My Story - A Search for W.D. Gann_s Master Time Factor
January 21, 2017 | Author: captainamerica2013 | Category: N/A
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"WISDOM" But where can wisdom be found? And where is the source of understanding? No man knows the way to it; It is not found in the land of living men. The depths of ocean say, 'It is not in us', And the sea says, 'It is not with me.1 Red gold cannot buy it, Nor can its price be weighed out in silver; It cannot be set in scales against gold of Ophir, Against precious cornelian or lapis lazuli; Gold and crystal are not to be matched with it, No work in fine gold can be bartered for it; Black coral and alabaster are not worth mention, And a parcel of wisdom fetches more than red coral; Topaz from Ethiopia is not to be matched with it, It cannot be set in the scales against pure gold. Where then does wisdom come from? And where is the source of understanding? No creature on earth can see it, And it is hidden from the birds of the air. Destruction and death say, ' We know of it only by report.1 But God understands the way to it, He alone knows its source; For he can see to the ends of the earth And he surveys everything under heaven. When he made a counterpose for the wind And measured out the waters in proportion, When he laid down a limit for the rain And a path for the thunderstorm, Even then he saw wisdom and took stock of it, He considered it and fathomed its very depths.
And he said to man: The reverence of the Lord is wisdom, And to turn from evil is understanding. (JOB 28)
DEDICATED To Mr. Gann, a truly remarkable man, —Thanks. You were right. "If you seek, you will find." I wonder if you ever knew what your work would do. I wish we could have met. I believe we would have liked each other. We were just in different circles. Oh, well, as you said-"big circles and little circles, old circles and young circles, past circles and future circles, will all come together and 'square out' in time". UNTIL THAT TIME, RESPECTFULLY, " THE SEEKER"
PREFACE This story is a true story of a strange and curious search for a strange and curious secret of a strange and curious man who died almost 30 years ago. I have simply called myself " The Seeker " because we are all seekers. The final "THAT WHICH IS SOUGHT" of all our seeking is the same. However, we have many paths available to us. Some of us seek this "THAT WHICH IS SOUGHT" in material things of different kinds. Some of us seek "IT " in mysteries and secrets. My search was in both areas simultaneously in the commodity markets and the W.D. Gann trading philosophy. It is my hope that you can benefit from my search and that I can show you a proper path to take that will allow you both profitable and enriching experiences in both the markets and in life. As I said, "MY STORY " is a strange, curious one. When I try to recall it and write it for you, I keep running into a problem. The problem is-that the end of the story was the beginning and beginning of the story was the ending-except it was before the beginning. I know that I am not making myself very clear, but that is as well as I can say it for now. Perhaps it will clear up somewhat as I tell it. The real beginning of "MY STORY11 was when I paid my "trusted friend " for the Master Time Factor, which he did not have. He just took my money and gave me nothing in return but a series of practically meaningless numbers and rules, which were devastating if used in the markets. One of the reasons that made the story curious and strange was that I already had the key to find the Master Time Factor, but I hadn ' t looked at it or read it in years. I paid " my friend " for something he didn 't give me, but I GAVE him the real thing that I PAID him for, which he didn ' t give me. Very strange!
You understand-I bought something from him but at the same time I gave him the thing that I was trying to buy from himthe thing that he did not have; but which I already had and gave to him. Neither of us knew it at time. Even today, two years later, he will not know the value of the thing that I gave him, unless he happens to read these words. EVEN THEN, HE WILL HAVE TO TAKE THAT THING AND LIVE IT, rather than read it. That thing was more useful than the Master Time Factor, and in fact, it is what we are all looking for when we desire the knowledge of the Master Time Factor. It is a strange, curious fact- the living of this thing makes it comes alive. The reading of it is just words. The thing that I am talking about is " The Seeker ' s Creed " . It is in Appendix V in the Appendices.
Until this very day "my friend" was the only person I had ever given My Creed to. Now, I give it to you. I hope you will PROVE IT-HOLD FAST TO IT-THEN GIVE IT TO YOUR FAMILY, CHILDREN, and AND FRIENDS. IT IS MORE VALUABLE THAN SILVER OR GOLD—OR THE MASTER TIME FACTOR! "
THE SEEKER" August 8, 1983
TABLE OF CONTENTS Chapter 1 - Introduction - My Story Begins...................................................... 1 Chapter 2 - Disaster For An April Fool............................................................. 8 Chapter 3 - What Next? Or More Aptly Where Now?.......................................13 Chapter 4 - "You Must Destruct Before You Can Construct". 16 Chapter 5 - 1 Begin Again ......................................................................... 19 Chapter 6 - Stock Market,Astrology,Mindset,Mr. Gann & Me. 24 Chapter 7 - 1 Discover the Legendary Master Time Factor!. 35 Chapter 8 - Here Is A Path. You Could Try This One ... 63 Chapter 9 - "The Seeker's Creed"..........................................................................................................................67 Chapter 10 - For Me - The Closing Of A Circle...............................................69 Appendix I - Forecasting By Time Cycles............................................................... Appendix II - Fragments of Gann Monograph ......................................................... Appendix III - "Learn Before You Lose" Sales Brochure .... Appendix IV - "Forecasting" (The Master Time Factor Lesson) . Appendix V - "The Seeker's Creed"................................................................................................................................. Appendix VI - Master Time Factor Charts Of The DJIA ........................................... Appendix VII - Weekly Charts Showing Master Time Factor . . .
CHAPTER 1 INTRODUCTION -MY STORY BEGINSThe first time I ever heard of W.D. Gann was in the late spring of 1979- Looking back, I was in a transitional period of my life. For the previous eight years I had made my living in real estate brokerage and buying and selling for my own account. I started with houses and then became mostly Involved with buying and selling farms and farmland for myself. I always have enjoyed dealing with farms and land and I still enjoy it today. There is some undefinable satisfaction for me in the process of buying and selling land. I had several good years financially in my real estate business, but in 1978, I began to become concerned about the economy in general and the real estate market in particular. Farmland prices were climbing sharply in my area and most of the buying was by large farmers and professionals who kept bidding up the price of any farm that came on the market. In my opinion, one of the primary reasons for this was that the agricultural lenders were encouraging farmers to " get bigger " , bigger machinery and bigger farms, because bigger was supposed to mean the same thing as efficient. The financing was done primarily by the local farm lending agencies and in many cases the lenders were loaning 100% of the then inflated values. I did not see how this ever escalating cycle could continue. I began disposing of my inventory of farms and land and shedding myself of debt. I simply felt uncomfortable and could no longer bring myself to buy except on optionswhich I would sell the farm by the time the option expired or, if I hadn ' t been able to do so, I would simply forfeit my option money. At this same time I began looking around for something to do which would allow me to buy and sell even in
down markets. I had not been able to figure out a way to do this in the real estate market that I was used to operating in. Also, I wanted something that would require no inventories to be financed, no employees to be responsible to, and as little overhead as possible. Someone, I have forgotten whom, mentioned to me one day that I should consider the stock market, or even better, the commodity markets. I had purchased some stocks several years earlier but they did not turn out to be that successful in regards to the return on my money. I decided then that I could do more with my money than putting it into stocks. So I had not been interested from that time in the stock market. I did begin thinking about the commodity markets, though, and I thought, here is an ideal' business for me. I like buying and selling and I can operate in up times or down times. I began following the commodity quotes in the Wall Street Journal. Then
I sent off for some information about commodity trading from an advertisement. This led to my opening a trading account some few weeks later. My first trade was in corn. I knew absolutely nothing about commodities. I didn ’t even know to figure out the price fluctuations. I asked my-broker what should I start trading and he said corn because it was easy to trade and the moves were not that big. So, I bought corn, I lost $4000 on that trade before I learned that the moves might not be big, but I had lost more on that one trade than I had on any of my real estate transactions. Obviously, I needed to learn something more about this commodity trading before I put out more money. So, I purchased my first book on commodity trading through a mail order advertisement. Will you believe that the first book I ever purchased about commodity trading was a book by the name of "How To Make Profits In Commodities" by W.D. Gann? So, here I was- a man who knew nothing about the markets at all, getting my introduction by W.D. Gann. I was "hooked " on Gann from the very beginning. I remember, I received my copy of "How To Make Profits-" on my birthday in June 1979 and I took it with me on a vacation that my family and I were embarking on. The whole vacation I read that book. And read it. And read it. The vacation passed and I came home and ordered the W.D. Gann Commodities Course. The material in the book and the course seemed difficult for me to understand at times and in places; but, I thought that it was just the fact that I had not had any experience or knowledge about trading and that once I learned the "language of the market" I would no longer have trouble understanding. Later, I learned that others had that same difficulty too. During the Summer of 1979 I studied my Gann book and Gann Commodities Course. I began spending more time studying it than I did in my real estate business. This may have been a
good thing because the farm real estate market topped out in the fall of 1979 and has been down every since. Our average sales have gone from approximately $1900 per acre down to the present average of approximately $1000 per acre. This fall has indications of being even lower due to the number of properties needing to be sold. Going back to the summer of 1979, I read the commodity course over and over. I tried to trade occasionally, but my results were not satisfactory at all. I thought I understood most of Mr. Gann ’ s rules and ideas but when I tried to put them into practice they just did not work out that well. I couldn't tell which top or which bottom to trade by. So I just kept studying and at the same time I started buying other commodity books and was studying them too. By this time I thought that I had learned that the most important thing in the market was to trade by following the trend of the market. The problem was I could not determine the trend or by the time I did determine it, it seemed to be going the other way.
I was trying to trade all the markets. When I saw something that looked like a good trade, I would trade that market. I really had no set of rules. I traded mostly by what I "felt" was a good trade. My trading was not profitable by any means, especially, if you consider the time and effort I was putting into it. I spent the fall and winter of 1979 studying Gann, occasionally trading, never too successfully, but not losing any real money. By this time I had ordered charts and advisory services of all kinds. I had purchased many books about the market. I had more money Invested In advisory services and books than I had made in the market. They were all interesting but none of them seemed to provide me with the necessary knowledge to trade the markets successfully. I had begun studying Mr. Gann's angles and squaring of price and time. I had many problems deciding what was valid and not valid with both the angles and the squaring of price and time. I had a "Hewlett-Packard 38C" calculator which had a date function on it that I found invaluable in calculating the number of days between dates. I decided to take the May Soybean Contract and learn all that I could about it. I reconstructed a monthly and weekly chart back to the time it first started trading. I calculated the squares in monthly, weekly, and daily time periods from the extreme low and high and from the opening of the contract in 1936. I could see some interesting relationships but always in hindsight. I was not able to trade profitably or consistently using the squaring of price and time. I spent many weeks trying to find some method of using squaring of price and time that I could make into a trading rule in line with Mr. Gann's rules about price and time as I understood them. I could not come up with anything. Then I looked at his rules on angles. I ran angles on all the bean charts. I ran angles on
monthly charts back to 1936, weekly charts, and dally charts as far back as I could get them. I spent considerable time and money trying to get data that I could use and then making dally charts by hand. Again, I saw some Interesting correlations in hindsight, but nothing that I could "trade off of" in a consistent manner. I wondered if the scale were distorted by time and the difference in the range of prices today relative to the time that Mr. Gann wrote his rules. This led to my investigation of scales of price and their relationship to Mr. Gann's rules. On a farm near town I had a barn with a sixteen foot ceiling in it. I ordered Mr. Gann/s original charts (weekly) that he had sold, then Mr. Lambert had kept up to date and sold until Mr. Jones purchased the material and which had been kept to the current time. These charts were on the same scale on which Mr. Gann had based his rules. I built a wall in my barn to accommodate these charts because it was necessary for me to see what they looked like. It required a wall 14 feet high for me to incorporate the May, July, and November contracts. It was 53 feet long. The end result of this was the same- interesting, but difficult to utilize.
Next I tried trading by Mr. Gann’s rules based on his "mechanical method and trend indicator". Again I had the same problemunsatisfactory results. Either I was using stops too close or did not understand his rules properly. I must confess that I was trying to mix all his other rules in at the same time. Then I looked at his rules and comments on time. I had always been intrigued by time and its meanings. Over the years I had always had an interest in natural things and nature. History and philosophy were of particular interest to me. Of course, I found time periods everywhere. Too many of them in fact. I knew that Mr. Gann said that the time factor was the most important to observe and that when time was up look for the other yardsticks to confirm time. My problem was that I could not tell which time "was up" and which yardstick to look to confirm the time. There were just too many times and too many yardsticks for me. Then I got into calendar time and market time. I concluded from my reading of his material that he put greater emphasis on market time than he did on calendar time because of his descriptions about how to make charts. I went into great detail and study of market time. I arrived at the same dead-end path here. Then I studied calendar time. I did find that trend changes of some nature were likely to take place approximately every 45 days or so on the daily charts. The problem was that they were usually a swing of some proportion and again difficult for me to trade successfully. Then I got into the squares and calculators and master charts. They were like puzzles. I would work for days and weeks trying to fit together one piece of knowledge from them. I worked on them so much that I actually would see them in my sleep. End result? Same old story! Then in the summer of 1980 I attended a Gann trading seminar in
Florida. I took my wife and son with me. The seminar was wellplanned and it consisted of two parts. The first part was an analysis of Mr. Gann ’ s time rules as applied to the markets today. The second part was a presentation on astrology. It was an interesting and useful seminar to me, especially the first part on time analysis. I listened to the part on astrology, but, I Just could not believe that it provided any answers on how to trade the markets in a consistent and profitable manner. I could not believe that converting a price to the longitude of a planet could possibly determine whether that particular price as based on the longitude of a planet would make top or bottom or meet resistance of any kind. (I still can ’ t believe it today.) This presentation on astrology probably turned me off on astrology more than any other one thing. I could not bring myself to study something so ridiculous. I knew that there were valid tenets and observations in all old and ancient beliefs but I just would not believe that the prices of beans and other commodities could be judged by these "signs and houses".
The most useful and important benefit to me of this seminar was the people I met there. Three or four of those people have turned out to be very good friends and I would never have met them had I not attended the seminar. While attending this seminar I heard several "daytraders" talking about how they used Gann successfully in their day trading activities. And I heard someone say that a ticker or quote machine allowed one to acquire years of experience in a few weeks by watching all of the trades and quotes every day. When I came back home the first thing I did was to order a "ticker" so that I could acquire that "experience" and learn in weeks what was to have taken years. I got one that gave me hardcopy so that if I had to be out during part of the day I would be able to study each trade at the end of the day. I chose to follow May Soybeans and December T-Bonds. They were both on the C.B.O.T. and I would only need one Western Union line to get both of them. I chose the beans because Mr. Gann had recommended them and I had his rules available on them. I chose the bonds because I had made some profits trading them (more than on anything else). For several months I day traded beans and bonds. I attempted to use all the angles and time periods and rules. My success was marginal. I made some profits on balance, but after deducting the cost of the quote equipment I could have made more money working some job paying minimum wages. I did get a great deal of market experience in a short time though. Again I found that Mr. Gann's rules as applied by me just did not produce outstanding results. I really knew all the time though that Mr. Gann cautioned against short term in and out trading and that it was not fair to apply his rules to day trading. One thing that I definitely learned was that for me day
trading was not the thing that I wanted to do for the rest of my life. I enjoyed it enough. Really, too much. I spent all my time at the ticker. I even had lunch at the ticker. I ignored my family, my business, my friends. After looking back, I believe that day trading as I was doing is the biggest waste of time and money that I can imagine. I have a friend that still day trades. He has for seven years. He has not made any large amount of money but he continues to day trade every day that the markets are open. After the market closes he studies the charts and the markets until midnight and the wakes up the next morning and is at his ticker by 8:00 a.m..He has no time at all to spend with his family. I did this same thing when I had my ticker and I tell you IT IS NOT WORTH IT! Another thing that I learned about having a ticker is that I had the urge to try to trade too often. Even when I was not day trading but using the ticker to time position trades, I found that watching the ticker gave me the urge to try to trade every swing. I got to the point that I just wanted to trade all the time. I am sure that there must be someone who has been consistently successful as a day trader, but I have never found that person. If you are the average person, I urge you to learn from my experience and save your time. Your
time is one of your most valuable possessions. During the time that I was day trading and watching the ticker I kept studying all of Mr. Gann's books and courses. By this time I had purchased every book and course of his that I could find. I was trying to find someone who actually knew him and that had taken personal instruction from him. I was able to find a man that worked for him at one time. But that gentleman did not want to talk. I have always desired my own privacy so I understood. I was able to locate Mr. Gann ’ s son. I made a trip to see him. He was a very nice and distinguished looking gentleman. You could tell that he was a man of quality and character. He was courteous and gave me thirty or forty minutes of his time and he was a very busy man. In his office he had a large picture of his father hanging on the wall. That picture dominated the entire office. For some reason I could not bring myself to ask Mr. Gann about his father's master time factor, but I can tell you that it was very difficult not to ask him. I did ask him what he thought was the most useful part of his father s work. He told me that he thought that his father's research and work on time cycles was the most important work that his father had done. He also told me several other things about his father. He felt that his father's work and life had been commercialized. I also did not feel inclined to ask him about any personal details of his father s life. I did ask him as I was leaving if he could give me any advice about the markets or the use of the master time factor that Mr. Gann used. He told me that his advice to me was invest in the stock and securities market, under good competent counsel^ and to refrain from speculating in the commodity markets at all. He also told me that "there was no such thing in science or nature called a perpetual motion machine", that people had looked for one throughout history, but that it Just didn ’ t exist.
I made several trips around the country trying to locate various things and various people that could help me understand more about Mr. Gann and his trading philosophy. I tried to reproduce what I could of the books that Mr. Gann had on his reading list and the ones that he sold. I searched all over the country for certain books and publications. With great effort I was able to find the books that I wanted. During my search for Mr. Gann ’s master time factor, I purchased and perused over 2000 books and manuscripts. I purchased as near as complete set of C.B.O.T. annuals as I could find. My set had most years from 1887 through 1950. I wanted to verify everything that I could about Mr. Gann ’ s references to the various markets and the situations he was discussing. I made a special trip to Hew York to a well known astrology bookstore and I purchased $1800 worth of books on that one trip alone. Most of them were out of print and were written during or before Mr. Gann ’ s early writings. I also purchased every market classic that I could find about the market. I studied Elliott waves, Wyckoff, the Andrews material, Hurst, Gartley, Drew, Edwards & Magee, Moore, and others. Also during this time I heard of this person and that person that was supposed to understand the Gann method very well. They were in fact said to be experts and were making their clients lots of money. Since my trading was not remarkable by any sense of the word, I opened trading accounts separately and let two of these so-called experts trade at their discretion. This experience taught me that the experts that I had chosen lost money for me more quickly and in greater amounts than I had ever been able to do on my own. As a matter of fact, I had opened a trad ing account with one of these experts in November of 1980 (you remember, the top of the bean market) and the first day that he had received my funds he started buying beans as the market was going
limit down for the preceding three days. The rule he used was if three days limit down, buy for an upturn. The upturn did not come so he bought more as it continued limit down. I asked him if we shouldn't just take my loss and get out and what kind of stops did he plan to use. He said the market was too wild to use a stop and that it certainly had to recover and we would get back some of the losses and stand aside. I did not learn then that he had in fact bought even another contract of beans after another limit down move. He sold all my contracts of beans on the opening on the day of December 12, 1980 at which time they opened limit down and then immediately after moved up for the secondary rally at the top. He said he was sorry. In five days of trading for me this expert had lost more money for me than I had lost in my entire time of trading commodities. Since I sometimes learn slowly I tried a third expert. This one was not a day trader but one who traded in and out of the markets quickly and seldom held a position for more than three days. He had been in the markets for years and really knew how to trade. He lost several thousand dollars for me in less than two weeks. The trades made no sense at all and he could not tell me why he made them. He didn't even say he was sorry! These experiences led me to my current trading rule #1-NEVER ALLOW ANYONE ELSE TO TRADE FOR ME. Since none of my experiences in learning to trade the markets by using Mr. Gann's trading philosophy had worked out very well for me, I, had begun a concerted effort to learn what the master time factor was and how it was to be used. I thought that if I could only acquire the master time factor then everything else would fall in to place. Unthinkingly, I am sure that I exp ected it to be a magic formula that would allow me to conquer the markets and tell exactly when each and every top and bottom would occur. I had become that "wrapped-up" in my effort to find it. This intense desire for
something that I did not even know what it was led me to lose touch with the prudence that I had been blessed with in every other area of my life. I had actually hypnotized myself into believ ing that this master time factor was the greatest and most desired formula in the world. Well, it was the spring of 1981, and April 1st was approaching. April 1st used to be called April Fool's day and I will always remember April 1, 1981, as my special day, because I believe that it was named just for me.
CHAPTER 2 DISASTER FOR AN APRIL FOOL! During the late winter and early spring of 1981 I was riding out the real estate recession and pursuing with great zeal Mr. Gann's master time factor. As I told you earlier, I was becoming obsessed with the idea that if I could just acquire the master time factor that it would solve all my trading problems. I had quit day trading, although I still had my ticker and I still spent many hours watching the markets trade. I continued to buy old books, read, experiment with the various calculators and master charts. I notice how frequently during the day that prices would trade against one of these critical points on a calculator, then back off and sometimes the price would hold, but as often as not it would not hold. I was no longer day trading but I had the constant urge to be in the market. I felt guilty if a move started and I missed it. I felt angry at times if trades didn't go my way. I never had this problem in my real estate business. I simply decided the best price that I could offer a person and made that offer. If I got the property, fine, if not, I never thought about it with any remorse. If I offered to sell a property to a person, I gave them my lowest and best price and if it were good for them to buy, fine, if not, I didn't want them to buy something that would not be beneficial to them. I knew that my mental attitude was not correct and I tried to compensate by leaving the house during the day and avoiding watching the ticker, but leaving the ticker on and coming home after the market closed; then studying the tape at night and making a trading decision to buy or sell based on that day s tape action. This worked better and my monthly statements began looking better. I knew that Mr. Gann had used astrology in trading but I could not bring myself to get into the study of astrology with any fervor. However, I had begun reading the many books
on astrology that I had acquired in New York and other places around the country. I knew that somehow the master time factor must be associated with astrology but I could not find a verifiable clue. I kept reading all kinds or market books and studying astrology-but never in any depth. I had started studying all I could find on cycles. Cycles of any and all kinds. I knew that the master time factor had to be a cycle of some nature because Mr. Gann said it indicated to him when certain cycles would repeat. My trading was Improving because I was trading less often and staying in a profitable trade slightly longer. In March of 1981 I received a phone call from a man that had come to be a close friend as a result of meeting him at different Gann seminars around the country. We had never been to each other's home, but we had many phone conversations over those months. This man was a very knowledgeable man about Mr. Gann's works and this man like myself had spent many hours and weeks studying Gann. We had shared information and insight with each other on several 8
occasions. In this story I will simply call him "my friend" because I have no desire to mention his name and cause embarrassment to him; although I can assure you that it was not easy for me to come to this state of forgiveness. By daily practicing my creed, which you will find in the Appendices, I was able to finally get to this state of mind where I am oblivious to past injustices of this type. I look to the present and the future- not the past, (except when I am forecasting the trend of the market.) Now, getting back to the phone call from "my friend". He called me that March night and he was very excited. He said that he had the most wonderful news! He said that he had finally found what Mr. Gann used to trade the markets and what he had used to make his predictions and that he was sure it would call any market of any type; he had proved it in one particular market. Although, I had shared all of my findings with him, he did not offer to share this knowledge with me. He called to tell me that this was the most valuable Information that he had ever encountered and that he had decided to sell this to only four people. He further said that he had carefully chosen these four people. He said that his criteria for choosing these four prospects were that they must have really studied Gann for many long and hard hours and that they must be honest and promise not to reveal this information to anyone outside their immediate families. Also, these four persons would have to sign a legally prepared agreement which imposed monetary penalties on them if they should ever reveal this information. He then went on to tell me how much he wanted for this Information. IT WAS STAGGERING! SUBSTANTIAL! He assured me that it would work in all the markets but that he had proved it in the one particular market and that if I followed this formula and information exactly as he taught it to me and if I would save a copy of my brokerage statements so that he could verify that I had properly followed it, he would guarantee my
money back. I told him that was more money than I had ever dreamed of paying for anything. He told me to think about it for a few days and to discuss it with the other three people to whom he had offered it. He told me who they were and two of them I knew well, because I had become very good friends with them too. I had met them at my first seminar in Florida and we had attended other ones together. These two people were (and are) fine people of outstanding character and quality. The three of us had spent many many hours studying Mr. Gann works and we had shared all the different insights that we each had. We had promised each other without saying it that if any one of us ever found the master time factor we would let the other two know what it was. I want to thank each one of these two people for the help they gave me in my search for the master time factor and also during the aftermath of my April Fool s Day fiasco. They were the only two people that I could talk to after the disastrous episode took place. Up until I began trading the commodity markets and studying the Gann material, I had always been a prudent common-sense type man. I know that my story so far does lead you to question that
statement but it is true. I don ’ t know what it is about the commodity markets that allow ordinarily prudent supposedly intelligent people to make some of the blunders that they make when it comes to the commodity market. I think we sometimes lose touch with reality when we become obsessed with anything. Our balance is destroyed and we end up mesmerizing ourselves into a false condition where we see our world as reflecting this mesmerized version of what we want to believe. Mr. Gann described something similar to this condition in his book, "The Tunnel Through The Air11. At any rate, I believe now, in looking back that I had set myself up for something like this to happen to me because I had become overbalanced. I had searched so long and so hard for this master time factor that I had lost touch with reality and common sense. I will say that if any other man other than the man whom I call "my friend" had made this offer to me, I would not have even thought about the offer twice. I would have immediately said no. But, as I told you earlier I was "primed" because I wanted the master time factor so bad and then I really trusted "my friend" and although I thought that he would have offered it to me for nothing as I would have done for him; the fact that he didn ’ t still did not make me realize that if he had really been my friend he would not have tried to sell me something that we both had worked so hard to find. I thought about this phone call and offer for several days. I called these other two friends of mine that were being offered this same information. They were excited too about the prospects of having the master time factor revealed to them. "My friend 11 did not actually call this formula the master time factor but he implied that it was it. None of us who had been offered the material really knew what to do. We did not want to put out the kind of money that "my friend" wanted, but we all wanted the master time factor and we all believed in the Integrity of "my friend". We trusted him completely. We were planning to go to a seminar being held in Chicago during the
first week in April. This seminar was being held by Mr. Billy Jones of Lambert-Gann Publishing Co. I have always enjoyed Billy’s. seminars more than anyone else's. Anyway, the three of us decided that we would get together in Chicago and then decide what we would do about this offer. I have had many blessings in life. I live in the greatest country in the world. This country may be the last hope for mankind. I have always had good health. I have always been able to make a living for my family and have plenty of time to read and pursue the things in life that I enjoy doing. I have a fine son of whom I am very proud. But my greatest blessing has been my wonderful wife. She is a remarkable woman. She has always left the business decisions to me and never questioned my judgment. She, of course, had sacrificed many hours of her time so that I could spend all of my days and many nights studying Gann when I should have spent that time with my family. I talked with her about this offer and asked what she thought about it. I could tell that she was not 10
impressed at all. I had promised "my friend" that I would meet him in Chicago where we would both be attending the LambertGann Seminar. I was to meet "my friend" on April 1st and the seminar was going to start the next day. When I asked my wife what she thought I should do about the offer, she would only remind me that April 1st, the day I was to meet my friend and accept or reject his offer was APRIL FOOL'S DAY. I had not thought about April Fool's Day since I was a child. But my wife's mentioning of it was forecasting a coming event for me. I left for Chicago to meet my friend and unfortunately for me, I had already made up my mind that I was going to pay this SUBSTANTIAL amount of money for this information that "my friend" led me to believe would be the elusive, legendary master time factor. I met "my friend" in Chicago as agreed on APRIL Fools DAY. He had me sign the agreement that he had prepared by an attorney near his home. He assured me that if I wanted my money back at anytime I could ask him for it and he would return it to me if I felt that the formula did not work as he said that it would. He said again that it would work on any market, but since he had only proved it on one market that would be the market that we would need to trade. I gave him this SUBSTANTIAL amount of money that we agreed on and he again promised me my money back if I were not satisfied. This was the opening of the door to the most foolish and most painful room of experience that I have ever entered In my lifetime. The door was ajar before I entered. I could have looked in and seen what was IN there. I didn't look. I just pushed open the door and ran into the " room " because I wanted the promised contents with a desire that squelched all reason. I accept the responsibility of this very poor judgment on my part. I blame no one other than myself. One of the reasons that I am writing this story for you, is so that you will be able to profit from my mistakes and if I can save just one of you, my readers, from trying the same path I took, then this whole effort of writing this story will have been worthwhile.
