$10 K => 42 million: Why Dan Zanger is richer than most traders

[N Rothschild]

if you take 100 traders and let them use insane leverage, obvisouly one or two will get lucky and make it big! but the majority will blow up in a most spectaular fassion! i have blown myself up before using insane leverage...its works untill it goes wrong!

 

[bullmarkets]

That's where the luck comes into it though, or to put it another way I'd be reluctant to list Zanger as a role-model for newbie traders. I was talking to a guy who is an account manager at one of the big spreadbet firms recently, and he said they get a surprising amount of people who go from a starting point of less than £10k all the way up to the £250-£500k level over a few months, using a combination of compounding and big balls, and then all the way back down again (usually to zero or less...!)

Zanger seems like a cool trader, but don't follow his advice on shorts. He just doesn't succeed with shorts and if you stick to his advice on shorts, you'd have major losses.

 

[bullmarkets]

if you take 100 traders and let them use insane leverage, obvisouly one or two will get lucky and make it big! but the majority will blow up in a most spectaular fassion! i have blown myself up before using insane leverage...its works untill it goes wrong!

So how do you manage such losses to avoid them getting out of hand?