after entering the market can not be due to lack of patience waiting and random position squaring;

It takes time for the market to unfold. Have full confidence and patience before the market proves that your order is wrong. Because if your order is wrong, the stop loss you set before entering the market will solve everything for you. Believe in yourself, don't be influenced by news and others. Keep an eye on the development of market conditions. This is the opportunity for the short-term to become the middle-line, and the middle-line to become the long-line.

3. Use stop-loss orders carefully to reduce the loss of each error.

The setting of stop loss points requires skills. Skills come from experience and technology. Also make a decision according to your financial strength. Beginners can use simulated warehouses to simulate repeatedly to gain skills. Don't blindly follow others' stop loss methods, because of differences in capital, mentality and technology, stop loss setting methods are also different.

4. Do not sell in excess.

Warehouse over Dayee leads to mental imbalance, psychological pressure is too large, resulting in operational errors. Therefore, no matter what the situation, please do not use large positions, especially novice must remember! General novice 1000 funds with 10% of the funds (0.1 lot), 2000 funds 0.2 lot, 10,000 with 1 hand, 20,000 with 2 hands, and so on. Expert can double!

5. Avoid turning a win into a loss, and gradually reduce stop-loss orders when entering the market (experience can also be used for tactical adjustment).

The last stage of a trending market is prone to large repetitions; profits are easy to take back in an oscillating market. The stop loss point can be adjusted according to Article 1.

6. Irreversible general trend trading;

It is enough to make money against the main trend, and there is no need to bounce back with small profits, which is not worth the loss. Especially for bottom fishermen with stock ideas, those who want to bounce back will eventually "die in the garbage heap of the market". Because the people who lost their lives and lost a lot of money because of futures do this, they will eventually be eliminated by the market and eliminated by history!

7. Be hesitant to enter the market.

If you don't understand it, don't participate. You can choose to rest and not do it. If you miss the market, wait for the next opportunity. Don't see others do it and can't help but participate.

8. Inactive varieties and spot stocks should not participate (serious confrontation, pay attention to risk and direction);

Trading cannot find a counterparty, the risk cannot be controlled, and the same is true for spot goods.

9. Only two to three commodities can be bought and sold.

People's energy is limited, and it is difficult to balance too much, unless you are a fairy.

10. At critical moments, avoid limit trading, otherwise you may lose the big because of the small.

The critical moment refers to the moment when the market trend unfolds. After that, the trend will operate unilaterally. We must not miss the opportunity due to price issues. We must follow up boldly!

11. When the profit from selling is considerable, part of the profit can be taken away for backup.

When buying and selling is easy, it is easy to be at ease, and the shot is more casual. This is caused by the weakness of human nature. Taking away part of the funds to prevent failure, the so-called future is long. Once you make continuous profits, choose to stay away from the market and wait and see. Because you will be influenced by yesterday's profit method.

12, after entering the market a little profit must not be free to position squaring, can use stop loss as a guarantee, bold to win big profits;

The secret of winning money in futures lies in the small win big, that is, holding the watermelon and not picking the sesame seeds, the possibility of collecting small profits into a big win is very small.

13. Do not enter the market for petty profits.

The profit and loss of petty profits are not proportional, that is, one may lose one, plus the handling fee expenditure, the gain is not worth the loss. Small fluctuations, it is best not to move!

14. Do not add dead codes;

When the first bet trades at a loss, there is a dead code, indicating that the market trend may be wrong. Immediately choose the "hero short arm" and position squaring out. Continuing up the ante will only lead to greater losses. Remember.

15. Avoid the trading method of winning less and losing more.

The secret to making money in futures is to control the proportion of each loss and win, that is, to minimize losses when losing money, and to expand profits when making money.

16. After entering the market, stop-loss orders cannot be cancelled at will.

The futures market situation is unpredictable, and unexpected changes may occur on the disk at any time. If the stop-loss order is cancelled, the risk will be uncontrollable.

17. The number of transactions should not be excessive.

The development of a trending strategic market requires a corresponding finishing pattern and requires time. In a year, the number of strategic markets is limited, so it is not advisable to operate too much.

18. Trading in the market, under the right circumstances, short selling may make more profits.

In the futures market, in most cases, the falling market is faster, sharper, and simpler than the rising market.

19. Don't be greedy for low prices and buy, don't sell short because of high prices, everything should be determined by trends and stage characteristics.

The price is determined by the market and can only be discovered later. It cannot be imagined subjectively.

20, when appropriate, the pyramid situation up the ante;

Yes, at that time, that is, when the trend is smooth, the number of transactions in the first note should be relatively large, and the number of additional orders should be reduced one by one in the future to prevent large jumps from causing losses.

21. Choose commodity futures that are rising sharply as pyramid buying objects, while short selling is the opposite.

Up or down sharp, each up the ante can quickly enter the profit state.

22, when the error, should immediately position squaring, avoid locking;

Locking a position is a manifestation of unwillingness to accept losses, and in the futures market, both losses and profits are normal. Unwillingness to accept losses when something goes wrong will not only lead to greater losses, but also lead to missed opportunities for the next profit.

23. It is not advisable to switch from a good position to a short position casually. Each transaction must be carefully planned and fully justified, and it can only be carried out if there is no violation of the transaction principle.

Futures trading is an art and science of investment, rather than betting on the rise and fall. It cannot be done immediately because of the rise and fall. If you operate with this gambling mentality, the gains will outweigh the losses.

24, business handy, do not arbitrarily up the ante, this time the most error-prone;

When investors feel too good about themselves, they are no longer cautious when placing orders, and the chances of mistakes naturally increase significantly.

25. Never predict the top or bottom of the market trend. It should be determined by the market itself.

Predicting the bottom of the market trend violates the operational discipline of "following the trend" and violates the objective and market.

26. Don't trust the opinions of others.

The futures market is changing rapidly, and a person without opinion is not suitable for living in it.

27. Entering the market wrong and exiting the market wrong is not good, and entering the market correctly and exiting the market wrong should not be done. Both should be avoided.

When the market does not clearly prove that we are wrong, we should not panic out of fear and position squaring and miss opportunities.

28. When something goes wrong, carefully review the above regulations and rules, and take them as a warning, and speculative operations will continue to enter a new realm!