Dec. Fortune Mag: $11,000 into 18 Million in 3 years

Discussion in 'Trading' started by MichaelNorris, Jan 2, 2001.

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  1. topmo


    I know from previous experience that Z's picks are good when hit the 2nd or 3rd day after they are posted...especially his buy keep this in mind when comparing zboy's post above. May the trading gods be with you.
    #11     Jan 5, 2001
  2. Zboy....

    Well those trades seem to have been a bust,Thursday ???

    Does HE say how long to hold them....

    Let's see what they do over the next couple of days!!! always,

    GoodInvesting, Rocky
    #12     Jan 5, 2001
  3. TheFinn


    It looks like only three of those stocks hit their buy marks, and then one of those already dropped. What is his stop loss point?
    #13     Jan 5, 2001
  4. Hi Finn,

    see my comments above.

    Good Luck
    #14     Jan 5, 2001
  5. Here are Mr. Zanger's "golden rules for trading" as copied exactly from his newsletter:
    1. A stock must have a proper base of 6 weeks or more before you buy, unless you feel you are a qualified active day trader.

    2. Buy the stock as it leaves its base and makes a new high.

    3. Be quick to sell your stock should it fail after a break
    out from its base. Always sell your stock at 2 points below
    any trendline that has been broken. Cut your loss at no more
    than 5 to 7% of original purchase price.

    4. Sell 20-30% of your position as the stock moves up 20% from the buy point.

    5. Hold your strongest stocks the longest. Sell your slower moving or weaker stocks early.

    6. Identify and follow strong groups of stocks. Try to keep your stock selections in these groups.

    7. After the market has moved for a substantial period of time, the more vulnerable your stock(s) will become to a market sell off. Obey your trend lines at all times. Sell your stock quickly if it runs up in price.

    8. You don’t need to trade all the time and you don’t need to be in the market all the time. Generally, we are in the market twice a year.

    9. Many stocks are mentioned in my newsletter. Do not buy a stock until it crosses a trend line and never pay up by more than 5% past the trend line break.

    10. Never go on margin until you have mastered the market and your emotions. For the average person this normally takes anywhere from five to ten years. Margin can wipe you out!

    Follow these ten rules and you will make money in the Stock Market.</b>

    There they are, for what they're worth.
    #15     Jan 5, 2001
  6. I'll be signing up for his free trial next week. 1. From what you have seen so far, did the picks he posted adhere to his rules such as having to be a stock that has been basing for 6 weeks, etc. 2. For those who have been there already what do you think of his newsletter? 3. in your opinion, what makes what he's doing so radically different from what the majority of traders are doing in the market? Most traders are not able to make 100% a year, much less generate the type of results he's getting? It was mentioned that there is nothing on his site or in his newsletter that you can't get at plenty of other web sites, yet no other web site I know makes that kind of return, so what's making the difference in what he's doing in his results when the info described by some of the other posted messages here is admittedly readily available at other sites and yet people aren't producing anywhere near those type of returns? From what you've seen so far what do you think that he's doing that's so different from the majority of traders who are not achieving those type of results with the same type of info that we all have access to?
    #16     Jan 6, 2001
  7. I think that his success was a combination of discipline, technical analysis and most importantly the period of market history that he chose to enter in, and a willingness to assume a greater than normal amount of risk. His huge profits came during the most irrational period in market history, where unthinkable stock moves brought stratospheric returns. Over $2 million of Zanger's fortune came from QCOM alone, when it ran up through the end of 1999 to over $600 a share. Using technical analysis, he was able to sell his position before the blowoff came. Also, looking at his trades from last year, he was assuming fairly large and riskier sized positions in stocks--often a minimum of 1000 shares, usually 2000 shares. Those kinds of position sizes are usually used by scalpers, but to hold that much stock for swing trades is extremely risky if you're wrong. That's where his strict adherence to stop losses most likely saved him from major pain, and on the trades he was right about, his huge positions paid off big time. So in summary, that's how he did it--large positions goverened by technical anaylysis combined with strict position management. Many traders are unable to eliminate emotion from the picture completely, and that is the difference.

    #17     Jan 6, 2001
  8. The way I figured his would have been in 6 of 15 plays and covered your stop loss (5%) on all 6 therefore losing $20.00 a share....THAT'S NOT GOOD....but, I didn't do so good this week either....except for a penny stock that went up 115%......OhWell!!! always,

    GoodInvesting, Rocky
    #18     Jan 6, 2001
  9. Question, Dan Zanger says to :

    Always sell your stock at 2 points below any trendline that has been broken. Cut your loss at no more than 5 to 7% of original purchase price.

    Since he says you should always sell your stock at 2 points below any trendline break, how would the results have been for his picks? What would be gain or lose in total points for these picks if a person got out at 2 points below the trend line break for this past week?
    #19     Jan 7, 2001
  10. Well, He had 15 picks and only 6 made it to his buy if you put your stop loss @2.00 below that, you would have lost $2.00 per share.

    If you bought 100 shares of each:

    6 picks x 100 shares = 600 shares X $2.00(loss each)=$1200.00

    On 1000 shares each pick...loss would be = $12000.00

    Now that loss is with only a $2.00 stop....if you use a 5-7% stop loss....WELL YOU SEE!!!!....way higher.... always,

    GoodInverting, Rocky
    #20     Jan 7, 2001
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