Darvas methods?

Quote from opw:

When Darvas played this method he had the good fortune of a bullmarket (I think it was in de fifties)

I think Darvas was not looking at 52 week highs, but all time highs.

Also he combined a sort of a fundamental approach to it. (The stock had to be in a relatively 'hot' sector.)

The method would have worked well in the nineties (Bull market) with tech stocks (hot sector)

For now, I think we need to wait for a bull market making all time highs....

Might take 4 years or more though...
More...

Hmmm...not bad on your analysis.
 
Quote from Hume1515:

Wikipedia about Nicolas Darvas:

http://en.wikipedia.org/wiki/Nicolas_Darvas
More...

The text on the discussion page : " Check out the comments on elitetrader. Not too long after Darvas's book was published, a public inquiry was instigated..."
is an excerpt of "Crashes" by Robert Beckman pp216-218; and here's a diverting detail, Beckman, with all his arrogance, writes 'Darvis' instead of 'Darvas' throughout the three pages...
 
Quote from gaj:

just reread the book yesterday...here's changes (darvas, 1977) vs older darvas:

-> takes 52 wk high after a 'brutal bear market' rather than all time high.
-> does NOT enter the 1st breakout; waits for minor pullback, and THEN enters.
-> does not always enter if it feels wrong (i'm guessing the volume wasn't as strong as he wanted, but he doesn't say).
More...

Good rules.
 
I've been searching for information on the Lefkowitz charges against Darvas. One page I found referenced ET, but this thread is all I found. anyway, somebody updated the wikipedia entry on Darvas with this info:

At the age of 39, after accumulating his fortune and also being exposed in Time magazine[8] , Darvas was to document his actions in the book, How I Made 2,000,000 in the Stock Market. The book describes his unique "Box System", which he used to buy and sell stocks. Time Magazine subsequently reported (December 19th 1960) that the New York Attorney General had 'thrown the book' at Darvas charging that his story was 'unqualifiedly false' and that it could find 'ascertainable' profits of only $216,000. The action was the first to be taken under a broadened state law that banned fraud or misrepresentation in giving investment advice. In a follow up dated 13th January 1961 Time reported that the probe was blocked by the court, which ruled that the investigation by Attorney General Louis J Lefkowitz was an 'unwarranted invasion of the free press'.
More...

I have to admit, I'm disappointed right now, Darvas has been like a mentor to me through his book. I'm still looking for more info to verify this, but it doesn't look good if a specific issue of Time is being mentioned. I don't think someone would do that falsely.
 
You must log in or register to reply here.
Back
Top