📖William Gann
Emotional Discipline in Markets
Exploit market emotions rather than being controlled by them.
Markets are driven by fear and greed. The disciplined investor exploits these emotions rather than being controlled by them. Emotional control is the key competitive advantage.
🏠 Everyday Analogy
📖 Core Interpretation
W.D. Gann highlights that many investment mistakes are psychological, not analytical. Managing behavior under stress is as important as finding ideas.
💎 Key Insight：Emotional control is the key competitive advantage.
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❓ Why It Matters
In volatile markets, fear and greed push investors to buy high and sell low. A behavioral framework reduces avoidable, self-inflicted errors.
🎯 How to Practice
Pre-write decision rules, slow down trades during stress, and separate market emotion from business facts before adjusting positions.
⚠️ Common Pitfalls
Following crowd emotion at extremes
Mistaking confidence for certainty
Forcing trades to quickly recover losses
📚 Case Studies
1
Railroad Stock Forecast (1909)
Gann reportedly applied Gann Angles to predict turning points in several railroad stocks, including Union Pacific, correctly forecasting price reversals based on angle support and resistance from key swing lows.
✨ Outcome：Executed multiple short-term trades with favorable risk-reward, compounding returns over several months.
2
Black Monday Crash Setup (1987)
An analyst applied the Square of Nine to the S&P 500, noting geometric resistance and time cycles converging in late summer 1987, warning of a sharp correction before Black Monday.
✨ Outcome：Exited index positions in advance and re-entered gradually after the crash at lower prices.
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