Even though I accept the full responsibility for my actions in regards this most strange and sad transaction, natural law says that "my friend11 has sown the wind and must reap the whirlwind, either now or later. That part is not something that I can do anything about. In order to bring this part of my story to as rapid conclusion as possible, but yet allowing you to have the full story that I promised you, I can simply say that "my friend" took my money and gave me a formula of gibberish in return. To make it worse, the agreement called for me to actually trade this thing according to his recommendations, in order to ever get my refund; although he promised outside of the written agreement to give me my money back any time I requested it. His trades were constantly losing trades in his one market that he had proved. As a matter of fact I lost more money following his trades until at the end before I really accepted how stupid the whole thing was, I began taking the exact opposite of what he told me and then I recovered some of the money I had lost following the trades. 11
I cannot tell you the pain and frustration that this experience caused me. I am trying to speed over this part of my story as fast as I can and I am really ashamed that I ever fell for something this ridiculous. I promised you the true story of my search and I have to relate this part of it to you; but it is not easy for me write this. Well, I laboured on with this whole affair and made every effort that I could to get "my friend" to give me my SUBSTANTIAL amount of money back. He just promised and promised that he was going to do it. He told me all kinds of stories about how he was working on it. Finally he told me that he had donated my SUBSTANTIAL amount of money to a children's hospital near his home. But that he had done it with the understanding that he might have to recall the donation if he had to refund the money to a "client" that had given him the money. "My friend" told me that he was arranging to get the money back and that a local bank was acting as the director of fund raising for this hospital. He even gave me the name of the bank. After this drug on for several weeks, one day I called the bank and learned that they had never heard of "my friend". Yes, dear reader, my search for Mr. Gann's Master Time Factor had brought me to this point, where I still believed all the lies that "my friend" told me, until the bank said that they had never heard of him. Well, I had been asleep for a long time, and dreaming,-.no having a nightmare; but, thank God, I had at last awakened. I finally realized at that exact time that I would never get one penny of my SUBSTANTIAL amount of money back from "my friend". I had made the biggest single mistake of my lifetime. I have never heard anymore from "my friend" until one of my real friends (one of the other three prospects-they were all too well-balanced and too smart to fall for the APRIL FOOL'S disaster) sent me a copy of a newsletter he had seen. This newsletter sold for $16.67 per issue. In two Issues of this newsletter the entire formula that "my friend" had sold me (and promised in writing In my agreement not to sell to anyone else other than his children) was printed in this newsletter that I could have purchased for $33«33. (There are some numbers for you, Gann fans!). Apparently "my friend" had sold his formula to the newsletter too. This was the "final blow" to my ego and was the one thing that seemed to show me just how much time and money I had wasted on my search for Mr. Gann’s Master Time Factor. Well, let's end this chapter here, while you ponder on how you would feel if you had been so foolish as me (I'm sure none of you will ever have to worry about that! Will you?)
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CHAPTER 3 WHAT NEXT? APTLY WHERE NOW?
OR MORE
Have you been thinking about how you would feel if you had been so foolish as I? Would you be pretty well fed up with the search for the master time factor? Would you ever want to hear of the commodity markets or the name Gann? You, being an unemotional passive observer to what I have related to you so far, are probably saying, "serves him right-anyone that foolish". You would also point out, being the astute observer that you are, that the problem lay not with the commodity markets, nor with the name Gann, nor with the master time factor, but SOLELY with the author of this booklet and his attitude towards something which had distorted his perspective towards reality about the markets, the master time factor, and in fact, life in general. Well, if you came to these conclusions, you would be precisely correct. You have come to the same conclusions that I reached in the fall of 1981 about myself. But you have also hit on something else. Those same conclusions that you have reached about my behavior thus far in my search for the master time factor are the very ones that I believe that keep us from making profits in the markets. If we continually incur losses in the market it is BECAUSE OF OUR ATTITUDES TOWARDS THE MARKETS WHICH HAVE DISTORTED OUR PERSPECTIVE OF THE MARKETS, OF REALITY, AND OF LIFE IN GENERAL. And how have we gotten to this point where our attitude has turned into our perspective and messed us up? We got there the same way I «did- day by day, degree by degree, bad habit by bad h a b it , mi sp l a c ed str iv i n g b y mis p l a ce d st r iv i n g, wro n g d es i re fo r the wrong thing by wrong desire for the wrong thing, mistake by mi stak e. Hav e yo u n ot ic ed th e la ng ua ge t ha t I ha ve used in th e preceding sentence? What have we done? We have SQUARED our bad ha bits a nd mis ta kes in time. Ho w? In us in g th e wo rd "b y" which means times in between the same two words or phrases we are
mu l ti p ly i n g t h e se b ad h a bi t s o r mi s ta k e s b y t h e ms e lv e s , wh ic h is the mathematical definition of squaring a number, element, s e t , or anyt hing . Wh at ' s wo r s e we ar e d oi ng i t d ay by da y, a nd de gree by degree, which means that we are squaring these bad habits and e r r o n e o u s w a y s o f a t t i t u d e s , t h i n k i n g , a n d p e r s p e c t i v e s b y t i m e too. And what are squares? They are building blocks (even on charts) of equal height and equal width and equal length. They are also the base or foundation for the next square up. Now if our base or foundation is built out of bad habits, mistakes, wrong thinking, and wrong action- how can we ever hope to accomplish anything (in the markets or life) other than what we have created already? There is only one way that I have found. It is the title and subject of the next chapter in this booklet. It is what I had to do with myself. It is what I had to do with the Gann work. It is what I had to do with ray attitude, habits, and perspective. I had to tear everything out- tear it all down and clear the base 13
and foundation. I had to destruct it all. And most difficult of all, by far (that "by" means distance multiplied by itself), I had to tear down my emotions, feelings, ego, and intangibles that came closest to what I thought that I WAS. My essence- as close as I could. If I had stopped to think after a short time in the market when the profits were not coming in the way they should have been in any successful business, I would have realized the above mentioned truths many months and many thousands of dollars ago. I tell you now, if you have not made profits, but instead have had losses in the market for at least six months running, YOU MUST STOP TRADING. That's all! Just stop trading. What makes you think the next six months will be any different? Hasn ' t my story proved this to you yet? WPROVE ALL THINGS AND HOLD FAST TO THAT WHICH IS GOOD", (for your information at this point, "prove" also means to square). Now, I didn't say quit trading, I said STOP TRADING. If you are not making profits, why are you trading? Why was I trading, if I were not making profits? If I had STOPPED TRADING months earlier, look at how much better off I would have been. So if you haven't been making profits for the last six months you will promise me that you will STOP trading. You understand don't you? The longer you continue trading and losing, the larger building (you), you are going to have to tear down and destroy, because you have built your squares on a bad base or foundation. The sooner you STOP building your squares the smaller your area of destruction will have to be. You will have to do the same thing that I had to do. You will have to tear down back to the foundation or base and clear up the debris and lay a good new foundation and then build again- build a good building on a good foundation- one that will allow you to scale new heights! At this point I nee d to digre ss a gain for three or four paragraphs. When I left you at the end of the previous chapter
I had arrived at a pretty low emotional state, mental state, and financial state. My wrong habits, mental attitudes, and stupidity along with the aid and assistance, of "my friend" had left me pretty well devastated. On top of that I developed a health problem in the late summer of 198l-all at the same time that I had finally realized the enormity of my erroneous ways. I may not have made myself clear to you up to this point, but when I have been writing SUBSTANTIAL money every time I referred to the money that I had given "my friend", I have been putting all capital letters to emphasize that SUBSTANTIAL is Indeed what I mean to say. Needless to say, the health problem that I had developed (a kidney problem) did not leave me too secure with the long term financial security of my family. I had plenty of life insurance but I had not made at that time the necessary provisions for any unforeseen long term illness. So I had this whole situation to contend with in the middle of the most severe real estate downturn that I had ever lived through. Most of my remaining assets were In real estate. I hope that I have given you a clear enough picture of the things I was thinking about at 14
this time. What I really needed at this particular time of my life in the late summer of 1981 was some type of sustenance for my spirit or soul. Our spirit is what vitalizes us and my vitality was low at this time, low physically, mentally, and spiritually. Then I thought of my creed. "The Seeker's Creed" is an article of declaration of beliefs that I compiled over ten years ago. None of these beliefs are products of my mind, but they were compiled by me for me at another low point of my life when I was searching for direction in my life. They were the result of my lifetime of reading and experience. "The Seeker's Creed" was what I had used as the FOUNDATION or BASE for my real estate business and I realized at this point that what I, needed was a new strong foundation based on common sense and proven natural laws If I were going to survive this situation I had "built" for myself. I had forgotten about "The Seeker's Creed" in my search for the master time factor. In fact, it seemed that I had forgotten everything in my search for the master time factor. I have also called my creed "The Seeker’s Creed" so that you can adopt it for yourself should you so desire. I will tell you more about later. It is in the Appendices. Now, one of the strange parts of this story again. I never had intended that my creed be anything other than a personal declaration of my beliefs that I had proved would work. For a period of my life I had consciously tried to live by them and I had read them faithfully every day and practiced them in ray real estate business. But I had forgotten my creed during the last few years and from the time that I had begun my "Gann Voyage" in 1979 until the time I pulled it out in the fall of 1981 I certainly never read it nor did I practice it. But for some strange reason, I took it out of the drawer of my desk in my library in May of 1981 and had a copy of it made just as it was (I had typed it for myself on my typewriter when I
originally wrote it and I had spelling errors and typeovers in it). I had to go down town to get a copy made and then bought my sheets back and put them in my three ring binder and put my notebook (my creed) back in my desk drawer. I then sent the copy I had made to "my friend" as a token of appreciation for his selling me what I thought was the master time factor. I had never given this to anyone else outside my immediate family before nor since until this very day when I am including it in this booklet. Isn ’ t that the strangest thing? Its almost like an opening and closing of a cycle or circle and its almost like the creed and the master time factor go together. Who knows? Perhaps, they do?
15
CHAPTER 4 "YOU MUST OBSTRUCT" "BEFORE YOU CAN CONSTRUCT" In my earlier years when I first started out in business and in ray real estate activities I started out buying and improving and reselling residential properties. Then I grew into buying and Improving farms and land and subdividing farms into tracts and reselling. When my health problem that I told you about in the last chapter improved and I began studying my creed again I decided to start all over with what I had proved in the past. In other words I planned to hold fast to that which was good. This was in the fall of 1981 and we were still in the worst real estate market that I had encountered during my business life. I decided first of all that I would lay aside for the time being any study of the markets, of Gann material, and any trading in the commodity markets. I was literally "sick of it". I gave notice to terminate the lease on my ticker, packed it up, and sent it back. I closed out my commodity trading accounts and had all funds sent home. I determined to return to those things which had worked for me in the past. I read my creed every day- once in the morning and the last thing at night. I tried to practice it where I could every day. I went back to the real estate business with new vigor. I passed on the farms because there just wasn ’t that much market. And I did not want to take the risk necessary to buy and subdivide -a farm. If I could work off an option, I would. I went right back to the beginningresidential properties. This time I was faced with a new problem that I didn't have several years ago when I was dealing with houses. That problem was 17% and 18% interest rates. People were just not moving around very much. (I live in a small town). I realized that people wanted to acquire better housing but it was extremely difficult for first time buyers and young people and slightly less difficult for those
who already had equity built up. So I started trading. I started with the lower priced range and all the older, lower assumable rates properties that I could find. I practiced my creed in my business every day just as I had done several years ago. I would try to satisfy any real estate need as well as I could. If the person in need needed to sell, I tried to be the buyer; if the person in need needed to buy, I tried to be the seller; my creed said that to get supply you must open a channel and to open a channel you must do what? You create a need or find a need. So I looked for needs in the only place I knew to look-the real estate market. Even in the so-called tough housing market of late 1981 and first part of 1982 by the practicing of my creed I had a good period financially. Then I got back into farms as well as houses and from January 1, 1982 through March 30, 1982 I had sold a little better than one million dollars worth of real estate on commissions. (This is a good place to ask you a question that I have often wondered about. What is it that makes a man ignore what he is successful at and suited for-pursue something else that appears more golden, but yet causes him 16
losses and misery, when he could do so well Just performing his useful function? A personal example-me and the real estate market and me and the commodity markets.) I felt good again and hoped that I had learned something about life and the markets and most of all something about myself. I was back at a good foundation or base-My Creed. (Yours too, now, if you want it.) Now, through pain, frustration, and not knowing what else to do, I had begun to destroy the wrong attitudes and perspectives that I had allowed to develop in me. But I was doing this tearing down without knowing it. One day in early 1982, I had purchased a property that I intended to remodel and then sell. I went to talk with this contractor that specialized in remodeling. He was working on a job when I found him; and the lady that he was working for was complaining about how much of her house he had torn out and how bad it looked. This contractor said "yes ma'm, it shor looks terrible but you must fust dee-struct fo you can con-struct.1' This statement almost floored me. YOU MUST FIRST OBSTRUCT BEFORE YOU CAN CONSTRUCT. All the things that I said to you in the last chapter about tearing out, tearing down, ripping out these bad habits and attitudes and thinking and perspectives did not just come to me then. It came to me as the sudden revelation when this contractor told the lady who was worried about her home falling in on her; and seeing her and him standing in the awful looking mess that was her home and all the rubble that looked like it could never be put back into anything useful again. It came to me then that this was like the squares or building blocks that I mentioned in the last chapter. Our lives and market habits and living habits are the same as the home needing remodeling. I saw clearly for the first time that if I needed remodeling-AND I DIDI-then I would have to tear myself down the way I described to you in the last chapter. I saw then too that I had already made the proper start by getting back to the useful part of my experience and life that had worked for
me in the past, namely trying to live and conduct my business by my creed. I had proved that my creed was good and sound and so I wo uld ho ld fa st to it an d use it fo r th e b asis (ba se o r foundation) of my life in the conduct of my affairs (the building of my squares of living blocks). I had also proved that my real estate activities were sound and useful and that I would use them as my base or foundation for providing a living for ray family and a service for my community. I resolved to always In the future to conduct my real estate activities and my personal life as nearly as I could on the natural laws in my creed. I had proved my creed for ten years, left it, and came back to it, and found that it still proved itself to be true. I also resolved not to ignore my real function; and not to go out on any wild searches for "master anything". I knew now that I had something so valuable that everything I needed could be supplied by the practice of what I already had right here within me (my creedlearned and lived-inside of me. Precisely where the ancients had always said it would be found.) I also knew at this precise time that I would some day find the master time factor of Mr. Gann ’ s and this is when I resolved that when I did find it I would make an effort to reveal it to others that may have searched long and hard for it. 17
But I contemplated that I would only reveal it if it turned o u t to be worthwhile to others. My course now was clear for the first time since 1979, no, even further back. No longer, would I allow myself to fear the future about the economy or good times or bad times. Now through living my creed I had the confidence to know that I would do the same things in bad times that I would do in good times. I would meet the demand of others by being supply. Also, I would go back to the commodity markets but this time with a different perspective and attitude. I would go back to studying Mr. Gann ’ s works, but with a different perspective and attitude. I would go back to my s earch fo r the mas te r time fact or, bu t w ith a di fferen t attitud e and perspective. I would do exactly what the contractor had done with the ladies house. I would establish my base or foundation as I Indicated above. I had proved it. I knew it was sound. I would take the commodity markets, the Gann material and the search for the master time factor, and I would tear down everything that I could not prove good. I would only do this in my spare time when it WOULD NOT DISRUPT OR HARM MY GOOD SOLID FOUNDATION OR BASE. I would work out a methodical plan of action that would allow me to do the se things by depending on my self from w ithin my self. I would not pay any attention to what this person thought about the markets or what that person thought about the markets. I would try to Isolate myself from discussion of the markets and discussion of Gann material. I would work as the ancients would say "In Silence, By Silence, Through Silence." I would "PROVE ALL THINGS, AND HOLD FAST TO THAT WHICH WAS GOOD."
CHAPTER 5 I BEGIN AGAIN I had not understood Mr. Gann's rules or they simply did not work for me. In fact they had not worked much better than the pathetic formula that "my friend" had sold me. The angles hadn ’ t helped me, the squares hadn't helped me, the calculators and master charts hadn't helped me, the trend indicators as I had understood and tried to use them hadn't helped me, and the time periods that I had tried to use hadn't helped me. I didn't really know anyone including the Gann experts or maybe I should say particularly the Gann experts that I had met or heard of that the Gann material had really made successful. The only people that I knew that had made any money on the Gann material were people who were selling information or seminars or advisory letters about his material. (Me too, now, huh?) At any rate, if I were going to prove all things, and hold fast to that which was good, at this point I would have to throw away the entire Gann trading method. I knew that if the Gann material was ever going to provide a basis for a successful trading system for me, I would have to have a better understanding of it than I had previously had or I couldn't use it. I had always felt that the missing element which would provide the "key" to unlocking the usefulness of his material was that same old master time factor. Until I had that key I knew that the rest of his material was useless to me in trading the markets. I HAD ALREADY PROVED THAT. I also knew that if I were ever going to find the master time factor, I would have to do it myself. No one was going to give it to me or sell it to me. I HAD ALREADY PROVED THAT TOO. Circumstances related to you earlier had already caused me to tear down and destroy those things In myself that I had to eliminate. Now I needed to do the same thing with the Gann material. I have indicated to you in the dedication of this
booklet how I felt about Mr. Gann. Nevertheless, common sense (yes, I had it back now) dictated that if I were going to use only those parts of his work that I had proved useful, then I would have to THROW THE WHOLE THING OUT! Now, dear reader, what do you think I did this time? You know me pretty well by now, don’t you? No, you are wrong this time. I DID EXACTLY THAT-I THREW THE WHOLE THING OUT. I told you that I had learned my lessons. I learned them well. I learned them the hard way, the painful way. Now my lessons had taught me that if it wasn't good, I wouldn't build on a bad foundation. The bible says that you will know a tree by its fruit. In the commodity markets "good" means profits. I hadn't made any before, using the Gann material, why should I expect to make them now doing the same things that I did then. Actually, I did retain one single item of the Gann material. The M5 day calendar period. I incorporated it into my rules. I was determined to acquire the ability to trade the markets. I opened 19
a trading account In the spring of 1982. I traded this account based on some simple common sense rules. I made every effort to incorporate into these rules the opposite attitudes and perspectives that I had earlier. I don't propose at this point to go into my trading rules, but, you "know what some of them would be just by reading my story up to this point. For example, I practiced patience by having a rule that I could only enter the market on a new position on one certain day of the week and only under certain conditions. I quit keeping up with quotes during the day and would only update my charts the next morning. I would save up the news during the week and only read it on the weekends. I quit discussing the markets with people. I limited myself to a situation where if I reached a certain profit that was three times the loss that I had allowed myself for a given month then I would quit trading for the month; which ever was reached first the profit or the loss. I had a rule that I would be in no more than two different positions at the same time. I also had a rule that if an account had losses for two straight months I would close the account out. All of my rules were just simple common sense rules that would help me be with a trend and get me out soon if I were wrong. Most of the rules kept me from trading during the time that the markets were opened. I was trading now not to make a living, a killing, or for my ego, but simply to make profits of a good return on my Investment, and secondarily to learn more about attitude of myself and to find useful things that would work in the markets. I was gathering materials that I could use in building my successful trading program. When I found something useful I kept it. At the end of 1982, for the first time since I had been trading I had a net profit for the entire year. I had spent very little time trading the markets that year. In other words the less time I spent trading the more money I made. Since I had so much more free time now that I wasn't looking up squares and time periods and divisional points of price and
angles and calculators and getting quotes every hour. I decided to spend that free time looking for one thing. Yes, you know me. The master time factor. I knew that without it and maybe even with it that the rest of the Gann material was worthless to me as far as trading the markets. I had not wasted my time in studying the Gann material though, because I had re-discovered the value of my creed, and you remember that this was the most valuable knowledge that I ever found. I had copies of every piece of material that I had been able to acquire about Mr. Gann. I had every piece of all of the published material that Mr. Gann had ever written except for a small copyrighted booklet entitled "Senator Warren Harding of Ohio Will Be Our Next President". You may not have ever heard of this booklet. I had never heard of it either. But I found it listed in the copyright section in Washington D.G. It was supposed to be in the Library Of Congress but they could not find it. Yes I went to Washington to see what I could find out about Mr. Gann and his work. I told you I had looked hard. Well, as I said, I had all his published materials and several pieces of documents, letters, 20
and unpublished materials. I had notes that I had made in interviews with different people that knew Mr. Gann. I even went to Miami once to interview the people in the neighborhood that Mr. Gann lived in his latter years. Also, I had talked with a man that knew who Mr. Gann’s personal astrologer was. I never knew until then that Mr. Gann would have a personal astrologer. I guess its like thinking that a physician would not have a physician. I will tell you about Mr. Gann's astrologer in a later chapter. Anyway, what I am trying to say is that I had a pretty fair collection of material written by Mr. Gann. I decided to use what I had and analyze it in ever way that I could. First I analyzed every word that he used when he talked about time. I looked the different words up in the dictionary and compiled a glossary of sorts. I checked to see if he used different words at different places to say the same things. For example, I found that when he used "or" between two words those two words meant the same thing to him. But they would not have necessarily meant the same thing to me. I would have ordinarily understood them differently. I made a list of words that were different, but meant the same to him. This process began to give me a sort of mindset to the language and expressions of Mr. Gann and I began to see some new meanings to things that he said that I had earlier understood differently. The next thing that I did was to analyze his quotations and see how many of them that I could find. I also wanted to see why he used them where he did and were they used for any other reason than what they appeared to be on the surface. I knew that my grandparents had expressions that were quaint to our expressions today. I wanted to see if any of those old expressions had different meanings than they do today. So, I checked on all these language aspects. I found that dictionaries, encyclopedias, and vocabularies were areas of great potential for learning about anything. They give you concise brief accurate descriptions about any specific word idea or concept.
Frequently I found that my understanding of a word or concept was much more vague and ambiguous than I had realized. By looking up important words and even simple words I began to have a clearer mental picture of concepts. By understanding the precise meaning of words and concepts and the various shades of meanings I began to understand better and I began to sense some subtle things that I had not earlier comprehended. Another thing also came to my attention about this time (Spring and Summer of 1982). That thing was the introduction of the Stock Index Futures to the commodity markets. I told you earlier that I had never been interested in buying and selling stocks themselves. Because of my lack of interest in the stock market I had never spent much time studying Mr. Gann’s stock market books and his stock market course. Oh, I had read "Truth of The Stock Tape" and M45 Years In Wall Street" about 30 times each and I had pretty well memorized certain parts of them. And I had read and studied the Stock Market Course some 20 or 30 times. But I had always read and studied them looking for clues regarding time and 21
trying to apply this information to the commodity markets. I was not interested in the information about the Stock Market. I s i m p ly r ej ec t e d t hi s w i th ou t t h i n k i n g a b o u t i t . I w as n ’ t interested in what he had to say about the Dow-Jones or the Stock Market. If I may digress again this brings up another curious part about life to me. I have noticed and I am sure that you have, that the very thing that we reject as being of no value to us frequently turns out to be the most valuable of all-THE BUILDER'S STONE-lf you will. I have noticed it over and over in my life, that person whom I thought wouldn't amount to anything, that piece of real estate that I thought would never be worth anything, that book or idea that wasn't worth pursuing, they all too often turned out to be the true thing of VALUE. And we have the tendency to reject them because we think that they have no value. Why is this? I think that the answer lies in the area of what I call "mindset". If we learn through habit to look at something positively or negatively, then continue to practice that way of looking at something, then after a period of time, our understanding and our comprehension of these things tends to take on the nature of the way we viewed them over time. If we viewed them positively our understanding would reflect to us our viewing rather than the truth. In other words our understanding or comprehension is a reflection of the way we look at something rather than the truth about something. OUR KNOWLEDGE OF THE WORLD AROUND US IS A REFLECTION OF THE WAY WE HAVE LOOKED AT THE WORLD. If we have problems seeing things as they really are, it means that we have built on a FOUNDATION OF KNOWLEDGE that is wrong. Therefore, we must tear out that foundation and replace it with a good one. Otherwise, we stay in a vicious cycle that grows worse with time. The way to avoid this jaundiced view of reality is be AWARE. Be aware that we have this tendency. Reading and living by my creed will make you aware.
Now, it is obvious that Mr. Gann wrote more books and material on the Stock Market than he did on the commodity markets. But I had rejected the stock market material except as I could apply it to the commodity markets. Again the reason I had rejected it was not that it wasn't important, but simply that I VIEWED it as not important or useful. By doing this, I had rejected the BUILDER !S STONE. Because this would be where I would find the master time factor. To show you how our view of things change and why they do, I have to tell you that when the stock index futures started trading, I realized one day that I had the opportunity to study Gann ’ s stock market books and material and that I could trade t h a t i n f o r ma t i on i f i t p r o v ed us e f u l b y tr a d in g th e in d e x futures. Now, do you see why I was willing to look at it now and saw value to it where I didn't see it before. The reason was that now it was acceptable to me because it wasn't the stock market anymore but it was now the commodity market. I was BLIND to its value until it appeared in a form that I could see through the "filters" that I had put on myself. This filter of course filtered my vision but as I said above my vision turns out to be my understanding or comprehension or knowledge. 22
Now I went after the rejected "builder's stone" with great energy. The same material now had new meaning to me. There were many things to study and learn. (This is the same material, it hadn’t changed, I had, or my ATTITUDE towards it had). My "mindset" or attitude or vision now allowed me the freedom to search for the truth. Remember seeing and finding the TRUTH will make you FREE. If you don ’t get anything else out of my material, it will be worthwhile to you, if you can just understand what I am trying to say. It is our attitude that gives us our vision and it is our vision that allows us to see (know) what we do and we can only profit in the markets and in life as we react to our knowledge which is based on our vision which is based on our attitude. Tills previous sentence is the most important truth that I will be able to offer you in this booklet. Perhaps you have already realized this and it doesn't see-m important to you. If you have already seen this then it doesn't mean as much to you as it does to me. I guess truths learned mean more than truths known already and I learned this one with much difficulty.
23
CHAPTER
6
THE STOCK MARKET, AND ME.
ASTROLOGY,MINDSET,MR.
