Saturday, March 26, 2011

Trading lessons from Nicolas Darvas

Charles Kirk recently re-posted a very worthwhile rundown of trading lessons from Nicolas Darvas.

Here is an excerpt from that piece:

Nicolas Darvas has inspired traders for many generations. His book, “How I Made 2,000,000 in the Stock Market” is one that you’ll find on many recommended reading lists including my very own. While some have argued that much of Darvas’ success had to do with lucky timing, his books are still widely read and for good reason.

A lot of traders can identify easily with Darvas because he went through the process of learning how to trade much like most people do today as he first began by searching for the “secret” to making money in the market. And, just like all of us have found, after finding no success from trading on the stock tips of others including brokers and expensive newsletters, Darvas figured out that he ultimately had to develop a trading system on his own.

Check out Kirk's notes on Darvas' trading approach and the lessons gleamed from his famous book. This is a great rundown of the wisdom found in Darvas' personal approach to trading the stock market.

For those who'd like to read How I Made 2,000,000 in the Stock Market,
you can find it at Amazon or read it online, here in the Scribd Trading Books collection.

Related posts:

1. What makes a great trader? Managing risk - Finance Trends.

2. Interviews with Nicolas Darvas - Maoxian.