Stocks are the fastest way to become rich – or poor. The favorite method of becoming the former is to bet on growth stocks that are making a new high.
A long time ago Nicolas Darvas wrote a fine book about this strategy with the pleasant title “How I made two million dollars in the stock market”.
Nowadays markets are a bit harder to trade. The other side is not only a market maker who relies on making the spread, but high-frequency trading robots that try to steal cent after cent from you. They react faster and better to the market than you can, topping your limit or hitting the other side in the right moment and causing more slippage for you. There are position trading systems that are able to calculate the probability of recurring patterns, which they then seek to exploit, leaving trend traders with heftier price oscillations and a bigger entry risk.
Here and now you are introduced to newly found secrets regarding the “Darvas method”. At least that is what the site below is claiming. With or without new secrets, the essential stock market wisdom from the fifties of the last century is still valid. The system of Nicolas Darvas is the direct adaption to the very nature of the stock market. Why?
Stocks are bets on growth potential and they are offered as such on their birthday. They are like options without a fixed expiration. Some of them fulfill their promise and advance, making more new highs than all others. Thus an advancing price at the high is the best indicator for more growth and price advance.
A system trying to enter such positions is best aligned to this indicator and to the whole idea of the stock market. That is the real secret of this system and it makes it the best possible system. Of course, so and so many day traders think otherwise, not to mention value investors.
