Nicolas Darvas was a world famous American dancer back in the mid 1900's. He also became famous for making $ 2 million at the fair in less than two years with an initial investment of less than $ 20,000.
After making a profit in some stock of a Canadian mining company (which he bought from the owners of a Canadian dance club), Darvas was addicted to chasing a quick buck in the Stock Market.
Like many before him, Darvas was convinced that having a first profit made, he was a kind of natural born stockbroker. But (again like many before him) Darvas took loss after loss on the Canadian stock market after buying in and out of the market on the advice of unreliable brokers and newsletters.
Tells himself that the Canadian Stock Market was small fry, he changed course to the New York Stock Exchange. Here (again) he took loss after loss, and buying from the market on the advice of brokers and newsletters. Seemingly always buy at the high - then witnessed a sharp retracement - and selling on the low.
Sick of buying at the high and sell low, and in a fit of desperation, Darvas plowed his money in a few stocks that were hitting their 52-week high. He was utterly surprised that the stocks continued to rise and then sold them to. A rare profit
Darvas decided to regroup to assess. These remarkable event And it was here that Darvas came up with his plan to trade in shares, which was to see a multi-million dollar fortune in just a few years to reach him.
From now on Darvas would be famous trading plan to implement. To select the new 52-week highs and suitable spikes in volume combined with favorable fundamental research of the company shares.
This method also showed Darvas remarkable insights into a stock price behavior, often revealing the signs of 'inside buying' for companies release of favorable news to the public.
After accumulating his fortune, and is exposed in Time magazine, Darvas was to document in the book How I Made 2,000,000 in the Stock Market, his actions which is also worth reading if you are interested to learn more about his techniques. It would probably be the best $ 10 you spend on your investing education fair!
Dominic Foster is a full-time Software / Web Developer and a part-time blogger. You can visit his blog at and Nicolas Darvas Blog on
No comments:
Post a Comment