You hit that right... buying a stock and buying a company is two totally different things... poor traders confuse the two.
It kinda pisses me off because everyone always says, "Yeah, to be a trader you have to have good money management!". I admire Zanger, but look what he does...goes in full margin. Is that good money management?..NO. He made most of his money in the tech bubble. His strategy would not work with MOST traders these days, and most likely wipe you out.
he made his money in the bubble true, but he's done pretty well last couple of years. last year he made 20mil i believe. zanger's money manangement is just a bit different than the traditional type. He goes in when the time he believes is right, if it suddenly reverses, he'll be out maybe with 1-2% loss, not even oneill's 8%. the only way he can really get screwed over is if something gaps down on news.... and since he often adds or buys right after earnings, chances are that the news would have come out. he's the best technical trader around. he just writes crap newsletters
I don't agree... good money management means managing risk... Zanger goes big but expects the stock to move in his favour immediately... he has extreme discipline and cuts his losses super fast.
there are at least three copycat newsletters that someone posted on another thread last week and one of them i was pm'd about twice when i asked about newsletters..... i'll copy below. i started free trials right now on all 3 and they're v similar in terms of chart reading but much more short term plus lots of other differences but i have zero doubt that they were all zanger students, you can tell by the style and the way they focus on the momentum leader stocks. on another subject, anyone here ever work with Steve Cohen? quoting here: There are three, all 3 offer trials which you should check out. www.highchartpatterns.com www.thestockbandit.com www.themarketmuse.net
I think Zanger deserves alot of respect. He did trade with his own money right, not some hedge fund or pool? This isn't meant to take anything away from hedge funds. Forgive me, I don't trade stocks, I trade futures but doesn't Zanger do what O'Neil teaches in Canslim. Isn't this similar to what Darvas did supposedly decades ago? Does this work because it works or is it a self-fulfilling prophecy? I don't know, but I often wonder if the key to success is to jump on the wave as it seems that many like Zanger have done? Curious to hear your opinions.
I think it works because it's a great system. and as far as jumping on the wave, I think it's much more difficult than it sounds. You're right though about O'neill and Darvas -- they definitely form the tree on which he branched out on....
I agree with you Alisa, after struggling and making no money day trading in the last year, although I am only down about 400 bucks, I have to come realize that controlling your emotions is the most difficult challenge I will have. I am very confident, not arrogant, in my abilites and it will come with time. I am paying my time premium as it appears that all us traders have to. I am begining to honestly thank the market for being so challenging, if it were easy everyone would have already made their millions and there would be no one to take the other side of the trade. I hope every enjoys their time off, I will. Dan