Dan Zanger Trading System | Dan Zanger's 9 Golden Rules of Trading

Today we look at world record-holder trader Dan Zanger Zanger. Although he is not an author, Dan Zanger is highly regarded and has appeared in a variety of publications. He also produces the "Zanger Report" on the website chartpattern.com. Dan Zanger, on the other hand, gained notoriety for record-holding returns when he turned just over ten thousand dollars into 18 million dollars in less than two years. His returns hit the media spotlight soon after his performance was audited and proven through his IRS records. Let's look at how Dan Zanger achieved such gains and learn from the method that he still uses to this day.

Dan Zanger used his strategy during the tech bubble era to gain significant leverage. A company called Efron audited the results he obtained. The audit confirmed an astonishing return of 29,223 percent, dwarfing the S&P 500 index return of only 23 percent over the same period, according to Efron.

1. Make sure the stock has a well-formed base or pattern, such as a flat base, a bull flag, a symmetrical triangle, an ascending triangle, an inverted head and shoulder, a cup and handle, and a double bottom.

2. When the price of the stock has broken through the trend line or resistance, it is time to buy. Never pay more than 5% more than the breakout price.

Dan Zanger best summarized his concept when he said, "Trading for me is all about volume and price action." "I buy on pattern breakouts when the volume is rising, and as long as the price is responding well to increasing volume, I stay on board, but when either the price or volume stops rising, it's time to get out."