Nicolas Darvas was a professional dancer turned stock market speculator. He happened to stumble upon investing when one of his employers opted to pay him in stock instead of cash. As it turns out, Darvas could not make this particular show but in a gesture of professionalism offered to buy the shares from the venue owners. This decision ultimately changed the course of his life and led him to write his well-known book “How I Made $2 Million in the Stock Market.” Despite the trite title, the experiences shared by Darvas are invaluable to an aspiring trader . Moreover, William O’Neill of Investor’s Business Daily and Market Wizards fame built his proprietary CANSLIM process mirroring most of the Darvas principles. While still effective and useful today, the principles conveyed in this book are well-known and shared openly online. Instead of touching on those aspects of the book, it will be valuable to examine the emotions experienced by Darvas in his trading journey. In particu
Price-based perspective on market behavior