| Top Three Lessons From Trader Nicolas Darvas |
 |
 |
 |
| Written by Reece Mathews |
| Monday, 03 May 2010 17:20 |
|
There is so much to gain from reading the history and methods of experts like Nicolas Darvas. For people who are wary about following trading gurus and experts, there is one good reason to look into this man's techniques. Unlike other so called experts, this one, made $2 million out of just an initial $25 thousand investment. He did this while touring the world as a ballroom dancer.
There is so much to gain from reading the history and methods of experts like Nicolas Darvas. For people who are wary about following trading gurus and experts, there is one good reason to look into this man's techniques. Unlike other so called experts, this one, made $2 million out of just an initial $25 thousand investment. He did this while touring the world as a ballroom dancer. What exactly did Darvas do to make a fortune? He simply applied the lessons he picked up from his experiences. Here are his top learning points that you too can benefit from. #1- Having a plan is a must. Nicolas Darvas didn't always trade successfully. There was a time when he encountered failures too and some of those times were when he went along with what felt good. He made trading decisions based on what others thought were hot items or based on what he felt was a good move. Instead of making emotional decisions or picking trades based on gut instinct, it is best to follow a trading plan or system. Because you can't control how the market will behave, it is best to control what little you can. A plan will allow you to logically determine your entry and exit points as well as your risk management rules. Commit to your plan and you will reduce your losses or at least put your losses at a level you can endure. #2- Don't follow advice at the expense of solid research. The Darvas trading system became a reality only after Darvas lost a fair amount of cash as a result of following opinions. The truth is that, it can help you a lot to listen to what real experts say and know. What can be damaging is taking the advice of people who have no data to back their tips or who make opinions based solely on personal biases. Instead of becoming a blind follower, take the lead by researching. Any decision that you should make about your trading system should be grounded on technical details and sound facts. If you absolutely think a piece of advice is sensible, take the time to check its factual basis. #3- Don't be afraid to claim ignorance. The Darvas trading method only became a success when its author admitted his ignorance over several aspects of trading. There is always a temptation to try to appear knowledgeable and confident in front of a broker or other traders. This however is one of the best shortcuts to acquiring significant losses. Recognizing your shortcomings is the first step to becoming a wise trader. When you become humble enough to admit that you do not know everything, you will be able to ask relevant questions and perform the research required to find the answers. You may eventually become a good trader as a result of your own experiences. Often though, you can reduce the number of failures you'd have to get up from if you learn from the experiences of people like Nicolas Darvas. Although you shouldn't follow his path straight out of the box, what he has gone through and achieved can help you devise your own methods and plans. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Use Darvas Boxes For More Profits. Find Out More About It At http://www.nicolasdarvastrading.com. |