William Gann
William Gann🛡 Risk Management

William Gann's Risk Management 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·Risk Management

3 Key Risk Management Principles

#1

Twelve Trading Rules

"Never risk more than 10% of capital on a single trade. Always use stop-loss orders. Never let a profit turn into a loss. Never average down on losing positions."

Risk only 10% per trade; always use stop-loss orders.

🌳 Advanced★★★★☆
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#2

Risk-First Approach

"Before considering how much you can make, consider how much you can lose. Risk management is not about avoiding risk entirely, but about understanding and controlling it."

Consider the downside before the upside.

🌿 Intermediate★★★★★
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#3

Position Sizing Discipline

"The size of your position should reflect your conviction and the risk involved. Never bet so large that a single mistake can wipe out your portfolio."

Size positions based on conviction and risk.

🌿 Intermediate★★★★★
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Frequently Asked Questions

What are William Gann's key risk management principles?

William Gann has 3 key principles on risk management. The most important one is "Twelve Trading Rules" — Never risk more than 10% of capital on a single trade.

How does William Gann apply risk management in practice?

William Gann applies risk management through several key principles including "Twelve Trading Rules" and "Risk-First Approach". These principles guide practical investment decisions and have been tested across decades of market cycles.

What makes William Gann's approach to risk management unique?

William Gann's approach to risk management 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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