Earnings increase by 1640 times in 3 years! What are his operating skills?

Dan Zanger, a self-taught stock trader and chart analyst, is an outstanding trader who is still active in the trading and investment field. He has achieved remarkable success in a short period of time, earning over $18 million with only $10,775 in two years, with a return rate of 29,233%. In three years, his capital grew 1,640 times to $42 million, setting a personal record for the highest portfolio growth rate in the world.

Dan Zanger grew up in the San Fernando Valley in the suburbs of Los Angeles. He dropped out of college shortly after entering and traveled around the United States. Without a stable job, he worked as a hotel bellman, taxi driver, and restaurant chef. Later, with his limited education and no professional skills, he returned to Los Angeles and started working for a landscaping company.

After a few years, he obtained a contractor's license and focused on building swimming pools. He spent over 20 years in the pool construction industry, mainly building pools for wealthy residents or high-profile clients in Beverly Hills.

In 1976, Dan Zanger entered the stock market and spent several years trading stocks. At that time, he was still focused on his pool construction work, but he knew that trading stocks was his true passion. However, technology was not as advanced as it is now, so he would listen to stock-related broadcasts on his way to work to stay informed about stock market prices. He would also drive around the construction site so that he could make stock trades over the phone. (At that time, he used a portable phone similar to a "brick" phone, which could only be used to call the brokerage firm to buy stocks.)

He learned various chart patterns and basic knowledge from trading chart master Gene Morgan and investment guru William O'Neil. However, he later developed his own method that suited him and decided to dedicate more time to trading stocks in 1989. He spent 10 years honing his "trading edge."

As the 1997 Internet bubble began to form, the focus shifted to the internet and technology stocks. In order to raise funds to enter the market, Dan Zanger sold his Porsche. He sold it for less than $11,000 and turned it into $18 million the following year. This success led him to give up his career as a contractor and become a full-time trader. Making $42 million in 3 years! What are his trading techniques?

In 1989, he would spend at least 6 hours every weekend looking at charts until he found one he was satisfied with. During the period from 1991 to 1997, he encountered a bear market in real estate - his construction business hit a bottleneck, so he spent even more time studying trading charts. This enabled him to earn $18 million with an initial investment of $10,775 between 1998 and 1999.

By 2000, his cumulative trading profits reached $42,000,000.

Dan Zanger is a pure technical analyst who has spent over 30,000 hours studying various trading chart patterns and their applications in different situations and scenarios. He is a swing trader, focusing on momentum breakout patterns with holding periods ranging from weeks to years.

For nearly 20 years, he has used the same chart patterns. The chart patterns outlined by Dan Zanger are the 11 common price chart patterns that we often use in trading for profit. These patterns include cup and handle patterns, flag patterns, triangle flag patterns, triangle patterns, head and shoulders patterns, and channels, which are all examples of classic chart patterns.

Even in the era of quantitative trading systems, EAs, algorithms, and so on, these chart patterns continue to demonstrate surprising levels of success and repetition. Classic chart patterns are easiest to identify after they have formed, rather than oversimplifying them. The key is to identify them in their early stages of formation so that you can capture more opportunities before they become "textbook" examples.

Dan Zanger's Ten Golden Trading Rules

Trading masters are masters not only because of their own luck, but also because they are good at summarizing their experiences and insights. Therefore, we believe that sharing some of Dan Zanger's investment insights is more important, as it can help us avoid many pitfalls on the trading journey. At the same time, these investment insights will give you a deeper understanding and improve your confidence and abilities in trading after you start.

Let's take a look at Dan Zanger's ten golden trading rules that he has summarized over the years:

1. Before considering entering a trade, make sure the stock has a solid foundation of support or chart pattern.

2. Buy when the stock price crosses above the trendline of the support or pattern, and make sure that the volume is higher than the recent trend shortly after this "breakout" occurs. Never chase a stock by buying after it has exceeded the trendline by more than 5%. You should also be aware of the 30-day moving average volume of the stock you are interested in.

3. If your stock retraces below the trendline or breakout point, sell quickly. Usually, the stop-loss point should be set around $1 below the breakout point. The more expensive the stock, the more room you should give it for a pullback, but the amount of the stop-loss should never exceed $2. Some people use a 5% stop-loss rule, which may mean selling a stock that is attempting to break out and falls below your purchase price within 20 minutes or 3 hours.

4. When the stock price rises 15%-20% from the breakout point, sell 20%-30% of your position.

5. Hold the strongest stocks for the longest time and quickly sell stocks that stop rising or show weak trends. Remember, stocks are only good when they are rising.

6. Identify and track strong stock sectors and try to choose individual stocks within these sectors.

7. After a significant market rally, your stocks will be vulnerable to selling pressure, which can happen at an incredible speed. Learn to set new higher trendlines and identify reversal patterns to help you sell stocks.

8. Remember, stock price increases require trading volume, so start understanding the trading volume of your stocks and how they react when volume surges. You can see these peaks on any chart, and trading volume is the key to the success or failure of your stock's trend.

9. Dan Zanger mentions many entry points for stocks in his social media or personal columns. However, just because an entry point is mentioned does not mean you should buy directly when the entry point is triggered. You must first look at the stock's trend, combine it with the trading volume on the day the entry point is triggered, closely monitor the overall market environment, and then consider whether to buy.

10. Never engage in margin trading unless you have a good grasp of the market, charts, and your emotions. Margin trading can wipe you out.

Summary

After learning about Dan Zanger's background, his perseverance is truly impressive. From a complete novice with no financial knowledge to becoming a super trader who set a world trading record!

There may be controversy saying that the money he earned was all made during a super bull market and relied more on luck. However, Dan Zanger firmly believes that Success = Preparation + Opportunity. This shows that opportunities are only given to those who are prepared.

If you say you are interested in trading, how much effort have you put into it? How many investment or trading books have you read? How much time do you spend analyzing charts or studying financial reports every day?

If you still expect to get some trading "fast food" on social media, then it's time to change your mindset.