Speculation as a Profitable Profession
Speculation as a Profitable Profession by W.D. Gann (1954) stands as one of the most detailed instructional manuscripts ever written by the master himself. This rare document captures Gann’s final mature philosophy — that speculation, when approached scientifically, is not gambling but a discipline, profession, and mathematical art.
Gann begins by asserting that “knowledge is more important than capital.” To succeed, one must study, prepare, and understand both price and time relationships through long-term charts. He emphasizes that the market operates by natural law— governed by vibration, rhythm, and proportion — and that “most profits are made in fast, active markets.” His approach bridges classical geometry, probability, and human psychology into a structured trading methodology.
This course introduces clear, rule-based systems: buying at new highs when the main trend is up, selling at new lows when the trend turns down, and always protecting capital through stop-loss orders. Gann provides detailed illustrations from mid-20th-century stocks such as Boeing, Douglas Aircraft, Lockheed, Vanadium Steel, and Chrysler, demonstrating how to identify accumulation, distribution, and turning points using percentage retracements (notably the 50% rule).
He teaches traders how to classify markets into “fast advances,” “slow trading ranges,” and “cross currents,” and how to determine leading industry groups before each move. His rules for professional speculation cover position sizing, risk limits (no more than 10% of capital per trade), and the vital importance of studying yearly, monthly, and weekly highs and lows to detect true trend changes.
Above all, Gann insists that speculation is the greatest business in the world — if you make a business of it. With discipline, mathematics, and consistent record-keeping, any trader can elevate speculation to a scientific profession governed by universal law, rather than emotion or chance. This text remains a cornerstone for all serious Gann students.
