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W D Gann, one of the greatest traders in history, utilized the power of astrological charts in trading. He amassed over 50 million dollars from the stock market. His theory rested upon the notion that history repeats itself in cycles.

Gann espoused that the stock market movements are cyclical in nature, and that the dynamics of the stock market are purely based on mathematical principles. It’s not surprising that when the market goes up by 2%, it comes down by 2%. It’s all math, baby! The principles of mathematics and astrology form the foundation of it all.

The concept of cyclicity governs everything, as Shelley wrote, “If Winter comes, can Spring be far behind?” This applies to the stock market’s equation too – “If Recession comes, can Boom be far behind?” The Law of Bipolarity in Nature, rise & fall, flow & ebb, day & night, pleasure & pain, birth & death – corresponds to the gain and loss in the stock market. Technical analysis reveals that all scrips exhibit patterns of price behavior. Take Reliance, India’s premier stock, for instance – it went up during boom time and took a sharp nosedive during recession.

Mr. Henry Hall devoted a significant chunk of his recent book titled ‘Cycles of Prosperity and Depression’ to interpreting how these cycles keep recurring at regular intervals. The mathematical laws used in Zodiac Stock Market Astrology forecast these cyclical swings, and help to identify the primary, secondary, and tertiary trends. Using these mathematical methods, we can determine the resistance and support levels of the Sensex and all major scrips.

The four stages of an Economic Cycle are known as Revival, Expansion, Recession & Contraction. Gann believed that “If we wish to avert failure in speculation, we must deal with causes. Everything in existence is based on exact proportion and perfect relationship. There is no chance in nature, because mathematical principles of the highest order lie at the foundation of all things.” Unfortunately, 90% of traders today deal with speculation based on luck rather than research.

Stock trading is incredibly lucrative; however, there are no shortcuts. While trading may be easy, trading profitably is not! A significant amount of time should be devoted to research and study. Lottery traders believe that they can become millionaires overnight by reading a single book. However, like buying a lottery ticket and testing one’s luck (where the probability of the investor striking first prize is one out of 2 million), 90% of all traders lose money because of a lack of discipline, patience, and knowledge. All you need to succeed is some common sense. Gann put it best: “If you can add, subtract, multiply, and divide, you can do what I do.”

“It is so simple and easy to solve problems and get correct answers and results with figures that it seems strange so few people rely on them to forecast the future of business, stocks, and commodity markets. The basic principles are easy to learn and understand. No matter whether you use geometry, trigonometry, or calculus, you use the simple rules of arithmetic. You do only two things: You increase or decrease.” W.D. Gann once said this in his Stock Market Trading Course.

Elliott Wave Theory and Stock Market Astrology hold similar views. Elliott concluded that the movement of the stock market could be predicted by observing a repetitive pattern of waves. Planetary cycles, like Elliott’s theory, can predict the activities of man, including stock market movements.

Stock Market Astrology is based on the premise that Planetary Cycles influence Economic Cycles. When the two are combined, we get Astro-economic cycles. For instance, the transit of the financial planet Jupiter can impact a nation’s economy. An adverse Jupiter in the US’ horoscope can be responsible for the fall of the Dow. We see that international indices are down, but there is a stock market boom in India, and this is due to the favorable posture of Jupiter in the Lunar fifth.

By 2020, if we go by GDP growth, China will be the number 1 nation, followed by the US & India in third place! Secondary reactions are natural, and the market is bound to bounce back once the correction is over. Companies like Grasim, Satyam Computers & Bharti Tele have reported excellent results. Amongst the cement companies, Grasim leads the pack. Forbes magazine includes Satyam, Infosys & Wipro in the list of India’s best corporations. Bharat Forge is also making a mark. As Gann would say, knowledge, patience, and discipline alone can win the game for us!

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Ihab Salloum