WD Gann Based Futures Trading System
Legendary futures trader WD Gann was as much a psychologist as he was a historian.
Gann firmly believed that since history is made up of people, the moves in the futures markets can be predicted because we can predict what people will do.
We can liken the futures markets to theatre. When the news is good and the futures market is moving up, more and more people step into the theatre to take in the show.
For instance crude oil was at $17 a barrel in 2001 then advanced to $146 a barrel, and of course, everybody tends to get bullish at the top. Goldman Sacks keep saying oil was going to go to $200 a barrel and the public got sucked in. To be bullish when the market had just moved up 1300% off the lows was simply ridiculous.
What happened is that all the seats in the theatre were getting filled and of course, when the theatre is at full capacity, someone screams fire and there are not enough exits.
Futures Trading Advisors
Before the financial crisis that began in July of 2008 our Futures Trading Advisors here at Gann Global Financial conducted a survey and found out that over 70% were holding natural resource and commodity stocks at the highs.
On July 22nd of 2008 we implored our subscribers to sell out of all commodity and natural resources investment positions, essentially going against the trend.
We could see the crisis coming and it wasn’t rocket science. Our futures trading systems are based on WD Gann Market Forecasting Methods. We had historical precedents to back our market forecasting recommendations plus we understood the human psychology behind the markets.
It is the tendency for investors to follow the crowd and adopt a herd mentality that usually gets them in trouble.
Futures Trading Advice
It is human nature for news to be bullish at the highs and bearish at the lows, so we try to move opposite the crowd.
Our job is to offer sound futures trading advice to keep our subscribers from doing the wrong things at the wrong times which is to buy the highs and sell the lows.
After our July 22nd announcement to get out of all commodity and natural resources investment positions, we were surprised at the number of subscribers who did not want to take our futures trading advice. We literally received a ton of opposition email from our subscribers.
When people so passionately buy into the lie that an overbought market is going to go even higher, it is another great indicator that the futures market has reached its top and is about to undergo a major correction, which is what happened following our July 22nd 2009 recommendations.
Have a Flexible Futures Trading System
What we learn from history (the rule of thumb as taught WD Gann) is that we avoid the markets that are resisting the overall trend however we wait on those situations until they get extremely oversold.
WD Gann also taught us that when a market advances to new all time highs (which usually occur during boom cycles) to areas it has not seen in a very long time, it is in the most bullish possible position. This is a time to buy high and sell higher…it is moving into a vacuum where there is no historic overhead price resistance.
The unexpected can always happen in futures trading markets.
For instance, we are in uncharted waters with where the gold is right now. The rule to buy high and sell higher can be very expensive and is counter intuitive but can still be done correctly if you don’t buy on the high advances, but buy on the corrections (buy on weakness).
One of the greatest virtues for any investor is to be flexible when entering the markets. Serious money is made when you get in at the turning points. We willingly take partial profits on the way up.
Learn More About Futures Trading
Talk to the futures trading advisors at Gann Global Financial. We specialize in forecasting futures markets and provide a Futures Market Forecasting Service.
Become a subscriber and get futures markets advice about major market turns and the most probable investment opportunities. Call Toll Free 1 (800) 545-9331 (International 310-915-7500)
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