Successful trading stands on three pillars: (1) psychology, (2) market analysis and trading systems, and (3) money management. Dan Zanger had a unique strategy to all three subjects that helped him get the phenomenal returns of thousands of percent.
It is difficult, however, in one book to fully explain Dan’s strategy on all three pillars. Firstly, some things just cannot be taught from a book. The fluid nature of the financial markets, for example, would be difficult to be comprehensively explained in a book.
Furthermore, to explain the strategies in full, a fair amount of advanced knowledge would be required on multiple areas such as sector rotation, technical analysis and money management.
Accordingly, to ensure that the most important part of Dan Zanger’s strategy is shared to all who are interested, this book focuses on the key market and trading analysis aspect of Dan Zanger’s strategy: chart pattern analysis. It will focus to identify, illustrate and explain the chart pattern analysis tools that made Dan $42,000,000 in 23 months.
There are many books in the market, both for beginners and advanced practitioners, that cover the other pillars of trading, be it in terms of psychology or money management principles. However, there is not so much material available for the relatively less known art of technical analysis, in particular chart pattern analysis, which forms the heart of the Dan Zanger’s strategy.
It is interesting to note that the essential technique of Dan Zanger’s successful strategy, chart pattern analysis, is not given respectable coverage and under-emphasised in many books on trading. Few contributions in this area have been made since the seminal works by Richard W. Schabacker who wrote three great books on chart patterns in the early 1930s.
Schabacker is widely considered to be the father of technical analysis. Fourteen years after his last book, written in 1934 entitled “Stock Market Profits”, his nephew Robert Edwards and John Magee continued Schabacker’s work with their own classic “Technical Analysis of Stock Trends” which was first published in 1948. No student of chart pattern analysis would consider himself or herself complete without reading Schabacker’s and Edward and Magee’s classics on chart pattern analysis.
But chart patterns analysis was not given the prominence it deserves until Dan Zanger came into the picture. It was Dan Zanger who popularise Schabacker’s and Edwards and Magee’s works when this super trader proved to the world how powerful this technique can be when he astounded the world in 1998-2000 (it should be “2000) by amassing $42 million with just $11,000 in 23 months trading Nasdaq stocks during the NASDAQ super bull run. His incredible performance has proven to us that this technique is effective and still remains very relevant in today’s market environment just as when it was first discovered by Schabacker in the early 1930s. For those who are interested in the stock markets of Malaysia and Singapore, we would draw your attention to Schabacker’s chart patterns found in our very own markets.
It is hoped that this book will provide a logical, organized and sensible method of learning the chart pattern methodology. We feel that if you are interested in and enjoy following the financial markets, you will be fascinated reading the pages before you. Most importantly, through this reading, you will gain some insights into how one of the most spectacular investment phenomenon in recent years – super stock trader Dan Zanger – grew his initial investment of $11,000 to $42 million within 23 months trading stocks!
