W.D. Gann is considered to be the greatest trader of all time. This book reveals how to make profits on the commodities exchanges. It combines theory and practice, and through its straightforward, logical approach, Gann presents an excellent case for making money in commodities.
Introduction (By W.D. GANN):
I am writing How to Make Profits In Commodities to supply a universal demand and give rules that will forecast the trend of commodities. Conditions have changed rapidly during the last few years and will change more rapidly after this great war is over than ever before in history. men will return to the soil of Mother Nature to make a living. Investors and speculators will have to look for new ways to make money in the future and will find it more difficult in the stock mark: therefore the necessities of life, the basic commodities.will off greater opportunities than investments in stocks and bonds. providing the trader knows the rules to follow.
My object is to write something that will be helpful to people in trade lines and to those who have long years of experience in the commodity market. as well as the inexperienced trader who wants knowledge and needs to learn the ways to start right. and to protect his capital and make profits. Life affords no greater pleasure, than that of helping others who are trying to help themselves. I am going to give the best of my forty years of experience in this book. and I hope to show others the way to help themselves and follow mathematical rules in the commodity market. which will result in profits. I do not believe in gambling or reckless speculation. but am firmly convinced. after years of experience. that if traders will follow rules and trade on definite indications. that speculation can be made a profitable profession. Trading in commodities is not a gambling business. as some people think. but a practical. safe business when conducted on business principles.
I offer How to Make Profits In Commodities to the public with a sincere conviction on that if they put in the time studying. they will derive great benefits. If I were not thoroughly convinced by actual experience, that money can be made trading in commodity futures, I would not write this book. I have made a success in the business, and I know that anyone else can make a success, if they follow rules.
WHY YOU CAN MAKE MORE PROFITS TRADING IN COMMODITIES THAN STOCKS:
- Commodities follow a seasonal trend and are much easier to forecast. They move with supply and demand.
- It requires much less work to keep up charts and calculations on Commodities. There are 1200 stocks listed on the New York Stock Exchange and you must keep a separate chart on as many of them as you wish to forecast the trend. With Cotton, you need one to three charts, and the same with Grain and other Commodities.
- When you have a forecast made up for Cotton or Grain. if you are right, you are sure to make money because all options follow the same trend. There are no cross-currents, as in stocks, with some stocks declining to new low levels and others making new highs.
- In dealing in Futures, there are no heavy interest charges as there are when long of stocks and no dividends to pay as when short of stocks.
- Dividends can be suddenly passed or declared which will affect stock prices. This cannot happen to commodities.
- Pools cannot manipulate a commodity as they can a stock.
- Facts about commodities are generally known while many stocks are mystery stocks all the time and some stocks are subject to false rumors.
- The stages of the business cycle tell more about the prices of the commodities than they do about stocks.
- Commodities are governed only by demand and supply. This is not always true of stocks.
- Speculation in commodities is more legitimate than speculation in stocks because you are dealing in necessities.
- Commodities are consumed. Stocks are not. This has a bearing upon the ease of forecasting commodity prices.
- You can forecast tops and bottoms of commodities with greater certainty than of stocks.
- Stock prices tend to move by groups of stocks, while commodities move independently.
- Notable speculators like Armour. Patton. Livermore and Dr E. A. Crawford. have discovered after long experience that they can make 1noney with greater certainty in commodities.
- Stocks go into receivers’ hands and go out of business. Commodities go on forever. Crops are planted and harvested each year.
- There is always a demand by consumers for commodities. Which is not the case with stocks.
- Since the Securities Exchange Law was passed. 1narginal requirements are much higher on stocks than on Commodities. Therefore. you can make more money on the same capital by trading in Cotton. Wheat, Corn, Rubber or other Commodities. than you can by trading in Stocks.
- When you learn the rules for forecasting and trading in Commodities. you will see that they never change, because there will always be wheat, corn. and cotton crops each year. These crops will be consumed. while stocks change and you have to study new stocks to keep up with changed conditions.
How to Make Profits In Commodities By W. D. Gann PDF
Emmalynn Bartlett (verified owner) –
Just follow the 28 rules given in this book.
It was repeatedly told in this book that do not trade on hope or fear, which we human do always. Hence it was reminded repeatedly.
Let us do not trade on hope or fear.
Let us follow the rules strictly 100%
Jett Salinas (verified owner) –
Great for a Gann types inersted in Gann methodology.
Bode Dickson (verified owner) –
If i could keep just one of my gann books this one would be it , it is packed full of ideas even a non gann follower could benifit from this book.
Jake Hampton (verified owner) –
This book is a hodge-podge of techniques presented in a droning, labored style. However, literary taste is not what draws traders to the works of Gann. Gann’s writings supposedly contain “hidden clues” as to how to forecast price levels at a specific time in the future for financial instruments.
Preston Manning (verified owner) –
For those who had not read any other Gann’s trading book, this is an excellent choice. I assure you that you would be fascinated by Gann’s superb insight and intelligence that had transcended over half a century. Though it focused primarily on commodities, the principles are applicable to stock trading as well. Traders can definitely benefit from them.
For those who had read other Gann’s books before, you may feel that this one is quite similar to his previous books (this is Gann’s last book published). In fact, the rules set here are over 95% identical with those laid out in “45 Years in Wall Street” Gann published two years before this. However, as one reviewer wrote that the above average price ($49) of this highly valuable book is still lower than one single pip of a commodity futures contract, I think it should still be an essential item in any Gann friend’s personal collection.
