Every so often we like to re-read “classic investingbooks. This week we will discuss several of the invaluable lessons found in “How I Made Two Million Dollars in TheStock Market” by Nicolas Darvas. This is an excellent story about how the market “really works” and illustrates how Darvas evolved as a trader. He began, like most people, with no idea on how the market functions. After several successive failures he went through a severe period of introspection and began “learning” how the market worked.
Even after his two year dancing contract had expired Darvas, decided to continue this “distant” relationship with Wall Street. This kept him separated from the “crowd” andthe various rumors which constantly plague the Street. Bysimply following the stocks price and volume action, Darvaswas able to create/refine a trading methodology which hasshaped the thinking/writing for investors until present day.Like many things in life there is more than one wayto invest.