GANN,
In ray renewed pursuit of the master time factor via study of Mr. Gann’s stock market material which I had previously rejected as related in the last chapter, I happened across two items in particular that were sudden bursts of revelation to me. I guess I am a strange person but when I receive insight of a clear nature about something that has troubled or perplexed me for a long period of time, this sudden dawning of inspiration almost overwhelms me. This is the feeling I had when I received the first revelation. It is difficult for me to put this into words because there was no logical reason for me to be excited about seeing this for the first time, it really didn't mean that much but for some subjective reason lights flashed all over Inside me. You will think I have taken leave of my common sense again when I tell you what it was that caused this feeling. I still am not able to describe this feeling to you appropriately, so I will just drop it here. Maybe you understand what I am trying to say. The thing that caused this feeling was a quotation that Mr. Gann used in his book, "Truth Of The-Stock Tape". I told you that I had been looking up and studying the quotations that he had used in his books and courses. I have a library and study downstairs on a semi-basement level in my home. I am able to get away from all distractions down there. One day I went downstairs and picked up the above mentioned book and just absent-mindedly opened it to page 1. Under the title there were headings of BOOK I and then PREPARATION FOR TRADING. Under this was a quotation from Emerson. It read, "No man can learn what he has not preparation for learning, however near to his eyes is the object. A chemist may tell his most precious secrets to a carpenter, and he shall be never the wiser-the
secrets he would not utter to a chemist for an estate."Emerson. I tell you, truthfully, I felt like I had been knocked down. It floored me. It overwhelmed me. This simple quotation that I read many times, but had never seen, almost took my breath away. For the first time I knew that all Mr. Gann's "time periods, time cycles, time was up, time was not up, time had run out, time had not run out, the time factor, and yes, the MASTER TIME FACTOR"-all his references to time were astronomical cycles and divisions of them. You notice I said astronomical-not astrological. I knew this in a "direct-way" that gives me problems describing. The seeing of this and the feeling that it gave me to see this clearly was overpowering. Now, I knew all the time that Mr. Gann ’s work was based on astrology, and I knew that his time cycles were based on it too. But I could not bring or did not bring myself to look at his time cycles from an astrological viewpoint for several reasons. The most important reason I didn't, we have already discussed and it 24
is most important that you and I always remember this and be aware of this tendency in our make-up as human beings. Of course, the primary reason I couldn't look at the time cycles from an astrological standpoint was that I had rejected astrology because I saw no value to it. It was outside my experience. Just like in the previous examples my way of viewing an object or concept by putting value to it or not putting value to it with my viewing caused me not to see what was there even though it was there. You understand? Mr. Gann said plain enough in the quotation by Emerson that he had laid his secrets out clear enough but if we did not have the preparation (or FOUNDATION or BASE) then we would not comprehend what those secrets meant. In another way this principle is demonstrated by something as simple as an "Easter Egg Hunt". Don’t you remember how sometimes those eggs that were hardest to find were laid out on the ground with nothing hiding them. They were in plain sight. But, because we were looking for them to be hidden, we sometimes had trouble seeing them. Now, I am not telling you that all of Mr. Gann ’s material was laid out well enough for us to see it. If you had only one of his books and didn't have his courses you wouldn't understand what I mean. But I had all of his books and courses and some unpublished material that had circulated around over time. Another reason that it had been hard for me to look at his time cycles from an astrological standpoint is that I thought present day astrologers had not been able to take his material and make profits with it. I should amend the previous statement to read that I had not been able to find or hear of an astrologer that had deciphered Mr. Gann ’s work. The only profits I had heard of being made by astrologers were those selling seminars or books on using astrology trading Mr. Gann. But I knew no one that had been able to trade it. So, I just discarded the possibility of my finding out how to use the time cycles by studying astrology. I guess I thought that if the professional astrologers who knew much more than I did
couldn ’ t find it or hadn't found it then it was useless for me to try to use astrology to find the master time factor. My error again, IMPROPER THINKING, as always. You and I have all that we need to do anything. We Just need to realize where our source of supply comes from and then allow it to work. You can read about this source of supply in " The Seeker's Creed". Reading doesn't do it though, you have to practice what’s in there. I know that it is hard to follow me in this chapter. The title of it, alone, is enough to make you run the other way. Its just that I'm not a writer (I'm a seeker) and I have difficulty saying the things I want to say to you. For the rest of this chapter please try to bear with me and realize that I am talking about how the stock market which I had previously rejected, led me to the astrology part which I had previously rejected, because of a "mindset" that I had built out of my attitude and habits of associating or disassociating value with whatever I had been led by myself or others to think that value should represent. This is a common problem, I believe, and I hope that I have been able to 25
correct it somewhat in myself. Another problem in writing this chapter is that I have two or three things to tell you about; but th ey didn't happen sequentially, they occurred simultaneously. So I may jump from one to the other in telling you about these different things. In the beginning of this chapter, I told you that there were two revelations. I have related the one about the quotation. On the very same day that the first occurred, the second occurred too. As I was thinking about the above I went to the stock market course to look at the chapter in the course on page 90. The one entitled "FORECASTING BY TIME CYCLES11. For those of you who do not have the stock course, you will find a complete copy of the chapter "FORECASTING BY TIME CYCLES" in Appendix I of my booklet. Please read only the first page of that appendix at this time. I am quoting the second paragraph of Mr. Gann 's "FORECASTING BY TIME CYCLES"-----"The ancient hunters had a rule that when they were searching to locate an animal in his den, they always followed his tracks backward, figuring that it was the shortest route to his lair. The quickest way for you to learn how to determine future market movements is to study the past." So what, huh? Well that quotation after the first one I mentioned above gave me precisely the directions to the path that would lead me to the master time factor! I saw from that quotation that I needed to get into astrology some more and that further I needed to trace back in time the things Mr. Gann had said about time and see if I could track him back to his lair. I had documents and fragments of unpublished materials and his books and courses. So I could date most of the things he had written. I would take the latest material first and then go back into time to his earliest material and see if he always
said the same things in the same way. Furthermore, I had all kinds of old astrology books that I had purchased earlier but had not really gotten into; so I would look at astrological cycles and let the signs and houses go. Excuse me for jumping around again, but here's another side trip, and we will come right back. .1 have been on many many paths searching for the master time factor. They have all been dead-end. Now I "know" that the path which ends in "master time factor" is nearby and I promise you that It will not be long before we will get on. Anyway, this side trip. I had talked with an elderly gentleman one time and he said that he had known Mr. Gann by reputation but had never met Mr. Gann. He did say though that Mr. Gann had an astrologer by the name of Edward Johndro who helped him in his work on the markets. Well, you know me, I began to see what I could find out about Mr. Johndro. It was my intention to see if I could find him and if he had already died, I intended to try to find his family and see if he had left any papers. I called the American Federation of Astrologers and had them send me the rest of Mr. Johndro's books that I didn't already have. Then I learned from them of a man that had studied 26
Johndro work as much as any other living person. I then contacted that gentleman in New York and I learned that Mr. Johndro had died in approximately 1955 at about the same time as Mr. Gann. The death was apparently "sudden" and because this Mr. Johndro was a famous astrologer and had clients that were high officials of the Canadian government, his papers were burned by his family at the request of these officials. I did not pursue the matter further from here. The gentleman in New York said that he was not interested in talking about financial astrology except to say that Mr. Johndro had some very Interesting ideas on it. I tried reading Mr. Johndro 's work several times but I did not have a good enough foundation (preparation) to understand it very well. I noticed that the cover on his booklet "A New Concept Of Sign Ruler ship" appeared to resemble some of Mr. Gann’s circular calculators, but I just assumed that it was because Mr. Gann's calculators were all related to something from astrology. The important thing that I learned from this was that Mr. Johndro was a mundane astrologer. So I began a study of mundane astrology. Furthermore I wanted to look only at the writings from 1920 back in time because I knew that Mr. Gann had begun trading by 1902. So, my approach now, was going to be threefold. One-I would study to see what mundane astrologers thought at the turn of the century and earlier; two-I would try to identify each one of Mr. Gann's Important time cycles by an astrological time cycle; and, three-I would try to relate the first two approaches together and see if there were any parities or disparities between them. At the same time I was going to track the writings that he had made back in time from those nearest his death to those earliest in his life. I was excited now because I "knew" that I was getting somewhere. In my searching through astrology books for old mundane astrological precepts I came to the conclusion that the useful part of astrology for me at that particular time would be something similar to the following. I had read where some people
said that they did not believe in astrology, but that they did believe that the planets In the solar system caused magnetic and electric fields in our earth's atmosphere and certainly we must respond to them in different ways at different times. Some of these disturbances could cause waves of optimism and pessimism and weather disturbances. Certainly I could believe that and I was now willing to look at ideas and concepts that I would not earlier have looked at with sincerity. Now, you understand, I was FREE; free to look at things that I would have earlier not been able to see, even if I had looked at it, because, now I had my filters and blinders off. Also, to me I was studying astronomy, a science; where astrology is merely an Interpretation of events and conditions that may in fact have been caused by astronomical relationships. Also, I knew that earlier generations were more practical than we give them credit for today. They knew more than we think they knew. In fact, I believe that they knew more than we do today about some things. I knew from my real estate activities that if I found an old ditch on a farm and someone said that I needed to put a new ditch on the farm, the best place 27
for me to put that ditch would be exactly where that old ditch had been dug. Old-timers had to dig a ditch by hand. They were not about to dig one where it was not needed. Over the years, I have learned to acquire a great respect for the ancients and what they thought. I knew that their fables and myths all had some important truths behind them. I had also learned from HARD experience not to reject anything as having no value just because my educational background and Social circle saw no value in it. I have mentioned to you earlier about the great value I had found in using dictionaries and encyclopedias. One of the best sources of general and specific information about astrology that I have found Is a book, "Encyclopedia Of Astrology" by Nicholas deVore. Even though I had glanced through this book several times in the past I had my blinders on and therefore could not see. Now that I was free I was almost blinded again by the light that came from looking at this and other books. Everywhere I looked, one book after the other the following messages came through over and over. Major conjunctions (of the planets, where two superior to earth orbit planets appear to be in the same spot in the sky) are very important in the consideration of world events, and in all mundane affairs. Used in connection with the solar ingress charts, they serve as focal points of the greatest influence, and reveal the cosmic forces radiating Upon the earth. "The old astrologers placed GREAT importance upon the conjunction of Jupiter and Saturn, and rightly since this conjunction involves the two largest bodies of our solar system. It has always seemed that the conjunction of these two planets has had the greatest influence and significance upon the course of world affairs. The 'life 1 of the Influence of these great conjunctions upon world affairs and Individuals remains in force until the next conjunction of the same pair of planets. THE TIME FROM ONE CONJUNCTION TO THE NEXT CONJUNCTION OF THE SAME PAIR OF PLANETS MAY BE
CONSIDERED AS A 'CYCLE 1. Major conjunctions when considered in the light of Cycles 1 MEASURE periodical historical events, or the epochs in the changing world conditions, and even t h e r i s e and fall of civilizations. A g a i n , m o r e — " T o t he a n c i e n t s t h e l o n g e s t o r b i t s ( t h e t i m e period that it takes for the planet to make one revolution around its orbi t) with in the so lar syst em were the orb its of Jupit er (12 years) and Saturn (30 years) (approximately); The points at which J up i t er cau gh t up wi th and pass ed Satur n m ark ed th e g reat es t cycle with which they were able to deal. This occurred every 2.0 ye ar s (ap p ro xi ma te l y ). J u pi t e r an d S a t u rn in t he i r r el at i on s hi p t o e a c h o t h e r i n t h e s e c y c l e s o f t i m e f r o m c o n j u n c t i o n t o conjunction were called by the ancients-the great CHRONOCRATORS, or Markers of Time." Then cycles of cycles of 20 years were important and marked. (Did you know that the cycles of cycles of 20 years that I just mentioned was Mr. Gann's "Square of Twenty" and that he used it speci fi cally for the stock m arket. Also, be aware of the fact that cycles of cycles is the same as squares or squaring. Apply th is knowl edge to othe r things. ) I could go on 28
talking about things that I found about the 20 year cycle in books about the old astrologers. Another very important cycle to the ancients was the 3RD 20 year cycle of Jupiter-Saturn. This cycle was the most important of all to them and they watched it with GREAT INTEREST. What happens is that the Jupiter-Saturn cycle (conjunction t ! 0" .back to conjunction "0") takes 19.859 (average) to complete one cycle. The occurrence of the next cycle takes place at an advance of approximately 123 degrees in longitude in the circle of the zodiac. After three such cycles, 59«577 years have passed and with each 123 degree advance in the zodiac the conjunctions have come full circle of 360 degrees plus an additional 9 degrees (approximately) more. This is called a FIRST ORDER RECURRENCE CYCLE of Jupiter-Saturn (mean values are given). This was very important to the ancients because the conjunctions were now taking place very close to the same spot in the zodiac that they had occurred 60 (approximately) years earlier. This 60 year cycle is the one that the ancients spoke so much about. Everywhere I looked in my old books I read where the ancients really paid great attention to this 60 year cycle. This term "first order recurrence cycle" was new to me. I had READ it before but I had never seen it. You understand. While looking up more information about first order recurrence cycles, I found that the orbit time (mean) of Jupiter in tropical years (from spring to spring) was 11.858 years; that of Saturn was 29.42 years; that of Uranus was 83-75 years. I searched further into these cycles listed in the encyclopedia of astrology and I found more. For instance, (all values are mean) the time period from conjunction to opposition (0 to 180 degrees) in the Jupiter-Saturn cycle of 19«859 years was 9^93 years (almost 10); the time period of conjunction to opposition of the Saturn-Uranus cycle is 22.68 years (almost 22 1/2). One cycle after another, I was finding Mr. Gann's same time
periods or time cycles. The following are all cycles of time from one conjunction to the next conjunction between two planets. Mars-Jupiter, Mars-Saturn, Mars-Uranus, Mars-Neptune, and Mars-Pluto; all these taking place at about every two years (different times); then Jupiter-Uranus occur about every 14 years; Jupiter-Neptune occur about every 13 years; Jupiter-Saturn about every 20 years; Jupiter-Pluto about every 12 years; Saturn-Uranus about every 45 years; Saturn-Neptune about every 36 years; and Saturn-Pluto about every 33 years. Now, I know what you are thinking. You are right now saying to yourself, Oh, NO!-not again-another Gann booklet with more of the same old astrology junk. Please, just bear with me because soon I am going to re-discover Mr. Gann's Master Time Factor. See, you are having some of the same problems that I was having. You are putting filters and blinders on your vision and not seeing what is before your very eyes. You are refusing to see something of truth because your educational background or social circles or prior way of looking at things has not allowed you to see 29
anything of value in looking at astrological concepts. But, if it helps you and I to see better, lets say that we are looking at astronomical (scientific) concepts to see if there could be any correlation between these astronomical relationships relative to us (earth beings) and our reaction to them. What we are really faced with is this common problem of shutting up our God given powers of understanding when we refuse to see things because they are outside our experience. In "The Seeker's Creed" you can read about the necessary knowledge to develop a "mindset" that will allow you to overcome this vision problem that we all have to some extent. But reading about it will not help you as much as practicing it. The reason that I knew that you were looking at the above "astrology" with a jaundiced eye is because I have been there. Also, you are a seeker and I am a seeker and we seekers are all alike. Aren't we? Now, these cycles that I have been enumerating above are all scientific facts. They are time periods of planets and planetary relationships. I just happened to read about them in an encyclopedia of astrology. I could have read about them in a college textbook of astronomy. The interpretation of the meanings, if any, as applied to these relationships makes what we call astrology. Well, in all this "sales pitch" that I have been giving you, trying to convince you that it is all right for us to look into this area or any area where truth may or may not be found, I have forgotten to tell you that I have been having those overwhelming "feelings" again. Why, I don't know- (well, I do because that's what we ’ve been talking about)- it took me so long to clearly see that each and every one of Mr. Gann ’ s time cycles and time periods were planetary in nature. The reason I felt overwhelmed again was that I had experienced that wonderful thing again- INSIGHT. It was now Spring of 1983. It had taken me four long and painful years of searching to see what his time cycles were. I am some kind of "seeker11, huh? Turtles and I-hmm. Well, lets test me on some of these time cycles. In the Commodities Course on page 64 (newer or
older courses may be different page #) of the chapter entitled #5, "forecasting grains by time cycles" Mr. Gann says, "The Great Time Cycles are most important because they record the periods of extreme high or low prices. These cycles are: 90 years, 82 to 84 years, 60 years, 45 years, 30 years and 20 years." A couple more notes here- (there are now quite a few things that I can tell you about what Mr. Gann means when he says something, but they are difficult to place in context of this story every time I run across a word that I have learned what he means. Also, I do not want you to think that I have a "know-it-all" attitude towards Mr. Gann’s work or anything else. I am acutely aware of my personal limitations, but if I may appear to sound immodest this one time, I have had lots of insight lately and I have put in enough time studying Mr. Gann that I have learned some subtle meanings that he intended with his choice of words. In the above statement when he says "Great" he means superior as in astrological terms to indicate planetary orbits outside of the orbit of the earth. Also when he used "Major" he meant the same 30
thing. The other two things that I wanted you to look at while we are on the adjoining page is to turn over to page 65 in the Commodities Course (if you have it, of course) and note that he says, under the 90-year cycle heading, and I quote, "The 90-year Time Cycle is one of the very important ones because it is 2x45." Now why would you suppose that he would say that the 90-year cycle is important BECAUSE it is 2x45 (or twice 45). While you are thinking about that, lets look at the headings 84 year cycle and 60 year cycle. I wonder why he didn't say much of anything about them and particularly the 60 year cycle. He just said to compare 60 years from tops and bottoms. Almost just the word compare, no elaboration at all. Maybe, not so important, huh? Then look down at the 20-year cycle heading. He says that the 20-year cycle is a very important cycleWHY?-because it is 1/3 of the 60-year cycle. He just mentions the 60-year cycle by the word compare; but he describes the importance of the 20-year cycle because of its relationship to the 60-year cycle. In the 90-year cycle he described its importance in terms of the fact that it contained 2- 45-year cycles. But the twenty-year cycle was described in terms of the 60-year cycles. There is a reason for the manner in which he described the above referenced cycles. As you begin to go back over Mr. Gann’s books and courses and read them with a new awareness that I hope to be able to give you before this story is over, you will appreciate that many passages that were difficult or worded "funny" had special meanings. O.K., back to the test. The 90-year cycle is the "first order recurrence cycle of SaturnUranus. The actual cycle of conjunction to conjunction of SaturnUranus is 45 years. That is why Mr. Gann mentioned that 90 years wad Important because it was twice the 45 years. It actually takes an average of 90.72 years to recur. But all these years are rounded off by these old astrologers because they were close and because it was easy to take divisional parts of them and use them in simple math. The 82 to 84 year cycle is of
course the time it takes Uranus to complete its orbit. The significance to Mr. Gann was that the planet spent 7 years in one sign and 12 x 7 was 84. The 60-year cycle is the "first order recurrence" cycle of Jupiter-Saturn, the one that the ancients, who could not see Uranus or other farther out planets, thought was the very important cycle. Yet Mr. Gann Just skips over it with the word compare. Very quietly almost. The 45-year cycle is the one multiplied by 2 that gives the "first order recurrence" cycle of 90 years. Just the 45-year cycle is the time from conjunction to conjunction (or "0" to "0") of Saturn-Uranus. In other words, the 45-year cycle is the Saturn-Uranus cycle. I have seen one of Mr. Gann's 3-D Charts on Wheat dated from the Spring of 1852 as M0". There was a beginning (and ending of course) of a 45-year Saturn-Uranus cycle on March 15, 1852. Coincidence? The 30 year cycle is of course as we have all known all along the period of time that it takes for Saturn to complete its orbit. The 20-year cycle is of course the Jupiter-Saturn cycle. The one the ancients called the chronocrators or "markers of time". The reason that I have spent so much time on the above is that I 31
need for you to understand that I simply did not know what those cycles were until the spring of 1983- I, who, had spent thousands o f d o l l a r s t r y i n g t o p u r su e M r . G a n n ’ s m a s t e r t i m e f a c t o r , d i d not even know what the above time cycles were; yet I kn ew that Mr. Gann used astrology and planetary movements in his work. You see , it had taken me 4 years of my life and many thousands of dollars to find out something that should not have taken 1 month. But, AGAIN, the reason that I could not find it out WAS BECAUSE I HADBLINDED MYSELFTOTHEPOSSIBILITYOFSEEINGWHATWASOBVIOUS BECAUSE MY EXPERIENCE AND EDUCATIONAL AND CULTURAL BACKGROUND AND HABITS BUILT OVER A LIFETIME HAD DEVELOPED INTO AN ATTITUDE WHICH CAUSED MY PERSPECTIVE TO BECOME A "MINDSET" THAT WOULD NOT ALLOW THE REASONING PART OF MY MIND TO SEE ANYTHING THAT IT CONSIDERED VALUELESS OR NOT WITHIN THE BOUNDARIES OF BONAFIDE "APPROVED" E X P E R I E N C ES . Th i s i s P R E C I S EL Y th e r e a s o n th a t w e lo s e mo n ey i n the market. We have developed a "mindset" that precludes our seeing the proper course to take to make profits. Well, I was really excited, I had seen these cycles of Mr. Gann ’s. This was a big step for me. I knew that if the ancients called Jupiter-Saturn the "markers of time" or chronocrators that Mr. Gann certainly should have looked at the Jupiter-Saturn cycle as an indicator of time cycles that would repeat. Then in following my approach of tracking his comments back in time from the last period of his life to the first period of his business life, I found what I had always read in his material, the mention of Jupiter and Saturn and their aspects to each other. See my Appendix II in the back of my booklet. Read that Appendix now please. SEE IT? It’s been there all the time I've, read in the one of the last letters he wrote, dated January 18, 1954, that it is the "power of Saturn and Jupiter aspects, working out time that causes the major changes of trend in soybeans. I ’ ve read this letter over and over during the last 3 years but I would not or could not see what I was reading.
Look back to the earliest documents that I have managed to acquire. They are in the same Appendix II. They are 4 pages of his "METHOD FOR FORECASTING THE STOCK MARKET" SEE IT? It’s been there all the time. He says that "7" is the basis of time and that "7" is ruled by Saturn. He also says that the most important time cycle is the 20-year cycle. He also says that the next major cycle is 30 years, which is caused by the planet Saturn. SEE IT? He says the same thing from his earliest writings to his last writings. Saturn and Jupiter. I knew now that I had finally learned what Mr. Gann's time cycles were. I had also found out that they were the same ones that all astrologers had used from time immemorial. But that still didn ’t tell me how Mr. Gann used them and it still did not tell me what the master time factor was or how Mr. Gann used it. All I knew was that I had the knowledge for sure that these were the time cycles that Mr. Gann had talked about all of his life. They really were not astrological but in fact astronomical. If I had not been blinded by my "mindset" I would have known long ago that any time cycle had to be based on natural phenomena. There was no other answer because the movements of the planets (of course I mean primarily the relationships of the Sun, earth and moon) are 32
the basis (foundation) for our whole timekeeping systems. Now, what I needed to do was find or learn the way that Mr. Gann used his time cycles and then try to identify the master time cycle that he so often talked about. One day in the late spring of 1983, at about the same time that all of the things described in this present chapter 6 of my story occurred, I was reading an old copy of Mr. Gann's lesson entitled simply "FORECASTING". It was written in November, 1935, and someone had given me a copy of it at a Gann seminar that I had attended in 1980. I was reading all my pieces of material for the purpose that I related to you earlier, tracking Mr. Gann back in time, to see if there were any disparities in what he said from time to time. I saw that he called the 60 year time period the MASTER TIME PERIOD. I had read this piece of material several times in the past, but I had never paid much attention to it because it was forecasting stocks and I have already told you how I felt about stocks. I was a commodity trader and he had put more emphasis on the 90-year cycle as the GREAT cycle in the commodity course. You understand of course, that I had never paid any great amount of attention to it because of my "mindset 11 that we have been talking about so much. Now that I knew that the ancients paid SO MUCH ATTENTION to the 60-year cycle, it IMMEDIATELY caught my attention. Also, when I read the lesson on forecasting that he wrote in August 1939 and which is the same, word for word, that is in the stock course today; I noticed that it was different from the one that I was reading that he had written in 1935. But the thing that really caught my attention was where he was describing on page F-9 of the lesson how he had set up his "master forecasting chart". The thing that I had never noticed to be curious before (because of my "mindset") was the fact that he started his cycles across the chart from a year ending in "1". Everything else he did he started with "0" as the beginning. Even when I reached for my ephemeris to look at the appendix in the back of the book, which had a listing of all of the major
conjunctions of the period from 1800 to 2000, I knew the answer would be the following. In my ephemeris I read CONJUNCTIONS OF JUPITER AND SATURN-October 21, 1861, April 18, 1881, November 28, 1901, September 10, 1921, August 8 and October 20, 1940 and February 15, 1941 (triple conj.), February 19, 1961, January 1 and March 8 and July 24, 1981, and May 26, 2000. My friends, a cold shudder came over me as I realized with crystal clear and vivid awareness that I was READING THE elusive, legendary, much sought, "MASTER TIME FACTOR". The painful costly search that had taken four years of ray life and many thousands of dollars was now at its conclusion. What made me shudder was the fact that I had possessed this document since the summer of 1980. I already had what I had paid "my friend" for and which he didn ’t give me. Furthermore, I gave him free the thing which allowed me to discover the master time factor. That thing was "My Creed". I had learned a lesson at great cost. The lesson that I learned was, THAT which we all SEEK, is exactly and precisely where the 33
ancient world religions have always said it was. It is within us, w a i t i n g f o r u s t o f i n d t h e m e a n s t o S E E I T . I h a d p a i d a SUBSTANTIAL amount of money for a formula of worthless gibberish, but had refused to seek the real treasure (THE Builder ’ s STONE) in the only place that I could have ever found it. THE REASON FOR THIS,OFCOURSE,WASTHATMY ATTITUDESANDHABITSANDEXPERIENCE AND EDUCATIONAL AND CULTURAL BACKGROUND BUILT ON AN ERRONEOUS FOUNDATION HAD DEVELOPED INTO A "MINDSET" THAT WOULD ALLOW MY TRUE REASONING FACULTIES TO BE PUT TO SLEEP, AND PAY FOR SOME WORTHLESS FORMULA, BUT MY "MINDSET 11 WOULD NOT ALLOW ME TO SEE THE AREA WHERE I WOULD FIND THE TREASURE (TRUTH), BECAUSE I HAD SEEN IT HAS HAVING NO VALUE. I TELL YOU AGAIN, THIS IS ALSO THE REASON THAT WE DO NOT MAKE MORE PROGRESS IN THE MARKET AND IN OUR LIFE. Now, I know that I will never recover my SUBSTANTIAL amount of money from "my friend", there seems to be a character flaw involved there somewhere; but, I tell you that the value of the knowledge that I have acquired will remain with me for the rest of my life and if I use that knowledge, I WILL HAVE FOUND SOMETHING MORE VALUABLE THAN MONEY. I rediscovered "my creed". If you will, please turn to the back of this booklet and read all of the Appendices and get familiar with the charts. Read and study Appendix IV in particular. It has the master time factor in it. Read it several times; then, read it more. Compare it with Appendix I word for word. Read appendix III several times. I know III is hard to read but I wanted you to see it as it was. Please do not go to the next chapter until you have become very familiar with the material in the Appendices. STOP.
34
CHAPTER 7 I DISCOVER FACTOR!
THE
LEGENDARY
MASTER
TIME
In writing this little booklet, I thought, if I could just get to the part about the master time factor, I could write about it with ease because that had been the object of my search. But, alas, I now find it to be the most difficult chapter of all. Perhaps, its has something to do with the "fatal" evil number. (Just kidding.) As I told you earlier I am a seeker, not a writer, but, since we are here there is nothing for me to do, but plug along. There are several reasons for my difficulty in writing this chapter for you. One, I may have set a goal higher than I could reach. My goal, simply has been to write the most lucid explanation of Mr. Gann ’s Master Time Factor that has yet been put in print. I already know that I have not done as well as I had hoped. I feel that part of the cause for this relates to the nature of the material that I am dealing with. There has been tremendous mystique built up about and around Mr. Gann. Part of this Justly, because he was a remarkable man; but part of it has been built up to allow the commercialization of his works. I am participating in that commercialization (gosh, that's a long word, do you realize it has 17 letters in it?) right now at this moment. There is nothing wrong with the word commercial. Profits is a beautiful word. It is the GOOD(s) received for the GOOD(s) given. It’s just that we get in trouble sometimes when we want to receive more than we want to give. Also, we get the order reversed, we must GIVE-then GET, not GET-then GIVE, (this is all cohered in "The Seeker’s Creed"). My goal in writing this booklet has been to give you your money^ worth. I hope that I accomplish this, if I do nothing else. Another difficult problem that I have in writing this chapter is the nature of the diversity of the exposure to the Gann
materials that is represented by my readers. Some of you know more about the Gann work than I do; some of you have had very little exposure to his work. So I must try to encompass both extremes. There are many things that I would like to say to you, but I can only cover so much in this little booklet. I want to merely show you where I found the "path" to be, and say, here’s a good place to start. Every person is unique and his (her) trading rules need to be unique. Once, you "see" the path, many of you will achieve a much better understanding of the Gann material and I am sure that you will learn many things of market value in the months and years to come. Another problem that I have concerns the fact that Mr. Gann left no clear explanation (that was available to me) of what his master time factor was; nor, did he explain it anywhere (that I have ever been able to find), except as I have given you in Appendices III and IV. And in those two beautiful pieces, he didn ’ t just come out and say, "O.K., here it is and here's how 35
you use it as the master time factor". He HID IT, just like he said he was doing in the quote from Emerson in his book, "TRUTH OF THE STOCK TAPE". He hid it because he knew that if it was passed around with it all spelled out in his lesson then anyone could see what it was and that would be the end of the mystique of the master time factor and his livelihood depended to a large extent on the sale of his advisory letter and annual forecast until he sold it in 1947-48. And he hid it because he said it was too valuable to be "spread broadcast". He hid it the way the ancients did-out in the open. Then if someone that was not supposed to have it should stumble across it or steal it, it would do them no good, because they could not understand it. And, that, in my opinion is why we find no copy of it today other than the one that I give you in Appendix IV. If you can see this clearly it will help you with the explanation as we go through it. Then I have two more problems (nothing but problems, huh?); and they are related to a certain extent. The first one, we have talked about until you are tired of hearing it (but if I can't get you to SEE IT, perhaps I can get you to HEAR IT); and that problem, many of my friends, is that you will not believe what I tell you because, YOU, TOO, JUST LIKE ME, HAVE DEVELOPED YOUR OWN "MINDSET" THAT WILL NOT ALLOW YOU TO SEE (RECOGNIZE) THE TRUTH EVEN WHEN IT IS THERE FOR YOU TO LOOK AT. You have already set in your mind from what you have read about Mr. Gann’s master time factor, or what you have heard about it, or what some Gann expert has told you it was, or what the myths of commercialization has indicated that it was, or that "formula11 that someone has that no one can decipher, or some idea of your own-that it will call all bottoms or tops, or the hour or the day of this or that-, whatever you are "looking for" is what you expect to see (My creed explains this to you). How do I know that many of you will approach the explanation of the master time factor in this manner? Because I HAVE BEEN THERE ALREADY. My entire story thus far, has been designed to get you to understand this MOST IMPORTANT TRUTH. From the very beginning of my story, I have been trying to get you to SEE how this tremendous fault (and potential for good if changed) has caused all of my problems. I have been trying to get you to the point that you would SEE my mistakes clear enough that you would not make them yourself. I knew that if I didn't help you prepare a base (foundation) by first exposing the old bad foundation in my building, then you would not be able to see the bad foundation in your own building. You must tear out the bad or weak foundation in your own building before you can build a positive new foundation. (This may have been what the New Testament parable meant about putting new wine in an old wine skin. Matt. 6: 22-23- Yes, I looked for the master time factor there too. I found that the Bible is Indeed a book of natural laws. Read the above verses and you will SEE EXACTLY what I have been trying to say. If you are a "seeker", and you are, otherwise,
you would not be reading this booklet, "A SEEKER" WILL LOOK AT ANYTHING, HE (SHE) WILL LEAVE NO STONE UNTURNED. HE (SHE) IS NOT AFRAID TO LOOK, BECAUSE TO SEEK MEANS TO LOOK. EVEN THE WORD SPECULATE MEANS TO LOOK AND OBSERVE. IF YOU WON'T LOOK, THEN 36
DON’T SEEK, BECAUSE THAT’S WHAT SEEKING MEANS AND IF YOU ARE NOT WILLING TO DO THAT WHICH YOU SET OUT TO DO THEN WHY START? DON'T MAKE THE MISTAKES THAT I MADE. As I said the whole precedence of t h i s s t o r y h a s b e e n t o b r i n g y o u, s o m e o f m y r e a d e r s , t o t h i s exact point. W e have been build ing a foundation for YO U, a " s p e c i a l p a i r o f g l a s s e s " , i f y o u w i l l , s o t h a t y o u c a n s e e a t this point in time with your filters and blinders removed. The reason that I have had to take so much time with this preparation (foundation) is that I had to assume that some of you may have been in as "b ad of s hap e" as I was. The second of those two related problems that I started the above p a r a g ra p h w i t h r e l a t e s t o t h e f a c t t h a t I r e a l i z e t h a t my "style of writing", if you want to call it that, makes it d i f f i c u l t f o r you to follow my train of thought. I know that I "jump around a lot" when I am trying to tell you something. And I know that it makes it harder for you to SEE when I am jumping so. If you want to know the REAL REASON for this jumping around, though, it is because I am simply writing this "THING" as it "comes" to me what t o s a y t o y o u . I a p p r e c i a t e y o u r f o r b e a r a n c e w i t h m e t o t h i s p o i n t . I a s k t h a t yo u j u s t a l l o w y o u rs e l f t o wa t c h f r o m h e r e forward; and with as unjaundiced eye as you can possibly muster. D o n ' t fi g h t i t , i f i t i s n o t w h a t y o u w e re l o o k i n g f o r ; R E A L TRUTHS are seldom what we think they should be; THEY ARE BETTER; i t 's o u r v i si on an d u n d er st an d in g th a t i s l a c k in g . Now, here comes the bad news. My jumping around is going to get worse, because in my searching for a way to present the master time factor to you, IT HAS "COME" TO ME, that I must try to explain it by analyzing it for you in the same manner that I did it for myself; and I can te ll you that it will re ally b e "jumpy"; but remember this "THING" is just "COMING" and I don't really hav e a ny con trol at thi s p oint. Fin al ly , here g o es. I assume, now that you and I can both see out of the same eyes, that you have read Appendix IV, entitled simply "FORECASTING".