Jennifer Wade (verified owner) –
This was the first Gann book that I read. I found it to be very inspirational. Reading it encourage me to seek more knowledge about the markets.
Dominik Jefferson (verified owner) –
I do not trade commodities, I trade forex. But that does not matter. The concepts in this book can be used for virtually any type of trading. It has changed the way I trade and for the better. It teaches you respect and discipline. Throughout the whole book its constant reminders about using stop losses and just basic beginner rules. I’ve read it twice already!
Royalty Matthews (verified owner) –
Traders tend to confuse ‘Gann, the Trader’, with ‘Gann, the Forecaster’. Gann, the Trader, was straight forward and logical. Problem starts when traders attempt to trade the forecast with Gann’s numerous predictive methods and, vice versa, forecast the trade with Gann’s trading method. Gann really does not deserve all the unfounded criticisms. Although there are doubts as to the claims that Gann was the originator of swing chart trading method, Gann, at least, refined and definitized the swing chart trading concept. No one can question the sound trading principles behind the method since there is a clear and convincing proof by none other than Jesse Livermore who achieved the spectacular trading accomplishments by using a variation of swing chart trading method. What Gann tried to do was to add his own brand of forecasting methods to complement his trading operation. There is certainly nothing wrong with the exercise as long as one does not confuse either objective with the other. To be a good trader, one does not need to be a forecaster. In fact, it is not recommended if the trader is a terrible forecaster for his prediction may be detrimental to his trading. However, to truly become an excellent trader, it does not hurt to be a good forecaster as well. The decision on whether or not the chosen forecasting algorithm should be based on Gann is another matter.
Kace Dennis (verified owner) –
All is Good.
Ayan Strong (verified owner) –
A Genius in his & our time, even though he has passed away some time ago.
Murphy George (verified owner) –
WD Gann wrote this updated version of the book in 1951. Yes, 1951. His methodologies and style, as well as his world view, are so….well 1950’s. However, what he provides to those of us who want to be successful in trading commodites is a broad set of ‘do’s and dont’s’ that you can find in nearly every trading book written today. You know, “stop loss orders”, “dont over trade”, “never risk more than X%” of your capital on a given trade, “let your winning trade’s ride”, “get out of a bad trade immediately”, “when in doubt, there is no doubt”…. We have read them all before. NONE of this is of any real value to the modern trader. However, what is of value, is getting a recognition of the painstaking historical analysis that WD Gann went through BEFORE he traded any commodities. This book includes several 100 year analyses of all the traded commodities of his time. The analyses include what happened in the “month of September in 1897” in cotton. And then that is followed by the next relevant technical occurance, which happened in October of 1897. He does this for many of the commodites of the time from 1841 to 1941. What the reader comes away with in my opinion, is that commodities are cyclical in nature. And that if you can holistically ‘feel’ the history and the motion of the cycles that exist in each commodity, you can trade more effectively. This includes understanding the ‘how we got here’ and the relevant bigger picture points that one can glean from looking at the historical data on a specific commodity. For example, that in the last 100 years (1841-1941), (I am making this up) Corn has reached a new yearly high in the month of June 22 times, and a new low in August 36 times. Whereas, new highs were reached in February only 2 times, and new lows reached in December 2 times. This information is valuable to a trader who knows what to do with this type of information. In my view, dont look to this book for more information on “how to trade” as much as you should look at ‘what to do’ to improve your chances of success. One last note, if you are looking to get some background or academic knowledge on how GANN lines are used, or GANN Boxes or any of the other GANN ascribed technical tools used or invented by GANN, this book DOES NOT show, teach or discuss any of them.
Ameer Leal (verified owner) –
The book shows you a long time personal experience of a great trader.
Amazing job to put in one book all this information.
I’m sure that this book can help in any way to any trader.
Leona Spears (verified owner) –
This is a book that will give you the insight to real futures trading, but is demands that you study. Not for the dilatant. No get rich quick book, but will make you rich if you gain understanding.
Julieta Morse (verified owner) –
Well, there are great things about that book but don’t let the amount of pages fool you. Most of the book is historical records of specific commodities and the as they are somewhat useful the real value is Gann’s trading rules sprinkled in the pages.
Maisie McCoy (verified owner) –
The principles taught in the book can be applied to all kinds of markets. The information is not strictly related to commodities. However, to be successful, you must study. W. D. Gann teaches you the principles. It is up to you to put them into action. This is an excellent book if you are interested in learning more about how financial markets move. An excellent resource for your library.
Delilah Truong (verified owner) –
I like this book. It does not promise “90% accurate signals” or treat reader with condescension. It teaches three things: 1) “swing trading” methods, 2) how to pay attention, 3) never forget stop loss orders.
The book itself is structured in three large parts: 1) W.D. Gann’s approach to markets and trader’s discipline, 2) examples of trading patterns from various commodities all the way from 19th century, 3) addendum from 1951 with some more details and clarifications.
Some people complain that Gann’s writing style is too monotonous and droning. It is true in the sense that he does not entertain. But he does cover more ground than all those easy-reading “Trading for Dummies” book which are typeset in triple space with large charts.
Parts of this book and interpretations of Gann’s methods are available on the web – but it is still nice to have it as a book.
Margo Booker (verified owner) –
I Recommend all traders who trade in commodity need to read this book. I have learned lot of things from this book.