|How I Made $2,000,000 In The Stock Market
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How did a world-famous dancer with no knowledge of the stock market, or of finance in general, make 2 million dollars in the stock market in 18 months starting with only $10,000? Darvas is legendary, and with good reason. Find out why.
- -- A Classic and Superb book
This book is one of my top ten of making money in the stock market. I read this book numerous time and I never get bored. I have always referred back to this book for advice. I admired the author on his independent thinking and studying the complex stock market. The book is easy read and you learn a ton on this book. I highly recommend this book along with William O'neil books. ...more info
- General principle still works but technical approach is timed.
The strength of this book is that Darvas was able to adjust his approach with every failure until he met success and this is still important to success in today's market. His first losing streak taught him not to listen to brokers, rumors, financial advisors or wall street sayings. His second string of losses taught him that trading on your perceived value of a company based on studying financial information is not likely to work since this tells you the past and has little predictive power.
In the recent Bear market going long would have been a losing game. This was also the situation when the stocks Darvas was trading hit their stop losses during the mini bear market then, stressing the importance of trading with the general trend as is the case today.
His technical approach is based on the theory that stocks trade in boxes. Once the boundaries of a box are established the move past the upper boundary three times indicates the establishment of a new box. This indicates that a new trend is established which a trader should get into. While this approach may work for few blue chip stocks today, it is not likely to work for the majority of stocks. The reasons are: (1) the quick flow of information results in much higher volatility and in many cases frequent break in and out of "Boxes", while in several others stocks move quickly without such boxes even being established. (2) Decimalization, which was intended to reduce bid - ask spreads to provide a better deal for individual traders, facilitated manipulation of stock movements by market makers by making it easier for them to hide the trend due to small spreads. This in term resulted in much higher percentage of false breakout from boxes, even in many cases occurring on heavy volume.
If you are interested in using Darvas box method it is advisable to confirm the breakout using other technical signals.The book deserves 4 stars for the good general principles that are still useful today and for Darvas ability to even come up with the box method then.
- 2M from nowhere but good read
Darvas provides an interesting account of someone picking up share trading. He discusses the highs, lows, emotions, protection mechanisms, pitfalls and learnings. The book though is old - 1960s I think - and does not delve into the modcons of trading today. That's one of its beauties people say. It is also light on basic info required for a decent assessment like: why certain S/Ls were chosen; timing of trades; why particular stocks were chosen etc. Often it says things like - I liked the look of this stock, or it had a good feel to it - which is annoying if you want to know why. ...more info
- SHORT AND SWEET
I DON'T NEED TO GO ON AND ON ABOUT HOW GREAT THIS BOOK IS, BUT JUST ONE THING SUMS IT UP...I HAVE READ DOZENS OF STOCK MARKET BOOKS, BUT NONE AS GREAT AS THIS AND IT TOOK ME FROM LOSING IN THE MARKET TO WINNING...ITS THAT SIMPLE....more info
- The Worst Stockmarket Book I have Ever Read
I am extremely disappointed with Nicolas Darvas' "How I Made $2000,000 in the Stock Market?". When I first learned about the title it suggests that I will learn about the tactics and strategies of how to win $2000,000 in the stock market. It turns out that the title is false and misleading. All Mr Darvas did is to describe "what" he did to earn $2000,000. At no time did he mention the "how" to make $2000,000 in the stock market. Furthermore, the timeline was not appropriate. All the shares were bought in the 50's and now we are in 2009. Is Mr Darvas still alive? I feel I have been cheated by this book and lost a small fortune. Dr Jusuf Hariman....more info
- More like a pamphlet than a book, but still good...