I told you that this was as good an explanation of the master time fa cto r a s y ou a re pro ba bly g oing to g et fro m M r. Ga nn ’ s o wn words. The rest of the explanation is going to have to come from o u r a b i l i t y t o t h i n k , s e e , a n d o b s e r v e e v e r y c l u e t h a t i t i s possible to observe. We cannot overlook the smallest detail. You w ill s ee things th at I don't see and vicev ers a. We mus t pay a t t e n t i o n to w h a t h e s a y s , w h a t h e d o e sn ’ t s a y , an d h i s " s t y l e " of writing about other things and at other times. We are going to SEE now. I ASSUME that you are entirely familiar with the lesson "FORECASTING", and my charts that I have made in accordance with the way he would have made them. I also ASSUME that you have read and studied the sales brochure entitled "LEARN BEFORE YOU LOSE OR WHY YOU HAVE LOST MONEY IN STOCKS AND HOW TO MAKE IT BACK". This is in my Appendix III. Now I am also going to assume that you are pretty well frustrated and disappointed in the master time factor at this point and that you are in fact pretty well convinced that this is just "another rip-off" and that it is not even that wonderful, mysterious, legendary, much sought after "Master Time Factor". Legends aren't made from such stuff as that JUNK. This 37
is WORTHLESS. Just GARBAGE. Why I even WASTED MY TIME with this STUPID booklet in the first place, I don't know. Now my money is GONE. That guy, "THE SEEKER" wouldn’t even use his own name. I don ’ t blame him. Taking people ’ s money like that. "His friend" stuck him, now he's found a way to get his money back. Now I know that some of you are thinking and saying these things to yourself right now. I am about to lose your attention as my reader because you see NO VALUE to the master time factor in Appendix IV. Look at the words that you have just used to describe your feelings; they are all CAPITALIZED meaning that they are ALIVE with meaning for you. They are also the same old "mindset" that I must get you to see. Because you have used the above words to describe your reaction to SOMETHING you cannot now see any value to it all. Your emotions as expressed in words has now blinded you. O.K., I need to do two things, FAST. The first thing I need to do is to get you to look at something else nearby since the object that has the master time factor in It has disappointed you and you have blinded yourself by your refusal to see it. Since you won ’t look at "FORECASTING 11, I will ask you to look at the sales brochure in Appendix III, Perhaps some of the "light" that you refuse to see in Appendix IV may be "reflected" in Appendix III in "LEARN NOT TO LOSE". The second thing that I need to do is to get your attention. I will try to do this by asking you to glance at my monthly charts of the Dow-Jones Averages. You will find them inserted behind Appendix VI. When you are looking at the whole (big) picture, you can lay them out on your floor in 1,2,3 fashion with Sheet 1 (lowest prices) nearest you or your feet, then Sheet 2 joins Sheet 1, then Sheet 3 joins Sheet 2 and you have prices from 0 to $1440. The scale on each sheet increases (you can do scales anyway you want to when you know the master time factor, also you can do angles any way you want to when you know the master time
factor) by an increment that I have chosen to show you a possible way to chart (any way is O.K., just so long as YOU know what you are looking at) prices. The prices are not important in this example. I just want to get your attention for a minute so that you will be willing to look at what I am showing you about the master time factor. Now, looking at the big picture for the years marked 2nd, 3rd, 4th, and 5th year zones. Just look at those year zones from the green color on Sheet 1 (that’s 1942, 1943, 1944, and 1945.) Then look at the yellow color on Sheet 2 (not the yellow on Sheet DAGAIN, the yellow on Sheet 2 (that’s 1962, 1963, 1964, and 1965). Lastly, look at the red color on Sheet 3 (that’s 1982, we are in 1983, and 1984 and 1985 are YET TO COME). Now, you will notice that there is quite a (coincidental?) similarity in the patterns of 1942, 1962, 1982, 1943, 1963, so far 1983,1944, 1964, 1984(7). Would you like a more in depth view of what we are looking at? If so, please turn to your Appendix VII and read about my weekly charts for the periods of 1941, 1942, 1943; 1961, 1962, 1963; and 1981, 1982, 1983. Take the weekly charts out; look at them, I have drawn 1,2,3 zones on them for to you stack the 1,2,3 years from 1940s at bottom, then 1960s, lastly 1980s one over the other and line up the year marks 38
that I have made for you. This picture that you have seen i n monthly and weekly PATTERNS OF MARKET MOVEMENT without regards to prices should SHOW YOU THE VALUE OF STUDYING AND LEARNING THE MATERIAL THAT I HAVE GIVEN YOU IN APPENDIX IV. YOU SHOULD NOW BE ABLE TO GO BACK AND KNOW THAT EVERYONE OF MR. GANN'S TRADING RULES WERE DESIGNED TO BE UTILIZED WITH THE TYPE THING THAT I HAVE JUST SHOWN YOU. HOW WOULD YOU HAVE LIKED TO HAD THIS INFORMATION IN THE EARLY SPRING OF 1982? HAVE YOU EVER WONDERED HOW TO APPLY MR. GANN'S RULES FOR PYRAMIDING. DO YOU SEE ANY POSSIBILITIES FOR THE REASON THEY WERE DESIGNED AND WHEN THEY WERE DESIGNED TO BE USED. I WILL NOT BE ABLE TO TELL YOU EVERYTHING ABOUT MR. GANN'S TRADING SYSTEM HERE, I AM JUST SHOWING YOU WHERE TO START FOR YOURSELF. ASK YOURSELF THE QUESTIONS, WHICH RULES OF MR. GANN»S WOULD I UTILIZE TO TRADE A PATTERN LIKE THIS, OR BETTER HOW WOULD I DESIGN MY OWN RULES TO TRADE PATTERNS LIKE THIS. WHEN YOU ARE ABLE TO DEVISE YOUR OWN RULES JUST FOR YOU, YOUR OWN SITUATION, THAT ALLOW YOU TO TRADE WITHOUT HOPE OR FEAR, BUT ON KNOWLEDGE, THEN YOU HAVE ARRIVED AS A TRADER. ONE FINAL CLUE IN SETTING UP YOUR RULES. IN MR. Gann’s DAY (HIS PRIME) WE WERE IN THE HORSE AND BUGGY DAYS. NOW WE ARE IN THE JET AGE. TIME SEEMS TO MOVE FASTER AND MORE VOLATILE, BUT A SCORE IS STILL A SCORE. Now that I have your attention again, I will say that you should always observe everything if you are going to be a seeker. And p a r t i c u l a r l y , i f y o u a r e g o i n g t o t r y t o s e e k s o m e t h i n g a s elusive as the master time factor. You should always see THE BIG PICTURE and the small picture BECAUSE you never know what you might find in unexpected places. YOU SHOULD NEVER ALLOW YOUR EXPECTATIONS OF SOMETHING TO DISTRACT YOU FROM SEEING THE REAL THING JUST BECAUSE YOUR EXPECTATIONS WERE DIFFERENT. IF YOU HAVE THIS PROBLEM, THE
WAY TO CHANGE IT IS TO CHANGE YOUR EXPECTATIONS, Don’t TRY TO CHANGE THE TRUTH. The truth is-THAT I'M GOING TO PROVE TO YOU FROM MR. GANN»S OWN WRITINGS THAT I AM GIVING YOU HIS MASTER TIME FACTOR. The first thing that we want to do is prove that the master time factor is in fact contained in the lesson "forecasting 1 1 . What we a r e g o i n g t o d o i s t o a n a l y z e t h e e n t i r e b r o c h u r e i n a p p e n d i x III , " l earn b ef ore you l os e " . I wi l l j us t ad dr ess what ev er c ome s to me and you will get the general idea and can come back later and look at everything he says in the booklet. Again, the copy is hard to read, but, I wanted you to see that it was Mr. Gann’s own writing. That is why all material in the appendix is copied from the original. In his brochure, I will be referring to his page numbers in the brochure and they are reproduced in my appendix-two brochure pages to the single page in the brochure, except for the last brochure page which would be page 19 in Mr. Gann ’ s brochure. For example, the page number 1 is "LEARN BEFORE YOU LOSE11-, then page 2 of the brochure is on the same page with page 1, and so on until you get to page 19 which is on a page by itself. Remember, I will not cover everything of Importance, but just what comes to me to say to you that will prove to you that it is the master time factor in Appendix IV. Then we will go to Appendix IV after that and analyze it. 39
One other thing at this point- I have published this booklet in a bound format for your convenience. The easiest way to follow this material is to make photocopies of the appendices that we are discuss ing and hold them next to each other and follow the analysis as we go. You will be working primarily with Appendix III and Appendix IV. Page 1-"LEARN BEFORE YOU LOSE"—Three main reasons- he always says the same and today I would add a fourth-our Inability to see because of our mindset. My experience has shown me that his reason #1 is an important problem that we have today. In all this discussion when I say we, I am talking about traders that try to trade by the Gann method as taught in his books. The reason that #1 gives us so much trouble is that we have not understood the master time factor as the base on which all his rules function. Once we understand it we will alleviate this desire to overtrade to some extent. We must learn to slow down our sense of timing as regards the activity of the market. Page 1-further down-he says W A smart man cannot follow another man blindly even though the other man is right, because you cannot have confidence and act on advice when you do not know what it (the advice) is based on. " Exactly, we could not follow Mr. Gann ’ s rules because his advice (rules) was based on the m a s t e r t i m e f a c t o r a n d w e d i d n ' t k n o w w h a t i t w a s . N e x t sentence, he says, "You will be able to act with confidence and make profits when you can SEE and KNOW for YOURSELF why STOCKS should go UP or down. 11 O.K., lets look at this. See how he is using capitals in words he wants to stress in a certain way. I have been doing the same thing throughout this story using the sa m e w o r d s a t t im e . I wa s n ' t tr yi n g t o f i ll p a g e s , t o m e t he s ooner something can be said and done, the better it is, but, I was trying to develop a mindset in you that would allow you to see how. Mr. Gann changed his language when he wanted to tell you the secrets but yet hide them and keep them back. I even planned my brochure
the way he would have done (and in fact did) his. I tried to make my brochure mysterious enough to get your interest, let you know that there was something worthwhile here, but not scare you off by saying too much, but yet TELLING THE TRUTH IN THE BROCHURE. Go back later sometime and see what I mean, it will help you understand Mr. Gann better. So, here what he is telling us is that once we know the basis of his advice (rules-as given in his books and courses), then we can SEE (the same as ray SEE throughout this booklet). And of course the basis of his advice is the ma ster ti me fa ctor t hat i s pre sen te d in the be s t ma nner that you will probably ever see it by him. Page 2-Mentions what he spent ($300,000) developing a worthwhile, practical method of Stock Forecasting. That worthwhile method of forecasting that he is talking about here is the same material in a pp en di x IV , pl us t he use of hi s oth e r r u le s a s ba se d o n "FORECASTING". Page 2-1 will address this much publicized article by Mr. Wyckoff 40
Page 3-lst paragraph-In the interview, Mr. Wyckoff says, "He bases his operations upon certain natural laws, which, though existing since the world began". Certainly, we know that those natural laws are the movements of the planets (astronomy) as observed through empirical study of how markets reacted at different time periods of a cycle of planetary movements. This SEEN relationship over long periods of time was his master time factor. The "master" meaning a guide or mold to go by. There were variances from time to time but this was the guide and the variances could also be explained to a certain extent. Wheels within wheels. Page 3-next para. - Part about new idea not welcomed by majority. Still very true today and what we have been talking about this whole booklet. It is hard for the majority (of us) to see what we don't want to see. Page 3-right column, 4th para. -part about "Early this year he figured that the top of the advance would fall on a certain day in August-" Mr. Gllley is talking about 1909 and you will see when we study my chart based on Mr. Gann’s format why he figured the top for then. Again, all these comments and predictions are based largely on the master time factor and if you study the rules about the calendar year "1" through "10" or "0" as given on page F-6 in "FORECASTING" in appendix IV, now, you will be able to follow every one of his predictions as we talk about them in this brochure in appendix III that we are presently going through. Page 4-2nd para., left column- the part about during the month of October, 1909-if you will look at your calendar years and rules, you will see that the 9th year at that time was the "blow-off" year in the cycle; the reason for this was because JupiterSaturn, the cycle that the master time factor is based on reached approximate position of opposition approaching; and symbolically (ideally) and actually past study of his indicated that this was
why and how the stock market actually acted in past similar cycles. Giving (as he said) not only the cause but the proof of market action. The same thing happened in 1929 but it was a much bigger "blow-off" because it was the end of the 60-year cycle (or 3rd 20 year cycle). This also points out just what an astute businessman Mr. Gann was. If he was going to make predictions for a newspaper article (free publicity) he chose deliberately to make them at a time right after (shortly after the 9th of October) the blow-off top would have confirmed itself. Not taking anything away from his remarkable feat, but emphasizing how he probably used the master time factor here at this point; I suspect that he waited for confirmation (probably from the averages and US Steel) to show that the top had been made and then had his selection of trade prospects which he knew inside and out, ready; then he had someone, (perhaps Mr. Gllley) call 41
and offer to set up the demonstration for the article. Knowing that the top was done, he probably traded the swings from the short side, selling every rally at its rally resistance point and then buying back at places on hard breaks for small rallies to re-sell on. The markets at that time (1901-1920 on your chart sheet 1, in yellow) performed remarkably well for 3 points moves and divisional points of resistance. Partly due to the nature of the market then. Also, I would like to point out to you why I think that US Steel was watched so much by Mr. Gann. Of course, it had good volume (liquidity) over the years as time passed by; but Mr. Gann began following it early. If you will notice US Steel ’ s birthday you will notice that it was incorporated on February 25, 1901, and trading first began on March 28, 1901. Also, you will notice that 1901 was the beginning of his natural 20 years cycle on his master forecasting chart. (Today this chart is #19 in a packet of charts sold by Lambert-Gann Publishing Co.) I have indicated to you earlier that there was also a conjunction of Jupiter-Saturn in November 1901. When you are looking at a general monthly chart over a period of 240 months (20 years), the few months between March and November are not important; they were in the same year and the "1" year on his charts are really the "0" point of the chart; the M 0 W representing both the beginning of the chart in time at January 1901 and the "0" representing the Jupiter-Saturn conjunction itself in November 1901. Astrologers (and astronomers, I guess) represented the conjunction by "0" with quotations around it because it indicated the beginning of a time relationship of whatever was being looked at and it in fact also represented 0 degrees in that cycle. The conjunction was always the starting point in the cycle to measure from. Mr. Gann had said at other times that his forecast could be made one year or more in the future WITH JUST MINOR ADJUSTMENTS OVER TIME. If he knew what he was looking for (he did-and you are beginning to) he could allow for small adjustments in time on the repetition of these 20 years cycles. That's where his other rules begin to be developed
and used. So, I speculate (to observe and believe as a result of the observation) that Mr. Gann watched US Steel because it was born at the natural time (year) of the conjunction and was therefore (in his eyes) under the "influence" of the natural time cycle (Jupiter-Saturn). In fact in his stock course later he says that Steel (meaning US) made its all time high on September 3, 1929. And of course the averages did too. So, I think that he used "Steel" as his natural barometer to trade off of the natural cycle (Jupiter-Saturn) that seemed to "influence" the stock market most. Naturally, he could not then trade the stock indexes as we have today but he had to find an actual stock vehicle to trade and US Steel was the natural choice. I believe that Mr. Gann made those trades for the "Ticker Magazine or Magazine of Wall Street" or whatever, in some fashion very sim il ar to wh at I ha ve d escr ib ed for yo u. If thi s speculation is approximately accurate, then that shows you just how good Mr. Gann was in his prime. We cannot expect to be able to forecast anywhere near that good, but as I will show you when I bring the master time factor up to date through the years that we can achieve a new perspective in regards to time, when we utilize our new found understanding of Mr. Gann ’s rules based on 42
this time factor. Page 4-2nd para., right column- part where he predicts market toward lower prices until March or April, 1910, -Look at his rules on calendar years again on Page F-7 in "FORECASTING", Appendix IV. (By the way I am going to start calling "FORECASTING" and Appendix IV the master time factor. O.K.? It saves us time and me ty pin g. I a m ge ttin g tire d of typ ing . I a m a s e ek er, not a "typer". Back to his rules on Page F-7 in the master time factor. Under year No. 10 he says, "No. 10 is a bear year. A rally often runs until March and April;-"--also, while we are right at it look at what he says in the rule above about calendar year No. 9-he says, "No. 9 the highest digit and the 9th year, is the strongest of all for bull markets. Final bull campaigns culminate in this year after extreme advances and prices start to decline. Bear markets usually start in September to November at the end of the 9th year and a sharp decline takes place. See 1869, 1879, 1889, 1899, 1909, 1919, and 1929-the year of greatest advances, cu lmin at in g i n the f al l o f t he ye a r, fo llo w e d b y a s ha rp decline." Now, look back at page 4 in our brochure that we are analyzing. We saw above that he had predicted top in October 1909, later we will see that he predicts top for 1929 in late August or September. He says that top comes in the 9th year between September and November. How does he determine which month and date that it will come. I speculate that he used some astrological technique along with the confirmations of his rules to pin point the top to a more specific time. I don ’ t know. I know very little about astrology. But you don ’ t have to know about astrology all you have to do is to be able to look at a picture (the swings on the chart). See how each year (he called them zones W1M through W20") looks: when you just look at the 5th zone for instance. NOW YOU KNOW WHY HE CALLED THE 5TH YEAR THE YEAR OF ASCENSION. In other places he said the 5th year, 5th month, 5th day, or 5th period of anything, but he really meant that figuratively speaking and again he was
saying the 5th year of the Jupiter-Saturn cycle and the 15th year of the Jupiter-Saturn cycle, because the first thing you always do with a circle if you are an astrologer (I don ’ t know I'm not one, but he was and he said it), is to divide it by 2. This gives you the maximum point of where action turns into reaction. Something (in this case, the 20 year Jupiter-Saturn cycle) will start at W 0 M , its beginning and will advance to its maximum moving out (widest point of separation) until it can ’ t go any further (opposition or 180 degrees); then when it has reached its furtherest point out (action) it begins to retreat (separation at its widest begins to narrow back to the next conjunction) back into its self. This is the law of all cycles and it is sometimes expressed as the law of action and reaction. This is symbolism of the circle and circle represents nature (astronomy and astrology, cell division, time periods, life, anything). See my creed on the section about rhythms and seasons and time (Section IX). So getting back to his 20 year circle divided by two, gives you the opposition or maximum outgoing or separation from the base or the blow-off which actually comes slightly before the 10th year, sometimes in the ninth year the opposition generally takes place on a mean 43
average of 9.93 years from the conjunction, but we have not begun from the exact conjunction but almost one year earlier January 1st, 1901 instead of November 28, 1901, which almost throws us off a full year. BUT, AS MR. GANN, SAID IT MAKES NO DIFFERENCE WHERE WE START MEASURING FROM (talking about time); JUST SO LONG AS WE "KNOW" THAT WE HAVE STARTED FROM THE PROPER PLACE. You understand? We are starting our monthly charts from month of January, 1901 as the first month of the cycle, while in fact the CAUSE of the cycle doesn't start until November, 1901. But he adjusted this (and we do the same thing) by being consistent over time with what we are watching. We couldn ’ t be consistent before we learned HOW TO SEE (OR WATCH) BECAUSE WE HAD BLINDED OURSELVES and therefore could not see because we didn't know what we were watching in the first place so how could we be consistent. Once you have been freed by the knowledge of the master time factor y o u a r e a t l i b e r t y t o d e p e n d o n y o u r s e l f , b e c a u s e b e i n g fr e e means you have the liberty to experiment on your own for yourself a n d y o u w i l l n o t have to be afraid that your scale, or your angle, or your t i me p e r io d w il l b e o f f . T h a t i s a n e x a mp l e o f what is meant by the TRUTH SHALL SET YOU FREE. I know that this is hard to follow for some of you, but come back to it and reread if oft en , th e mo re you read i t, t h e c lea rer i t wil l b eco me. Yo u will see new things and have new understanding each time. For now just understand that when we construct the master time chart the same way year after year and stack each 20 year cycle over and over on the same price scales you will have a relationship that causes the same type of movers at approximately the same yearly t i me p e r io d s w i th in t h e c y c l e t h a t y ou a r e l o ok i n g a t ; i n th i s case the 20 year cycle. And remember in here that we are dividing the circle (20 year circle) the way Mr. Gann divided all his circles; first by 2 to get 120 months ( 1 0 years) and the opposition (actual); then by 4 to get the 5 year periods, the 5th year being the year of ascension because it was the 90 degree angle or at the approximate 90 degree aspect (angles is the astrological word for aspects and the word angles was
used by old astrologers to indicate the division of the circle on a square surface.) And of course we can carry this symbolism (symbolism is truth in a subjective inner sort of way) on by pointing out that the 5th year is a 90 degree angle or aspect then the 10th year is also two 90 f s or 180 and Mr. Gann ’ s rules reflect this by 5th year ascension up and another 5th year (10th year from beginning) down or bear year. Over time this will become clear to you. In order to get back to the original line of thought that I started with at the beginning of the previous paragraph, I want to say that on page 4 of the brochure where Mr. Gann said in November 1909 that the trend of the stock market should, barring the usual rallies, be toward lower prices until March or April 1910. Then on page F-7 in the master time factor lesson, you see under No. 9 that top is made September to November in 1909, then you look to see what happens from there, so you look at No 10., or 1910 and you see that it is a bear year from 1909 top in October, but that rallies oftenrun until March or April;- then you look back to page 4 in the brochure and you now SEE how Mr. Gann made his forecast. Pretend it is now 1910 or 1911. How would 44
you make a forecast for 1929 and 1930. You might say with the rules in lesson on the master time factor on page F-7 that you would look for a top in September to November of 1929 and then you would look for a sharp decline with the market trending lower with some rallies until March or April 1930, then you would look for another severe break to run until November or December 1930 at which time that cycle would end (talking about a 10 year cycle now or the same thing as one-half of the twenty year cycle, just so long as we are consistent in our stacking of the cycles and just so long as we know what we are looking at and why) and a new one would begin. Hey, YOU HAVE FORECASTED THE STOCK MARKET 19 OR 20 YEARS INTO THE FUTURE. And if you have some more good proven rules to give better indications of this forecast you are in a strong position to makes lots of money, if you keep your health and money and if you are alive 19 or 20 years in the future. Oh, also, I forgot that you must have some plan to take advantage of this wonderful information, maybe some trading rules designed just for your forecast, because you could be wrong you know, you may have miscalculated, and you must protect yourself if you have. Also, don't forget that just because something has worked in the past, it may not work in the future. Hmmm. So many things tothinkabout. YOUMUSTHAVEIN YOURPOSSESSIONSOMETHINGLIKEA MASTER TIME FACTOR TO MAKE A FORECAST LIKE THAT 19 YEARS BEFORE IT HAPPENS. Lets wait and see what happens. Still page 4-same two para. -Now you will have to admit that we have done a lot of analyzing on two paragraphs, and we may have looked at 1909 and 1910 more than you ever wanted to, but, you wil l h av e to ad mit t ha t we h av e lea rne d so meth i ng ’s t ha t are beginning to look interesting. But there's lots more, in showing you the path, the place to start, I'm helping myself because I'm l e ar n i n g n e w t h i n g s al l t he t i m e. My cr ee d s a ys t ha t 's wh a t it means when you GIVE FIRST-THEN YOU GET. As far as analysis goes, we haven't even
done a good job on this page 4 of the brochure. One last ref eren ce t o p ag e 4 and we will l ea ve i t. Page 4-third para, from bottom of page-he says, "In 1912 Mr. Gann forecast the election of Woodrow Wilson and has been correct in fo r e c a s t i n g t h e e l e c ti o n o f e v e r y P r e s i d e n t s i n c e t h a t t i m e . - "- Now this gives me an opportunity to show you something you already know, but some people think that Mr. Gann never made a mistake in his forecasts and that he never told a lie about his records. I have told you several times how I feel about Mr. Gann and his work. My search in his work allowed me to rediscover my creed. The most valuable object that I have ever found. BUT, IF WE WANT TO SEE CLEARLY, WE HAVE TO LOOK AT WHAT WE SEE. Here is an example of how we overlook whatever we want to when we don’t want to see it. This brochure was written probably in late 1939 and published in early 1940 (probably). Mr. Gann, like all businessmen and economic forecasters and people in general advertised his hits and successes and never let us forget them (th at ’ s wh y he rem in ds u s; so t ha t we wil l b uy hi s se rvi ces ( c o u r s e s ) ; b u t h e f o r g e t s a n d o v e r l o o k s h i s m i s t a k e s a n d h i s failed forec ast s a nd predictions and j ust ne ve r mentions th em ag ain . I ca n t ell yo u t ha t he mad e man y p u bl ic p red ict io n s th at 45
didn't pan out. I will also show you that most of them were predicated upon this same master time factor that we are talking about. Later, I will cover one of them in particular detail so that we can see why he was predicting something that turned out to be totally wrong. This is good for us to see because we must never get to sure of our forecasts. Now to finish this page 4; Look on page F-11 in the master time factor lesson and you will see one of the very rare Instances where you get to see Mr. Gann make a forecast for the next year BEFORE It actually happens. If you look back at all his material you will find particularly in later years that these forecasts are merely mentioned in his books and discussed after the fact. In other words he says he forecasted so and so; and most of the time he was right. I know because I have gone back and checked all of them to see if they were true. There is another Instance that you will have an opportunity to see a forecast made before the fact and it too was wrong. I will cover it later, but for those of you who can’t wait, it is in his book, W45 Years In Wall Street". When you find the predictions, they are glaringly wrong, figure out why he made them, now, based on what we have already learned to this point. If you do figure it out now you are well on your way to admitting that you have the master time factor. But, until, you can come up with an acceptable reason for his being wrong on that particular prediction then you still have a ways to go. I will offer you an explanation. You can accept it or reject it. It doesn't matter, because, by then you will have seen enough that you are ready to start on your own forecasting methods for yourself. Again, to try to get back to the subject at hand, Mr. Gann missed his forecast on the presidential election, as you can plainly see, furthermore, you can see by that, that the paragraph on Page 4, about his forecasting the election of every President since 1912 was not true; because he wrote this brochure, as I said In late 1939. So, he apparently forgot missing that one. Besides that, his 1936 market forecastwould not have been any good to try to trade either. But, it appears to me, that he just miscalculated and didn't follow his own rules entirely, because his rule says that it would be a bull year generally. As a final note on this; for a long time when I read this back in 1980 and 1981, I thought that he had taken this lesson off the market, so to speak, because of the bad forecasts, and that he didn't want anyone to see it since it was not correct. This may have had something to do with it, but, now I AM CONVINCED THAT HE TOOK IT OFF BECAUSE IT MADE THE MASTER TIME FACTOR TOO PLAIN IN OPEN WRITING. He also just sold this lesson as his MOST VALUABLE ONE. HE CHARGED MORE FOR THIS ONE THAN OTHERS. HE ALSO SUBSTITUTED LESS VALUABLE LESSONS FOR LESS MONEY. We will cover all this in detail later. For now, just remember that Mr. Gann wasn't perfect in his life and his forecasting and trading the markets AND WE DON'T HAVE TO BE EITHER. We just need to do better, on balance both in the markets and in life. In the markets we need to make more profits than losses on balance. In life we need to make more good moves than mistakes on balance. Both are learning arenas and we should continue to progress and learn from our mistakes.
