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#1.0 "...At the same time, he places a stop-loss sell order just below his buy order, so that if the stock does not move straight up after he buys, he will be sold out and his loss cut. "I have no ego in the stock market," he says. "If I make a mistake I admit it immediately and get out fast." "
#1.1 "...buys when he feels that informed buyers are getting in"
#3 (ditto MrPaul) "trained for the market just as methodically as he had studied his dancing" |
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Read the Book on Darvas:
Nothing more than a
simple breakout trading method utilizing common sense. If the Stock broke out from a long trading Sideways range and established a new trading range ( "Box Theory" ), then He would place a BUY STOP at a key Level of Resistance.
If there is no follow through after the breakout he would get out with a very close tight STOP Loss ( since he did NOT have the time to follow the Stock due to his Dancing Profession), he was obviously
looking for follow through breakouts with HIGH Volume.That combined with the Small Cap Stock selection of innovative companies, another common sense approach. The " Informed Buyers" timing method he used was nothing more than High Volume confirmation, since his Dancing Tours did not allowed him to talk with any informed Brokers, Analysts or other Investors ( amplified, self serving B.S )
What is truly amazing is how narrow minded and naive were the Reporters of Time Magazine and the general public that promoted Darvas to look like a Genius ! Truly deceiving and a gross distortion of Journalism and Public Information ! lol