I was looking for a YouTube video with maniacal laughter to express my frustration with my judgement — that part about getting into an illiquid leveraged gold miners ETF.
And this came up:
DAN ZANGER folks!
As some of you may know, Dan Zanger recently used a fake account to try to intimidate @GuruLeaks1. The fake account is @ChartStocks. I’m digging into the question of whether Dan’s claims to have made $42M in trading are true — along with GL and others.
- He has claimed to have realized a 29,000% return, as documented in what he has alternately called an audit and a performance report. It is, in fact, a “performance report” used for marketing purposes, and produced by a firm that offer such services. Effron (now Informa) was never an audit firm. Note that the amount realized is $3.2M. There are no individual trades recorded in that report. None. Nada. But it wouldn’t matter if there were, because it is not an audit.
- He has claimed to have turned $10K into $18M, and to have turned $11K into $18M, and to have turned $10K into $42M. Nowhere are these results offered for review. They also do not correspond to his “performance report”, which he offers as an “audit”. A realized return of $18M is a 160,000% return!!! Was it 12 months? Or 18 months? Or two years? Or?
- He used a fake twitter account (@ChartStocks) to pose as a lawyer, offering the support of his “firm” to help himself with an “infringement” case against @GuruLeaks1. GL just wanted Dan to post an audited track record. In the Twitter exchange, I asked @ChartStocks if he was a lawyer, but received no reply. I pulled up a cached web address, ChartStocks.com, and was directed to ChartPattern.com. The two sites were registered in 1998, six months apart…by Dan Zanger.
There is much more to this story:
- How the Forbes author may have interpreted tax returns at face value, but failed to review Dan’s broker statements! (I will keep my theories about those earnings to myself, for now.)
- How over time he created a narrative that is now self-reinforcing and perpetuated by a social network with its own incentives.
- How he revises the history of his performance, how he cherry picks his analysis, how he creates the impression that he profits from his “calls”, how he calculates the probabilities of his patterns and how he calculates (theoretical) earnings from them, how his members (anonymous of course) earn six and even seven figures from his calls…
- How unscrupulous affiliate marketers and trading educators have partnered with him and constantly pump his service without even so much as a sideways glance at his claims…
All Dan has to do is publish an independently audited track record. I’d say it’s worth the effort. Developing.
Cue maniacal laughter –> https://www.youtube.com/watch?v=WaIJKM0sjdo