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Page 5-lst para. - part about "His Stock Forecasts for 1920 and 1921 indicated a bear market with sharp declines.-" Now look at page F-7 in the master time factor rules on calendar years. See again No. 10 year (or 1920); indicates a bear year with sharp declines-March and April. Also, look at page F-6 (remember anytime I precede the page # with F, that’s the page # in the lesson on the master time factor); see again No. 1 year (or 1921) is the first year in a new decade (a ten year cycle-but it is also the first year and new beginning of the 20 year cycle; basically it ’ s like a triangle, the left side of the triangle going from "0" (remember that ’s conjunction) to 180 degrees (remember that’s opposition or top), this time period from W0n to 180 consumes 120 months or ten years; then it starts down from opposition which is the new "0" in the 10 year cycle but only half way in the 20 year cycle but it is at the top of the triangle and coming down to the original base for the ending of one cycle and the beginning of a new one. Since it is like a triangle within the circle (or square), you have one 10-year period going up and another 2nd 10-year period going down. Since the left side of a triangle looks like the right side of a triangle, just like your left hand looks like your right hand, except that one is on the left and the other is on the right you have similar yearly patterns going up the 1st 10'years and then coming down the 2nd ten years. You generally have the top made in the 8th and 9th year. Mr. Gann explains it simply by saying that 9 is the highest digit. This is simply a way for him to say it is the 9th year without telling you that it is the opposition of JupiterSaturn that causes this phenomena in the markets to occur. This is generally the blow-off year. And again the reason that it comes in that particular year is because of the way and time frame in which we have devised the chart that shows us the picture of how the swings look over the two halves of the 20 year cycle. Remember we did not start our chart at the exact date of the conjunction in 1901 but at the 1st month of the year in 1901.
Several reasons for this, 1st we want to look at several 20 year cycles stacked on the same time periods; the 12 months of a year allow us the most consistent way to look at them, 2nd, if he starts his charts from the actual conjunction, he has given away his master time factor. (He gave it away to me by simply starting from "1" year instead of "0", how do you think it would have looked to start it from November 28, 1901.) So, you see that it makes no difference where we start from, if we start from the proper place (that we know) and be consistent. We can just shift our reference point in our minds and say, O.K.-the 10th year will be the blow-off year in this cycle because its at the top of the cycle, or we could shift our reference point to the left (backwards in time) and say that the 9th year will be the blow-off year (or top), or we could shift our reference point two years to the left (backwards in time) on our charts and now the 8th year becomes the blow-off year (or top) of the triangle, square, circle or cycle that we are looking at. It makes no difference what we call them they are all the same. THE MOST BEAUTIFUL AWE-INSPIRING WAY TO SEE TRUTH THAT THE ANCIENTS AND ADEPTS USED TO DEMONSTRATE PRICELESS INFORMATION AND CONCEPTS 47
FROM THOSE WHO WERE NOT PREPARED TO APPRECIATE AND UNDERSTAND THEM WAS HIDDEN IN THIS MANNER, BY THE SYMBOLIC USE OF THE CIRCLE, THE SQUARE, AND THE TRIANGLE. THE ANCIENTS HID THESE WONDERFUL THINGS FROM THE UNPREPARED (NOT YET READY) BY PUTTING IT OUT WHERE EVERYMAN COULD SEE' IT IF HE WOULD. But if he (Everyman) had not learned the proper mindset; then he couldn't see this beauty because he didn't know how to look. He just saw something of no value; yet the thing of no value was the very priceless thing that he needed (THE REJECTED BUILDER'S STONE). Now you can look at any cycle or circle that you want to with the above symbolism and mindset that I have described. You may not believe it now, but I have given you enough information in this paragraph for you to acquire dominion over any market. But, you must first acquire dominion over yourself. Once you do that the market really becomes of inconsequential Importance. What a s t r a n g e , c u r i o u s , w o n d e r f u l , b e a u t i f u l w o r l d . W e s e e k i n t h e markets for treasure, but that search when concluded leads us not to gold but to something which we first rejected as refuse; then this refuse when properly assimilated into ourselves, gives us the ability to take the gold from the markets almost at will, but then once we can take it at will, it becomes Inconsequential to us. Don't you find that a strange wonderful thing. I am not implying that I can do any of the above. I'm not there- by a long s h o t . Bu t I a m t e l l i n g y ou t h a t I s e e t h i s p a t h a n d I rediscovered it as a direct result of my search for Mr. Gann ’ s Master Time Factor. Page 5-2nd par a. -Mentions the Book, "TRUTH OF THE STOCK TAPE", -I used to think that this was probably his worst book because it was his earliest, now to me it is his best book. The book didn't change, I did. The book is his best to me now because I found the gold there in the form of one quotation from Emerson. Page 5-next para. -"His Stock Forecasts for 1924 2nd 1925 outlined the bull market which followed. " Look at your colored charts (Sheet 1). Look at 1924 and 1925 in red. Look at 1904 and 1905 in
yellow in the previous cycle right below. Also, look at your master time factor rules on page F-6 and F-7 covering No. 4 and No. 5« Do you see why Mr. Gann called the 5th year the year of Ascension. This gives you an opportunity to see how he related market observations to biblical events in his descriptions of the phenomena of an observed pattern in the markets. Also, shows why he said on the 3rd day he arose. (This is also an astrological hidden commentary- meaning the arrival of spring from "0" the depth of winter December 21; you have three periods. Or from anywhere because the third period (30 degrees x 3 = 90 degrees) and of course the important square aspect (angle) that also comes into consideration during the 5th year and has significance in the cause of that phenomena of the year of Ascension. This according to astrological interpretation of astronomical events and to Mr. Gann.) I don't know anything very much about astrology, but being a seeker I can read a picture or map and therefore I don't have to spend any more time with Astrology. — This brings me to another side trip. I had several people that inquired about ordering my booklet, respond by writing me that 48
The above is my speculation about the possible meaning and explanation of the cause of the master time factor. I have strong reasons for this conjecture. Also, before I forget, one reason Mr. Gann (and the ancients and astrologers) called the 60-year cycle the Master Time Period is because it contains approximately 2 cycles of the orbit of Saturn and 5 cycles of the orbit of Jupiter. There is a great amount of material in the last sentence alone. I cannot cover it here, but sometimes look at the relationship above and see how the square of 12 (144) is involved and what it means and how you think Mr. Gann was using his square of 12 and 144 and more importantly why he was using them. It would take volumes to cover an analysis of Mr. Gann’s work. I ONLY WANT TO SHOW YOU THE PATH IN THIS BOOKLET, SO THAT YOU CAN HAVE THE PLEASURE OF DISCOVERY FOR YOURSELF. I see now that I can barely cover the master time factor in this booklet. There are so many other things that I wanted to go over with you. But, all in due time. At this point let me say again to those of you who are disturbed by the astrology or astronomy references herein. If looking at astrology disturbs you just ignore it; it doesn't matter. ASTROLOGY DISTURBS ME TOO, but it makes sense to me that there can be some causes of our behavior tied to variations In our magnetic life fields and as a result of this thought process, I can at least look and see if there is some repetitive behavior observable in the market that I can trade off of. You don't have to understand electricity to use it. I have to mention astrology here, because we are discussing Mr. Gann and the cause, use, past history, and future usefulness of his master time factor. Mr. Gann was an astrologer and therefore we must discuss it. If you plan to use the master time factor in your trading, then you at least need to know what the time factor is based on according to the man that developed it and spent a lifetime developing rules to utilize its repetitions. I can ASSURE you that Mr. Gann ’ s whole trading system when properly understood and applied is the most POWERFUL system
of trading that I have ever seen. I have looked at every system that I have ever heard of. And as you know from my story I couldn't say that earlier, before I discovered his master time factor. Besides, we do not have to believe in or study astrology to use his material, but we do need to know the fact that it was astrology that led him to search for the repetitive patterns in the cycles and that as far back as history is recorded man has had similar beliefs about the causes of human activity. Page 63rd para. - "On March 1. 1933, by the use of his Master Time Factor Mr. Gann forecast bottom----M - You can read the rest of his para, for yourself. On page F-6 in the master time factor rules, No. 3, year No.3, in this case year No. 1933- well read the part about how the decline from the 2nd year (1932) may run down and make bottom in February or March of the No. 3 year (1933). Then look at ray Master Time Factor Charts Of The Dow-Jones Averages, Sheet 1, in red for 1933 in the 13th zone. This brings up another thing that you need to know about what Mr. Gann 50
means when he says something. To him the 3rd zone and the 13th zone were interchangeable words. When he says year No. 3 in the master time factor lesson on page F-6, he means year No. 3 in the decade. This actually applies to the 3rd year from the beginning measuring point of the 20-year cycle ("0" or conj.), but it also m eans and app li es to t he 13 th year or zon e. T hi s coul d be confusing to us especially if we did not KNOW what caused the 20-year cycle to be important. Also, I want to point out that there are other cycles of great importance. The 60-year was most i m p o r t an t t o t h e a n c i en t s b e c a us e o f s i z e s o f t h e i n v o l v e d planets and Saturn was the most distant planet that they knew. I am busy with some very interesting computer work now on some or i g i na l cy cl e wo r k t h at I h ave f el t t h e need t o p urs u e as a r es ul t o f som e o f the thi ngs that my specu l at i on s ab ou t Mr. Gann's work has led me to. Back to the para, on page 6-The last sentence says "This is another proof of the great value of Mr. Gann ’ s discovery of a Master Time Factor." That sentence is also another proof here today 43 years later that I have now given you the sincere student, Mr. Gann's Master Time Factor. It SHOULD NOT BE ABUSED. USE IT FOR YOURSELF AND USEFUL PURPOSES ONLY. IF YOU ABUSE ANY THING USEFUL, IT IS A NATURAL LAW THAT IF YOU SOW THE WIND, YOU WILL REAP THE WHIRLWIND. Just the possession of the master time factor will be useful to you to see the unfolding trends, but you must master yourself first, then all other useful things become more useful with use. Page 7-1 is not going to continue to point out every forecast and where it came from in this booklet. There are two more on this page and many more in all Mr. Gann ’s other books and courses. For practice and more insight you should find everyone of them and study them. Also, remember to look for and be prepared for variations at times. You must also look for abnormal moves such as in war times, etc. There is one thing on this page that I want to point out to you though about Mr. Gann's language, so you will remember every time in the future exactly what he is saying
-down at the bottom of the page- "The man who guesses and gambles on hope is sure to lose while the man who follows science makes profits." The word "science 11 always mean the study of the heavens either astronomy (cycles) or astrology (the art of interpreting the heavens). Next sentence. -"There is cause and effect for everything and by time element and the cycle theory everything can be mathematically determined."- Here he always means cause is the movement of some planetary body or bodies or relationships; by the word "effect ” he means the moves of prices up or down through time as a result of the cause; and by "time element and the cycle theory" he means his master time theory that I have been explaining to you; "mathematically determined " -you might first think he means the calculations necessary to determine the positions of the planets and this is a frequent expression used by astrologers, but Mr. Gann doesn't mean that here. What he means is that if you have his master time element (factor) and his cy cl e th eory as mention ed in the same sent ence, the mathematically determined means simply counting the years on your the digits of your two hands. Just simple counting-1, 2,3,4,5,6,7,8,9,10. - Hey, that’s math and THAT IS EXACTLY WHAT 51
HE MEANS. He always did his advertisements that way. It appeared more scientific to say mathematically determined than to say rules for counting to 10. Mr. Gann ’ s natural genius for selling his products have been overshadowed by his forecasts but his sales ability was by no means small. Page 10-about 7 para, down- talking about his 1937 forecast. "This year comes under a time cycle which definitely indicates a bear year in most stocks and a panicky decline— fl see his No. 7 on page F-7, same old story now with the forecasts, but you have another opportunity to see why "7" was attached to the end of something; in this 20 year cycle (Jup-Sa) the 7th and l7th year were "downers". Downers had bad connotations, so he picked up on the biblical and astrological connotations of seven to reflect and describe the empirical relationship that he saw in the cycle. HE OFTEN DID THIS. Page ll-6th par a. -"Advance in December- -Mr. Gann was asked how it was possible to make such an accurate forecast one year in advance. "He stated that it was his own discovery of a mathematical master time factor and cycle theory which enables him to tell when certain cycles recur and great panics and booms take place. -" By now you KNOW what he means. Look below in the next two paragraphs. Quote to yourself from your knowledge of the master time factor rules on F-7 for 1938, the 8th (and 18th) year. Page 11-bottom of page- AGAIN WE REPEAT: - He is telling us over and over about his method of forecasting -and he is telling us more here than we first see. Here is one of my favorite quotations: "Prove all things and hold fast to that which is good." Well, it is sound advice for sure, but did you know that it has another meaning to and that is why he is saying Again WE Repeat: above it. "Prove" is an old-time meaning for SQUARE and "things" is an old-time mystical meaning for circles. This quotation has dual meanings, the second hidden under the 1st.
«• The above quotation brings up a quick side trip. I did not intend to get into angles, calculators, master squares, etc. in this booklet. As I said, le t s just too much for one time. Besides the master time factor is the most important and if you are a sincere student you will be able to come to all of this now on your own. But, lets look on page F-15 in the master time factor lesson, since we are talking about squaring all circles and holding fast to those which are good (proven, also squared). At the bottom of the page, the "NEW YORK STOCK EXCHANGE PERMANENT CHART"- For those of you have seen it so many times, did you know that this "master" chart that is the SQUARE OF 20, meant that it was the square of the JupiterSaturn cycle. Did you see how Mr. Gann has squared or "proved" the "master" circle (20 years). Did you know that this lesson with the knowledge of what the master time factor is and how it can be used gives you the key to understand Mr. Gann ’ s calculators and other master charts. This is a quick side trip, so we can't get into all this now. I just want to mention two or three things. Almost all of Mr. Gann's calculators 52
are designed to calculate the position of prices and natural resistance levels based on their positions within the square of their natural cycles (which everyone you are looking at-and some of them are designed so that there are several different cycles within the same square or calculator). Almost all of-Mr. Gann’s squares and calculators are the squares and square-roots (origin of) different planetary cycles ( M 0 M to "0"). You can figure them out. But it is a waste- to put so much time on them- we do it, be cau se we human s lo ve exo tic a nd scien tific th ings like mysterious "mathematics" Instead of dull things like counting on our fingers 1,2,3,4,5,6,7,8,9,10. Aren't the calculators so much more fun, BUT HAVE THEY BEEN MORE PROFITABLE FOR YOU? While I am thinking about counting, I mentioned to you earlier that we seekers must ALWAYS be looking into all kinds of things (seek means to look). We must look into the meaning of words and the meanings behind words and languages. Take the word "SCORE", for Instance, of course it means 20; but how many other meanings can you think of for it-scores, I bet. It means to tally, keep count of, make a round trip around the baseball diamond (circle, square), it means to mark something until the next time, It even has slang meaning for things of a more personal social nature. Look at how we use some of the words and relate them to the SCORE of years it takes to repeat one cycle across Mr. Gann’s master time chart. I have made a copy of the square of scores for you. The square of twenty from the birth of the New York Stock Exchange on May 17, 1792 (according to the figure that Mr. Gann u se d ) , h a s a n In t e re st i n g i te m in t h e c e n t e r w h e re a l l t h e central angles cross. You would expect some type of change in trend their of major significance, since this is a square that covers 400 years, now lets see, is that 1982? I wonder how long this bull market should last? Do I have any way to forecast it? The last point I want to make here is: Again, you have to watch Mr. Gann ’ s words, on page F-15, he says the square of 20 can be used to measure days, weeks, months, or years- but he really means YEARS, days, weeks and months are contained in years, but he doesn't mean the square of 20 days, or 20
weeks, or 20 months. HE MEANS ONLY ONE THING - THE SQUARE OF 20 YEARS. He couldn't just come out and say the SQUARE OF 20 YEARS, BECAUSE THEN YOU WOULD KNOW THAT HE MEANT THE SQUARE OF THE JUPITER-SATURN CYCLE. So he tosses in the other time periods of days, weeks, and months to confuse the issue. You must always determine what he is talking about at the time in order to know which time period to select. Another example, most of the time when he talks about the square or 360, he is talking about the SATURN ORBIT or 30 years (approximately) or 360 months. Then he means a monthly chart even though he will say daily, weekly, monthly, yearly, to make you think he is talking about all of them simultaneously. T he r e a re se v er a l o th er s , t he 4 5, 9 0, 12, e tc . et c . As usual that side trip turned out to be longer than I had intended. I have two comments that I want to bring to your attention on pages 13 and 14 of the brochure. First, page 13- w One of the rules is for trading for fast moves after the market gives a definite signal—"- Oh, the trouble I have had with the Gann rules, before I discovered his master time factor. I got signals 53
all the time-and most of the time wrong signals. -The reasonI was trying to trade to often. You see for yourself you should plan your trades by the YEARS- not by the days or hours. The monthly chart shows you the MAIN TREND. Have you ever had any trouble determining what the main trend was? I can't begin to estimate the hours that I have spent trying to determine what the main trend was. CAN YOU BEGIN TO SEE SOME BENEFICIAL things that the KNOWLEDGE of the master time factor is going to do for you in your trading? You must take the knowledge and then go back to everyone of his rules and see what he was really trying to do with each rule and what its purpose was. Did BOTTOMS AND TOPS ever give you trouble understanding what and how he meant them to be used. DO YOU SEE THEM IN A NEW LIGHT YET? On the bottom of page 14 Mr. Gann makes another quotation from the Bible, and says, "Ye Shall Know the Truth and the Truth shall make you free". He ties useful information that he will give you if you order his course or courses to a truth from the Bible. This gives you some Insight to what the quotation really means. Can you begin to sense a certain freedom that you have now in your understanding of Mr. Gann's work now that you know what the master time factor is and now that you understand the idea behind it so that you can experiment, study, and research market movements on your own? Or, haven’ t I convinced you yet that I have given you and am giving you the master time factor? If I haven 1 1, the best proof is yet to come. Page 15-3rd para. -"If the average man or woman would only spend the first few hundr ed dollar s the y lose in the mar ket in acquiring knowledge and learning the rules for buying and selling at the RIGHT time, they would then make profits-not losses". Mr. Gann was telling you this to sell you his courses, but he was telling the truth. If you have not been making profits in the markets, but have Instead been making losses, you need to STOP TRADING, stop completely, take the information that I have given you on Mr. Gann's master time factor, learn it,
study it, go back and study his other rules, learn now with new insight and understanding what they meant, realize that you do not need to trade to often and only at the right TIME, prepare a set of trading RULES just for you, made by you, designed by you, based on this remarkable man's work. Then and ONLY then go back into the market with prudence and common sense, if you do not start making profits almost immediately, then STOP TRADING, find out what's wrong, TEAR THE PROBLEM OUT, and start over again. Page 15-bottom of page-His description of what he calls his Complete Course- "The Complete Course is in Four Lessons: --"Then he goes on to describe the contents of this course. I learned a lot about how Mr. Gann used his words and his language by reading the descriptions in sales pieces that he had written about his courses and materials over the years. I have mentioned to you before, that it is the little things that are so important to observe when you are studying his work. For instance, take this course that he calls his "Complete Course", you would assume at first glance that this would contain 54
all of his material, but this "Complete Course" does not contain the "FORECASTING" or master time factor lesson, the one written in November 1935 (the real THING); instead, this course contains the one he had just written 3 months earlier in August, 1939, a substitute, and a poor one when compared to the "real McCoy". You may ask how I know that; it is simple. I know it by studying what and how Mr. Gann has advertised in the past; by the previous relationship between how he advertised other past material and the style that he used to do so, I found that he would make something in an advertisement sound scientific, mystical, Intriguing, or tied religiously to the Bible or some worthwhile quotation; then he would mention some phrase or sentence in the ad and tell you what the value would be to you in certain terms, this phrase or sentence would be in the piece that he advertised, this would then tie them together and when you ordered the book or course you would see the relationship. By studying the past (his materials), then I can see him do the same thing in the future and now. In other words what he did in the past, he will likely do the same way in the future. He is a creature of habit Just like you and I and the patterns of the market and the seasons. The purpose of my bringing all this to your attention is that I want you to see that it is the little everyday things that we do everyday that is so important in the long run. By studying patterns we learn about all kinds of things. Patterns in the market when learned will give us truths that will allow us to profit; patterns in our minds will give us truths to live by that will set us free (the proper mindset); the patterns in Mr. Gann's past advertising habits will give us ironclad conclusive hard evidence out of his own mouth that I have been giving you his master time factor. He protects it so well by hiding it out in the open (just like the ancients) and never really identifying it, but then his advertising habits allow us to SEE it clearly. HERE COMES MY FINAL EVIDENCE. I WANT YOU TO KNOW WITH CONFIDENCE THAT YOU KNOW HAVE MR. GANN»S MASTER TIME FACTOR.
In my Appendix I you will find a complete copy of the August 1939 lesson that Mr. Gann had written 3 or 4 months before the publication of this brochure. At the bottom of page 15 in the brochure he describes the lessons that will be included in the four-lesson course which he is calling his complete course here (at other times in past advertising pieces he has called the different courses by slightly different names). At any rate when he describes Lesson III he calls it Time Elements and Time Rules lesson. He doesn’ t call it by the name "Forecasting By Time Cycles11 that you see on the Title page under his letterhead in my appendix I. But the key to knowing that this is the lesson that he is talking about comes in the next sentence after Time Elements and Time Rules. He says, "There is a definite relation between price and time. -" Then under appendix I, lesson entitled "Forecasting By Time Cycles", the fourth paragraph down on the title page starts with the sentence "There is a definite relation between TIME and PRICE." Mr. Gann always did this- he would take one or more words or sentences directly out of the thing he was going to sell and he would use it or refer to it when he advertised it. Now I know that you think that this is a trifling 55
thing and that I am pulling at straws but you need to just bear with me because the fact that he has this habit of doing this is going to show you for yourself without any doubt that you NOW HAVE THE MASTER TIME FACTOR. You see going back to the Course Description that we are considering; it is necessary to identify which course that Mr. Gann was talking about in his brochure because he had so many and different ones at different times. It's like I changed certain parts of my story in this booklet and sent some of you different versions. To show you that the 1939 lesson on forecasting By Time Cycles 11 is the one again that he is describing, look back at that same paragraph "There is a definite relation between Time and Price. -Then next sentence"In the previous Lessons you have learned about Formations and Resistance Levels-M-Now look back to page 15 in the brochure and you see the Lesson I and Lesson II matching the description and order of this described course. This is all in the Stock Market Course today. Now on page 16 he calls this same course described on page 15 as his Course No. 2 Complete Course of Instructions-consisting of Four Lessons -the ones we have Just described except for the Volume Lesson which wasn't important to my discussion. Now in this course No. 2, look at the price, he says it is more complete than ones he has sold for $5000 in the past, and he says that it is worth $5000, but now in 1939-40 times are hard; so hard (he doesn't say this-that’s my observation) that he is going to reduce it to $1000. No mention of the master time factor. If this course is better than what he sold in past years for $5000, then I'm glad I didn't get it, because I have it now, you do too, if you have the Stock Market Course, and I could not trade off it well enough to make any money without knowledge of the master time factor. On page 16, look at Course No. 1, that's the starter set for young people it is Lesson 1 and 2 only and it costs half the price of Course No. 2 because it is half the course. In case you are wondering what the initials mean in the description of Lesson 1 under Course No. 1, it means break-a-way points. Also notice the difference in the description in this Lesson 1 in Course No.
