How I Made $2 Million in the Stock Market: The Darvas System for Stockmarket Profits

interesting story with some good lessons

Darvas travelled around the world performing as a dancer and taught himself how to trade successfully. How did he do it ? He used common sense and kept things simple, along with applying lots of discipline. His principles still apply today and the Darvas Box is still useful in todays world of technical indicators and up to the minute news.

Entertaining story that also teaches some valuable lessons

Traderstan

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simply love it

I loved the system of Nicolas Darvas, and also loved the way he wrote the book! I laughed a lot in the beginning of the book, when he wrote about his emotions as a novice trader... Im also Hungarian, so it is great to know about a recognized and successful trader, liket him.

Adika223

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If a dancer can make money, so can you!!

I enjoyed this book as it was a good read, however if I was being cynical here's what my review might read like

"Make $1million and find a stock that doubles"

To be fair, it is not quite as simple as that. Darvas develops a solid breakout strategy which he trades with good discipline. It also exemplifies the need to stick to a strategy.

His Darvas Box technical indicator is very much alive and kicking in todays TA world.

AtticManTrader

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Stick to a strategy

Nicolas Darvas is the pinnacle icon of sticking to his trading strategy. He developed his trading rhythm and strategy as he was traveling around the world as a professional dancer. Like many of those that succeeded in the market, Darvas kept to his roots and executed trades only from his understanding and his own unique strategy. He made millions.

Huwwaa

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This was a really great read!

I have had this book hanging around for well over a year now but for some reason, I was compelled to pick it up and read it the other day - I thought it would be a bit dry and boring like Reminiscences of a Stock Operator could be at times but how wrong I was!

This was a rip-roaring read! And actually a very short book too - about two-fifths of the book is appendix, Q&A letters, charts and stocks picked.

Although the events took place in the 1950s, as a new trader I found the lessons really useful. The biggest lesson I took away, was simplicity - Darvas traded by feel; he would receive telegrams as he traveled the world with minimal information in them. Through this method, he learned to 'feel' the stock price, just as Lefèvre does in 'Rem of a Stock Op' with the ticker tape... In the story, it is only after his first half-million that he gets all cocky and goes back to NY to trade on Wall Street - almost immediately he loses his edge, starts listening to gossip, rumours and tips and forgets all his own rules and lessons.

This made me realize for myself - with all this 'stuff' we have now - DVDs, books, Twitter feeds, blogs, news channels, radio, spam, pumps, forums, newsletters etc etc etc... we are bound to become confused and overwhelmed!

If Darvas could simplify it, so can we - pick a few stocks with massive potential and get a feel for them. Stick to one method, get an instinct for it instead of jumping from method to method, guru to guru - all the lessons we need can be acquired by asking ourselves the questions we need to ask ourselves, in a timely fashion....

I recommend this as one of the essential books to read for new traders/investors.

Irukandji

Irukandji

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I may be the dissenting opinion here....

This book was a bit repetitive, but a fun read about some fantasy favorable-coincidences. The system Darvas used, while exceptionally effective for him in his era (and ThinkorSwim has it built in as a Study), is really not as relevant today imo.

The big gains he made were virtually all just random good luck in the book. It's nice that he made the money, and I'll never hate on someone for doing well in the Market, but it's not exactly an "educational" book or anything.

This is what can happen if you have discipline, excruciating patience, and a series of statistically improbable events that one cannot try to plan for while devising a trading strategy.

When you're done reading about how Darvas won the lottery slowly, pick up some books on reality to crush the childish fantasy hopes of improbable coincidences that ruin traders. If you have hopes of "good luck" or if there's any superstition in you that wasn't extinguished before gradeschool, get it out before it it costs you your principle with reads like:

"How We Know What Isn't So"

"Extraordinary Popular Delusions and the Madness of Crowds"

"Beyond Good and Evil"

"Wisdom of Crowds"

"Fortune's Formula"

"Religion Explained" (not to offend your beliefs, but to illuminate the psychology behind this type of thinking and hone your ability to resist getting sucked into wishful-thinking and fantasies devoid of any supportive evidence just because other people seem to be buying it)

NeverEnuf81

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Great Book

Too much leverage for me but a great book on trading. The evolution of trading styles is a true spectacle to study. The psychology and emotional detail in this book are to be sought after, as it is a huge help for beginners.

Tommy_Kurtz

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One of the best trading books there is.

Excellent book following an amateur trader slowly working out a system as he travels around the world sending telegraphs of trades to his broker. Was he just lucky or did he create a system that had stood the test of time and still works today? Read to find out.

Bradlishman

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Fun, Quick, Interesting

A really interesting book and a quick read about a man who made $2 mil in the stock market in the 50s simply through trial and error. While there isn't a whole lot in the way of hard information, it's still educational in that we can learn from Darvas' mistakes. He believed in "technofundamental analysis" and realized that chart patterns could often tell you private information (For example, he saw a stock slowly rising despite great fundamentals. He bought and then news came out that there was a merger in the works and the price increase was due to insiders buying). He also describes his trading theory known as the "box theory" which is essentially buying on breakouts and selling on breakdowns.

This book is definitely worth the few bucks you can get it for on Amazon and well worth the 1-3 days it will take you to finish it. Add this to your library!

Duncan24

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Entertaining and very educational.

Entertaining and very educational. Talks about the evolution of a trader and the struggles and emtions. Good for beginners, good for motivation. I actually got this at the library.

Luke11

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