Kind of antiquated now, but still a good story. The author tells the story of how he made a fortune in the markets - $2 million in his time is probably more like $10-$15 million now. He started by investing based on tips, then on fundamentals, and finally by combining technicals and fundamentals. It's educational and very readable. The amazing thing is how little Wall Street and the investing world have changed since Darvas made his fortune in the 50s. ...more info
- " Confused, excited lamb"
Nicolas Darvas says he used a techno-fundamentalist method based on the long term growth of a certain industry group and, specifically, the strongest stock in that group to make two million dollars in the stock market ( see page 117 of the book). But the book failed to provide satisfactory evidence of any fundamental analysis and his box theory lacks sufficient explanation. It all seemed a bit "airy - fairy " and judging by the questions and answers in the appendix so did a lot of other people....more info
- A Must-Read Trading Book
This is one of the absolute "must-read" books for people who want to start trading. Do not expect to get a guideline how to get rich quickly when buying this book! The value of this book is the openness in which Darvas describes his way from a bloody beginner to a successfull trader, covering not only the sunny side but also in the faults he made when buying stocks and the mental aspects which impact traders when the market is against them. ...more info
- Timeless wonder
One of the biggest take away one can take from this book is that stocks
in a strong group goes up together or goes down together. A very recent example and one repeated so many times is that in aug 2007 when shipping stocks were going up Dry bulk shipping, excel meritime, diana made good gains, when they went south in Dec 2007 they all tanked together. Another example is the solar stocks in 2007 a very strong group considering the energy other group was performing the best and FSLR, STP, and many other solar companies made the strongest gain. FSLR went up by 710% since its IPO in 2006.
We may see similar ones in future one of them may be the Visa IPO (ticker symbol V) will it repeat the same feet as master card, well time will tell but I am positive on it. ...more info
- a general idea how the market really works
I read this book in two days leaving me more confident as an investor. What Darvas does it gives the reader a better understanding of the realities of how to achieve success with little risk and better profits. His story of success shows common sense prevails. Its an interesting and somewhat amusing read....more info
- good read for investors from 8 to 80
Thinking about getting the teens involved in finance? Then this is a great first book. I enjoyed it after 20 years in the market, and learned some good lessons. Should be on the shelf, and a must read for the investing family....more info
- Easy Read
For me this was an easy read. Darvas seems to identify most of the mistakes I've made in my investing lifetime, wish I had read this 20 years ago. Tough part of following his concepts are finding which stocks to watch. Worth the time....more info
- Outdated and not appplicable to today's markets
I made the mistake of buying this book. It is outdated (telegrams) and the examples or actual buying and selling do not and cannot match today's market requirements. The writing is awful and the ideas presented are unrealistic. A book from 1952 cannot be used as a guide for making money in today's market. There are some classic books (Graham) that will remain fundamental, but this one is not such a book. Save your money and this book goes in the trash. ...more info
- Entertaining and inspirational
When I first looked at the title, my thought was "Yeah right..." I started reading nonetheless, and read the book in one sitting. It was a page-turner, if that's possible with a book about investing. The book is concisely written, entertaining, and inspirational. One of the lessons in this book I immediately applied to my trading was to eliminate "noise". So bye bye to CNBC and TV/Internet gossipping of markets and stocks. It seems to work so far.
I recommend reading this book and William O'Neil's book "How to Make Money in Stock Market". ...more info
- great book
this book give you the rules for winning money in a bull market and stand aside in bears markets.Great book....more info
- Of historical interest...
An amusing little read - - but buy O'Neil's book on how to make money in the stock market if you really want to get into the detail....more info
- Fun Little Book and Useful Too
My style of trading is not similar to Darvas' style, so I didn't learn too much to help me in that respect, but others might. His style closely resembles William O'Neil's CANSLIM trading system.
However, outside of his trading system, the book is well written and engaging. Darvas well conveys the problems with trading and many of the impediments to making money. I'm sure many of us will see something of ourselves in his mistakes, and thus be able to learn something. This is a great book for any beginning investor....more info
- How I Made 2,000,000 in the Stock Market
This book is a must read for ALL investors trading in the stock market today. Nicolas Darvas makes so many great points that he had to learn the hard way. It's a short, easy read that will enrich your trading skills greatly....more info
- A system that made $2million in 18 months still works today
This is a truly great book! I had been aware of the importance of having a trading system to "protect" you against the emotions of stock trading for a while now. 90% of people lose money in the market. Why? Because they try and predict stock prices and get emotionally involved. They also do not know how to read entry and exit signals.
