G20: to halve deficits by 2013, but growth - priority number one

One could say that the summit Big Top Twenty took the position of European countries, centered rigorous plan to reduce budget deficits. All true, but there is one "but". In the final communique of the number one priority is designated to maintain economic growth. This means that at any time Obama or Geithner can "concerned" that the fiscal tightening will undermine growth, and revitalize the incentive programs in consumer activity, or maintaining the property sector. Of course, on the side of Europe is very clear: to reduce deficits by half in three years, but if the "number one priority" - growth, then it means nothing. Keep up with the two hares does not, therefore, most likely, the EU and the U.S. will soon be chasing each for his own.

In this case, we see the following scenario. The United States will have a formal higher rate of economic growth, largely stimulated net borrowing of the Treasury. Europe might remain in the definition of news feeds less flexible from an economic point of view and with less consumer activity, not allowing companies to rely on the surge in local markets.

On the one hand, such a policy is more typical of continental Europe. On the other hand, it is simply no other choice. Neither Greece nor Portugal or Spain and even Italy is not forgiven the high budget deficit. As we have already written a few months ago: Euro 2000's was considered a counter-currency to the dollar. He seemed to have been the other pole: EU budget discipline, against the strategy of GDP growth in the U.S., production against consumption, the rate of growth in emerging markets against the traditional hegemony of the dollar and reliability. For these reasons, diversification of the euro increased its share in reserves. Now on most items euros at risk of becoming like the U.S. currency. So why do investors need a second dollar? Not for anything. And what is missing.

And as a result, the single currency is likely to be under pressure. The inability and unwillingness to finance growth through deficit at the moment will lead to a reduction in the proportion of European assets. And this long-term trend for several years until the current European policy begins to bear fruit. It is likely that the euro is slowly melted to 1.08 to the dollar in the next two years.

"Event-driven trading" Ben Warwick is based on the news

While many traders rely either on machines or on the benchmarks in the development of its strategy, the trader Ben Warwick (Ben Warwick) focuses on market reaction to the news. Warwick has developed its own method of trading, which he calls "event-trading".

Warwick first became acquainted with the financial markets during the study of the University of North Carolina, where he received a M. B. A. During his studies he learned about the research "unexpectedly announced yield» (earnings surprise studies) on the stock market held in the 70's. The essence of these studies was that when, according to Warwick, "released the performance figures of the shares is much more than anticipated, the trend for stocks lasted for 60 days. He said: "Until now, some fund managers are trading according to the unexpected announcement returns. I decided to take this idea and see whether you can apply the same to the futures markets. Over the past six years, Warwick has improved its method of "event-trading" and even published a book under that title.

While this smacks of discretionary trading, Warwick has developed a method of whole system: "I try to maximize all organize and to eliminate emotion." Event Trading, he said, "non-linear, it is not a system of tracking the trend. It only fixes the rate at which the market responds to information. I watch how the market responds to news. " An example of event-driven trading may be the publication of monthly data on the employed population and their impact on the bond market. "If the market will rally after the statistics, but by the end of the day the market closes in the upper 20% of this range, then I will consider it as a buy signal," - says Warwick. At the same time, the important role played by the estimated price: "To enter the market immediately after the publication of figures - this game 50 to 50. For example, you can get a bear's reaction to the statistics, which you think may be a bull, and still receive a signal to sell. I draw attention to how the market reacts to such information. "Bull" in its report on the basis of employment, which throws up prices within one day, after which the calculation occurs in the lower 20% range, Warwick viewed as a sell signal.

If we talk about time frames, the Warwick is not engaged in intraday trading. Average transaction Warwick lasts from one to five days.

After some investigation, Warwick has identified the most effective and influential types of messages for specific markets, used in the event-trading. At this "late" stage of recovery Warwick points to data on orders of durable goods and the employment report as the two most effective factor for event-driven trading in the bond market. Warwick, however, inclined to the industrial complex: market grain and livestock. "I have had several cases of major success on agricultural products", - he said. Based on their knowledge of markets of livestock and their reaction to the monthly report on livestock, Warwick said: "If the cattle market there is a strong trend upwards, and if issued" bearish "report on livestock, it is much better to buy on the compensation falls. To turn bullish trend in the opposite direction, it takes three, four or five such reports. Market animals need time to absorb information. "

Responding to a question that is necessary for the success of a futures trader, Warwick said: "It is homework, you should keep statistics and to be sure that the identified market failure".

