What makes a truly great trader? What are the keys to success on the uneasy economic path? Which qualities do we lack and what has to be developed? Is there the perfect strategy to help you to win? Probably yes, but the thing is no one have found it yet, but a lot have tried.
Sometimes, success consists of very curious parts. For instance, one of the greatest traders in history William Delbert Gann based his strategy on the unusual combination of geometry, astrology and ancient mathematics to predict movements on the market during his lifetime and it is still popular among the modern traders.
There is no serious educational background in Gann’s childhood, since he was born back in 1878 in Texas on the farm and hard work wasn’t just a word for him. However, it gave him a rare opportunity to study commodities trading on the numerous cotton warehouses. Finding himself determined to make it his living, W.D. Gann had started to work at the brokerage firm and studied in the business school at night.
Trading had become his life’s work and soon enough W.D. Gann & Company was founded. Not stopping on the achievements of other traders, Gann has developed his own strategies and used his clients’ mistakes as an example of what has to be avoided. “Learn from the mistakes of others” as the famous quote goes.
Speaking of this strategy, we can easily say that Gann was one of the first traders to work with the cycles theory. As we know today, market repeats itself (as everything does) and it happens in cycles. By studying ancient geometry, astrology and history, Gann has discovered how to make the correct predictions about its behaviour in the future. On these cycles he stated: “To make a success you must continue to study past records, because the market in the future will be a repetition of the past. If I have the data, I can tell by the study of cycles when a certain event will occur in the future. The limit of future predictions based on exact mathematical law is only restricted by lack of knowledge of correct data on past history to work from.”
According to Gann’s theory, the most important cycle lasts for 60 years and it helped him to predict the end of the bull market in the 1920s.
Fortunately for us, cycles theory is not the only thing that Gann is known for. There are also several indicators used in technical analysis, which have been created by him. For example, Gann fans, which help to detect potential support and resistance levels.
What can we say, becoming a truly great trader is definitely not an easy process, but if you are passionate and determined enough, all doors are open for you.