1 and the description in Lesson 1 in Course No. 2-; but, they are the same lesson in both cases, just advertised in different words to appeal to different pocketbooks and tastes. Page 16-bottom of page- No. 3 Master Forecasting MethodN O W W E COME TO THE "REAL McCOY", THE COURSE NO. 3, THE MASTER FORECASTING METHOD, THE ONE WITH THE BEST DESCRIPTION OF THE MASTER TIME FACTOR THAT YOU WILL EVER SEE IN MR. Gann ’ s OWN HANDWRITING. BUT MY BACKGROUND INFORMATION THAT I HAVE BEEN GIVING YOU IN W MY STORY-A SEARCH FOR W.D. Gann ’ s MASTER TIME FACTOR" IS THE THING THAT ALLOWS YOU TO KNOW WHAT IT WAS AND HOW TO USE IT, BECAUSE MR. GANN STILL DID NOT WRITE IT OUT AND SAY "HERE IS THE MASTER TIME FACTOR", EVEN WHEN YOU PURCHASED THE COURSE. BECAUSE, LIKE THE ANCIENTS AND ADEPTS, HE DIDN'T KNOW IF THE PEOPLE HE SOLD IT TO WOULD ALLOW OTHERS TO COPY IT, OR RENT IT, OR GIVE IT AWAY TO FRIENDS, JUST TO BRAG THAT THEY HAD THE MASTER TIME FACTOR. IF YOU WILL, IT WAS HIS METHOD OF "COPYPROTECTING" AS IS DONE TODAY WITH COMPUTER SOFTWARE. I REALIZED THAT WHEN I SOLD THIS BROCHURE TODAY THAT I WAS VIOLATING THIS 56
PRINCIPLE, BUT I FELT THAT THE GOOD OF SHOWING THIS INFORMATION TO A SELECT FEW SERIOUS STUDENTS THAT HAD WORKED HARD TO UNDERSTAND MR. GAHN'S TRADING PHILOSOPHY VERSUS ITS POSSIBLE (PROBABLE) ABUSES WOULD MAKE IT WORTHWHILE TO DO SO. HIS COMPLETE METHOD WHEN PROPERLY UNDERSTOOD BY USING THE MASTER TIME FACTOR AS THE FOUNDATION AND THE REST OF HIS TECHNIQUES AND RULES AS THE BODY OF HIS TRADING SYSTEM IS TOO VALUABLE TO BE ALLOWED TO GO TO WASTE BY LACK OF UNDERSTANDING AND IT IS TOO VALUABLE TO HAVE PEOPLE "TURNED OFF" BY ALL OF THE COUNTERFEIT ANALYSIS OF HIS WORK THAT IS ALL TOO PREVALENT TODAY. BY MY SMALL, NOT WIDELY DISSEMINATED PUBLICATION I HOPED TO ACCOMPLISH BOTH OF THE ABOVE OBJECTIVES AT THE SAME TIME. FURTHER, I TRIED TO PUBLISH THIS VERY VALUABLE INFORMATION AT A PRICE THAT EVERYMAN (includes everywoman) COULD AFFORD, SO THAT NO PERSON WHO DESERVED THIS INFORMATION WOULD BE LEFT OUT. THERE IS NO REASON FOR YOU TO EVER PAY ANYONE ELSE AGAIN FOR MR. Gann’s MASTER TIME FACTOR. I HAVE GIVEN IT TO YOU. YES, GIVEN. I DID NOT CHARGE YOU FOR MR. GANN'S MASTER TIME FACTOR, THAT WAS HIS DISCOVERY. I COULD NOT CHARGE YOU FOR ANOTHER MAN'S WORK. I CHARGED YOU FOR YOUR TIME. THE MOST VALUABLE COMMODITY THAT YOU HAVE. I CHARGED YOU FOR THE TIME THAT YOU WOULD HAVE HAD TO SPEND OUT OF YOUR LIFE TO ACQUIRE THE INSIGHT AND KNOWLEDGE I HAVE GIVEN YOU IN THIS BOOKLET ABOUT MR. Gann’s MASTER TIME FACTOR. AND- I TRIED TO PAY YOU- PAY YOU FOR ALL THE HOURS THAT YOU HAD SPENT ON HIS WORK, TRYING TO FERRET OUT THE GRAINS OF GOLD FROM THE DROSS OF MATERIAL AVAILABLE. FINALLY, I DID NOT BELIEVE THAT MR. GANN WOULD HAVE WANTED HIS MATERIAL TO BE HARMFUL TO SINCERE STUDENTS, SO I TRIED TO PAY YOU ON HIS BEHALF, SINCE HE COULD NO LONGER DO IT FOR HIMSELF. TIME-WILL TELL WHETHER I HAVE BEEN ABLE TO ACCOMPLISH THIS OR NOT. Page 16-bottom of page- under "No. 3 Master Forecasting Method11-he says, "This Method contains all of the form Rules, Resistance Level and Volume of Sales. -"---------------This is the same identical three lessons that is in Course No.2 and the same identical lessons (except for Volume of Sales) that is in Course NO. 1. BUT IT HAS A DIFFERENT LESSON ON TIME. IT IS NOT THE
SAME LESSON THAT IS COURSE NO. 1. COURSE NO. 1 HAS THE LESSON ENTITLED "FORECASTING BY TIME CYCLES" AND WRITTEN AUGUST 3, 1939- IT IS IN MY APPENDIX I. COURSE NO. 3, THE ONE WITH THE MASTER TIME FACTOR IN IT IS DIFFERENT IN REGARDS TO THE LESSON ON TIME IN IT; IT HAS THE TIME LESSON ENTITLED SIMPLY, "FORECASTING" AND WAS WRITTEN IN NOVEMBER 1935. IT IS THE ONE THAT WE HAVE ALREADY BEEN TALKING ABOUT AND IT IS IN MY APPENDIX IV. READ AND COMPARE HOW THEY ARE DIFFERENT. SEE WHAT HE LEFT OUT OF THE LATER ONE AND TRY TO DECIDE FOR YOURSELF WHAT HIS REASONS WERE FOR CHANGING CERTAIN PARTS, SECTIONS, AND WORDS. Look at the same sentence in the brochure on page 16, in the paragraph that we are discussing. He says, "and my secret discovery of the Master Time Factor and a new way of Forecasting by Mathematical Rules that are simple and practical." HERE WE HAVE THE CONCLUSIVE PROOF OF WHAT I HAVE BEEN TELLING YOU. Go to you lesson called simply "FORECASTING", the one I have been calling the master time factor lesson, the one in my Appendix IV; look at page F-9, the first sentence under the heading, 1929 FORECAST; it says, "According to my discovery of the 60 year 57
cycle--"-----See the use of his language! Even now after, you would have ordered his No. 3 Course, he does not come out and say this is my master time factor; but by studying his advertising habits in the pa st, we know tha t this thing that he calls in the advertising brochure "my secret discovery of the Master Time Factor" and the words that he uses in the lesson itself on page F-9, "my discovery" tells us that he is now talking about the master time factor. You see he left out the word "secret" in the actual material, because if someone pirated it, they might understand it; but in the sales brochure he was advertising to get your business, and therefore, he called it what it really was-"his SECRET DISCOVERY OF THE MASTER TIME FACTOR. That, dear readers, is your much sought after, much talked about master time factor. You are one of only a few that now know what it is. Don ’ t you think that it would be a good idea to keep it that way? AT LEAST UNTIL YOU HAVE HAD AN OPPORTUNTITY TO GO BACK AND APPLY HIS OTHER RULES WITH NEW UNDERSTANDING TO YOUR OWN TRADING SITUATION. IT WILL TAKE TIME AND WORK ON YOUR PART FOR YOU TO LEARN JUST HOW VALUABLE THIS INFORMATION IS. YOU MAY NOT IMMEDIATELY SEE ITS VALUE, BUT IT IS THERE, IT’S JUST THAT YOU MAY NEED TO CHANGE YOUR SELF (MINDSET) SOMEWHAT. I HAVE BEEN TRYING TO HELP YOU THERE TOO. Page 16-bottom of page- same sentence that we have been analyzing—, to continue, -"and a new way of Forecasting by Mathematical Rules that are simple and practical."—That new way of forecasting is reflected under the heading, RULES FOR FUTURE CYCLES, on page F-3 in the master time factor lesson, but the part that he called the "Mathematical" part of the forecasting, that is based on pages F-6 and F-7 under the heading Bull and Calendar Years on page F-6. He says that part (the mathematical part) is simple and practical. And counting 1 through 10 once, then twice is the simplest math that you can come up with. He tells you in the second paragraph under the heading Bull and Bear Calendar Years,
that "All you have to learn is to count the digits on your fingers in order to ascertain what kind of a year the market is in". NOW, THAT'S WHAT I WOULD CALL SIMPLE AND PRACTICAL MATH. WOULDN'T YOU? Page 17-Top of Page-under the heading "MATHEMATICAL RULES OR REASONS:"-The first sentence reads, "It is possible to get a s ma ny a s n in e c o n f i r ma t io n s o r r e a s o n s w h y a s t o c k s h o u l d be bottom or top at a certain time and the greater number of confirmations the surer the chances of making profits."—This sentence relates to information that he gave in L esson 2 of the 4 L e s s o n s i n c l u d e d i n t h e N o . 3 Co u r s e ( t h e o n e w i t h t h e m a s t e r t i m e f a c t o r i n i t ) . T h i s L e s s o n 2 w a s e n t it l e d " R E S I ST A N C E L E V E L S " a n d i s n o t i n c l u d e d i n m y a p p e n d i c e s . I t i s i n t h e present day W.D. GANN STOCK MARKET COURSE AND IS PAGES 293 THROUGH 311- The nine confirmations he is talking about begin on page 309, under the heading "NINE PROOFS OF RESISTANCE" and continu es to halfway of page 309- (If you hav e an older course than my copy, you may find that the page #s are not the same). Page 17-2nd par a. -In the last says, 58
sentence of this paragraph he
"This course gives mathematical proof of how I forecast the 1929 Bull Market and the Panic which followed to 1932. "--Again, from Mr. Gann ’ s advertising habits, we find another proof that I have given you the master time factor. Look on page F-9 of the master time factor lesson under the heading-"1929 FORECAST"-read both paragraphs; also, in the last sentence of the 2nd paragraph under that heading, he says, "There is no other way, outside of using the 20 and 60-year cycle that we could have forecast this great bull campaign and its culmination so closely in 1929."—THERE YOU HAVE AGAIN, IN MR. GANN'S OWN WORDS, PROOF, that I have given you Mr. Gann ’ s master time factor in my booklet, "My Story-A Search For W.D. Gann ’s Master Time Factor". If I had had any doubts that his master time factor could have been anything else, I would never have charged you for your time. But I have gone into so much detail, BECAUSE, I wanted you to SEE IT clearly, because this is going to be the base (foundation) of your future use of Mr. Gann ’s trading system. Ag ain , I will su mmarize for th ose of y ou wh o want to co mp ile th is No. 3 Course-MASTER FORECASTING METHOD- as advertised on pages 16 and 17 of the brochure. The Course consisted of Lesson 1- “ FORM READING and RULES FOR DETERMINING TREND OF STOCKS”(today, you w i l l f i n d t h a t l e s s o n i n t h e S t o c k C o u r s e o n p a g e s 3 1 t h r o u g h 55); Lesson 2- " RESISTANCE LEVELS" (today, you will find that lesson in the Stock Course on pages 293 through 311); Lesson 3- "FORECASTING" (it contains the master time factor and is not p r e s e n t l y i n a n y o f M r . G a n n ’ s p u b l i s h e d b o o k s o r c o u r s e s, b u t i t i s g i v e n t o y o u i n i t ' s e n t i r e t y i n m y A p p e n d i x I V , a n d I h a v e b e e n r ef e r r i n g t o i t as t h e m a s t e r t i m e f a c t o r l es s o n ) ; Le s so n 4 - "VOLUME OF SALES" (today, you will find this lesson in the Stock Course on pages 128 through 144). THE ABOVE GIVES YOU THE ENTIRE COURSE NO. 3 AS ADVERTISED BY MR. GANN IN 1939- HE CHARGED 2 AND ONE-HALF TIMES MORE FOR THIS COURSE THAN HE CHARGED FOR WHAT HE CALLED HIS COMPLETE COURSE (COURSE NO. 1). THIS WAS IN 1939 DOLLARS AND IT IS THE MOST VALUABLE OF ALL HIS COURSES BECAUSE IT GIVES
YOU THE MASTER TIME FACTOR. HE DID NOT TELL YOU WHAT YOU NEEDED TO KNOW TO USE THIS MASTER TIME FACTOR, NOR DID HE TELL YOU WHAT IT WAS THAT HIS MASTER TIME FACTOR WAS BASED ON; BUT I HAVE TOLD YOU THE ANSWERS TO BOTH OF THE THINGS HE DIDN'T TELL YOU; AND, I HAVE ONLY CHARGED YOU FOR YOUR TIME, BECAUSE WHAT I REALLY WANTED YOU TO SEE WASN'T THE MASTER TIME FACTOR, BUT MY CREED. Now you have been given the best proof that I am able to give you, that, you do, in fact, have in your possession, the master time factor. The best proof that you can give yourself is to go back and begin reading and studying all the Gann rules with the "new light" that you now have. If you will learn and acquire knowledge before you trade you will be successful. There are 3 more pages of this brochure that we have been analyzing. I have given you my best evidence already, but there is more useful information in the last 3 pages too, so we will cover them too and we will have the added benefit of acquiring a habit of finishing what we start. 59
Page 17-the part under the heading, "WHY YOU CAN MAKE MORE PROFITS TRADING IN COMMODITIES THAN STOCKS"— the first paragraph, he says, "In trading according to my Mechanical Method & Trend Indicator or according to my 1936 New Master Forecasting Methods on Cotton, Grains, Rubber and other commodities there are many advantages over trading in stocks"-. Then he lists the advantages. This paragraph allows me the opportunity to address t he si t uat i on t hat I had when I adver ti sed m y br ochur e. I l ost most of my orders because commodity traders did not want to know anything about the stock market. They had the same mindset regarding the stock market that I, myself, had and the one which I have been describing to you in my story. They refused to see the value in what I was offering (even though I used the master time factor itself), because it was not what they wanted to hear or it was not what they thought they wanted to hear; they wanted something that would tell them all the tops and bottoms in the commodity market that they wanted to trade. I had many people respond to my advertisement by saying, "I only trade beans- I don ’ t trade stocks, your brochure didn't mention beans, it only m ent i oned st ocks; i f i t doesn ’ t cover beans, t hen I am not inter ested in it ". I used t o feel that sam e way myself . I was a b ea n t r ad er . I d i d n' t wa nt t o kn ow an yt hi ng a bo ut s t o ck s. I rejected the stock market as being valueless to me. That mistake in my mindset is what cost me so dearly in time and money. You see, I didn't seem to care whether I could make PROFITS, BUT, I JUST SEEMED TO CARE THAT I COULD TRADE BEANS! My mindset confused trading a particular market with trading for profits. I couldn't tell these people that wanted the master time factor to be about b e a n s ( o r g o l d , w h e a t , c a t t l e , b e l l i e s , e t c . ) t h a t i t w o u l d b e that way. THE TRUTH IS WHERE WE FIND IT; NOT WHERE WE WANT IT TO BE. (Fortunately, for us the truth is everywhere, but most easily found in that which we reject as having no value; once we find it i n t h e r e f u s e , t h e n w e c a n g o b a c k a n d f i n d i t i n t h e p l a c e s where we. once searched so vainly.) There are a couple of good reasons that I could not address the bean market (and other commodities). One PRIMARY reason is that I did not have the adequate data in the form of prices back to 1901 (or
further). Without the data, I could not tell you how the master time factor would work with the different types of commodities. I knew that beans did not always follow stock prices. I had the data In the stock market in the form of the Dow-Jones Averages that I could carry back to 1901, AND I HAD MR. GANN'S STOCK MARKET LESSON ON THE MASTER TIME FACTOR. (Actually, I had it for a long time, I was just unable to be aware of it because I INSISTED ON SEARCHING FOR IT IN MY BEAN MARKET.) Now that I have the stock market master time factor and the data accumulated, AND THE VEHICLE (stock indices futures and options) TO TRADE IT, why do I need to insist that I have to trade something else that I don't have the data on, but just simply like to trade (out of habit). Of course, i f yo u ar e m a ki ng pr of i t s c on si st en t l y i n w ha t e ve r yo u ar e t r a di ng , t h en y ou sh ou l d ho l d f a st t o t ha t wh i c h i s al r ea dy working. If you are a hedger, and you want to use the master time factor in your particular commodity, you will have to develop your own data back in time or get someone to do it for you. I am 60
in the process right now of acquiring data back in time to i860 on several different commodities. Until that time I will not try to utilize the master time factor with other trading vehicles, because I have seen that each has its own variations. I only need one vehicle to specialize in and if I am a speculator, I already have it, as I said above. Mr. Gann says in that paragraph on page 17 that his master forecasting methods work on all commodities as well as his method works on stocks. But, I can't prove that at this point, simply because I don’t have the necessary data. But I can (and will) get it. You can too. We just have to do some work and searching. Do you understand what I'm saying? In the meantime, while we are acquiring the data in these other commodities that we want to trade, we can study and learn to use what we have already. My creed tells you that if you want something, FIRST USE WHAT YOU ALREADY HAVE AT HAND, and then the other things that you need, will come. Besides, Mr. Gann did not have the stock indices to trade as we now have. It is my opinion that he would have told you to trade the stock indices if he had had them, because his master time factor apparently works better with the Stock Averages than with anything else. Therefore, until we can acquire data, and do better, every one of these comments about trading commodities that he mentions on pages 17 and 18 apply equally well (perhaps MORE APTLY) to the stock indices and options that we can trade today. WE HAVE A WONDERFUL OPPORTUNITY HERE-THINK ABOUT THE POSSIBILITIES! I tell you-FOR THE GANN TRADER, THE STOCK INDEX MARKET CAN BECOME "KING" FOR A LONG TIME TO COME. Page 18-under heading, "FORECASTING METHOD ON COTTON OR GRAIN11-right under that he says,” Contains Master Time Factor". — Now, there are many more things that I have not been able to tell you about Mr. Gann's work. My goal in this booklet was stated. I only wanted to show you the path where you can start. I hope I have done that. I have tried to show you that you can start in the stock market index or options. For those of you who Insist in only looking at beans and agricultural markets (if you are a hedger, this is understandable), I am going to show you a path that you can start on in your search for the master time factor in grains. On page 18, when he says that his Forecasting Method on Cotton or Grain Contains the Master Time Factor, we have another clue available to us. If you have the W.D. Gann Commodities Course, you will find the nearest version to what he is talking about in the Chapter #6, entitled, "the basis of my forecasting method for cotton11. In my course it starts on page 68 and goes through page 89» But the part that contains the master time factor that he is referring to starts on page 80 under the heading, "forecasting cotton by time cycles". Now, you will note there, that the 60-year cycle is the same old master time factor that we have in the stock
market, but if you have learned ANYTHING from my story and the Importance of OBSERVING, you may see some different possibilities for the importance of certain time factors within the master periods. Also, you know what the time cycles represent; therefore, I have given you the knowledge (sincere Gann student) where to begin in agricultural commodities. Just because the 20 year period is the most 61
important factor within the master time periods (and is therefore, also the same thing of which it is a part) of the STOCK MARKET, it does not have to hold true to the same degree in the grain markets, there can be other factors within the grain markets that are more important than the 20 year period. If you don't understand this now you need to study my story more and Mr. Gann ’ s work then you will SEE. Naturally, you must first acquire good clean data far enough back and you must organize it into the proper format to be useful to you. There are 19 pages in this small, overlooked, pretty-well unknown advertising brochure that we have been analyzing. On the 19th page, Mr. Gann gives some pretty good advice, and the title of the brochure, "LEARN BEFORE YOU LOSE OR WHY YOU HAVE LOST MONEY IN STOCKS AND HOW TO MAKE IT BACK" tells you the truth too. But, the most appropriate way that I can think to end this chapter is by paraphrasing the last paragraph on Page 18, the one under the heading, "KNOWLEDGE IS POWER". Webster said: "The man who can teach me something is the man I want to know." You may think my price is high, but stop to consider that you have the use of these Methods during your entire lifetime and that the knowledge I have given you about Mr. Gann’s knowledge will be worth the money you paid me. You can easily lose in the market on one trade the price you paid me for my story, and the market leaves you with no valuable knowledge after your losses. LEARN TO SEE AND KNOW FOR YOURSELF WHAT COMMODITIES AND STOCKS WILL DO; THEN YOU WILL MAKE A SUCCESS. Well we are approaching dusk in my story. But before the sun goes down, while there is still light, I will try to show you a path that you can take which will lead you to more insight about Mr. Gann’s Master Time Factor. That is what "a seeker" is supposed to do; just find the path. I can tell you again that the best, most rewarding path leads to Appendix V. "THE SEEKER'S CREED". It’s the one just beyond the master time factor appendix. I told you
e a rli er t ha t th ey proba bl y g o t oget he r!
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CHAPTER 8 HERE IS A PATH. YOU COULD TRY THIS ONE Well-, I have come quite a "way" from where I first stumbled into t he Gann jungl e. It was such a bi g wil der ness wi t h so m any dangers. I have tried most of the paths that I saw in there and I got "banged-up" and bruised pretty-badly on some of those paths. Finally I climbed a mountain by the name of "Master Time Factor" and it allowed me to get high enough to see the surrounding t e r r i t o r y . I t h e n s a w t h a t I d i d n ' t h a v e t o g o t h r o u g h t h a t j ungl e t o fi nd what I was l ooki ng for . I had it al r eady. Ri ght wi t h m e. S o do y ou . I d i d n' t wa nt yo u t o h av e t o g o i n t o t he j ungl e li ke I di d. So I thought that I woul d wri te m y st or y for you so that if you did insist going into the Jungle, you would at l e a s t b e a b l e t o t r a v e l easier than I did. If I were looking for a proper course to take now that I "know" what Mr. Gann's master time factor is, I would study the maps (charts) in great detail. I would go back and check every one of his forecasts so that I could see where he was right and where he was wr ong. I would log those detail s and see if his right ones were more right at certain times and if his wrong ones were more wrong at cer tain t imes. I can t ell you t hat he was not always right. But he was right more than anyone else that I studied. I w o u l d r e a l i z e , i f I w e r e l o o k i n g f o r a p r o p er c o u r s e t o t a k e , t hat no for ecast i ng t ool i s al ways cor r ect and I woul d never expect more from any market tool than it could deliver. What has happened in the past seems to happen in the future to a certain extent, but hardly ever to the same extent. We CAN NEVER BE TOO SURE THAT SOME EVENT IN THE MARKET WILL OR WILL NOT OCCUR. WE MUST NOT ALLOW AN ABSOLUTE MINDSET TO TAKE CONTROL OF OUR PRUDENCE. Mr. Gann sometimes made this very common human mistake. If you have his book "45 Years In Wall Street 1 1 , there is a sub-book inside of it by the name "NEW STOCK TREND DETECTOR", if you turn to page 26 in that sub-book you will find the heading, "WILL STOCKS GO BACK TO 1929 HIGHS?". Mr. Gann
gave the answer, "I am confident that the Dow-Jones 30 Industrial Averages will NEVER sell at 386 again". Mr. Gann should have known better than to make a statement like that. He made this statement in the latter part of 1935, but he included the material in a book that he published in the summer of 1949, so he still believed it then. Remember, he would rarely, if ever, publish something that he thought might not prove true in a book, because it was then "set in stone" so to speak and he had a remarkable record of correct forecasts and it does not look good for a forecaster to have bad forecasts lying around in books where anyone can see them. So, I b e l i e v e , t h a t e v e n i n 1 9 4 9 h e s t i l l b e l i e v e d hi s s t a t e m e n t t h a t he made on page 26. I will tell you why he believed it after we look at another forecast he made in the same book "45 YEARS IN WALL STREET", but by now when you see the forecast, you will know why he said what 63
he did, because, now you have the master time factor. On page 130 o f t h a t b o o k , h e s a y s , u n d er t h e h e a d i n g , " F u t ur e T r e n d of Stocks", -"The Master Time cycle which I have used to forecast every important boom and depression or panic for more than 30 years, will in my opinion accurately forecast the next panic. " -He is writing this in the summer of 1949. He goes on to say, on page 131, "My cycle theory indicates that the business boom following the war ended in 1948 and that the trend is now down." In the next paragraph he says, "My study of time cycles Indicates that the business depression will get worse in the last half of 1950 and in 1951 and 1952 we will run into real panicky and depressing conditions which the government will be unable to cope with." Finally, on page 132, under the heading, "Preview of 1951 to 1953", he says, "1951 and 1952 indicate very depressing years for business and a bear market in stocks. Many stocks will go much lower than people ever dreamed they could go. 11 You see, of course, that he was looking for the top to come in 1948, or 1949, just as in the past, and then the sharp bear market from 50, 51> 52. Look again on page 129 of the same book. He says, "The depression and panic will come before the New Deal (Roosevelt Administration carried on by Truman) goes out of office in 1953. NOTHING CAN PREVENT IT. PANIC AND DEPRESSION HAVE ALWAYS FOLLOWED WAR.W See he is forecasting by his master time factor. But look at my charts. This time he was wrong. Or was it t h a t t h e m a s t e r t i m e f a c t o r w a s w r o n g ? I t ’ s t h e s a m e t h i n g , because all of his forecasts are based on the master time factor. But often it is a very valuable tool for forecasting. Look at how it has been working for the 1941-1944, 1961-1964, 198l-19current periods. Do you begin to see how it can be useful to you? It’s not perfect. I want you to see that here in my booklet. I don ’ t want you to find that out in the market. You must have learned from my story that you must exercise prudence. O.K., then where is the path? First, you go back to studying his method. You review with whatever materials that you have on hand or that you want to acquire. In particular, you look at every forecast,
right and wrong, and you look at my monthly charts and see what happened and didn ’ t happen. You now look at his rules again and understand what he meant by double, triple, bottoms and tops, etc. We haven ’ t gotten into studying price cycles in this booklet, because I couldn't cover all those things. But you can apply the same studies to price that we have to time. Don't worry about the angles. They are not the same as they were when Mr. Gann created his rules (by empiricism). All they were and are is the division of circles of different time periods and different price cycles and the relationship of the two together. As I told you, old astrologers utilized ANGLES as ASPECTS, which is the division of the circles. YOU CAN USE ANGLES TODAY, BUT YOU MUST CREATE THEM THE SAME WAY THAT MR. GANN DID, BY EMPIRICISM. But you are free to do that, now, because you have the master time factor and they were created to reflect movements at the time of the 1901-1920, 1921-1940, cycles. You have the FREEDOM, now to experiment with all these things, now that you "know" why he had them and what he was looking at. Squaring price and time of 64
course was the same as using the angles, that is what we are talking about, the relationship that occurred when the angles squared out. Now you will be able to go back and really study these relationships and see what they were telling him. YOU MUST OBSERVE. Pay attention to all the patterns within a cycle and over all the cycles. For instance, you have seen where Mr. Gann would be talking about a cycle and he would say that one time period put a base or foundation on a cycle and that other time periods would make up the walls and that another would make up the ceiling or top of a cycle. Just like in a building, he would say. LOOK AT MY CHARTS. LAY THEM OUT 1,2,3- FROM BOTTOM TO TOP (SHEETS). LOOK AT THE CYCLE FROM 1901-1920 IN YELLOW ON SHEET 1. THEN LOOK AT THE SHEETS 3 AND PART OF TWO. ALSO IN YELLOW FROM 1961-1980. NOW WALK AROUND THE SHEETS LAID OUT 1,2,3- AND LOOK AT THEM FROM THE TOP TO BOTTOM DOWN. Do you notice the similarities between the top one and the bottom one (in the swings-ignore price, we aren't talking about price; we are talking about bottom cycles and top cycles and walls in between them). These are the types of things that you must observe. Check each zone in the 5th year of the 20-year cycle. What happened to the price swings, generally, in the 5th year? Would you want to approach that 5th year market from the short side? How would you write your rules to trade that 5th year? What could you have worked out in th e 4th year and said , " I will sta rt out o n Jan u ar y 1 st , and I wi l l l oo k f o r .... ; th en i f t ha t hap p en s. . . or new.... takes place.... etc. I will put my stop;..." You must do these things for yourself. YOU HAVE LOTS OF WORK TO DO, BUT THERE ARE REWARDING PROFITS WAITING. You must look at monthly chart as THE MAIN TREND, but you will have to use the weekly charts to see what is Inside of the monthly charts; then you can catch your entries, pyramids, and exits from the daily or semi-daily charts-BUT ONLY IN CONJUNCTION WITH THE ABOVE TWO MOST IMPORTANT CHARTS. You understand WHAT THE MAIN TREND IS NOW, don ’ t you? It appears that there may have been a "shift" in the cycles
during the period of 1948-on. Mr. Gann, you will recall, forecasted panics and depressions that did not come. Instead new all-time highs took place. With the proper rules (which you can devise for yourself) you can still utilize the master time factor (and others that you can study and learn) to trade times like these. But one question that occurs to me is whether, the time cycles may have begun to perform differently after 1940. I think that there is some basis for suspecting that they have changed somewhat. I won't get in to that here but it may have something to do with the "natural man age" that I talked about earlier. I have lots of Interesting research that I want to do now and I am sure that you will have lots that you want to do. The most important thing for you to do is to develop your own trading rules based on what you WILL BEGIN to see as you go back and study Mr. Gann’s trading method with the new insight that you have about time. His rules are all useful. Some will be more useful to you than others. But, YOU NEED TO CREATE YOUR RULES FOR YOURSELF, YOUR OWN SITUATION. Make sure you understand what it is 65
that you want to do. I do not want telephone calls, because they interfere with things that I try to do each day and one phone call sometimes throws my whole day off schedule. But if you want to write me a short statement about yourself, your situation, capital that you are using, time that you have for the market, and time that you have for study, your objectives in the market, problems you have had or are having, what rules you are using or trying to use; I will try to respond with whatever comments that I can. Of course, whatever you write will be confidential. I am willing to act as your "sounding board 11, if you will. However, you must have written out your own rules and tell me how you plan to use them and tell me enough about your situation that I can see what you are trying to do. I am not soliciting this from you. You understand? Just if it will help. And, again, I am certainly not implying that I know the answers. I am just offering to look at what I can. Well, there is the path. Looks rocky already, huh? I never said that it would be smooth. I just promised to show you a path that started with "The Master Time Factor". And I have kept my promise. The master time factor is probably not what you thought it would be. It wasn't what I used to think it would be. But that's the way it is. There must have been some reason for you searching for it. There was a reason for me searching for it. I found the reason. It was so that I could find MY TREASURE at the end of one of the dead-end paths that I took when I was looking for the master time factor. My treasure is called "THE SEEKER'S CREED". I will share my treasure with you if you want me too.
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CHAPTER 9 WTHE SEEKER'S CREED11 I have been telling you throughout my whole story that the most valuable thing that I found in my search for Mr. Gann ’ s Master Time Factor was my old discarded set of beliefs that I had dropped by the wayside in my search for exotic treasures of the market place. It is true. If I never make any money in the market or if I never trade the market again, it is not important. WHAT IS IMPORTANT is that I have found something that allows me to conduct my life in the proper manner. I plan to trade the markets. I KNOW that I will make profits using Mr. Gann's method based on the master time factor. (I already have, but if I don ’ t I will STOP trading until I find out what is wrong.) BUT THE MARKET IS OF INCONSEQUENTIAL IMPORTANCE; MY LIFE AND MY FAMILY AND MY NEIGHBORS AND MY COUNTRY AND YOUR LIFE AND YOUR FAMILY AND YOUR NEIGHBORS AND YOUR COUNTRY ARE THE IMPORTANT THINGS FOR US TO PRESERVE AND PROTECT, FOR THERE IS WHERE THE REAL LONG LASTING TREASURE LIES. "The Seeker's Creed" is a guide to the natural laws of the universe. It requi res thi nking and acting on what you see in t he guide. It allows you the distilled knowledge of all the past throughout the history of the human race. It gives you the WISDOM to protect and preserve those important things mentioned above. It is broken down into ten parts, just like my story, and just like Mr. Gann's counting of the decades in his master time cycles. The first question in this booklet asked, Where Can WISDOM be found? The last answer in this booklet tells you where you can find WISDOM. WISDOM is found in "The Seeker's Creed". As always WISDOM is found in the circle. You can even find information about how to trade the market in the Seeker's Creed. Look under Section IX. LAW OF TIME, CYCLES, RHYTHMS, SEASONS. But be sure to read the other nine sections.
Don ’ t just read them, put them into practice. In your business, in your health, in your family affairs, and yes in the market, you will find that the practice and proper use of this Seeker ’ s Creed will do wonders for you. The concepts given in the Seeker's Creed were nuggets of gold found in all my seeking throughout all the strange places I had looked in during my lifetime. None of them are mine. I just picked them up. That’s the way it is with REAL TREASURE. Its just there for the having. It’s not stealing when you pick it up. It’s yours. It was meant for you and me. As I said, none of these ideas were mine I gleaned them from great souls over the ages. But they don ’ t care if you and I use them. And I don ’ t care if you use them. Make copies of "THE SEEKER'S CREED" in Appendix V. and give them to all whom you think can benefit from knowing the natural laws and principles that govern the universe. 67
If the seeker's creed seems too long to you, just take out and use what you need. It was written to cover any and all situations that a seeker may encounter off in some wild forsaken no man es land. It was also written to allow the seeker to look at every side of the same "elephant", because the seeker has a bad habit of building blinders and mindsets that keep him from seeing clearly. If you want to know what is the most important piece of information tha t I can tell you afte r my long ye ars of se arch ing for the mysteries of the markets and life, I WOULD HAVE TO SAY THAT THE SEEKER'S CREED CONTAINS ALL THE GREATEST MYSTERIES OF THE UNIVERSE COMPILED INTO ONE BOOKLET. THERE IS EVIDENCE THAT THESE MYSTERIES PERFORM
In the next and final chapter, I will do just that. WONDERFUL FEATS BUT THEY HAVE TO BE LIVED RATHER THAN JUST READ AND NO ONE KNOWS WHY THEY WORK!
