He Turned $10,775 to $42,000,000 Using This Trading Strategy

one day in San Francisco IRS officials were busy verifying the stock portfolio performance of this guy after he made a huge tax payment on his trading income they wanted to know if the 29 223 profit that he made in a specific period of time was actually all of it or if there was more the reason why this profit garnered so much attention is because they were not gained in 23 years or 13 years or something but because they were actually gained in just 12 months for context this equates to 2 435 percent every single month 121 every single day and five percent every single hour I recently did a poll asking you guys the average profit you make every month from Trading and the majority of you voted saying that you make less than five percent average per month so so I started to wonder how did this Trader make more profit in one hour than the average Trader makes in a whole month but more importantly what strategy did he use well in this video we're gonna explore all of that let's get into it now you may be asking yourself but who is this Trader we're talking about you've been calling him this guy since the beginning of the video oh is he guy from the movie free guy well no he's not guy from free guy the trader we're talking about is the world record Trader called Daniel zanger AKA Dan zanger Dan is an American Trader who profited immensely in the late 90s during the.com bubble he is also the founder of chartpattern.com a financial education and chart analysis website and has also been featured in various Financial media Outlets but perhaps what danziger is most known for is his successful track record as an investor and Trader Dan is claimed to have set a world record for the largest percentage increase in a personal stock portfolio in a single year this of course happened when he gained a whopping 29 223 percent in just 12 months of trading these huge gains allowed him to turn just 10 775 dollars into 2.6 million dollars in those 12 months that 2.6 million dollars then grew to 18 million dollars in the next six months and subsequently to 42 million dollars in the next five months in short he was able to turn just 10 775 dollars into 42 million dollars in a total of 23 months Jan grew up in a San Fernando Valley of Los Angeles California he went to college but ended up dropping out to work as an independent contractor building swimming pools all around California in 1997 Dan sold his car for eleven thousand dollars and deposited 10 775 dollars into a stock trading account and started his trading career he eventually stopped working as an independent contractor after making enough money from his initial Investments it's important to note that before making his fortune Dan spent time studying the work of William O'Neill and later developed a preference for certain chart patterns such as the triangle patterns and the now famous flag pattern now during the late 90s the internet Revolution was gaining momentum and it had a major impact on the global economy more and more companies were using the internet to transform their businesses in some companies even existed solely online the US in particular experienced a major economic boom due to the success of this web-based ore.com companies investors were super excited about this new internet industry and the stock prices of this.com company's soared to the sky Dan focused heavily on this explosive tech companies especially those that exhibited certain types of chart patterns that he believed kept repeating themselves I like to look at the charts and identify stocks with his favorite chart patterns such as the triangle pattern and the flag pattern essentially then look for consolidation or sideways movement in prices and then waited for the price to break out of the consolidation range before entering any trades let's take a look at specific chart patterns that Dan used to find his explosive stocks here's the chart of a company called Internet Capital group the stock was just public after its IPO in August of 1999 and was trading at 30 dollars a share Dan notice a small downward trend line forming and decided to tack a position as soon as the price broke above the trend line he then sold his positions when the Stock's upward momentum had slowed down so right here a few weeks later the stock formed a horizontal trend line which prompted Dan to enter again after it broke above this trend line the stock continued to rise until reaching over 190 dollars a share and started losing its upward momentum forcing Dan to sell all his positions the stock Consolidated for several weeks in what Dan referred to as a high-level symmetrical triangle he entered a trade when it broke out of this pattern and installed when there was a significant drop in upward momentum right here now here's another example this is the daily chart of Tesla dated February 5th 2014. as you can see here the price had a big bullish move that lasted several weeks and then pulled back into this consolidation and then created this bullish flag pattern Dan drew a deciding trend line and a sooner's price broke out of this consolidation he bought the stock at a price of 153 dollars a share several weeks later after this explosive move he sold his positions at 81 return according to Dan he took so many trades of this type during the two-year period but it's not possible to remember all of them he says it must have been at least 200 trades or more all of Dan's chart patterns and trade setups can be found on his website chartpotten.com I'll leave a link in the description on the website you can see all the trade setups that he called out starting way back in 1998 all the way to 2020. so essentially Dan looks for this type of Base formation patterns you know flag patterns triangle patterns and enters into trades when press breaks out of these patterns and exit the trades when there is significant drop in volume or momentum now let's go on trading View and see how I would trade with this strategy in a less subjective way this is the daily chart of Tesla and we're gonna add the volume indicator to it to do that type in volume on the indicators Tab and click on this one right here so here we can see that there is this setup that Dan usually calls a high level symmetrical triangle that formed after this big bullish move that lasted several weeks following dance strategy we will wait for the price to break out of this consolidation Zone and also ensure that the volume is high enough to push the price in the direction of our trade that is going to be indicated by this strong volume bar of the volume indicator when I enter the trade as soon as the price starts breaking out of the consolidation phase so right here Star Plus is going to be set somewhere in the middle of this triangle maybe right here we're not going to set a tech profit we just let the trade run until the volume bars of the volume indicator start becoming shorter and shorter like here then we exit the trade on maybe this candle we exit here because this drop in volume basically means that the market is starting to lose its upward momentum for this particular trade the risk to reward ratio would have been one to eight of course sell maybe half of your positions and try out the rest according to your preferred method like most strategies we've covered on this channel before this strategy really isn't groundbreaking but the reason why Dan has been so successful with it is because of his 10 golden rules of trading here's a summary of the rules I'm just gonna go over them real quick number one look for well-formed bases or patterns in the stock before buying number two buy the stock as it breaks above the trend line or the base pattern with high volume shortly after the breakout don't buy more than five percent above the trend line number three sell the stock quickly if it falls back under the breakout Point by five to seven percent now 4 sell 20 to 30 percent of your position if the stock moves up fifteen to twenty percent from the breakout Point here are the rest of them for you to read but perhaps the most important of them all is number 10 which says never go on margin until you've mastered the market charts and your emotions margin can wipe you out it's also important to note that Dan's success wasn't always a walk in the park when asked about this biggest drawdown Dan said most drawdowns are about 20 in normal Market Corrections yet this long bear Market really got to me and the drawdown was about 75 percent my portfolio dropped about 32 percent for the day it would have been much worse if I hadn't been allocated to a few other groups that day so basically Dan achieved enormous success during the.com Boom by focusing on tech companies that displayed his most favorite types of breakout patterns now I'm wondering do you trade breakout strategies like then let us know in the comment section below if you like this video hit the like button below and consider subscribing to stay tuned thanks for watching and I'll see you guys next time

Channel: PineTrades

Views: 25,026

Keywords: forex trading for beginners, forex trading strategies, forex trading, scalping strategy, best scalping strategy, day trading, profitable trading strategies, best buy sell indicator, best buy sell signal, best buy sell strategy, PineTrades, pinetrades, 100% profitable strategy, swing trading strategy, millionaire trader, millionaire trader strategy, tradingview, dan zanger, dan zanger trader, dan zanger strategy, dan zanger chart patterns, dan zanger trading strategy

Id: Z8tQ-6D0GQg

Length: 9min 38sec (578 seconds)

Published: Wed Dec 28 2022