eyoung
42 posts
msg #28230
- Ignore eyoung |
9/1/2003 8:52:03 PM
noah, what book would you read first and is best by darvas, how i made 2 mill or wall street like vegas. I want the one that explain the box theory
eyoung also, did you recommend the book master day trader
eyoung
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TheRumpledOne
6,407 posts
msg #28247
- Ignore TheRumpledOne |
9/2/2003 3:36:06 AM
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from HOW I MADE $2,000,000 IN THE STOCK MARKET by Nicolas Darvas
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page 34
1) I should not follow advisory services. They are not infallable either in Canada or on Wall Street.
2) I should be cautious with brokers' advice. They can be wrong.
3) I should ignore Wall Street sayings, no matter how ancient and revered.
4) I should not trade "over the counter" - only in listed stocks where there is always a buyer when I want to sell.
5) I should not listen to rumors, no matter how well-founded they may appear.
6) The fundamental approach worked better for me than gambling. I should study it.
7) I should rather hold on to one rising stock for a longer period than juggle with a dozen stocks for a short period of time.
page 55
"... I did not know what I learned later, that there is no such thing as CANNOT in the market. Any stock can do anything."
page 56
1. There is no sure thing in the market - I was bound to be wrong half the time.
2. I must accept this fact an readjust myself accordingly - my pride and ego would have to be subdued.
3. I must become an impartial diagnostician, who does not identify himself with any theory or stock.
4. I cannot merely take chances. First, I have to reduce my risks as far as humanly possible.
page 58
Objectives
1. Right stocks
2. Right timing
3. Small losses
4. Big gains
Weapons
1. Price and volume
2. Box Theory
3. Automatic buy-order
4. Stop-loss sell order.
======================================================================
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Noahedwinbeach2
135 posts
msg #28249
- Ignore Noahedwinbeach2 |
9/2/2003 5:10:13 AM
I would rec. how i made 2 million first. That book explains his theory. Also take a look at my site I made.
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eyoung
42 posts
msg #28264
- Ignore eyoung |
9/2/2003 3:09:14 PM
noah, where is your site?
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bob79924
38 posts
msg #28320
- Ignore bob79924 |
9/4/2003 4:16:23 PM
Regarding Darvas: Remember that things have changed a lot since he wrote his books. There was no internet trading, there were no flat rate commission brokers, and no competition on rates. He decided to trade only stocks with a large per share price because his commissions went up so fast when he traded large quantity of low price stock. This is no longer true. As I have pointed out before, with a flat rate commission, and with a low cost per share stock and therefore a larger number of shares, the breakeven point is much closer. For example (Ameritrade): For 100 shares, BE point is $0.22 above purchase cost per share. For 1000 shares, BE point is $0.02 above purchase cost per share. This is independent of cost per share, and only depends on number of shares, but you can obviously buy more shares with the same amount of money if the per share cost is lower. Ameritrade only charges one commission for all shares bought/sold on same day if the transaction gets split up. This helps too. I've been stung before when a broker broke up my transaction into several different trades and charged me the whole commission on each trade!
Definitely start with the $2,000,000 book, but good info in both books. Both have been reprinted recently and are not expensive in paper back. Keep in mind the above and other changes in the markets since Darvas' day.
Bob W.
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bob79924
38 posts
msg #28321
- Ignore bob79924 |
9/4/2003 4:18:59 PM
P.S. As I have stated elsewhere, Darvas' box method looks to me quite similar to what many today refer to as "rolling stocks". In fact, I don't really see a difference.
Bob W.
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bob79924
38 posts
msg #28323
- Ignore bob79924 |
9/4/2003 5:49:48 PM
P.P.S. Both Darvas books are available at the following place at less than $11 each: http://www.e-analytics.com/techdir.htm
Bob W.
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Noahedwinbeach2
135 posts
msg #28340
- Ignore Noahedwinbeach2 |
9/5/2003 12:13:44 PM
It really is the same. He just uses a method to discover stop loss prices and when to get out.
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