68
CHAPTER 10 FOR ME - THE CLOSING OF A CIRCLE Now I'm at the sunset of my story day. Like any regular day, my time has passed all too quickly. That's the way it is with time. It will not stand still for us. We must go with it. It will not wait for us. There are many things that I wanted to tell you in my story day, but now the sun is going down and it (time) will not wait for me to tell you. The working time is gone and just as in every day, the things that we wanted to do may not all get done. In looking back over my story the time seems to have been so far away when I first began my search for W.D. Gann ’s Master Time Factor. Yet, it seems only yesterday. But-when I look in the mirror of life and reality, I see that time has been here. My hair is beginning to gray and I can feel that I had a wearisome journey in my Gann trip. But that's the way it is with seeking. It takes time and it causes you a few knocks and bruises (and gray hairs). And that's the way it is with time. With the master time factor the scores of years just keep rolling along. But we seekers, we just have three scores and ten (at the time) to do our seeking in before the sun sets. IF THE MASTER TIME FACTOR is inside of us (and my seeking has taught me that it is); then we need to be sure that what we spend our time seeking is worth the time that we have to pay for it with. Because, the final currency that we must use to pay for everything, is the time of our lives. The essence. Fortunately for me, I was able to find a great treasure-a REAL TREASURE- behind the secondary one, the one that I thought was the final answer to the markets. Now, I had to pay a GREAT PRICE for this REAL TREASURE, because of the way I went about looking for it. I could have used much less of my final currency if I had looked around my own yard before I went
off to the exotic, faraway places seeking mysterious treasures. The circle has come full now. One thing that I learned was that my creed really works. When I first advertised my brochure in late June of this year (1983), I knew what the master time factor was; I had not even the slightest doubt, but I had no way to properly prove it in Mr. Gann's own words. Nor was I convinced that I should write my story; but I felt a compulsion to do so; almost like my compulsion to search for the master time factor. So, I just went with the teaching of my creed, and said that I would start what I felt to be the right thing. I would use what I had at hand (the desire to tell other seekers my story) and if it were meant for me to finish the story, fine, if not I WOULD CLOSE THIS CIRCLE OF MY LIFE, ONE WAY OR THE OTHER. But, I still lacked the firm evidence that I needed to show without doubt that I had 69
found Mr. Gann’s Master Time Factor. On August 7, 1983, after my advertisement was already out and I was getting response, MY SUPPLY came in. It came in the form of "Learn Before You Lose-" which you have seen in my Appendix III, exactly as it came to me. I had never seen nor dreamed that such a document existed and I had searched all over for all of Mr. Gann's documents and papers. You have witnessed the actual working of "The Seeker's Creed" in action. I had started something that I felt great desire to do (not knowing why, because I am a very private seeker and did not nor do not want publicity of any kind, nor did I want to reveal Mr. Gann's master time factor); then I used what I had at hand, did the best I could and let nature (if you want to call it that) take its course. Nature's course was to do what it always does. It gave me the supply once I created the need. And IT did it in the most curious strange fashion (as always). The document came to me through a friend only 14 miles away, right in my yard, so to speak. This friend had lived right there for years and years, and I had met him at the first seminar I had attended in Florida. But we had never known one another (this is a rural area). Even then, after meeting him in Florida we never really got to know one another well, until the last few months (as it became time for my story to be told). My friend knew that I was writing my story, but he didn't know that I didn’t have the thing that I needed to give undisputed evidence. One night, August 6, 1983, he told me in a casual phone conversation that a friend had sent him a copy of an old Gann sales brochure and he wondered if I had seen it. Of course I had all of Mr. 6ann f s old ad pieces that I had been able to find and I assumed that I had that one too, - so did my friend. But he started reading the name of one of them to me and I had never heard of it. I went to his home the very next morning and....now you have it in appendix III. Coincidence? Maybe? But I got the supply that I so badly needed and this story would not have been told without it. Stranger still is that my
friend in Dillon, S.C, 14 miles away had a friend in Mississippi who had sent the brochure to him, and that friend turned out to be the same person that was the first one to order my booklet. Naturally, I felt obligated to send him a complimentary copy because, without him the story would not have been written either. What a strange curious circular story. I could not close this story without acknowledging that my friend who lives 14 miles away has been the greatest possible help in my story. I simply could not have completed this story without his help. He supplied my badly needed CONCLUSIVE EVIDENCE. He did my weekly charts for me in Appendix VII. He encouraged me to finish my story whether I published it or not. I had looked all over the country for someone to create some computer software for me that would allow me to do research that I want to do after this story is completed. As usual, I learned that the BEST GANN AND MARKET COMPUTER EXPERT that I had found anywhere was right here in my back yard, only 14 miles away. I also learned that this friend that helped me so much was already practicing a creed similar to mine, even though he didn't even know I had a creed. I must thank him. Without his help there would not have been the telling of 70
this story. He has the most valuable piece of computer software for researching the market that I have seen anywhere. I predict that some day in the not too distant future his software and his company will be a household name for commodity and stock traders and researchers. Also, I want to thank Interstelle Communications, Tucson, Arizona for their idea for the cut of the man holding the lamp (hermit) and for their excellent handling of my advertisement in Commodities magazine. I told you I was "lucky". I always seem to find the right people at the right time. I could not conclude this story without mentioning to you that I also heard from "my friend"; you know, the one who took the "SUBSTANTIAL" amount of money from me and gave me nothing in return. He called me for some "reason"; the first time I had heard from him since I had "given up" when the man at the bank said he had never heard of him. "My friend" said that he called me to let me know that he had been thinking about how he had done me and that he was sorry about the whole thing and that he didn’t know why he had done me that way. This call came on Sunday morning, the 14th day of August, 1983- "My friend" said that he was going to open a savings account and from time to time put money in there until he had it all "back to me". My creed has taught me that you judge a tree by the fruit it" produces. I sure hope that savings account doesn't get in the wrong bank and gets mislabeled "children's hospital 11. But my creed teaches me that I must forgive "my friend" because if I want forgiveness for my erro rs, th en I mu st first forg ive In ord er th at I m ay be forgiven. Besides, harboring bad thoughts hampers one's attention from the real task at hand; -seeking. If you are going to be a seeker you cannot allow distractions to color your vision. It must be clear so that you can observe all the little things. I have sent a complimentary copy of My Story-A Search For W.D.
Gann’s Master Time Factor to “my friend" because I knew that he had searched long and hard for the master time factor (and would probably NEVER find it, if didn't give it to him); and because he, l i ke you and I , and al l "Seeker s" have been pr om i sed t hat "I f you seek, you will find. If you knock, the door will be opened". And I sent a copy to "my friend" because I told you I had first GIVEN him the thing that I PAID HIM FOR, WHICH HE DID NOT HAVE, BUT WHICH I ALREADY 'HAD AND GAVE TO HIM, AND HE SOLD ME THAT WHICH HE DID NOT HAVE, BUT I GAVE HIM WHAT WE WERE BOTH LOOKING FOR. I GAVE HIM THE CREED IN THE BEGINNING OF THIS CIRCLE AND NOW AT THE ENDING OF THIS CIRCLE I GIVE HIM HIS LONG SOUGHT AFTER MASTER TIME FACTOR. BUT I WANT HIM TO KNOW THAT I HAVE LEARNED THAT THE FIRST WAS MORE VALUABLE THAN THE LAST, AND THAT WITHOUT THE FIRST AS THE BEGINNING (BASE) THE LAST IS NO GOOD. And I gave him a copy of this booklet to demonstrate again to myself and you a n d h i m a n d a n y s e e k e r t h a t m a y r e a d t h i s l i t t l e b o o k l e t i n t h e future that my creed says, THAT IF YOU PAY THE PRICE THE THING IS YOURS, NATURAL LAW AS REVEALED IN MY CREED SAYS THAT WHEN YOU HAVE PAID THE PRICE AND KEPT YOUR BARGAIN (WITH LIFE), THAT YOU WILL NOT BE DEPRIVED OF WHAT YOU PAID FOR; NATURE (if you want to 71
call it that) WILL COMPENSATE YOU IF NO ONE ELSE DOES. JUST LIVE BY YOUR CREED OF NATURAL LAWS AND LET THE REST TAKE CARE OF ITSELF. And finally, I gave a copy to "my friend" so that I could close this circle for me, for him, for you, and for Mr. Gann. Because, we are back to the beginning of a true story of a strange and curious search for a strange and curious secret of a strange and curious man who died almost 30 years ago. --Oh! -I am writing the preface again. WellGOOD SEEKING, "THE SEEKER" September 28, 1983
72
APPENDIX I "FORECASTING BY TIME CYCLES" WRITTEN: August 3, 1939 BY: W.D. GANN BACKGROUND: THIS IS WORD FOR WORD THE FOURTH CHAPTER IN THE PRESENT W.D. GANN STOCK MARKET COURSE (pages 90-106). THIS COMPLETE COURSE CAN BE PURCHASED FROM LAMBERT-GANN PUBLISHING CO. INC., BOX 0, POMEROY, WASHINGTON 99347. IF YOU ARE GOING TO USE MR. GANN'S METHODS, THIS COURSE IS WORTH YOUR MONEY. AGAIN, I HAVE NO CONNECTION WHATSOEVER WITH THE PUBLISHER. I THANK LAMBERT-GANN PUBLISHING CO. FOR PERMISSION TO COPY THIS 1939 LESSON BY MR. GANN. I HAVE INCLUDED IT SO THAT YOU CAN COMPARE THIS LESSON WHICH MR. GANN APPARENTLY PUBLISHED IN ALL HIS REGULAR STOCK COURSES, TO THE LESSON HE PUBLISHED EARLIER (NOVEMBER 1935) WHICH CONTAINED THE MASTER TIME FACTOR AND WHICH HE APPARENTLY QUIT PUBLISHING EXCEPT IN THE COURSE ADVERTISED IN THE BROCHURE IN APPENDIX III. IT IS VERY IMPORTANT THAT YOU COMPARE WORD FOR WORD WHAT IS SAID AND NOT SAID IN THIS LESSON, DATED AUGUST 3, 1939, RELATIVE TO WHAT IS SAID AND NOT SAID IN THE EARLIER NOVEMBER, 1935 LESSON IN APPENDIX IV.
APPENDIX I
APPENDIX II
FRAGMENT OF 4 PAGES "METHOD FOR FORECASTING THE STOCK MARKET" WRITTEN: APPARENTLY IN WINTER OF 1921 BY: W.D. GANN BACKGROUND: THIS IS A FRAGMENT OF THE OLDEST UNPUBLISHED MATERIAL THAT I FOUND. I HAVE INCLUDED IT SO THAT YOU COULD SEE AGAIN HIS REFERENCE TO THE SAME TIME CYCLES (JUPITERSATURN) FROM THE EARLIEST TO THE LATEST DATES ON HIS UNPUBLISHED LETTERS AND LESSONS. ALWAYS IN DIFFERENT WORDS AT DIFFERENT TIMES IN HIS LIFE WE SEE THE SAME REFERENCES TO JUPITER AND SATURN AS THE CAUSE OF THE MAIN TIME CYCLES. AT THIS PARTICULAR TIME HE DID NOT MENTION THE 60 YEAR CYCLE BUT HE DID SAY AGAIN THAT THE 20 YEAR CYCLE WAS THE MOST IMPORTANT CYCLE OF ALL AND THE 60 YEAR CYCLE IS OF COURSE THE 3RD 20 YEAR CYCLE. ALSO: ONE PAGE OF A LETTER ENTITLED: SOYBEANS-PRICE RESISTANCE LEVELS WRITTEN: January 18, 1954 BY: W.D. GANN BACKGROUND: THIS IS ONE PAGE OF THIS LETTER WHICH EVERYONE SEEMS TO PUBLISH -WHEN THEY WRITE SOMETHING ABOUT MR. GANN'S WORK. I JUST INCLUDED THIS ONE PAGE SO THAT YOU COULD SEE FROM THIS LETTER; ONE DATED NEAR THE END OF HIS LIFE, THIS SAME THEME (JUPITER AND SATURN ASPECTS). HE PLAINLY STATES THAT THESE
RELATIONSHIPS IN TIME CAUSES THE SOYBEAN MARKET TO CHANGE TREND. IN THIS PARTICULAR LETTER HE DID NOT MENTION THE 20-YEAR CYCLE NOR THE 30-YEAR CYCLE NOR THE 60-YEAR CYCLE, BUT HE WAS SAYING THE SAME THING.
APPENDIX II
APPENDIX III "LEARN BEFORE YOU LOSE OR WHY YOU HAVE LOST MONEY IN STOCKS AND HOW TO MAKE IT BACK." WRITTEN: APPARENTLY IN LATE 1939 OR EARLY 1940 BY: W.D. GANN BACKGROUND: THIS WAS AN ADVERTISING BROCHURE THAT MR. GANN MAILED OUT TO PROSPECTIVE PURCHASERS OF HIS COURSES. I HAVE LEARNED A GREAT DEAL ABOUT HOW MR. GANN THOUGHT AND THE EXPRESSION OF HIS LANGUAGE IN THE DIFFERENT ADVERTISING PIECES HE USED. HIS VARIOUS DESCRIPTIONS OF HIS COURSES AND BOOKS IN DIFFERENT ADVERTISING PIECES HELPED ME RE-DISCOVER HIS MASTER. TIME FACTOR, THIS BROCHURE IS VERY IMPORTANT EVIDENCE ABOUT THE MASTER TIME FACTOR AND WE WILL ANALYZE THIS PIECE OF MATERIAL IN A NUMBER OF WAYS. IT IS ANOTHER PROOF OF THE MASTER TIME FACTOR AND IT IS IN MR. Gann’s OWN WORDS. THIS COPY IS HARD TO READ, BUT IT IS THE BEST COPY I COULD GET FOR YOU. I FELT IT WOULD BE BETTER TO COPY IT DIRECTLY, RATHER THAN RETYPING IT, SO THAT YOU COULD SEE THAT IT IS AUTHENTIC. I OBTAINED THIS COPY OF THIS BROCHURE FROM A FRIEND ON AUGUST 7, 1 9 8 3 A N D I T I S T H E F I R S T T I M E T H A T I H A V E E V E R S E E N T H I S BROCHURE. IT IS THE FINAL PIECE OF EVIDENCE I NEEDED TO PRESENT CONCLUSIVE PROOF THAT MY ASSUMPTIONS CONCERNING THE MASTER TIME FACTOR WERE
INDEED ACCURATE. MY ACQUIRING THIS BROCHURE UNDER THE CIRCUMSTANCES IN WHICH IT CAME TO ME IS ALSO FURTHER EVIDENCE TO ME OF THE TRUTHS REVEALED IN "THE SEEKER'S CREED". SEE SECTION IV. PARAGRAPH 21 OF “THE SEEKERS CREED11.
APPENDIX III
APPENDIX IV "FORECASTIN G" WRITTEN: NOVEMBER 1935 BY: W.D. GANN BACKGROUND: THIS 21 PAGE DOCUMENT IS IN MY OPINION THE MOST IMPORTANT MATERIAL OF ALL OF MR. Gann ’s WORK. I DO NOT BELIEVE THAT WE WILL FIND A BETTER EXPLANATION OF MR. Gann ’ s MASTER TIME FACTOR. (AT LEAST NOT IN HIS OWN WRITTEN WORDS.) THIS DOCUMENT WAS THE CENTRAL LESSON THAT MR. GANN INCLUDED IN HIS NO. 3 MASTER FORECASTING METHOD. IN 1939 MR. GANN CHARGED $2500.00 FOR THIS COURSE NO. 3 AND HE PLAINLY STATES THAT THIS COURSE INCLUDES HIS "SECRET DISCOVERY OF THE MASTER TIME FACTOR AND A NEW WAY OF FORECASTING BY MATHEMATICAL RULES THAT ARE SIMPLE AND PRACTICAL". (SEE MY APPENDIX III-BROCHURE "LEARN BEFORE YOU LOSE-", PAGES 16 AND 17.) IF YOU HAVE PURCHASED THE PRESENT W.D. GANN STOCK MARKET COURSE-AND TAKE CHAPTER 2,"FORM READING AND RULES FOR DETERMINING TREND OF STOCKS"(pages 31-56); ALSO CHAPTER 5,"VOLUME OF SALES " (pages 128-144); AND CHAPTER 10, "RESISTANCE LEVELS " (pages 293-311) AND THEN ADD THIS LESSON ON "FORECASTING THAT IS IN THIS APPENDIX-THEN YOU HAVE PRECISELY WHAT MR. GANN CALLED HIS COURSE NO. 3 MASTER FORECASTING METHOD WHICH HE SOLD FOR $2500 IN 1939 DOLLARS! THE MASTER 20-YEAR FORECASTING CHART THAT MR. GANN REFERS TO IS IDENTIFIED AS CHART #19 IN A PACKET OF GANN CHARTS SOLD BY LAMBERT-GANN PUBLISHING CO. THIS WAS A SWING CHART THAT MR. GANN MADE, BUT IT WAS POORLY REPRODUCED.
THEREFORE, I MADE MY OWN COLOR CHARTS (MONTHLY), FROM 1901 THROUGH THE PRESENT (1983) SO THAT THIS IMPORTANT MATERIAL ON THE MASTER TIME FACTOR WOULD BE CLEARER TO YOU. MR. Gann ’ s WHOLE TRADING METHOD IS BASED ON THE FOUNDATION OF THIS MATERIAL IN THIS 21 PAGE LESSON. YOU MUST UNDERSTAND THIS MATERIAL BOTH IN ITS SYMBOLIC TERMS AND IN ITS REAL TERMS. ALL OF HIS RULES ARE BASED ON THIS TIME FACTOR. STUDY IT WELL. IT GIVES THE MEANING TO THE REST OF HIS BOOKS AND COURSES AND RULES. I HAVE COPIED IT DIRECTLY AS HE SENT IT OUT IN 1935- YOU SEE IT IN HIS OWN WORDS ON HIS OWN LETTERHEAD EXACTLY AS HE SENT IT OUT I N 1 9 3 5 . ALSO, I HAVE INCLUDED AT THE END OF THIS PARTICULAR APPENDIX, A COPY OF THE SQUARE OF 20 YEARS THAT HE REFERRED TO AS THE NEW YORK STOCK EXCHANGE PERMANENT CHART. IT IS IMPORTANT AND I HAVE DISCUSSED IT IN MY BOOKLET.
APPENDIX IV
APPENDIX V "THE SEEKER'S CREED" WRITTEN: JUNE 1971; BY: "THE SEEKER" BACKGROUND: THIS WAS WRITTEN BY "THE SEEKER" IN 1971, 8 YEARS BEFORE THE 'AUTHOR EVER HEARD OF MR. GANN. IT WAS WRITTEN FOR THE PERSONAL AND PRIVATE USE OF THE AUTHOR. IT WAS NOT INTENDED TO BE MADE PUBLIC. IT IS COPIED HERE EXACTLY AS IT WAS TAKEN FROM THE AUTHOR1 S PERSONAL NOTEBOOK. THE ONLY PERSON THAT THIS WAS EVER GIVEN TO PRIOR TO THIS TIME WAS THE MAN THAT WAS SUPPOSED TO BE SELLING THE AUTHOR MR. Gann’s MASTER TIME FACTOR. THE BOOKLET, "MY STORY-A SEARCH FOR W.D. GANN'S MASTER TIME FACTOR" DESCRIBES WHAT HAPPENED. "THE Seeker’s CREED" WAS WRITTEN IN AN EFFORT TO ALLOW THE AUTHOR TO COMPILE HIS BELIEFS AS LEARNED FROM A LIFETIME OF READING AND SEARCHING FOR THE NATURAL LAWS AND PRINCIPLES OF LIVING SUCCESSFULLY. NOTHING IN THIS CREED WAS ORIGINAL WITH THE AUTHOR. IT WAS ALL STATED IN DIFFERENT BOOKS THAT GREAT PEOPLE HAD WRITTEN OVER THE YEARS. THE AUTHOR TAKES NO CLAIM THAT THESE IDEAS OR BELIEFS ARE ORIGINALLY HIS. HE MERELY LEARNED THEM FROM OTHERS, THEN COMPILED THEM AS THE BEST OF TRUTH THAT HE HAD FOUND, THEN TRIED TO LIVE BY THEM, AND HIS EXPERIENCE PROVED THEM TO B& VERY VALUABLE. HOWEVER, IN THE HUMDRUM OF EVERY DAY LIVING AND IN THE SEARCH FOR OTHER MORE EXCITING THINGS, THE USEFULNESS OF THIS CREED WAS FORGOTTEN-LOST, IF YOU WILL. IT TOOK THE EXPERIENCES OF THE SEARCH FOR THE MASTER TIME FACTOR TO CAUSE THE AUTHOR TO RE-DISCOVER THE INCREDIBLE VALUE AND TRUTH OF THIS CREED.
THIS CREED IS NOT MEANT TO BE A RELIGION OR ANYTHING RELIGIOUS. IT IS MEANT TO BE AND IS A GROUP OF NATURAL LAWS THAT ARE TRUE AND WORK. IT IS SCIENTIFIC-IP YOU WILL. I DO NOT UNDERSTAND WHY THIS CREED WORKS, BUT IT DOES. THE AUTHOR WAS BROUGHT-UP IN A PROTESTANT CHURCH BUT HAS NOT BEEN PARTICULARY RELIGIOUS. WHATEVER YOUR FAITH-JUST SUBSTITUTE AS YOU LIKE IN THIS CREED. ALL IS THE SAME IN NATURAL LAWS; THERE ARE NO ETHNIC DIFFERENCES, THESE ARE MAN-MADE. IF YOU WILL ADOPT THIS CREED FOR YOUR OWN AND LEARN IT BY HEART AND PRACTICE IT, YOU WILL BE AMAZED TO FIND THAT YOU WILL VASTLY IMPROVE ALL AREAS OF YOUR LIFE. TRY IT! THE DIRECT USE AND APPLICATION OF THIS CREED IS WHAT ALLOWED THE AUTHOR TO FIND THE MASTER TIME FACTOR. THE KNOWLEDGE AND PRACTICE OF THIS CREED IS FAR MORE VALUABLE THAN THE MASTER TIME FACTOR OR ANYTHING ELSE THAT THIS AUTHOR HAS EVER FOUND.
APPENDIX V
"THE SEEKER'S CREED"
.CREATION II................................................GOD1 S LAWS III...............................................THE LAW OF ACTION IV..............................................LAW OF HARVEST V.................................................LAW OF INCREASE AND EXPANSION VI...............................................LAW OF PURPOSE VII.............................................LAW OF ATTRACTION VIII.......................................... .LAW OF SPECIALIZATION IX..............................................LAW SEASONS
OF
TIME,
SUMMATION
CYCLES,
RHYTHMS,
"THE SEEKER'S CREED" I. CREATION
1. I believe that God is the one Supreme Being, the Creator and Ruler of the Universe! I believe that God is the primary Cause. I believe that God always was and always will Be. 2. I believe that God is Mind. I believe that God is Love. I believe that God is Energy, or that Energy is the instrument of God. I believe that God (the energy of) is in all nature: the air, the sea, the land, the cosmos. I believe that God is in everything. I believe that God is in me. I believe that God is Truth and that Truth reveals God. I believe that God is all Powerful, all Knowing, and all Pervading in the Universe. I believe that God has dominion over the Universe. I believe that God is Infinite Supply. I believe that God is unlimited Resources and Energies. I believe that God is Positive, Love, Faith, Hope, Trust, Praise, Blessing, Joy, Happiness, Peace, Health, Riches, and Infinite Power. I believe the God is Perfect. 3. I believe that God created the Universe in the beginning and that it (this creation) is a continual process. 4. I believe that God created the world out of His Mind through imaging by a positive force of will caused by desire to create. I believe that I and everything in the universe is part of God’s expression. 5- I believe that God created the universe by His Word (mental
image) first. 6. I believe that God created the universe and all in it by imaging it; then by taking action to bring the image into reality. The action took was using part of himself (His Flux or Energy). This creation was effected by His Desire to create something out of Him. 7. I believe that God set up the functioning systems or laws of the universe at the same time that He created the universe and that He used the laws that He set up in order to create the universe. 6. I believe that God created the universe through: (1) Imaging.
1. 2. 3. 4. 5. 6. 7. 8. 9.
(2)Desire To Make Image Real. (3) Action (Using Energy or create image).
Flux in proper manner to
(4) Giving Of Himself (Putting part of His Energy into the creation). (5) Using principles or laws in the creation, which would also govern the creation. II. GOD»S LAWS I believe that God created the universe in accordance with certain principles or laws. I believe that all of nature including man prospers and functions best under these laws. I believe that these laws are expressed in the bible, in other religious writings, and throughout life and the universe.
I believe that they are shown throughout the universe and throughout history. I believe that these laws are designed to show the glory of God and to reveal God. I believe that health, morals, mental, spiritual,
phys ical, econ omi cal, and in fact, all phas es and
aspects of life are governed by these same laws. I believe that specific things in life are symbolic of these laws and that all natural phenomena reflect these same natural laws.
I believe that Action is one of the first natural laws. III. THE LAW OF ACTION believe that there must be action (You must act). I believe that there must be movement for
I
anything to be
1. 2. 3. I believe that for each action there is an equal reaction
4. I believe that you ACT (do the thing) first and you shall have the power. You get the power by ACTING (doing the thing). I believe you must ACT first.
5« I believe you must act (pretend movement) the part you want. I believe you must act the way you want to feel. I believe you must act as if you are already what you want to be. I believe you must act as if you already possess what you want to have. I believe you must act as if you have already created what you want to create. 6.I believe that acting in your imagination provides the realization of what you Imagine. Thought is action in rehearsal. I believe that continuous Impulses of thought have a tendency to clothe themselves in their physical equivalent. 7. I believe that energy follows the action of the mind. (What you think is what you get). 8.I believe you will be the way you act. How will you act when you get what you want? Act that way now, thinks that way now, let that way of acting and thinking becomes a habit. I believe you must relax when you act and concentrate your attention on the way you act and think. 9« I believe that when you act something enough, you BELIEVE it; and BECOME it! 10. I believe that man is made by his belief. 11. I believe that as you believe, so you are. I believe that as a man thinking in his heart (his subconscious or image making apparatus), HE BECOMES (is).
12. I believe that your manner shows your attitude. I believe your attitude shows what you expect- - -and WILL GET! 13« I believe that you should assume a virtue if you don ’ t have it. Look-the part. Dress the part. Speak the part. Act the part. Soon you will have the virtue. This wonderful law is how you acquire anything that you want which you don't have. But, look out! It is a two-edged sword. It cuts both ways. 14. I believe that you can only act one part at a time. I believe that this is also evidenced by "You cannot serve two masters at the same time". I believe this part of the law is also further emphasized by the law of specialization. 15. I believe that if you act something in your own mind and daily and frequently repeat it, before long you will BE it. 16. I believe that heat produces action and action produces heat. I believe that heat causes uncomfortableness and that uncomfortableness causes heat. Heat increases motion. Action cause heat and therefore increases motion. Uncomfortableness is one of the catalysts of achievement. Action,directed,causes production of achievement. 14. I believe that resistance should not be offered to directed
Action. Live spelled backward is evil. Any resistance offered to God ’ s laws is taking away from directed action. Life is action. Every act rewards itself. Therefore any resistance offered to action (life) directed (laws) is what constitutes ev il (th e rev erse o f l iv e). V. LAW OF HARVEST 1. I believe that a basic law of the universe is: DIVIDE .. and GROW! 2.I believe that this is the only method of increase known nature since the beginning of time. 3. I believe that God divided part of Himself (HIS ENERGY) when He created the universe. 4.I believe that all nature has its own built in image — except man, whose reproductive image is built in, but man's mind (sub-conscious and conscious) can produce images of its own, making man a small God.
6. I believe that growth is caused by. Desire from within. Desire to be what the image is. 7.I believe that desire is the planting of the seed. The seed is the mental image. The seed is the WORD. 8. I
believe that like reproduces like. I believe that everything reproduces after its own kind (its image) (whose seed is in itself). Everything reproduces in its own image (likeness). BETTER WATCH YOUR IMAGES!
9. I believe the
seed
(image) has
the
ability to draw unto
itself what it needs for growth to perfect its maturity (reproduction of itself after its own kind (image)).
10. I believe the growth of this seed is fertilized by blessing, praise, giving, and thankfulness. 1 1. I be li ev e t hat he at (desire) causes th e seed t o bu rst ou t of its shell (mindset or mold of habits) and to move towards the accomplishment of growing into its own image. 12. I believe the heat is caused by burying the seed in the earth (in the subconscious); by giving it (seed) away to the earth, b y s o wi n g i t i n t h e e a r th , b y l e t t i n g i t ( s e e d ) d i e t o t h e giver or sower. It must be given, or used, or die before it can be reproduced in life. Then after the seed is sown, God’s sunlight (insight and desire) causes the heat in the earth (subconscious mind), and the shell expands and bursts forth new life from this heat.
10. I believe that this is the same thing that happens in man e s mind. The seed (mental image) must be burled with desire in the subconscious. It must be buried in the subconscious before it can come alive. That is why I must be very careful about the images (mindsets) that I allow myself to develop. 11. I believe that each seed then can only reproduce itself, whatever it was or is. It cannot produce something it is not. 15- I believe the seed dies when it stops dividing and growing. I believe that the law of cycles further emphasizes this. When growing (outgoing) reaches a peak (maximum out-growth), disintegration begins (contracting phase begins). 16. I believe that the seed and plant draws upon the surrounding energy for what it needs for growth, at will when needed and in the amount needed. God supplies this energy through his creative principles and laws! 17. I believe that God is the Source of All Supply. He is the Provider of All. (This is most important that I understand this at all times). "How blest are those who know this (their need of God as the Source of All Supply)—the kingdom of heaven (expansion and growth) is theirs. 18. I believe that there is a mystic pattern behind the Law of Harvest and that it symbolizes all of God’s laws in their relationship to man’s creations. I believe that it goes like this: Preparing the soil before planting; then planting the seed; the seed bursting out of its shell and a like plant starting as a baby but knowing what its going
to be like and growing into maturity; being fertilized, watered, and cared for while growing; the bearing of fruit like Itself in due time while specializing in doing that one thing only; the maturing of the plant and fruit into full maturity; the harvest when the crop is gathered and the first and best seed saved for the next planting (at least 10% or tithe); then the reaping of the sowing and carrying the crop to the market place to get paid for that done (reaping); then the plant dies after the harvest when its work (usefulness) is completed, its seed has been safely stored and saved for next seasons sowing; the no longer productive plant is cut under or burned and the field is plowed under and allowed to rest for the winter. Then the seed will be sown in the earth again to die and the cycle will start all over again (and will be better each year if the best seed is saved and sown) so long as heaven and earth shall last. THIS IS THE STORY OF SEED AND PLANTS AND THIS IS THE STORY OF MAN AND LIFE. 19. I believe that, in growth, the more a plant lacks channels through which to expand, the more it is inclined to burst forth and flow with power. Limit the channels for growth and you direct the growth toward that direction with greater p ower . A pl ant can no t st and s t i l l; i t m us t g ro w or st art to
Die. It must move; it must act. 20. I believe a purpose of life is to have dominion—to overcome obstacles in order to grow. 21. I believe that in the law of growing- you first create the need, then the means will come. Every form of life holds within itself vitality (energy) enough to draw to it every element it needs for growth and fulfillment. First, the need, and then the means. When you set objectives (goals) you create the need and then the need itself draws the means to satisfy. This is why setting goals and objectives are so important. You use what you have at hand and thereby create a vacuum (or need); then nature (God’s Supply) comes along and fills the vacuum (or need). V. LAW OF INCREASE AND EXPANSION 1. I believe that everything reproduces after its own kind. I believe that everything increases after its own kind. 2. I believe that to increase and expand you must increase the rate of motion (movement). I believe to increase anything you must use that portion of the same thing that you have. You must use it; put it to work; release it; plant it; do it with purpose and deliberate intent. This is the law of increase and expansion. 3. I believe that to increase a stock of anything, that thing must be used, put to work, put out at interest. 4. I believe that you work for increase in the form of whatever you already have. 5. I believe that you must plant the seed before you can reap the harvest. I believe that you must sow before you
reap. believe that you must give before you can get.