"In order to continuously make money, need to be ahead, and find a way to identify market inefficiencies, where you can make a profit - these are the main factors", - he said in conclusion.

Oracle of Omaha. Warren Buffett

Usually referred to as the "Oracle of Omaha" because he hails from Nebraska, Warren Buffett, the world recognized as the most prominent investor in undervalued assets. Due to its ability to identify undervalued companies and buy them on the cheap, Buffett during his fifty-year career has made many people very rich. Its share in the company "Berkshire Hathaway" is 38%, giving him a net worth more than $ 32 billion and makes one of the richest people in the world (second only to Bill Gates). He is also one of the few who have earned such an impressive state exclusively through investment in stock market.

Buffett saw the error of investing in the University of Nebraska, where he read the book by Benjamin Graham "Intelligent Investor". Book Graham advised investors to look for stocks that traded well below their actual value, which provides a margin of safety.

Buffett fully explores the business and bought it only for impaired prices. This practice, which was essentially invented and defined by Graham, gives him the so-called "margin of safety for all its investments. This margin is the difference between the true value of business and the price of its shares.

Buffett invests in companies with superior economic characteristics, which are managed successful, highly qualified management teams. He also looks for companies with long histories of income growth above average. And unlike many other investors, Buffett does not pay attention to the fluctuations in the stock market, macroeconomic and market predictions. Instead, he simply maintains its long-term investment plan. While the fundamentals of the company do not change, Buffett will not sell it - even during the economic crisis.

Here are some other characteristics that Mr. Buffett considers when evaluating investment opportunities.

Easy to understand the types of business

One of the principles of Warren Buffett is not much different from the principles of Peter Lynch - work so that you understand and choose investments with whom you feel comfortable. Buffett, arguably one of the greatest and most respected investors of all time, carefully selecting stocks, said that investors should not complicate things, looking for sophisticated company.

Following this strategy, the safest an investor holding "Berkshire Hathaway" in the side of the fast-growing high-tech shares. Buffett admits that he does not understand quite well the high-tech business. Also, it avoids the industry as a whole. Before investing in any business, Buffett is trying to predict that the company will consist of a future in 10 years. The high-tech markets change too quickly to treat them so far with some certainty.

High return on assets

Buffett stressed that the return on assets is a key measure of profitability of the company. He prefers to invest in companies where it can confidently predict future revenues, at least 10 years. He especially likes companies that do not require large capital investment, because they tend to produce much higher returns on assets. Constant stream of cash Buffett also looks for companies with substantial free cash flow. Always mindful of the risks associated with investing, he ensures that his company is enough money to invest in their growth after they paid the bills.

Limiting debt

In the 1990's, Buffett bought the insurance company "Geico" and "General Re", because he liked the company to restrict and manage your debt.

Buffett also liked the "floating money", which assumed the insurance business. Policyholders pay premiums in advance, and payments for claims occurring later, thus, the insurance companies there is a steady stream of cheap cash that can be used. And who better than himself directly Buffett, will invest the money?

Quality Management

Among the most notable aspects of stock selection Buffett is that he is looking for quality companies with quality management teams. When Buffett buys a business, he buys and its management. Buffett is looking for people who are just as enthusiastic of their business, as he himself investing.

* During 2002, we entered the foreign exchange market for the first time in my life. In 2003 we increased our position, as I became more and more bear-set against the dollar, "said Buffett. He made it clear that he is not comfortable enough to feel personally or professionally, while working on the foreign exchange market. He explained that the trade deficit would frighten him. He noted that "Berkshire Hathaway" holds approximately 12 billion U.S. dollars in foreign exchange contracts, in five unspecified currencies. He also said that "Berkshire Hathaway" has a high yield bonds denominated in Euro of approximately $ 1 billion.

Linda Bradford-Reshki focuses on technique

After spending six years in the stock room (first on the Pacific Stock Exchange - Pacific Coast Stock Exchange, and then at the Philadelphia Stock Exchange - Philadelphia Stock Exchange), Linda Bradford-Reshki (Linda Bradford Raschke) decided to make a sharp turn, and in 1987 moved to the OTC trade. A few years engaged in trading their own funds, it is the beginning of 1993, took over management of funds. Now Reshki with his partner, Rick (Rick) manages funds totaling $ 25 million.