Darvas was a dancer in the 1950's who invented a completely unique stock trading system - one which still stands tall today. His system automatically sold him out of bad markets but let his profits run with rising stocks. He gave up trying to predict the market and decided to actually follow the market and let it dictate when to make a move either way. This way of working changed the emphasis of his making large losses into his making of even larger gains ($2m in 18 months - probably $10m in today's money!). The book outlines the system he successfully used.
It is, however, difficult to tease the system from the text. Darvas writes well but you have to read the book several times understand all the nuances of his system. Even then, after four readings I had some questions. If you're serious about making money in the market or are fed up losing money, you really need to read this book. If you're not fed up of losing money, you must be mad!!!
Searching on the net for more information on how to construct Darvas Boxes (essential to his system) and screen for winning stocks led me to an updated version of Darvas' system. I highly recommend this system as an adjunct to the Darvas book. It elaborates on the principles outlined in this book and gives you all the tools you need to screen for the type of stock Darvas was interested in - on the Internet! Screens for stocks that have 200% increase in volume, are near their all-time high and have good earnings are all part of the package. Automatic plotting of Darvas boxes is also included.
I found after reading both the Darvas original book and the system [...]
my stock picking has now made me some money. Why not start right here and do the same?...more info
- Read it or regret it!!
To become a great stock investor, I believe one must incorporate both fundamental and technical approach when picking a company to invest in. I came to this belief after reading this book. Mr. Darvas's failures in reaping profit in the stock market when employing only the fundamental or technical approach is clearly evident in the book. He later realizes the importance of both approaches and uses both to make $2 million dollars. He terms it "techno-fundamentalist method."
He also used volume(trade) and price to find the potential stock. He would ask for the price of a stock from a broker when there was a sudden significant increase in the volume(trade) or price of a stock. A sudden increase in the volume(trade)implies that many investors are dumping and trading their stocks which Darvas saw as a key to exponential price increase. Seeing this as an advantage, he jumps in and buys the stock after couple days of price increase. A smart move, as he made a huge profit. Another useful approach he used to make profit in the stock market was his "Box-Theory." He employed this approach primarily to control his fear of losing alot of money in the stock market. A clever idea as it turned out to be. There are more information you can find from this book so read it or regret it!!
- Finally a book that walks you thru ones life experience
For those of you who have not purchased this book yet because you feel the title reminds you of a weekend infomercial, you are making a HUGE mistake. As a market investor for 5 years, I have yet to find a better book on how someone made so much money in the market and how they did it. Written similiar to a diary Darvas shares his first five years worth of mistakes, all of which we have made and the progression he made in himself in identifying his "box system" or better known as "techno-fundamental analysis". One of the better subjects in this book that gets addressed, is how human emotion wears on someone who has invested in the market. While he does not give advice on how to control ones emotions, its great to see that the same fears and excitment we feel as market players, is also shared with the greatest of all-time.
How I made.. is a quick read, and can probably be read from cover to cover in a few quick hours, and will definetly be one you will want to read many times over....more info
- Wall St Fairytale
As a participant in the financial markets for the past 3-4 years I have been keen to read as many books as I can about the industry (much like Darvas). This is a title that had come recommended to me by various co-workers and on a number of internet websites.
The book itself discusses the Darvas technique of using technical analysis combined with fundmental analysis to make investing decisions and how he stumbled across this method. This technique wasn't uncommon then and is still used today. That being said, I believe it still has more merit than using one or the other alone.
Although Darvas does not give away his secrets, it provides a rough blueprint for developing a trading style. It also acts as an inspirational story for those starting out in the markets that if you are willing to work towards becoming an exceptional trader, it is possible. I wouldn't call this a 'bible' of financial markets, but as far as fairytales on Wall St go, this would have to be the equivilent of a Brothers Grimm tale.
An enjoyable read which should inspire the Darvas in all of us that Wall St can still yield financial freedom....more info
- The Diary of a Wildly Successful Trader
How I Made $2,000,000 In The Stock Market is one of those titles that comes up quite often in discussions of what books traders should read. Given how long its been in print, that probably should come as no surprise. While I won't personally go so far as to call it a must read, I definitely found it worthwhile.
