DARVAS trading

Quote from Brandonf:

Emerging leaders, to me, would be the names that have all the growth traits that will lead to stellar moves down the road, but for one reason or another the insititutions have not picked them up yet. In my experiance you can get some huge gains out of these stocks as both earnings expand and the price to earnings ratio explodes as more and more people buy into it. By that I mean this as an example. Two stocks earning $1.00 and growing earnings at 50%. One is relatively well known so its trading for $35.00 per share, the other is not, so its trading for $12.00 per share. A year later each is earning $1.50. All things being equal the $35.00 stock is now a $52.50 stock, pretty damn nice year. But, stock number two was "discovered" and is now a darling, so not only have its earnings grown, but so has its PE ratio, from say 12 to 20. Number two is now a $30.00 stock, and instead of a gain of 50%, you are sitting on a gain of 150%. You have benefited from both price to earnings expansion and earnings. This is very common actually and has been responsible for the majority of my overall gains in the market. There ya go, I just saved you $5000 on mentoring with me, coz in the past thats what I'd have charged you. I'd of course also teach you how to find those stocks, and the ones that are most likely to have the institutions pick them up, but honestly if you have any ambition, enough to show that your going to make it anyway, you will be able to take this and run with it, figure some stuff out. Hope it helped. If it did, as I've been saying for a long time I want a god damn Giordano's Pizza! :)

Brandon
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So Brandon,
You are charging 5000 dollars for something that is available in 20 dollar books.
you are not just old but also mean.
 
Quote from ehsmama:

Dear vetten,
I think Darvas method is very risk averse. IT Forces you to put staggered amounts of money into the BEST POSSIBLE STOCK you can find out of the whole universe of stocks out there.
Imagine if you invested all your money in Microsoft in 80s (do you think you would want to diversify?)
Personally, I can't thank Darvas enough for disclosing his method, since my long term account is up more than 10 times in 3 years, by using his techniques.
My frequency of finding rockets has been about 2-3 in any rolling window of 6 months period, also average holding time is also 3-6 months per position.
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well I for one am very impressed with your results.

now people might say that it is only because we had such a good market, but even in ranging and down markets you will find those gems although maybe less frequent.

would you be able to detail your selection process what you look for in the BEST POSSIBLE STOCK?
is that difficult? after all there are stocks every day with an all-time high.
reasonably smooth chart?
how much volume increase?
do you look for best industry?
do you jump in as it has an all-time high just at 2x yearly low?
do you look at more fundamentals than Darvas did, more like O`Neill/David Ryan?


could you also say more about your stops in these trades?
how tight is your stop when entering initial trade?
where would you place your trailing stop?

thank you for your time.:cool:
 
thanks Brandon,

I sure take you advice on board........I only hope that a Giordano`s Pizza wont cost me $ 5,000?!?:cool:

I`m very happy with you guys responses.:)
 
Quote from vetten:

well I for one am very impressed with your results.

now people might say that it is only because we had such a good market, but even in ranging and down markets you will find those gems although maybe less frequent.

would you be able to detail your selection process what you look for in the BEST POSSIBLE STOCK?
is that difficult? after all there are stocks every day with an all-time high.
reasonably smooth chart?
how much volume increase?
do you look for best industry?
do you jump in as it has an all-time high just at 2x yearly low?
do you look at more fundamentals than Darvas did, more like O`Neill/David Ryan?


could you also say more about your stops in these trades?
how tight is your stop when entering initial trade?
where would you place your trailing stop?

thank you for your time.:cool:
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Yes, in bear market I don't think there would such stocks. But then Bear markets don't last as long as Bull markets.

