William Gann
William Gann🛡 Margin of Safety

William Gann's Margin of Safety 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·Margin of Safety

3 Key Margin of Safety Principles

#1

Market as Your Servant

"The market exists to serve you, not to guide you. Use market prices to your advantage — buy when the market offers bargains and sell when it offers premiums."

Use the market as your servant, not your guide.

🌱 Beginner★★★★★
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#2

Market Cycles Awareness

"Markets move in cycles driven by human emotion. Understanding where you are in the cycle helps you prepare for what comes next and position accordingly."

Understand where you are in the market cycle.

🌿 Intermediate★★★★★
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#3

Price vs Value Disconnect

"In the short run, the market is a voting machine; in the long run, it's a weighing machine. Prices can diverge wildly from value, but eventually converge."

Prices diverge from value short-term but converge long-term.

🌱 Beginner★★★★★
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Frequently Asked Questions

What are William Gann's key margin of safety principles?

William Gann has 3 key principles on margin of safety. The most important one is "Market as Your Servant" — The market exists to serve you, not to guide you.

How does William Gann apply margin of safety in practice?

William Gann applies margin of safety through several key principles including "Market as Your Servant" and "Market Cycles Awareness". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes William Gann's approach to margin of safety unique?

William Gann's approach to margin of safety 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.

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