First, be aware that this book - at least this particular edition - is quite short. It's only a bit over 100 pages, and a healthy portion of that is editorial addition tagged on to help further explain the author's story, along with some Q&A with Darvas tossed in. You should easily be able to get through it in one sitting.
Second, this book - again, at least this edition - was very poorly copyedited. There are formatting issues all over the place. It's not necessarily the easiest book in the world to read to start with, as the author's narrative leaves something to be desired. The formatting issues, don't help make for a particularly enjoyable reading experience.
Thirdly, you will note that I have used "story" and "narrative" in describing the text. That's exactly what it is. Nicolas Darvas was a professional dancer who performed all around the world. The book describes how he somewhat randomly got into the stock market, and then the progression he made to building a $2 million portfolio for himself. All of it takes place during the 1950s, so be prepared for the author to talk about cables and things that modern readers will have little to no point of reference on.
At it's core, How I Made $2,000,000 In The Stock Market is a trading diary. The bulk of the book is a discussion of the various trades the author made over about a 6 year timeframe. Some readers will find that interesting, others will yawn. But that's not what you read this book for, fortunately.
It is the developmental path Darvas takes from newbie to multi-million dollar trader - which the author interweaves with the discussion of his trades - that is the read value to be had from How I Made $2,000,000 In The Stock Market. Anyone who has gone through that developmental process as a market participant will immediately be able to relate, and those who haven't yet (or are just starting to do so) will see that even wildly successful traders went through their struggles.
In parallel with the author's discussion of his personal trading development is also the construction and refinement of his trading strategy. As is the case with most traders, he started on one path, but shifted course several times until he finally found the methodology which suited him best.
Darvas employed a combined fundamental and technical approach which is the core of the popular CANSLIM methodology outlined in How to Make Money in Stocks. It's not an exact thing in terms of application, as Darvas developed an entry/exit strategy based on what he called boxes, but a great deal of the preliminary set-up elements are very, very close. That philosophy is definitely something that works. I can personally attest to it myself, though I have never employed Darvas Boxes or anything like that.
The issue a reader might have, though, is that the outlining of this methodology isn't concisely presented. Rather, it's spread out over the course of the narrative, presented in bits and pieces over the timeline as Darvas refined his approach to trading. It would probably take a couple of readings to really get a handle on things.
Overall, I definitely think there's value to be had in How I Made $2,000,000 In The Stock Market. If nothing else, it proves that part-time trading can be extremely rewarding. As I commented above, it's not a great read as books go, but there are quite a few good nuggets in the text if you can fight through....more info
- As a Financial web site publisher
I found this book very informing. I am using some of the approaches to filter stocks for our large subsciber base. But using marketspath expertise in market timing to enter and exit trades. www.marketspath.com...more info
- A Bad Joke
I purchased this book due of all the great reviews listed on this site. This book is absolutely useless and does not teach, provide or give the reader any insights into trading stocks. This book is a waste of time and a waste of money. ...more info
- A Classic, should be on everyone's required reading list
As cheesey as the title sounds, I read the reviews of the book and decided to give it a day or two of my time to see if it had anything useful. The book was recommended to me by some very successful traders so I picked up a copy. I read investment books continuously trying to figure out the seemingly psychotic behavior of the stock market. I was very pleasantly surprised by this book. This author, even though writing about experiences 50 years ago, had a fantastic review of his trading. I was riveted by each page because he went thru what I went thru when I started out trading. His conclusions were right on and his trading style works. It isn't anything fancy but basically states what it took me 20 years of trading to conclude. The good news for me is I am doing basically what he did and I am successful in this choppy market. All in all, a GREAT BOOK....more info
- Nothing to do with modern investing
This book is a fairy tale that does not teach you anything about how the current financial markets operate and how to trade and invest money. Try Toby Crabel's book or articles which are hard to find, but presents the best approach to trading the current markets. He is a professional money manager and trader, while the author of this book is a jazz dancer.
Why not give your money to an actor from Hollywood for that matter?...more info