If you are looking for a book that will inspire you to achieve your financial goals, you might want to read How I Made $2,000,000 in the Stock Market by Nicolas Darvas. This book is a classic stock market text that tells the story of how a dancer-turned-investor made a fortune by following his own unique system of trading.
Nicolas Darvas was born in Hungary and studied economics at the University of Budapest. He fled his country during World War II and became a professional ballroom dancer with his half-sister. He traveled the world and performed in many countries, but he also had a passion for reading and learning about the stock market.
He started investing in 1952, when he received some shares of a Canadian mining company as payment for a performance. He was surprised to see that the shares rose in value and he sold them for a profit. He then began to look for other stocks that were hitting their 52-week highs and bought them with the help of his broker.
He soon realized that he needed a better way to select and manage his stocks, so he developed his own method, which he called the "Box System". He explained this system in his book, How I Made $2,000,000 in the Stock Market, which he wrote in 1959 after he had accumulated his fortune.
The Box System is based on the idea that stocks move in predictable patterns within a range or a "box". Darvas would draw a box on a chart around the highest and lowest prices of a stock during a period of time. He would buy the stock when it broke out of the upper boundary of the box and sell it when it fell below the lower boundary. He would also raise his stop-loss order as the stock moved higher, to protect his profits.
Darvas used Barron's Magazine as his main source of stock selection. He would scan the weekly lists of stocks that made new highs and lows and look for those that had strong earnings and sales growth. He would then study their charts and apply his Box System to determine when to buy and sell.
He also avoided listening to any news or opinions about the stocks he owned or was interested in. He believed that his system was objective and reliable, and that any external influences would only confuse him and interfere with his judgment.
Darvas was able to make millions of dollars by following his system, even though he was often traveling and had limited access to information and communication. He proved that anyone can succeed in the stock market if they have a clear strategy, discipline, and patience.
How I Made $2,000,000 in the Stock Market is a book that will motivate you to pursue your dreams and show you how to overcome any obstacles or challenges along the way. It is also a book that will teach you some valuable lessons about investing and trading, such as:
- Don't let your emotions get in the way of your decisions.
- Don't be afraid to cut your losses and admit your mistakes.
- Don't chase after hot tips or follow the crowd.
- Don't overtrade or overcomplicate your system.
- Do your own research and analysis.
- Do follow the trend and momentum of the market.
- Do diversify your portfolio and manage your risk.
- Do learn from your experiences and improve your skills.
How I Made $2,000,000 in the Stock Market is a book that will inspire you to achieve your financial goals.
Comments
Post a Comment