Webtrading.com & Commodity Traders Club News Home Page: Message #36

Date: Feb 29 2000 14:55:56 EST
From: "Commodity Traders Club" <ctcn@webtrading.com>
Subject: Trading Knowledge from Webtrading – CTCN

Dear Trading Friend,

As a reminder, you are getting email from us because you either once asked
to go on this list, or requested info on a trading related subject we
normally cover via this communications method, or you are a client of
ours. Of course, you may opt-off the list at any time if for some reason
you do not find this free trading knowledge useful.

First, I would like to take this opportunity to inform you I am NOT
related to Mr. William Green who wrote the article about Ken Roberts. I
have received several emails from people objecting to the article on the
grounds I must have wrote it to discredit Ken Roberts and take business
away from him. This is not correct information. 

The article in question was written by Mr. William Green of Forbes
Magazine. No relation to me! Never met him in person. He called me once
for some feedback on both Bernstein and Roberts as he was preparing those
two articles and heard of CTCN.

I tried to avoid saying anything negative and recall saying some positive
things such as Jake is incredibly knowledgeable and has contributed to
traders knowledge perhaps more than anyone else. 

I also said Ken Roberts has introduced more new traders than anyone else
to commodity trading and his commodities course helps educate traders,
though it’s very basic and hard to make money using the methods from what
I have heard from his many clients.

The reason we reprinted Mr. Green’s Forbes Magazine Articles was because
this is our job to report important news we receive on trading products
and services, be it good news or negative news.

We prefer the good news but our clients are also interested in all the
news, including negatives like Mr. William Green’s articles, including the
negative sounding one he wrote on Jake Bernstein ( also reprinted on our
website https://www.webtrading.com/sutrader.htm )

On another subject, some of you have asked us in phone calls and emails if
there is a way to predict future market turning points based strictly on
numbers and charts. The only way we know how to do this is to Square Price
& Time and to draw Geometric Gann Angles using “Square Charts”, as
outlined in our Gann Trading Course.

We also have some great reprints of old articles about W. D. Gann, the
most famous stocks & commodities trader of all time. Here is part of a
fascinating article about Gann written in 1909 by a newspaper which later
became known as The Wall Street Journal.

“It is very difficult for me to remember all the predictions and
operations of Mr. Gann which may be classed as phenomenal, but the
following are a few. “In 1908 when the Union Pacific was 168-1/8, he told
me it would not touch 169 before it had a good break. We sold it short all
the way down to 152-5/8, covering on the weak spots and putting it out
again on the rallies, securing 23-points profit out of an 18-point wave.” 

“He came to me when United States Steel was selling around 50, and said,
“This Steel will run up to 58 but it will not sell at 59. From there it
should break 16 points.” We sold it short around 58 with a stop at 59. The
highest it went was 58. From there it declined to 41-17 points.” 

“At another time, wheat was selling at about 89¢. He predicted that the
May option would sell at $1.35. We bought it and made large profits on the
way up. It actually touched $1.35.” 

“When Union Pacific was 172, he said it would go to 184-7/8 but not an
eighth higher until it had a good break. It went to 184-7/8 and came back
from there eight or nine times. We sold it short repeatedly, with a stop
at 185, and were never caught. It eventually came back to 17.” 

“Mr. Gann’s calculations are based on Natural Law. I have followed his
work closely for years. I know that he has a firm grasp of the basic
principles which govern stock market movements, and I do not believe any
other man can duplicate the idea or his method at the present time.” 

Early this year, he figured that the top of the advance would fall on a
certain day in August and calculated the prices at which the Dow Jones
Averages would then stand. The market culminated on the exact day and
within four-tenths of one percent of the figures predicted.” 

“You and Mr. Gann must have cleaned up considerable money on all these
operations,” was suggested. “Yes, we have made a great deal of money. He
has taken half a million dollars out of the market in the past few years.
I once saw him take $130, and in less than one month run it up to over
$12,000. He can compound money faster than any man I have ever met.”
(Editor’s Note: these figures are 1909 Numbers) 

“One of the most astonishing calculations made by Mr. Gann was during last
summer [1909] when he predicted that September Wheat would sell at $1.20.
This meant that it must touch that figure before the end of the month of
September. At twelve o’clock, Chicago time, on September 30th (the last
day) the option was selling below $1.08, and it looked as though his
prediction would not be fulfilled. 

Mr. Gann said, ‘If it does not touch $1.20 by the close of the market it
will prove that there is something wrong with my whole method of
calculation. I do not care what the price is now, it must go there.’ It is
common history that September Wheat surprised the whole country by selling
at $1.20 and no higher in the very last hour of trading, closing at that

So much for what Mr. Gann has said and done as evidenced by himself &
others. Now as to what demonstrations have taken place before our
representative: During the month of October, 1909, in twenty-five market
days, Mr. Gann made, in the presence of our representative, made 286
transactions in various stocks, on both the long and short side of the
market. 264 of these transactions resulted in profits - twenty-two in

The capital with which he operated was doubled ten times, so that at the
end of the month he had one thousand percent of his original margin. 

In our presence Mr. Gann sold Steel common short at 94-7/8, saying that it
would not go to 95. It did not. On a drive which occurred during the week
ending October 29, Mr. Gann bought Steel common at 86-1/4, saying that it
would not go to 86. The lowest it sold was 86-1/3. 

We have seen him give in one day sixteen successive orders in the same
stock, eight of which turned out to be at either the top or the bottom
eighth of that particular swing. The above we can positively verify. Such
performances as these, coupled with the foregoing, are probably
unparalleled in the history of the Street. 

James R. Koene said, “The man who is right six times out of ten will make
a fortune.” He is a trader who, without any attempt to make a showing, for
he did not know the results were to be published, established a record of
over ninety-two percent profitable trades. 
Mr. Gann has refused to disclose his method at any price, but to those
scientifically inclined he has unquestionably added to the stock of Wall
Street knowledge and pointed out infinite possibilities. 

The complete Gann article and others are located at

All the Best, Dave Green

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