Wednesday, 16 April 2014
How I made $2,000,000 in the stock market (Nicolas Darvas)
Nicolas Darvas was a professional dancer who supposedly made much money. This book records his development from a neophyte in the stock market till he was able to keep his profits. What is amazing about his success is that it was achieved in spite of his distance from the market and news while travelling internationally, simultaneously holding a full time occupation in entertainment. The book is divided into different stages of his learning journey, from a punter to a fundamentalist to a technician and then finally maturing into a techno-fundamentalist.
The book is easy to read, almost like a narrative, and it feels as if the author is speaking directly to you. He records actual transactions made and his thoughts and reactions to the stock markets and his results. He makes all sorts of common mistakes along the way before he finds a method that he prefers.
This book can be read as an enjoyable chronicle but less as an instructive manual. For that, refer to his other books. In spirit, it feels similar to Reminiscences of a Stock Operator but with a little more description of the author's methods and rationale. This would have more value to technicians, but fundamental investors could read this to avoid the same sorts of mistakes Darvas made.
Found in NLB: Yes