The Hindu Business Line : Aussie firm launches Gann's trading techniques in South India

SAFETY In The Market, Australia, has launched operations in South India. The company, which trains stock market traders to do business on the basis of sound mathematical principles, was founded by the Australian trader David Bowden and has operations across the globe.

"India has one of the highest retail participation in financial markets," Mr Pradeep Chandrasekaran, Country Manager-India, told a press conference here today.

"Having precise rules to know when there is a buy signal or sell signal in a specific stock is a clear benefit to traders. This knowledge is what SITM imparts," he said.

David Bowden's methods are based on the works of W D Gann, a man who lived between 1878 and 1955 and is said to have made about $50 million in the markets. Like R N Elliot, who propounded the Elliot Wave theory, Gann believed that markets followed a pattern and the trick to make money is to understand the patterns.

"Gann believed that markets most commonly retraced 1/2 (50 per cent), 5/8s (62.5 per cent ) or 3/8s (37.5 per cent) of the previous range. Elliott believed that markets most commonly retraced 61.8 per cent, 50 per cent or 38.2 per cent of the previous range," says Bryce Gilmore, author of `Geometry of Markets I & II'.

Years later, David Bowden benefited immensely using Gann techniques. Bowden is said to have predicted the market crash of May 17, 2004 six months earlier, precisely mentioning the date in his prediction. Incidentally, the May 17 meltdown was not just in India, but in several markets across the world.

Bowden set up the training company, Safety In the Market, again taking a leaf out of Gann. Gann also used to run classes for traders, charging heavily for them.

Safety In the Market proposes to teach Gann's techniques to traders through a combination of software and classroom-based training. The course was earlier launched in Mumbai and it is learnt that so far about 150 people have taken the course. Now the company is coming to Chennai.

Mr Pradeep Chandrasekaran says there is a discount on offer. The cost of the course, post-discount is Rs 66,000.

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