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