Nicolas Darvas created $ 2000000 from $ 25000 in just 18 months. Nicolas Darvas is one of the biggest names in the investor community who created wealth from the stock market. By learning and mistakes, Nicolas Darvas created $ 2000000 from the stock market in just a few years.
How Nicolas Darvas Made $ 2,000,000 in the Stock Market Book Summary l Journey of Nicolas Darvas
Nicolas Darvas born in Hungary in 1920. Nicolas Darvas graduated in economist from the University of Budapest. Nicolas Darvas started his journey with a professional dancer and accidentally turned into the stock market. In 1952 the Smith Brothers owner of the Latin quarter invited him to perform a dance show but the tragedy is Smith Brothers put the one condition that they will give shares of Brilund Company ( Canadian Mining ) instead of money. Nicolas Darvas thought what I will do of shares but after thinking a lot, he accepted the offer. One Decision can change Life the same thing happens with Nicolas Darvas. But unfortunately, Nicolas Darva could not able to perform that show. One day Nicolas Darvas called to Smith Brothers that he wants to buy Brilund Company shares and he bought Brilund company shares at $ 0.50 cents. After some days Nicolas Darvas while reading the newspaper he gets to know that the stock that he bought reached to $ 1.90. From that day Nicolas Darvas interest started in the stock market and his journey of stock market also started. He got the $ 8ooo appx. profit from Brilund shares.
Now Nicolas Darvas thought to take advice from market experts who are working in the stock market for many years because they know everything and are experienced. So Nicolas Darvas whatever earns from Dancing shows started investing in stocks like Ole Smokt Gas& Oils, Kayrand Mines, Resxpar, and that all are suggested by market experts. But unfortunately, he got losses from all stocks.
So now Nicolas Darvas decided to read news and research reports to pick stocks. After analyzing news and reports of many stocks he selected few stocks meanwhile he also doing dance shows. This trick also not works and he booked again losses. Now Nicolas Darvas in the confusion that how can I make money from the market Experts advise not working, news and reports are not working so he decided to go Wall street because the Canadian market is too much volatile.
When Nicolas Darvas came in Wall Street that time Bull market is running so whatever trader or investors buy they almost get profit. So he started day trading with multiple stocks and quantity by multiple transaction. When end of the day he checked his trades report he found that brokers are earning more than him because of lots of transaction increase the brokerage charges. So he decided to do delivery of stocks based on company fundamentals.
Nicolas Darvas started reading company fundamentals, research reports, and multiple books related to the stock market. After so many days of study, he picked one stock Jones and Laughlin. Now Nicolas Darvas have knowledge but not money to invest in stocks so he collected money from property. advances from dance shows and invested money into Jones and Laughlin. But Nicolas Darvas again got loss from Jones and Laughlin.
Now Nicolas Darvas again confuse how someone can make money from the stock market I tried so many ways to make a profit from the market but every time I got loss why………………………..
Nicolas Darvas thought to take a rest from the market. After some time he got to know that whatever stocks go up that goes up with volume. So Nicolas Darvas decided to pick stocks on the basis of strong fundamentals and stock that go up with volume. And he selected one stock Texas Gulf and finally he got profit. To check whether he got profit by chance or by strategy he picked one another stocks called M&M Wood and he again booked profit from that. After some days news came that M&M wood collaborated with a big company.
Box Theory of Nicolas Darvas l Darvas box theory
Now Nicolas Darvas understand that every stock trade-in box i.e in range so when that breaks range stocks go up or down. And Nicolas Darvas created the Box theory. As per Box theory if a stock breaks the range on the upside with volume that means a bullish view and if the stock break the range on the downside with volume that means a bearish view subject to other parameters.
With fundamentals and Box theory, Nicolas Darvas started selecting stocks like Lorillard, E.L Bruce, Thiokol chemical, Universal Products and earned more than $ 500000 profit.
After so many months of trading and investing he decided to become full time trader to earn more money from stock market. Nicolas Darvas started full time trading and he booked $ 100000 loss from different stocks now he realise that part time trading is more beneficial to him instead of full time. After all this he conclude that delivery of stocks are more profitable than day trading so he started positional investment and also started to put stop loss to reduce the losses.
Now Nicolas Darvas select positional stocks with box theory and fundamentals and also started to put stop loss to reduced losses, and he earned more than $ 800000 in a few months with this strategy.
How Nicolas Darvas earned $ 2000000 from the stock market?
After so many profitable trades Nicolas Darvas investment value reached to $ 800000 appx. Nicolas Darvas decided to put some amount of investment into four stocks Fairchild camera, Backman instruments, Zenith radio, and Litton industry that he picked by analyzing fundamentals and box theory. But this time he tried a different strategy, he invested only some percentage of money in equal weightage to four stocks and reserved the rest of the money to invest further with 10 % appx. stop-loss. After some days Litton industry and Backman instruments triggered the stop loss and Fairchild camera and Zenith radio started positively. Now Fairchild camera and Zenith radio shown positive he started investing more in both the stocks. After so many days when the broker checked the portfolio value of Nicolas Darvas which was more than $ 2000000 broker shocked and the news went viral that Nicolas Davras earned more than $ 2000000 from the stock market in few years. After investigating with Nicolas Darvas account Times published an article of Nicolas Darvas on the front page How Nicolas Darvas made $ 2000000 from the stock market.
Nicolas Darvas started with $ 25000 and created more than $ 2000000 from stock market in few years.
Top lessons from the world most successful trader and investor Nicolas Darvas.
Never depend upon others. First learn than create own Strategy.
Do your own research rather than depending upon news and reports.
Read Books and Company reports.
Trade with risk management.
Learn from mistakes.
Invest more on positive stocks rather than loss making stocks.
Thanks For Reading