Summary
Jon Kirk explains the distinction between trading and investing and how Gann’s methods apply to both. He argues Gann was fundamentally a trader with a plan and a system — not just an esoteric forecaster. Kirk describes his approach using Commonwealth Bank (ASX:CBA) as an example, emphasizing capital preservation and using the cycle to know when to sell.
Key Claims
- Gann was a trader who traded what he saw — his success was based on a plan and trading system, not just forecasting. — confidence: high
- Most Gann marketers focus on the esoteric and miss the practical trading methodology. — confidence: high
- A trader generates cash; an investor deploys it for capital growth. — confidence: high
- Capital preservation is the most important thing in trading. — confidence: high
- Kirk was flat on investment stocks going into 2020, using hard stops to lock in profits. — confidence: high
- Jesse Livermore quote: “Long, Short, or Flat — I prefer flat as it’s free of bias.” — confidence: high