I
6. I believe that you must give (First), and you must give freely (release whatever you give) with intent and with no strings attached. (Except a kernel of wheat fall into the ground and die, it cannot bear fruit). 7. I believe that you cannot lend it; you must give it (sow), freely and fully, and with express intent and purpose of giving freely and fully. 8. I believe that if a thing be dead to you- if it is gone beyond hope of return (when you have planted it for an express purpose of giving and for growth), then you can expect and look for a harvest. (The harvest may not be exactly in the form that you expected but it will be a harvest). 9. I believe that he that finds his life (in order to do so),
Shall lose it (buried in subconscious or turned over to the subconscious); he that loseth his life (turns it over to his subconscious properly) for obeyance of the laws shall find i t . 10. I believe that he that gives all he has (his best efforts) in the service of his fellowman shall find that in doing so he has planted seeds which will bring him a harvest of happiness and plenty. 11. I believe that if you do the thing you will have the power. 12. I believe that everything has its price. (When God created the universe, He paid the price of putting part of Himself into His Creation). 13. I believe that you must pay the price- and then take what you have paid for- (and you really want to make it grow, use it again). 14. I believe that in nature nothing is given; all things are sold (paid for). 15. I believe that for any benefit received a tax is levied. 16. I believe that you must pay the full price. It is not possible to buy anything for more or less than its price. If you don't pay the full price you don't get the thing; you get something else. 17. I believe that the law of increase say that what you keep (hoard) to yourself you lose; that which you give away comes back to you with more of its own kind (what you sent
out); that which you send out comes back. BETTER BE CAREFUL WHAT YOU SEND OUT TO OTHERS, THEN. The reason for this I believe is because time and space is curved. 18. I believe that the tithe is the way the ancients used to show man the law of Increase and expansion. 19. I believe that this is so because all motion is cyclic; it circulates to the limits of its possibilities and then returns to its starting point. (You reap as you have sown). 20. I believe that any act, which injures another, is contrary to the law of expansion and separates the actor from the kingdom of heaven (expansion and growth); any act, which helps another, is in accord with the law of increase and expansion and brings the actor closer to the kingdom of heaven (expansion and growth). I believe that you must give (First). Give freely of what you have. You’re talents, your knowledge, your experience, and your self, whatever you have that you can give. You must give it to work for others and by so doing you will increase it. This is the law of Increase. When you stop giving you begin losing.
10. I believe that you cannot hold onto riches; that you must give (use) them and get greater riches in return. Remember when you keep something to yourself you stop your need of it and when your need stops then you have done away with the vacuum (need); then the nearest vacuum (need) will pull what you have away. (To have something you must use it; give it away; put it out to work.) "To him that hath will be more given; to him that hath not, will even that which he hath be taken away. (To have not - hold on to what you have just for yourself - and you won't have it long! Use it or lose it). 11. I believe that you must be continually giving - and getting. The parable of the talents expresses the law of increase and expansion. 23- I believe that everything you give increases after its own kind. I believe that you get that which you give. If you give happiness, health, praise, respect, service, life to others, you will get the same thing in return - and in the same proportions. 24. I believe that you cannot increase two things at the same time. (You cannot serve two masters). You can only give one thing at the time. (Law of Specialization). 25. I believe that unhappiness is a criticism of God. I believe that it Implies dissatisfaction with the way God did things. 26. I believe that unhappiness.
any
unhappy
man
gets
what
he
gives
27. I believe that any unhappy man cannot be grateful, or
at
peace because he cannot be aware of God ’ s great truths - if he is unhappy. 28. I believe that a man cannot love God when he hates or dislikes his neighbor (God is in his neighbor). I believe that a man cannot get or find happiness and service unless he first gives happiness and service to others. If a man lives only for himself he will be unhappy - because he will not be giving any happiness to anyone and therefore cannot get because he did not give. 29. I believe that when you love (first), you shall be loved. 30. I believe get happiness.
that
you
must
first
give
happiness
to
31. I believe that it is God’s plan to make man win happiness through service, through adding to the happiness of others. 32. I believe that your life and your environment is an image of what you gave (give).
24. I believe that what you have is an image of what you have given. 25.I believe that what you have today is an image of what you gave (or didn’t give) yesterday (in the past).
36. I believe that what you give (sow) today, you will get (reap) tomorrow. 37- I believe that the only limit to what you receive (reap) is the limit (extent) to what you give (sow). 38. I believe that what you do not give (sow) today, you will not get (reap) tomorrow. 39- I believe that the only limit to opportunities (means) is the limit of human happiness (needs). 40. I believe that God gives me all I will accept. 41. I believe that fear shuts up or restricts or limits channels or entrances or doors through which I allow myself to receive (God can supply from any source). Fear repels, holds on to what it has (stops giving and therefore loses what it has) and is contrary to the law of increase and expansion. I believe that Jealousy, hate, and envy are forms of fear. 42. I believe that to Increase or expand something you must love it, praise It, bless it, glorify it, give thanks for it, desire it, and image it in the attitude of these emotions. You must give (release) these feelings to your subconscious toward whatever you want to increase.
43- I believe that the law of increase says that use causes Increase—disuse causes decrease. 44. I believe that a higher rate of motion (movement) (more use) causes Increase. Use what you have now at hand, freely and without fear (of not getting more) and more will be given you back. This is the law of Increase. It is God’s Law. It is sure. Like the sum coming up in the morning. 45. I believe that what you give, you will get. 46. I believe that what you think will happen because thought is the giving of mental images. You will get what you give. Your thoughts are motion (action) in rehearsal. So you must control and direct your thoughts just as you must control and direct your actions. Your words represent your Images, so they (your WORDS) must be controlled and directed too. Control and direct them to accomplish whatever you wish.
47« I believe that you must appreciate (be fond of) the things you want to increase. (Where your heart is, there will be your treasure also). 48. I believe that the first step in using the law of increase is desire (to increase whatever you want; then use whatever you have, right now, whosesoever you are and whatever you are doing. (Establish the need, and then use what you have to create greater need so that law of supply will come in and work. The law of supply says that whosesoever there is a demand (need) it will be supplied when the demand is great enough). 49. I believe that the law of increase works in direct ratio of your thoughts to the thing to be increased. (Think in larger sizes or units and increase is in larger sizes or units think in smaller sizes and increase is in smaller sizes). 50. I believe that the natural law of supply and demand is that there will be supply according to the demand. (Increase the need (demand) - give what you have). 51. I believe that the law of increase is started by desire (heat). Do you want something? Give that something which you want to all you come in contact with; give all that you have (in you) to others. 52. I believe that what you are today is the fulfillment of yesterday's desires - that which you will be tomorrow will be the achievement of today’s visions and images and desires. 53. I believe that with discipline you will do tomorrow what you
did today. Without discipline you will do the same. The only difference is like day and night, good and evil. Use discipline on yourself to get what you want. 54. I believe that the only limit to the amount of creative force, power, love, money, health, etc. That I get is the amount of creative force, power, love, money, health, etc. that I give (use). 55• I believe that the more you increase what you give, the more you increase what you get. 56. I believe that skill, power, resources, health, mind, love, and all things and emotions grow with use of them and shrink with disuse. (They grow because you give them and thereby create a need for more of the same). 57. I believe that it doesn’t matter how small something is; use it (give it) and it will grow. The more used (given) the more it grows (increases). 58. I believe that the law of increase and expansion says that you must have faith (believe) that your commodity is 10
5960.
Increasing. If you believe something you must act on the belief. (Faith without works is dead (is not faith). I believe that the law of increase and expansion says that the rate of motion causes increase.
61. 62, 6364. 65. 66. 67.
I believe that the difference between all things in the universe lies in their rate of motion (movement). Everything in the universe is made of God ’ s Flux (energy); therefore, the difference between things must lie in their rate of motion. (This is the basis of the law of increase and law of attraction). I believe that things with equal or near equal rate of motion attract each other.
68.
I believe that all positive and good things speed up rate of motion. I believe that negative or evil things slow down rate of motion.
6970.
I believe that something exhilarating to the spirit speeds up rate of motion.
71.
I believe that whatever your rate of motion, the elements of like quality will be attracted to you. Think on high things. (By their fruits you will know them). I believe that the law of increase and expansion says that things pulsate. You can't stand still. You must move. You increase or decrease. I believe you must grow or feed other who is growing.
I believe that the key to acquiring power lies in using what power you have, because use releases more power. (Develops a greater need). I believe that the one condition coupled with truth and
life is its use you mus t use it free
ly. You must act on it. I believe that the law of expansion and increase calls for prayer. ("Praise The Lord and be thankful, that then shall the earth yield her increase; with thanksgiving let your requests be known unto God; rejoice, be glad, praise, give thanks, these are the ways to increase). I believe that when you pray for something you must accept it immediately and at once begin acting as if you already have it and start doing the things you would do if you in fact did have it.
72. I believe (concentrate) 11
that
to
get
results
you
must
think
And act on what you want (love, riches, health) not what you don't want (hate, poverty, illness). 73- I believe that the law of increase and expansion says that mere increase is not enough, that you must have a purpose for the increase, that it will be used for; and it (purpose) must be a good purpose. (You must have need for the increase). 74. I believe that you must bless and praise what you give, use, or send out. 75. I believe that you must picture (visualize, you want to increase and picture it increasing by giving, and sowing it. (Into whatsoever house peace be to this house. Give your peace to all you more - act the pa rt).
image) what your using, you enter say contact.
Do
76. I believe that the only thing that can increase or expand without limit is our mind (that part of God most like Him, given to man), our imaging faculties. "Seek ye first the kingdom of imaging (imagery) and all things shall be added (increased) to you". 77- I believe that the quality of your thought is the measure of your power. 78. I believe that clear, forceful, directed, pure thought will yield energy. 79- I believe that you control your destiny to the exact ratio to the extent that you visualize (image) it.
12
VI. LAW OF PURPOSE 2.I believe that the end result of an action is its purpose. 3.I believe that the effect of the action is the purpose of the cause.
6. I believe that in order to go somewhere, you must know where it is that you want to go. 7. I believe that you can only go to where you want to go from where you are now. 8. I believe that the law of purpose says that you will always accomplish your purpose (your true goal or objective). "Seek and you will find. Knock and the door will be opened to you. Ask and you shall receive." ALWAYS! 9. I believe that you must look to find - and you will find what you look for (expect to find).
10. I believe that you get exactly what you expect. Exactly what you think. Exactly what you give (or have given). 11. I believe that you are what you expect you are your image of yourself is).
(what
12. I believe that you will not be what you expect that you cannot be (what your image is not - you cannot be). 13- I believe that faith is part of the law of purpose and expectation. Whatsoever you have faith in - will happen.
15» I believe that your manner shows what you expect — and will get. 16. I believe that whatever you look for (expect) is right. If you expect you can — you can. If you expect you can ’t — you can’t. If you sow you can expect to reap. If you give you can expect to get. If you do not give you can expect that you will not get. If you expect trouble, poverty, poor health, and hard times — you will get trouble, poverty, poor health, 13
Hard times; you will get exactly what you expect. If you expect happiness, riches, health, and a good life - you will get it. ! • I believe that a man e s attitude tells you what he expects. You may expect that he will get what he expects. I believe that a man's condition and environment tells you what he expected in the past. I believe that a man's attitude today tells you what he expects — and will have tomorrow. 18. I believe that fear is negative expectation — Looking for what you don't want to find. But if you look, you have to find; that is the law. Fear is the anti-law. Don't mess with it! Don't look for what you don't want to find. That is a foolish thing to do! 19» I believe that life's purpose is to provide an arena for expression of God and His Way, Will, Desires, etc. through His Laws.
22. I believe that the law of purpose says that a purpose must be defined. It must be clear. It must be specific. It must be sincere. It must have bounds. It must be concentrated. It must be at a certain level. It must have potential (possibility of realization). 23. I believe that the reason I do something is due to my purpose behind the reason. 24. I believe that the purpose is my intent for doing it. 25. I believe that I will produce according to the
seed
(purpose
and Intent) I sow. By their fruit you will know them. (By their intent and purpose you will know them). 26. I believe that the law of purpose assures us that everyone will always reach the goal (the real goal, intent, purpose) desired most (THE REAL ONE!). 27. I believe that the law of purpose says that we do what we really intend to do. You will always accomplish what your purpose (intent, real goal, really want to do) is. This is a wonderful and frightening law. 28. I believe that the purpose or goal must always be kept in the forefront of the mind. 29. I believe that it must be continuously repeated and 14
Reaffirmed. 30. I believe that it must be watered with desire. 31. I believe that it must be acted upon. If not it will evolve into another purpose (rambling or will to fail). 32. I believe that once you set the purpose (intent, goal, or objective), you must use a map (to see the best way there and the shortest or best route and to see that you don't get off track (always stay on track)) to start toward your goal. I believe that you must see (image) yourself there (getting there). I believe you must have desire (want to go) strong enough to pay the price (enough desire to meet the requirements) to get there. I believe that you must know (have faith) (belief, faith, self-confidence from other successes building toward this one) that you can get there. I believe that you must be determined to get there (determination and persistence - once hand to plow, don’t turn back). You must not stop (don't go off somewhere else) even if detoured until you get there (its all right to rest just so long as you don’t get off the track). You must be thankful when you get there. 33- I believe my most important purpose in life is my own personal growth and success in realizing my potential. I believe that my potential is that which God would conduct through me without my resistance to Him.
35- I believe that discipline. VII.
insulation
can be
strengthened
with a
THE LAW OF ATTRACTION
1. I believe that you attract that which has like rate of motion (movement). I believe that you attract that which has the same or nearly same vibration. 2. I believe that the only way to change (growth-change) anything is by degrees, by minutes, a bit at a time, by changing the rate of vibration or rate of motion by degrees. 3. I believe that this is so because the building blocks of the universe is pure energy (God’s Flux) and it is the same. 4. I believe that the difference between things is caused by their vibrations or rate of motion. I believe that you build up or tear down by degrees. You change the rate of motion. 5. I believe that you attract that which you are (your rate of motion) and repel that which you are not (a different rate of 15
Motion). 6.
I believe that a low rate of motion attracts a low rate of motion and repels a high rate of motion - and the 7. 8. inverse is also true. 9. I believe that to attract something you must have desire 10. for that which you would attract. 11. 12. I believe that desire is the emotion that attracts like to like. 13.
I believe that to attract something you must vibrate with it, tune it in (think about it with desire- release the energy of the thought by the transmitter of your desire within you). I believe that to attract something you must use it (that which you would attract). I believe that you must have a need for something in order to attract it. I believe that anything you attract must be something you have created a need for. I believe that to attract something you must have a reason (purpose) for needing it. I believe that to keep something you must give it away (use it, work it, spend it).
I believe that giving attracts high rate of motion things into your environment because giving increases your rate of 15. motion. I believe that love, faith, praise, joy, blessing, 16. kindness, and happiness attracts high rate of motion things. 1718.
I believe that to attract more you must give more. I believe that whatsoever you give (really give) becomes a seed that you plant—for God to multiply back to you (by His Natural Laws). But I believe that you must first initiate the action yourself; you give first, you smile first, you love first, you forgive first, you apologize first, you give happiness first, you serve first. I believe that you must first put something in, before you take something out. 19-20. 21. I believe that you cannot attract that which you have not 16
Wanted to attract. 22. I believe that you must attract that which you want to attract. 23. I believe that you attract today that which you wanted to attract yesterday. 24. I believe that you will attract tomorrow that which you want to attract today. 25. I believe that the law of attraction says that all things are equal. 26. I believe that as you give of yourself you attract the same amount from the other side of the equation except that God (through the law of compensation) adds to what you receive back. He does this through his natural laws and because He is The Source of Supply. 27. I believe that all things with life in them attract to themselves the elements they require to meet their in-built Images. 28. I believe that the law of attraction says that "that which you give (use) or would willingly give - you attract; that which you withhold (refuse to use or give) or strongly desire to withhold - you repel. 29- the law of attraction says that if you want to attract something - use it; if you want to repel something - do not use it. I believe that this holds true for everything in the universe, because God's Natural Laws are universal.
17
VIII. LAW OF SPECIALIZATION 1. I believe that all life can accomplish a great deal more by specializing. 2.I believe that you can only do one thing at a time. cannot serve two masters).
(You
3. I believe that you should devote all energy, time efforts, and resources to the accomplishment of one goal. (Then you can move on to another one).
5. I believe that you develop concentration by specializing. I believe that you focus your power, efforts, attention, and results by specializing. The law of growth is divide. . And grow. Specialize. Nature does. 6.I believe that you should narrow down to specifics. too wide.
Don't be
? • I believe that the wide, broad, crooked road leads to destruction (disintegration). 8. I believe that the narrow, straight, single purpose road leads to life abundant. 9- I believe that all God ’ s natural laws call for specialization - but balanced specialization within the bounds of his natural laws. 10. I believe that in order to achieve there must be a specific, clear, defined goal. (Just as God had when He created the universe). This is specialization. 11. I
believe
that
awareness
is
specialization.
That
it
exemplifies specialization. Awareness is being fully aware of a moment. It specializes in the moment. 12. I believe that the Laws of Action, Harvest, and Growth, Increase and Expansion, Purpose, Attraction, and Cycles - all call for specialization. It is one of God ’s natural laws. IX. LAW OF TIME, CYCLES, RHYTHMS, SEASONS 1.
18
I believe that Energy is the Flux of God. I believe that Energy is everything. I believe that pure energy is Infinite. I believe that Energy proceeds from God. I believe that God is the Source of All Supply. He is the Provider of All. I believe that Energy supplies all life and the universe.
2.
I believe that different forms of energy and of life and of matter are expressed by different vibratory rates.
4. I believe that energy must flow from a higher level to a lower level. (Not from a lower level to a higher one). 5. I believe that everything in the universe moves by a repeated impulse. 6. I believe that there is no such thing as a continual pulse of energy in our universe. (No continuous pressure or force all is in pulses or cycles). 7. I believe that the transmission of energy will be pulsating, not continual or steady but intermittent (in cycles). 8. I believe that flux or energy is curved outward while Expanding...and curved Inward..........when contracting. I Believe that our breathing symbolizes this. 9. I believe that things will be in harmony with each other according to their vibratory rhythms or cycles. Things will attract and be attracted by vibratory rhythms in harmonies with its own rate (harmonics). Everything that you can see, hears, or touch (and the things that you can’t); everything you can be aware of in anyway is subject to cyclic law. 10. I believe that everything vibrates at, or responds to, or is moved in a certain definite rhythm. .1. I believe that all life and universe is motion, movement, action, and oscillation. I believe that all motion is cyclic. I believe that it (motion) circulates to the limit of its possibilities (peak) and then returns (contracts) to its starting point. This is the law of cycles. 12. I believe that any thought or action that is initiated while this impulsing energy is gaining momentum (in its cycle)
carries along quite easily toward success; while those thoughts or actions begun in a descending cycle (when impulsing energy is losing momentum or waning) are reduced due to the reverse cycle of momentum. 13 • I believe that everything in the universe has a cycle of existence distinctly its own (like fingerprints, voiceprints, etc.). 14. I believe that all life has cycles, which begin at its (the life ’ s) inception.
19
15- I believe cycles vibrate at different rhythms (rate of motion). Low thoughts vibrate at low rhythms. High thoughts vibrate at high rates. Create and hold high thoughts. 16. I believe that the cycles of day and night, tides, and seasons of the years are symbolic of the law of cycles. 17. I believe there are cycles, everything in the universe and life.
rhythms,
seasons
for
18. I believe there is a mystic pattern behind all cycles and seasons. 19. I believe that this invisible design is set into motion through the natural law of cycles (vibration). 20. I believe that this law of cycles says that there is a time for everything. There is a time for all things under the sun. 21. I believe that there is a most favorable time for something and I believe that there is a least favorable time for something. 22. I believe that whatsoever thing you are doing at a particular time - it should be done only, completely, solely, with all concentration, attention, focus, awareness, zeal, enthusiasm, and imaging (mind picturing). 23. I believe that when you do one thing you should not think of something you will do at another time. 24. I believe that there is a time for all things. A time to sow, a time to harvest, a time to go to bed, a time to get up from bed, a time for everything under the sun that is in
accordance with God ’s Natural Laws. I believe that this and the law of cycles are also symbolized by the Sabbath. 25. I believe that you plant when the time or season or cycle is favorable (gaining momentum). When the time, season, or cycle is not favorable (waning momentum) you should wait until it is again favorable. 26. I believe that there is a time to be active and a time to refrain from action. 27. I believe that there is a time to be talking and a time to refrain from talking. 28. I believe that the cycle of life and basis of the universe is symbolized by breathing, wind, waves, and pulsating vibrations in energy. 29. I believe that thoughts, efforts, work, and anything can be most efficient by pulsating in rhythm with natural relaxation and ease. 20
30. I believe that God ’s this pulsating cyclic rhythm.
law
of
the
Sabbath
expresses
31. I believe that the seventh day should be set aside for rest and contemplation of the past week, and thanks for the good accomplished, and thanks and worship to The Source of All Supply, and for a break between cycles of weeks. 32. I believe that there is a cosmic plan, which encompasses all of creation. I believe its principles are: 1. ORDER - In nature all things evolve under system of order. 2. HARMONY - Universe operates under beautiful harmonious system 3- BALANCE - Nature is balanced in her parts. 4. INTELLIGENCE - A reflection and expression of God. 5. GROWTH OR EVOLVEMENT - Must grow plus or minus. 6. ATTRACTION - All things attract elements required after needs set. 7. FULFILLMENT AND DISINTEGRATION - When usefulness (cycle complete) ends. 33• I believe that there is a rhythm for every person. 34. I believe that when one develops (finds) his rhythm, his harmony, he becomes a flowing whole. 35. I believe that the danger of sideline temptations is that one may break his stride (rhythm) when one steps out of his rhythm; and it may be difficult to regain it when one steps back in. 36. I believe that the circle symbolizes rhythm. 37. I believe that rhythm is expanding when there is
little
resistance and not attempting expansion when cycle is contracting or there is great resistance. Rhythm is not going against the tide of nature. 38. I believe that in order to get your rhythm, you must: 1. Decide on a purpose or objective (in or with your life). 2. Get into the rhythm of thinking of God ’s Natural Laws. 3. Get into the rhythm of giving (using) what you have at hand. 4. Then start expecting to reap or harvest, because you have sown. 39” I believe that accomplishment, health, and happiness are easier if you move through your own rhythm. I believe, then, that the above is the law of cycles. First give - then receive (after really giving, then expect to receive). This is the law of cycles. It (the cycle) starts at a point (you), goes out to a peak (you give), and then it 21
Comes back to where it started (you receive back what you sent out, plus interest (momentum of the cycle)). All the other laws also express this . It is also expressed by "As you sow, so shall you reap". The circle also expresses it. Time and space are curved. • X. SUMMATION 1. I believe that the natural laws of God are the truths, which have caused all good accomplishments throughout history. I believe that these laws must be lived by and practiced. 2. I believe that I and all other men, women, and children have a spirit housed in our bodies. I believe that this Spirit is the life force and is endowed by God and is a part of God. 3- I believe that man, being created by God, in the image and likeness of God, has been endowed with the Spirit of God in our subconscious and that man possesses as a result, a part of the creative powers and energies of God. 4. I believe that these powers can be most effectively used when they are channeled in accordance with God's Natural Laws as expressed in this Creed. 5. I believe that God’s Laws are the most wonderful laws in the universe. END
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APPENDIX VI "MASTER TIME FACTOR CHARTS OF THE DOW-JONES AVERAGES" MADE BY EVERYMAN'S INC. JULY 1983- COPYRIGHT 1983. BACKGROUND: THERE ARE THREE SHEETS OF THIS MONTHLY CHART OF THE DOW-JONES AVERAGES. THEY DATE FROM JANUARY 1901 THROUGH THE PRESENT TIME (JULY 1983). THE PRICES ARE THE LOW CLOSE AND HIGH CLOSE FOR THE MONTH. SHEET 1 IS 240 MONTHS OVER IN TIME AND PRICE SCALE IS $1.00 PER UNIT OF PRICE. PRICE ON SHEET 1 IS COVERED FROM $0.00 THROUGH $240.00. TIME IS 240 MONTHS (20 YEARS). THE YEARS ARE LISTED AT BOTTOM OF SHEET AS 1ST, 2ND, 3RD, ETC. THROUGH 20TH. IT IS COLOR CODED. OH SHEET 1, 1901-1920 IS COLORED YELLOW; 1921-1940 IS COLORED RED; 1941-1960 IS COLORED GREEN. SHEET 1 IS PLACED ON SHEET 2 AT $240.00. SHEET 2 IS 240 MONTHS OVER IN TIME (SAME AS SHEET 1), BUT THE PRICE SCALE ON SHEET 2 IS $2.00 PER UNIT OF PRICE. PRICE ON SHEET 2 IS COVERED FROM $240.00 AT THE BOTTOM TO $720.00 AT THE TOP. ON SHEET 2 RED IS TOP OF 1901-1940 CYCLE; GREEN IS PART OF 1941-1960 CYCLE THAT BEGAN ON SHEET 1; YELLOW ON THIS SHEET IS THE BEGINNING AND PARTS OF 1961-1980 CYCLE. SHEET 2 IS PLACED ON SHEET 3 AT $720.00. SHEET 3 IS 240 MONTHS OVER IN TIME (SAME AS SHEETS 1 & 2), BUT THE PRICE SCALE IS $3.00 PER UNIT OF PRICE. PRICE ON SHEET 3 IS COVERED FROM $720.00 AT THE BOTTOM TO $1440 AT THE TOP. ON SHEET 3 YELLOW IS PARTS OF THE 1961-1980 CYCLE; RED IS THE BEGINNING TO CURRENT TIME OF THE 1981-2000 CYCLE THROUGH MID-JULY 1983. THESE 3 SHEETS ARE MEANT TO BE STACKED ON TOP OF EACH OTHER IN 1,2,3 FASHION. IN OTHER WORDS, EACH YEAR ZONE FROM 1ST YR THROUGH 20TH YEAR IS PLACED IN LINE VERTICALLY ON EACH OF THE 3 SHEETS AT THE PROPER 1,2,3 ORDER.
IF YOU WANT TO CONTINUE TO KEEP THIS CHART UP, ALL YOU NEED TO DO IS TO TAKE THE HIGH CLOSE FOR THE CALENDAR MONTH AND THE LOW CLOSE FOR THE CALENDAR MONTH AND COLOR IN RED BETWEEN THOSE POINTS. THIS CHART IS NOT BASED ON THE MONTHLY HIGH OR THE MONTHLY LOW, BUT THE MONTHLY HIGH CLOSE AND THE MONTHLY LOW CLOSE. THE REASON FOR THIS IS THAT THE DATA BACK IN THE EARLY 1900!S WAS ONLY AVAILABLE TO ME IN THAT FORM AND I NEEDED TO KEEP THE CHARTS CONSISTENT.
APPENDIX VI
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APPENDIX VII WEEKLY CHARTS SHOWING MASTER TIME FACTOR PREPARED FOR Everyman’s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
APPENDIX VII
"WISDOM" Happy he who has found wisdom, And the man who has acquired understanding; For wisdom is more profitable than silver, And the gain she brings is better than gold. She is more precious than red coral, And all your jewels are no matches for her. Long life is in her right hand, In her left hand are riches and honour. Her ways are pleasant ways And all her paths lead to prosperity. She is a staff of life to all who grasp her, And those who hold her fast are safe. In wisdom the Lord founded the earth And by understanding he set the heavens in their place; By his knowledge the depths burst forth And the clouds dropped dew. My son, keep watch over your ability and prudence, do not let them slip from sight; they shall be a charm hung about your neck. And an ornament on your breast. Then you will go your way without a care, and your feet will not stumble. When you sit, you need have no fear; when you lie down, your sleep will be pleasant. Do not be afraid when fools are frightened or when ruin comes upon the wicked; for the Lord will be at your side, and he will keep your feet clear of the trap. Refuse no man any favour that you owe him when it lies in your power to pay it. Do not say to your friend, 'Come back again; you shall have it tomorrow'-when you have it already. (Proverbs)
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