Reshki considers himself a purely technical trader. Her office is not even a news channel. At the same time, she believes that "the responsibility of the trader is knowledge of the relevant information. This may be a basic situation as a lack or seasonal trends, or anything else like that. But what makes me pull the trigger and take a stand, is a purely technical reasons.

Although Reshki engaged in trading for almost 15 years, it continues to deal with companies focused on the same technical pattern. "I believe that markets are the same as they were the last hundred years. They are identical in the sense that the trend is impulsive vibration, and then there are waste ... there will always be ups and consolidation patterns, - she says. - My way of making decisions and laws did not change. Reshki studying about 20 different markets, but restricts its trading five or six at one time: "If there is more than five or six possibilities, it often manifests itself negligence. Reshki seeking opportunities in trending markets, and in those where prices are moving horizontally (sideways). "In terms of trending markets are searched when aptrendovaya transaction moves from low to high. The best time to buy is reached, if not at the opening, during the first hour "- she said.

Compromise that has to go to reach the highest profitability in the trend of the market situation, is that the "point of risk will move on, but momentum is working in your favor, and a greater chance of success. In markets with horizontal movement has to take a closer look out for false breakouts (fake-outs) and the probability of a double loss on the sale and purchase (whipsaws) ». Reshki adds that in markets with horizontal motion, you can use tighter stops.

Nevertheless, Reshki believes that "you can always bargain in any market - you just have a clear approach." It is trading in several different vremennh part in determining the duration of the transaction focuses on a specific timetable. "If the pattern is visible on the daily charts, it can take any length of time - from two to six days - leads her example. - But with longer time frames, such as weekly or monthly charts, there are greater risks and greater rewards ". While some traders are tailored to specific relationships between risk and reward, even before the transaction (usually the ratio is one to three), Reshki do not like to limit themselves only to a triple measure of compensation: "I do not believe the risk to reward ratio is one to three, because I never know what you will present market. I'm starting a deal, and suddenly the market starts to gain momentum. Then, I'll stay on the market until the last. I'm not going to go out of the deal only because reached its threshold. Regarding the withdrawal from unprofitable trades Reshki said: "The trader is responsible for conducting the transaction. If I'm wrong, I know about it. The market will tell you about it.

As a guideline for beginners Reshki observes: "If someone starts to engage in trading, it is best to do it in short vremennh framework to better control their risk." Even on its trading Reshki said: "If I go for a period of unfavorable, then draw in their time frame and raise capital." As OTC trader, "not to worry about the location of the transaction. Anyway, for the entry and exit positions have to pay. " Now that she runs a great asset and has a larger volume of transactions, for her problem is the discrepancy between the estimated and actual operating costs (slippage). "Liquidity can be a problem. Exit from bad deals - that's where you can podzaletet "- she says. For short-term deals with "coffee, I will not put a full position, because if I'm wrong, I will manage in the four points out of it."

When asked about how she assesses their professional development, Reshki replied: "If you select all, now I'm less inclined to take risks than before, and it's because my trading has become larger in volume. When you're young, you do not yet thirty, then on your account will be much more volatility. Now I carefully watch over him. In the process of becoming a trader learn more care of yourself. Many mistakes are admitted to markets, due to the reactions and emotions. When you lose in this game, you have to punish myself.

"A difficult moment for many is that there is so much choice - time frames, different markets, to conclude a deal on a trend or kontrtrendu - all this is impossible to reach. We must sit down and say to myself: I will deal with only one type of trading. Too many people initially try to cover everything. "

According Reshki, success in trading requires a lot of focus: "You may be overwhelmed by the amount of information. My office is not even news channel. In the external world so much noise - need to learn how to filter this noise. One of the main components of success in trading Reshki believes commitment: "You have to spend time on the necessary homework or preparation. Do not let your forced to leave the game. "

In conclusion, she said: "You must be a very distant prospect. In the stock room for many months spent on tedious hard work, and then you will have several different months. You just have to have patience and believe that all you have sown the seeds will give seedlings.

LEARN the legendary traders!

What separates the best traders of the world from the average investor?