For me Most important is Price action looked at visually . All stocks I have bought were up 5X to 10X+ before I bought them but they still doubles and tripled. Strange but true....
It only take about 1/2 hour to 1 hour to scan 2000-3000 stocks nowadays.
Stoploss - if position not positive by EOD I get out, and get back the day stock is up 2-3% in morning. Normally such stocks end up 5-6-10% by the EOD. I add to position3-4 times everytime it makes a new high after a gap of few days.
Fundamentals are mostly to make me feel GOOD. Price action is of paramount importance.
One hint - Such stocks don't fall much when market goes down and make new high as soon as market stops falling. They normally have huge updays with very small down days OR they would be up almost everyday with hardly any down days...
Trailing stop - Visual inspection....Erratic behavior gets me out of the stock..
Hope this helps.
 
Quote from ehsmama:

So Brandon,
You are charging 5000 dollars for something that is available in 20 dollar books.
you are not just old but also mean.
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I'm only 30, and I'll let you in on a secret: About 99% of what is offered out there in seminars, mentoring, etc can be found in a book someplace. Another "secret" I never made anyone pay me until after the mentoring was done, and I told them that the std charge was $5000 for the week (which they spent with me staying in my guest house so they could work 15 hrs a day with me if they wanted too), but for them to pay me whatever they thought it was worth, if they thought it was less that was fine. I never had anyone not pay, though one guy had to leave on day 4 instead of getting to stay the entire 5 trading days and so he paid $3500. I also @ one point offered something like $100 for anyone here on ET (which is where I got about 80% of my members from) who thought had ever bought a product from me and thought that I had not given them anything but the best service/product out there to come forward and give a "bad testimonial" of me, and not a single person did. So, you can think of me what you want I suppose, but I think I ran one of the very few ethical "guru" type business' on the web until 17 months ago when I closed it.

Brandon
 
Quote from Brandonf:

I'm only 30, and I'll let you in on a secret: About 99% of what is offered out there in seminars, mentoring, etc can be found in a book someplace. Another "secret" I never made anyone pay me until after the mentoring was done, and I told them that the std charge was $5000 for the week (which they spent with me staying in my guest house so they could work 15 hrs a day with me if they wanted too), but for them to pay me whatever they thought it was worth, if they thought it was less that was fine. I never had anyone not pay, though one guy had to leave on day 4 instead of getting to stay the entire 5 trading days and so he paid $3500. I also @ one point offered something like $100 for anyone here on ET (which is where I got about 80% of my members from) who thought had ever bought a product from me and thought that I had not given them anything but the best service/product out there to come forward and give a "bad testimonial" of me, and not a single person did. So, you can think of me what you want I suppose, but I think I ran one of the very few ethical "guru" type business' on the web until 17 months ago when I closed it.

Brandon
More...

I am sorry Brandon, I don't know why I wrote that message. I apologise again.
Regards
 
ehsmama,

thank you for your post.

you`re the first one who thinks that Darvas` method is very risk averse.

generally people will say that he placed almost all of his money in a single/couple of stocks with all the dangers inherent with a strategy like that.
what if it gaps down beyond your stop loss etc.

you can only wonder how many stocks really tank that much percentage wise.
there certainly is a risk wouldn`t you say?

All you guys certainly encouraged me to continue on this journey and am contemplating investing around 80% of my capital in Darvas` method and the remainder for swing trading.

thanks for wanting to help a fellow trader.:cool:

any more advice gladly taken on board.

thanks again.
 
To my knowledge Darvas does not analyze the effect of different risk levels on system performance. He might be using a risk level that occasionally produces much greater draw downs (losses) than he can tolerate.
 
Vetten,
So, where did you get the information on the Darvas method. I did a web search and of course found multiple vendors offering roads to riches information about Darvas' method.
Regards,

Quote from vetten:


All you guys certainly encouraged me to continue on this journey and am contemplating investing around 80% of my capital in Darvas` method and the remainder for swing trading.

thanks for wanting to help a fellow trader.:cool:

any more advice gladly taken on board.

thanks again.
More...
 
rhino, darvas wrote several books.

you can download 1 free at wikipedia.

its certainly an easy start on your trading journey.:cool:
 
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