DARVAS trading

hook, maybe Darvas was blissfully ignorant and surely never heard of back testing and back testing and more back testing?:)
 
trend_guy, brandonf, eshmama,

I`m curious how you guys would enter a trade.

still Darvas` way of a break-out from the top box

OR

a pull back from the all-time high, forming the low of the new box on lower volume and resuming the trend towards the high on increasing volume - do you enter here?

OR ???

thanks for your help.:)
 
Typically I like to see a high volume breakout from a base, and I will initiate my position from there with a small lot. I next want to see how the pullback handles itself (lower volume than the breakout), and if it does well I will add to the position. If not I tighten the original stop way up and look to be getting out.

Brandon
 
Quote from vetten:

trend_guy, brandonf, eshmama,

I`m curious how you guys would enter a trade.

still Darvas` way of a break-out from the top box

OR

a pull back from the all-time high, forming the low of the new box on lower volume and resuming the trend towards the high on increasing volume - do you enter here?

OR ???

thanks for your help.:)
More...
Vetten,
I can understand what you are going through...FEAR OF LOSS(UNKNOWN FUTURE)...
Oh GOD what will happens that X gaps down as soon as I buy..OR X falls as soon I buy..OR maybe I am unable to select the Right stock....
I too wasted 2 years trying to plug ALL HOLES before I realised that IT IS OK TO BE WRONG....
You can be wrong sometimes and still make a lot of money.
--------
As to answer to your question - I am not as meticulous as the other 2 gentlemen in my timing...
I start buying as soon as I think 'THIS MIGHT BE THE STOCK'....
I don't wait for the next base, pullback etc..etc...because I am scared that I might miss the move completely.
Only thing I do is I don't put all my money in one go. normally it takes me about 1 month or more to deploy all my money and about 4-5 increments. And each increment I take as a new position..
I hope this helps...
Raj
 
Quote from vetten:

trend_guy, brandonf, eshmama,

I`m curious how you guys would enter a trade.

still Darvas` way of a break-out from the top box

OR

a pull back from the all-time high, forming the low of the new box on lower volume and resuming the trend towards the high on increasing volume - do you enter here?

OR ???

thanks for your help.:)
More...
Vetten,
I can understand what you are going through...FEAR OF LOSS(UNKNOWN FUTURE)...
Oh GOD what will happens that X gaps down as soon as I buy..OR X falls as soon I buy..OR maybe I am unable to select the Right stock....
I too wasted 2 years trying to plug ALL HOLES before I realised that IT IS OK TO BE WRONG....
You can be wrong sometimes and still make a lot of money.
--------
As to answer to your question - I am not as meticulous as the other 2 gentlemen in my timing...
I start buying as soon as I think 'THIS MIGHT BE THE STOCK'....
I don't wait for the next base, pullback etc..etc...because I am scared that I might miss the move completely.
Only thing I do is I don't put all my money in one go. normally it takes me about 1 month or more to deploy all my money and about 4-5 increments. And each increment I take as a new position..
I hope this helps...
Raj
 
Raj,

great post !

I would agree one hundred percent ... If my optimal position is X dollars, I would rather by in .5X versus missing the move. Sometimes I get in late and size down a bit with a wider stop because I feel I may not get a great entry before a big run ... if a great entry comes I can always take it then.
 
I`m really stoked will all your responses gentlemen.

now as to price. Darvas didn`t want to enter low-priced stocks.
partly because the brokerage was a lot higher (not a reason today), but also those lower priced stocks jumped around too much.

sometimes those stocks are 3/4 times their yearly low before they even hit $ 10.

do you guys have a price cut-off level?

are there any web sites (not only a lot of blahblah and no action) that devotes itself to this type of trading that might be useful?

thanks guys.:cool:
 
Vetten,

Get Darvas' book and re-read it if you have to. It's freely available.

He explains step-by-step how he traded, what and why. And it's all still relevant today. Some of my greatest profitable trades were Darvas-like.

And furthermore, the book's a fantastic read, one of the best trading stories ever told.

I would have loved to meet him.
 
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