Can the average investor to examine the success stories of the legendary traders and they use the system?

What is common in the actions of the most famous traders, than can take an average talented trader?

Before you will find answers to these questions, let's look at some of the most successful of the legendary traders:

- Nicolas Darvas turned 36.000 $ 2.000.000 $ in 18 months!

- Ed Seikota of $ 5.000 received $ 15.000.000 12 years!

- Jesse Livermore made a multimillion state in early 1900

- Richard Dennis made from 100 up to $ 200 million

- George Soros, is believed to be one of the greatest traders of all time!

The results are quite impressive and this list would be easy to add some other prominent traders. So why do they have such brilliant results?

There are several common factors that are observed in the majority of successful traders:

- They have a system, which they strictly follow.

- Most of them has a trading style of following the trend.

- Most of them have medium-and long-term approach.

- They are neither fear nor greed.

- They have absolute discipline and a 100% follow their system.

- Their Trade is fully laid out, they were prepared for all scenarios in advance.

- They know that the system goes through bad times and good times. They cut losses as soon as possible and give the profits to grow.

- Their system suits their individuality.

Some of these points sound logical and, most likely, many of them agree. But in reality the average investor behaves differently. Some of them have "burned their fingers" over the past three years, and some even lost the state. Here are some examples of observed behaviors:

- On time is not reduced by losses.

- Short-term investments perederzhivayutsya in the hope of lifting prices.

- People are listening to advice from their investment brokers and analysts.

- People invest in hot stocks recommended by friends of friends.

- People do not have any plan about their investments.

- Capital management in any way is not considered.

- People use trading styles that do not match their personality.

- They are filled with greed and fear.

What can the average investor learn from a talented above and how to avoid these mistakes? Here are some useful points that can be gleaned from some of the most successful traders:

- Every investor has his own personality. Some investors have a very aggressive trading style and trade very often. Some prefer the action, because other bear more risk and investing in options. Others want to spend a minimum of effort.

Investors must understand their profile and choose the style that fits his personality.

- Trade should be fully planned in advance. People planning to many of their actions, such as leave travel, relocation, etc. But whether they have a plan when investing?

The investor must have a system that will help him be prepared for all scenarios of trade. You need to know in advance when to buy, how much to buy, when to exit. As is trading, the price of the instrument (share, option, currency, etc.) can not be influenced by normal private investor.

- The most important component of the trading system is money management? Surprised? Many investors and traders spend most of their time developing a very complex system of entry into the trade. But the entry strategy contributes only about 15% in the success of trading system based on academic studies.

The most important issue trading system - is how much to invest and how many positions to keep any one time.

- For a successful trade is the ratio "can do." 99% of the world's population is likely to have a dream to be financially independent, but only 5% achieved this. Why? Because with phrases like "... it would be cool, but I can not ..." or "... perhaps one day I win the lottery, but so far I have to work hard ..." they have already lost.

Tom Meier

Larry Williams: Training - important in trading and running

Larry Williams: Training - important in trading and running

Trader and marathon runner Larry Williams (Larry Williams) draws parallels between a successful trading and a successful run in marathons. Williams, recently for the sixteenth time successfully run a marathon, points to the "pain and suffering" as the two most obvious points of similarity between trading and running long distance. "Anyone can run a marathon after training. The same applies to commodity trading - if you train well, then you can hope for success ", - he said. "At every race there is a point where you feel disgusting, but you have to run forward and put one foot ahead of another. Same in trading. We must do their transactions in one after another - says Williams. - When I come to a point at a distance, then I gradually slows the pace. Similarly, with trading: when I lose the market, I step aside and take a breath. "

Williams engaged in stock trading in the early 60's. But ten years later by a friend advised him to pay attention to the commodity markets, because, according to him, Williams could they "acquire more". And he actually "boiled" decently. In 1987, in a worldwide 12-month tournament traders Robins World Cup Trading Championship, he was able to make 10 000 dollars 1.1 million dollars - an achievement which has not yet been able to beat any one trader. Williams calls himself a "context-trader" using a mixture of techniques and basic concepts. Currently, he is trading for himself, doing mostly futures on Treasury bond futures S & P 500 and currency futures, working within one to three days.

When he was asked about the status of currency futures markets, Williams said: "I do not think that currency die. Markets always go through the stages. What upset the funds, so that is what their program of tracking trends have not worked (as of currency in recent years have become more stable).

