Lesson 1 - Introduction: Forecasting in the Grand Tradition of W.D. Gann
1.5 - What Gann Said about Human Nature
W.D. Gann put it this way, "If you will only study the weakness of human
nature and see what fools these mortals be you will find it easy to make
profits by understanding the weakness of human nature and going against the
public and doing opposite of what other people do.
"Human nature never changes and that is why prices swing from the one extreme
level to the other. People get too hopeful and optimistic when prices are high.
Then when prices reach extreme low, they get too blue, too pessimistic and over-sell."
In the arena of investing and speculation, reality is literally turned upside down. One of the great character qualities that have made the United States so great is hope. The entrepreneurial spirit maintains hope and resolve in the face of seemingly insurmountable adversity and challenges. This indomitable spirit is the engine behind innovation. Unfortunately, this same character quality is disastrous in the arena of investing and speculation. Holding doggedly to one's opinion in the markets is one of the greatest causes of losses on Wall Street. The markets demand submission and flexibility.
go to section 1.6
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