3 Stocks Champion Traders Are Betting On

Dan Zanger is a revered name among traders. His legendary story of turning $11,000 into $18,000,000 over the span of a year and a half is not one we’ve been able to corroborate but regardless his profitability has not been questioned because his approach to trading is time-tested.

What Dan does that few academic finance professors would advocate is to put most of his eggs in a very few baskets. A handful of stocks is all Dan likes to trade and he tends to favor the leaders.

These days, those leaders are Nvidia and SMCI. And so it’s no surprise to see legendary trader Stan Druckenmiller also in Nvidia – it represents his third largest holding after Microsoft and Coupang.

So, what other stocks are top of the list of top traders these days?

Key Points

• Strong earnings growth, lots of volume, and a breakout are key ingredients to trading success according to Dan Zanger.
• Stocks like Meta have been displaying strong revenue and earnings growth over the past four quarters.
• Other technically attractive candidates now include Uber and NET among others.

How To Trade Like a Champion

The key to trading like Zanger or other trading champions is largely to remain patient and wait for breakouts. Sometimes the basing takes months and the breakouts that lead to profitability happen quickly. That’s why it’s important to be keeping an eagle eye out on which stocks are breaking higher and when.

Zanger also likes to bet on higher-priced stocks. He says once he moved away from trading cheaper stocks, he started to win. There is a good reason for that. The higher priced names had the support of institutions and so the liquidity and large capital needed to power big moves.

Dan also likes companies that are growing fast. If earnings growth is higher than 50% that’s a great sign that the future will be bright for the stock.

Sometimes it’s hard to get all the ingredients to mix perfectly but if you get leading names breaking out on high volume, you’ve got some strong tailwinds that can produce very large moves.

What stocks these days are displaying those characteristics?

Top Stocks Today

Beyond Nvidia and SMCI, other stocks that qualify these days for Zanger’s shortlist include Meta. Zuckerberg’s firm has been displaying the type of fundamental acceleration Zanger likes to see. Both revenues and earnings have been accelerating higher over the past four quarters.

Another stock on the list is CAVA, which technically has pulled back to find support on the gap. As the 10-day EMA catches up to the price action, an opportunity presents for bulls to ride the wave higher.

A further stock is NET, which powered higher on a gap, gave back some of the gains but remains above the gap and has started to base nicely. Displaying very similar action is OSCR.

A penultimate contender is DECK, which has shown lots of strong action and been basing nicely recently too.

And last but not least is UBER, which has seen its 10-day EMA catch up to its recent price action. It’s been in a narrow trading range for the past few weeks and may be a little extended but offers opportunity to bulls also.