Williams is a pioneer in the application of pulsed LED% R. "I was impressed by the work that one man has done with stochastics, - he said. - I like the idea, but stochastics seemed too confusing and hard to understand. Indicator% R, as described in "Technical analysis of futures markets," John J. Murphy, "is based on a similar (with stochastically) the concept of measuring the last closing price in relation to the price range along a certain number of days. Today's price at the closing will be deducted from the price high in the range specified number of days, and this difference is divided by the full range of prices for a given period. "The price at the close near the highs, within the range, means that there is a strong buying, - explains Williams. - Top of the market - when they reach the highs in the close, while the bottom of markets - when they close at lowest point. Markets reach the top, because buyers no longer remains. % R allows you to see it. " At the same time, he said, the gun should be used in the overall context of the market.

"Technical indicators - not the alpha and omega, as seems certain techniques" - according to Williams. Another indicator that likes to use in my trading, Williams, are these "commitments of traders» (Commitments of Traders), published every second Friday of the CFTC. This report provides statistics on open contracts of large hedgers, large speculators and small traders. "When large hedgers are moving from net long position to a net short, it's usually a good signal to buy" - said Williams.

In the current market conditions, said Williams, "bonds come close to low. Large hedgers are suitable to make a clean take a long position, and this is quite bullish indicator. Moreover, they have accumulated a lot of currency. But they will take a long time to go up. " Regarding the stock market: "I - short-term traders in the market S & P. But the most intelligent of my friends for a long time are in short position in this market. "

What Williams thought about trading? "What I like about this business is the ability to think ahead of time. Most people live in the present. But the trader has to think: but will the rain in six months? Will one year war? Will there be famine after two years? This is an interesting place to live - we are all in the future ", - he said. According to him, trading entails considerable emotional burden. "These markets are huge swings, which lead to huge emotional swing. This may cause traders manic-depressive psychosis. Your life becomes like a stock market patterns. After 34 years of my life is full of high peaks and falls. Almost all commodity traders, whom I know very fast something to rejoice, and very quickly from something cool. " How he copes with this? "I run" - was the answer.

It should also be understood that "although we are doing serious things, it's still a game ... life is not limited to this."

Council Williams novice traders? "Start slowly. Spend much time and money for training, because education is cheap in comparison with the experience in this business. Those who learned more rest, achieved the greatest success in these markets. "

Also, "more learn to manage money. Just have a goal not enough. You could be missing a crucial step that needs to be done ... cut spending and do not limit earnings "- repeated the old adage Williams, bytuyuschuyu market. "Looking at all these years, I can say that this is a difficult lifestyle. He is burdened, but I would not for that he was not traded, "- he said in conclusion.

William Delbert Gann

William Delbert Gann was born June 6, 1878 in Lufkin, Texas. His father, Samuel Houston Gann, was a teacher, selling horses and cows. He also owned a small Billiard Club.

His mother, Susan Rebecca Gann (nee Trevation), has devoted all his time raising VD Hanna and his younger brothers and sisters. She taught the young William to read through the Bible - the book, which later had an enormous impact on his thinking about the nature of financial markets.

His family was poor. Samuel, Susan and their eight children lived in a small house, and young William to get to school each day walked seven miles over three years. Gunn never graduated from high school.

In 1894, William Gunn, aged 16, he left teaching and began to look for work. He became a peddler (selling newspapers, food ...) in the train, which traveled between Texarkana and Tyler, Texas. He has also worked in stock cotton.

In 1901, he worked in a brokerage firm in Texarkana, and married his first wife, Rena May Smith.

In 1902, the first daughter was born - Nora. 1902 was also the first year, when Gunn made his first deal in cotton.

In 1903 Gann moved to New York. He was already 25 years old.

In 1905, the birth of his second daughter, Macie Burnie. September 12, 1905 in a local newspaper Gunn gives his view on the movement of prices of cotton. In 1906, Gunn worked as a broker in Oklahoma.

In 1907, Gunn gets a big profit on the prediction of panic on the stock market and falling commodity market.

In 1908, aged 30 years, Gann divorced his first wife and marry a 19 year-old Sadie Hannify. Together with him in New York and moved his two daughters.

