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Nicolas Darvas was a dancer, self-taught investor and author.
During his off hours as a dancer, he had read some 200 books on the market and on speculators, sometimes reading up to eight hours a day.
At the age of 39, after accumulating his fortune and also being exposed in Time magazine, Darvas documented his actions in the book, “How I Made 2,000,000 in the Stock Market”.
The book describes his “Box System”, which he used to buy and sell stocks.
In this post, I will share all the best trading tips and quotes from Nicolas Darvas, so that we can learn from his knowledge and experience.
Here are some of the best trading tips and quotes by Nicolas Darvas:
- I believe in analysis and not forecasting.
- All a company report and balance sheet can tell you is the past and the present. They cannot tell future.
- First check whether the market as a whole is rising or falling. In other words, are you in a bull market or bear market? If the latter, stay out. The odds are against you.
- I knew now that I had to keep rigidly to the system I had carved out for myself.
- I was successful in taking larger profits than losses in proportion to the amounts invested.
- I decided to let my stop-loss decide. (on when to exit an up trending stock)
- I also learned to stay out of bear markets unless my individual stocks remain in their boxes or advance.
- I became over-confident, and that is the most dangerous state of mind anyone can develop in the stock market.
- I decided never again to risk more money than I could afford to lose without ruining myself.
- I made up my mind to buy high and sell higher.
- I accepted everything for what it was-not what I wanted it to be.
- I listened eagerly to what they had to say and religiously followed their tips. Whatever I was told to buy, I bought. It took me a long time to discover that this is one method that never works.
- Like human beings, stocks behave differently. Some of them are calm, slow, conservative. Others are jumpy, nervous, tense. Some of them I found easy to predict. They were consistent in their moves, logical in their behavior. They were like dependable friends.
Now that I have shared the best trading tips and quotes from Nicolas Darvas, which is your favourite trading tip?
Let me know in the comments below.
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Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.