Fundamental analysts cringe at the thought of technicals. Death-cross. Ascending triangles. Fancy terms to a laymen, but they can't tell you where a stock is headed? Right? Well, Dan Zanger believes they can. He provides Trading Courses and a chat room service.
As a man who claims to hold the world record for a 12-month portfolio gain, Zanger wants you to put down the earnings report, ignore the economic chatter and put your faith in the charts. In this Chartpattern.com review, we'll breakdown whether Zanger is the right technician for the job or if his stock investment newsletter isn't for you.
What is Chartpattern.com?
Chartpattern.com is an investment advisory service that offers stock picks and recommendations. Founded in 1998 by technical analyst Dan Zanger, the site offers an evening newsletter three nights a week outlining the best long and short positions and trade ideas within the equity market. Dan Zanger - who used margin to buy high-beta internet stocks during the Dotcom bubble, claims to hold the world record for largest 12-month portfolio gain of 29,233%. The return has been audited by Effron Enterprises Inc.
Dan Zanger has been featured in Fortune Magazine, Extra TV and used to host his own half-hour television show on the Business Channel in Los Angeles, California. His Chartpattern strategy uses Cup and Handle patterns, Falling Wedges, Ascending Tirangles, Bull/Bear Flags, as well as many others, to predict technical breakouts for stocks showing repeating trends.
Furthermore, he screens for stocks with revenue and earnings growth rates in excess of 40% that have a short supply of shares outstanding; this low float strategy allows him to target equities prime for explosive breakouts. Throughout his experience trading, Zanger claims to have spent over 30,000 hours perfecting his craft and he also has an estimated net worth of 42 million.
Products | Services | Costs
Chartpattern.com's main service is The Zanger Report newsletter. It's emailed directly to subscribers on Sunday, Monday and Wednesday of every week and outlines trade recommendations for some of the most âexplosive stocks" on Zanger's radar. Let's dive in:
The Zanger Report:
The Zanger Report newsletter can be purchased for $125 per month or $360 per quarter and you have the option to pay by credit card or cheque. Included in the subscription is free access to the Chartpattern chat room where Zanger and 450 other traders share tips, for day trading for beginners and strategies on the most important topics of the day.
The chat room supplies commentary and real-time recommendations from:
- Dan Zanger himself
- Hedge fund managers
- Institutional investors
- Prop traders
The meat and potatoes of the offering though is Zanger's trade recommendations - emailed directly to you - and free access to his charting and technical commentary archive. So what's included with Dan Zanger Trading recommendations?
- Recommendations for explosive stocks
- Recommendations for stocks under-owned by institutions
- Stocks showing techanical indications of breakouts
- Detailed explanation of why you want recommended stocks in your portfolio
- Breakdowns of the overall health of the market and index trading plays
The best part about the newsletter is it includes a two-week free trial. All-in-all, that's six free publications --which gives you plenty of time to assess his strategy, review his recommendations and see how the stocks play in the market. More importantly, before you pay the $125, you get to see for yourself if he's worth the money.
Zanger also provides a sample newsletter on his website. In a detailed breakdown of Apple (AAPL), he walks the reader through technical buy areas, head and shoulder patterns and short-term oscillators to try and predict overbought and oversold price levels.
So what's the deal? Should you really sign up?
Well, from our perspective, what do you have to lose? If you're interested in technical trading and want a glimpse of an advanced strategy, Dan Zanger has what you're looking for. More than that, his track speaks for itself and the Chartpattern free trial gives you ample time to put him to the test. One area of concern though is risk tolerance. A lot of Zanger's results are a function of high leverage, high-beta investing.
This is a very risky strategy and one bad trade can have your brokerage dangling a margin call. But, we'll give Zanger the benefit of the doubt here. In his 10 Golden Rules he explicitly states novices should avoid margin âuntil you have mastered the market." He also publishes disclaimers at the bottom of the page and points out that since the market moves in waves, entry/exit points can't be followed blindly.
The main point is, trading is fluid and flexibility is a must when the mood music changes. Based on transparency and disclosure, we think he's worth a try. Zanger makes a lot of claims, but by providing a free sample, free trial and qualifying his statements with disclaimers and warnings, it shows he's not trying to make any false promises.
Momentum Masters: A Roundtable Interview with Super Traders:
Written by Mark Minervini in 2015, this book -- featuring Dan Zanger -- is a Q&A session designed to pick the brains of some of America's top momentum traders.
You can purchase the Kindle version on Amazon for $26.66 or purchase a hardcover copy at $29.00. Topics covered include:
- Chart reading
- Entry criteria
- Position sizing
- Daily routings
- Trade management
- General market
- Investor psychology.
The book has 71 reviews - mainly positive -- and sports a 4.6 rating out 5. If you're fascinated with trading and enjoy stories of investor success, check out the reviews and see if it's right for you.
Free Trial | Promo Code
As mentioned above, Chartpattern.com offers a two-week free trial of The Zanger Report. In our opinion, free trials are essential to any trading service. It speaks to the authenticity of the content and should be non-negotiable when deciding on a service provider. In this case, Chart pattern passes the test.
- Founded: 1998
- Educators: Dan Zanger
- Number of members: 500+
- Company Address check: 22287 Mulholland Hwy, Box #602 Calabasas, CA 91302.
- Free trial: Yes. Two free weeks of The Zanger Report newsletter (six publications)
- Free resources: Education Section: understanding chart patterns, useful stock resources, recommended readings and charting programs.
- Money back guarantee: No.
- Price level: $125 per month or $360 per quarter.
- Verified income statements: Yes. But only 12-month period ending May 31, 1999.
Who is Dan Zanger's Chartpattern.com Best for?
Chart pattern.com is for anyone who wants to take their trading knowledge to the next level or someone looking to ride in the drivers' seat while Zanger takes the wheel. His strategies have proven success and with a free trial you can conduct your own performance review to see if he lives up to the hype.
It's important to note though -- trading is an art, not a science. You can't just follow Zanger's recommendations blindly. You have to do your own homework, get a feel for the market and decide for yourself if it's the right time is to pull the trigger.
Understand, Zanger will guide you -- but he explicitly outlines that flexibility and improvisation is required to be successful in this game.
Chartpattern.com Review Summary
1000% returns. 200% growth rates. Explosive stocks just waiting to melt-up. Dan Zanger knows just what to say to get traders foaming at the mouth. But should we trust him? Well, considering there's a track record to prove it, he's hard to dismiss. Chartpattern.com's service -- The Zanger Report - is a detailed newsletter of what's hot in the market, what stocks you need to buy and why.
The subscription is priced at $125 per month or $360 per quarter. The best part about signing up is undoubtedly the free trial. You get two full weeks of Zanger's newsletter (six in total) so you can follow his picks, tally the gains and losses and see if he still has the magic touch.
From our perspective, we think it's worth a try. It's expensive, but if you have a large bankroll and enjoy trading, it can be a valuable addition to your toolkit. More importantly, Zanger doesn't make any outlandish promises. He's transparent with disclosures and performance warnings and also acknowledges that trading is a process and that it's easy to get discouraged if you don't hit pay dirt right away.
With more positives than negatives, a risk-free glimpse into Dan Zanger's world offers little to lose - and who knows -- maybe a lot to gain. An alternative to his newsletter is The Motley Fool Stock Advisor.