This was the year when he researched his «Master Time Factor». He traded in the two accounts. First, open the $ 300, earned him $ 25,000 for three months. The second started with $ 130, brought almost $ 12000 for 30 days. Since then, for Gunn reputation unusually talented trader.

In 1909, in Hanna with Sadie was born their first child - a girl, called Velma.

In 1910 Gann wrote his first book "Speculation - a profitable profession. He also publishes a newspaper «The Busy Man's News», and later his famous «Supply and Demand Letter».

In early 1914 Gunn predicts a world war and panic in the markets. In 1915 a son - John.

In March 1918 Gann successfully predicts the end of WWI and the Kaiser's abdication from the throne. His predictions were published in many leading newspapers of the time, including the «New York Times». In 1919 he started working for themselves. He publishes «Supply and Demand Letter», which includes predictions for the stock and commodity markets. In 1923 Gann wrote «Truth of the Stock Tape». This book was rated by many as the best book on the market.

Over a period of 60 days, Gunn got on cotton more than $ 30,000, starting with seed capital of $ 1000.

In 1927 Gann wrote a short story «Tunnel Thru the Air». Gunn wrote it as a statement of their own discoveries. These discoveries have been hidden in the twists the plot of the book. For many years, traders are trying to unlock the secrets of this book, but few succeed.

In the «Tunnel Thru the Air» Gunn predicts the Second World War, in particular the attack of Japan on the United States.

In 1928 Gann successfully predicts the top of the bull market on Sept. 3, 1929 and follow the greatest in the history of panic.

In 1930 Gann wrote «Wall Street Stock Selector». In this book he describes the state of the market from 1931 to 1933. In 1931, Gunn became a member of the New York Rubber Exchange and the New Orleans Cotton Exchange.

In 1932, Gunn gives its customers a recommendation to buy shares during the Great Depression of the base.

In 1936 Gann wrote «New Stock Trend Detector» and buys them is designed all-metal plane "Silver Star". He was the first in the U.S., who owned the private metal airplane.

A few years later he bought a few airplanes. His pilot for 19 years was Elinor Smith. Gunn also buys real estate and high-speed yacht.

In 1937 Gann wrote «How to Make Profits Trading in Puts and Calls». In the same year he divorced his second wife.

In 1940 Gann wrote «Face Facts America». In this book he explains why Germany would lose the war and why America should not enter the war. It also underlines the great problems that he sees in the "New Deal" of the American government and its consequences.

In 1941, Gunn became a member of the Chicago Mercantile Exchange. He holds a campaign against Roosevelt and his New Deal. It was a time when the U.S. government had a huge budget, and the company stopped production of the Ford - the crisis of overproduction.

In 1941 Gann wrote «How to Make Profits in Commodities». The authors of the original edition of 1941 were VD Gunn and his son John.

In 1944 Gann married a third time on Londi, who was 30 years his junior. Gunn treated her like a queen (much to the dismay of their children). Gunn moved to a warmer climate of Miami in Florida. There he sells, is engaged in property investment and continues to teach his students.

In 1948, Gunn sold his company Joseph Lederer in San Luis (Missouri).

In 1949 Gann wrote "45 Years in Wall Street». Based on the merits of the book «The International Mark Twain» makes him an honorary member of the Company.

In 1950 Gann wrote «The Magic Word». This was his contribution to biblical literature.

May 23, 1951 Gunn, along with Ed. Lambert founded the «Lambert-Gann Publishing Company». This company has published all the books and courses Gunn.

Gunn revises and reissues «How to Make Profits in Commodities», removes the name and photo of John from the book. Updated edition in 1951 was a huge success. At the age of 73, Gunn has free tools on the $ 500 a day for his consultant service.

He sells «W.D. Gann Research, Inc. »C.C. Loosely in New York.

In 1954, at the age of 76, Gunn buys high-speed boat, calling it «The Coffee Bean / Coffee grain of" in honor of the success of the transaction on the commodity exchange. «Great Master Course» Hanna sells for $ 5000, and in 1954 it is - the price of the average home.

Gunn suffered a heart attack.

In 1955, Gunn returned from one of his many trips to Cuba, where he liked to buy tickets Cuban lottery and play at the races. He felt sick and very weak.

