The Darvas Method

[aim hier]

I believe Darvas had some additional requirements. First the stock has to be in a company that is doing something new and different. That is, it has some new product or service that may be the catalyst to produce great profits. If a company is doing what it has always done, why expect it to perform differently in the future? Secondly, the box it is in, should be the highest box it has ever occupied. In other words, it should be at all time highs. By setting a tight stop loss, Darvas risked a moderate loss against a large gain.

I've long been intrigued by Darvas' books and methods, but don't yet use this strategy myself. As Darvas pointed out, you also need a strong bull broad market to operate in. We don't currently have that yet, unfortunately.