#1
Know Your Limits
"The most successful investors stay within their circle of competence. Know what you understand well and resist the temptation to venture outside it."
Stay within your circle of competence.
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William Gann⭕ Circle of Competence
William Gann's Circle of Competence Rules
William Delbert Gann (June 6, 1878 – June 18, 1955) was an American trader and analyst who developed the technical analysis methods known as Gann angles, the Gann square, and the hexagon chart. He is considered one of the most influential figures in the history of technical analysis. Gann claimed to have made over $50 million from trading during his...
3 principles·Circle of Competence
3 Key Circle of Competence Principles
#2
Deep Understanding Required
"Surface-level knowledge is dangerous in investing. Develop deep expertise in your areas of focus. True understanding means knowing what could go wrong."
Develop deep expertise, not surface knowledge.
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Expand Knowledge Gradually
"Expand your circle of competence gradually over time. Each new area of expertise adds potential opportunities, but only if mastered thoroughly."
Expand expertise gradually, one area at a time.
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What are William Gann's key circle of competence principles?
William Gann has 3 key principles on circle of competence. The most important one is "Know Your Limits" — The most successful investors stay within their circle of competence.
How does William Gann apply circle of competence in practice?
William Gann applies circle of competence through several key principles including "Know Your Limits" and "Deep Understanding Required". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes William Gann's approach to circle of competence unique?
William Gann's approach to circle of competence is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, William Gann provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