Son John took him from Florida to New York, where Gunn was placed in a hospital, the Methodist Church in Brooklyn.

VD Gunn died at 15:20 June 18, 1955 at the age of 77 years. Children of Hanna agreed to bury him with his second wife Sadie, in the Masonic section of the cemetery «Greenwood» in Brooklyn, in the alley overlooking the highway Manhattan and his favorite of Wall Street.

(John Gann was a pilot during World War II. He spoke very strongly about his father, especially after he married a third time. John Gunn died in 1984.)

Prophecy or Science?

How Gunn made his predictions of market prices and dates? It still excites the minds of many people seeking to reveal his secret. Gunn himself said that his calculations are based on natural laws. As it may seem ridiculous, he said: "If you can add, subtract, multiply and divide, then you can do the same thing as I am!". In other words he used in his practice exchange mathematical laws. Which? According to him, the circle of 360 degrees, the prime numbers from 1 to 9 are most important from a mathematical point of view. Also, a square and an equilateral triangle inscribed in this circle - these designs to shape the market.

Alexander Elder

The secrets of successful trading: Alexander Elder

Alexander Elder - a professional speculator and expert on technical analysis. He was born in Leningrad and grew up in Estonia, where he graduated from medical faculty of Tartu University. Then he emigrated to the United States. After internships at clinics in New York, he enrolled in New York psychoanalytic institute. Then he opened a private clinic. At the same time Alexander Elder began working in the stock market, and organized a company «Financial Trading», which became one of the leading U.S. firms for the preparation of traders. With its findings and advice Alexander Elder is divided in the book "How to play and win at the stock exchange.

Look for a broker, who takes the lowest fees, and hold him at gunpoint. Develop a system of play that focuses on relatively infrequent transactions, and open them in periods of exchange lull.

Gambling should be by clearly defined methodology. During the game should analyze their emotions while watching the adoption of reasonable choices.

Adopt your blog speculation, stating the reasons for opening and closing transactions. Especially watch for situations where your tactics are repeated. Did not heed the lessons of the past are doomed to fail him.

Do not change the plan when you have an open position.

To be successful economically handle money. A good stockbroker watches his capital, as an experienced diver for the air pressure in your tank is.

"Do not risk all the money" - the first commandment trader.

Professional allows you to take a risk only a small percentage of capital on each trade. Amateur same approach to the game, like an alcoholic to drink: smack one's lips, and ends up in a ditch.

If you are unsure whether to remain in the transaction, clear profit and look at the situation with fresh eyes, from the side. When you do not risk your money, think more clearly. Exit the transaction and re-enter is not harmful.

Imagine a lawyer who in the midst of the process begins podchityvat his honorarium. This - as stockbroker, who, scenting profit, losing his head with joy. Imagine a surgeon, who at the sight of blood dizzy. It's like a jobber, losing confidence in yourself, when bears the losses.

This professional unruffled - and win, and losers.

Success in the stock market game can be achieved only doing it as a serious matter. Stock Market Game, based on emotions, is doomed to failure.

The main feature of gambling - the urge to place bets. If you see that spekuliruete far too much, take a break in the game for a month. During this time you can look at their actions differently.

Between an alcoholic and a losing traders have a clear resemblance. Stockbroker endlessly changing tactics, like an alcoholic who tries to solve the problem by going to the liquor to wine or beer. The loser does not accept that he had lost control over the course of its stock of life.

First of all, you need to understand their tendency to self-harm. We must be responsible for all consequences of his conduct, including failure, and not complain about bad luck and blame others.

Stockbroker's inspiration from winning, he feels omnipotent. To believe in their infallibility, he acts rashly and lose won. Most traders can not stand the painful heavy losses. Having rolled to the bottom of the abyss, they are doomed to fly with the exchange. Only a few understand that lost not because they played wrong, but because they wrongly thought. Such people can change themselves and go into successful stockbrokers.

Members of the crowd can catch the correct trend, but not her turn. Joining a group, the person behaves like a child following the parents. Successful stockbrokers live with your mind.

In the afterword to the book, Alexander Elder writes that speculators are often afraid to "pull the trigger", that is to begin to buy or sell. This fear - the main problem for the trader. If you have everything you need - the system of the game, the rules of capital controls, the psychological rules prevent loss, it means it's time to play the market, concludes Alexander Elder.