Read my review

This website about Nicolas Darvas and the trading system that he invented, called the Darvas box theory system. Read a short overview of the man and his theory. Or, go straight to what the theory is and how it works.

If you already use the Darvas rules, skip ahead to read about how I apply the system.

Click here for more options strategies to use with the Darvas method.

Here is a description of my favorite options strategy.

Update - January 2011

I recently wrote a review of my trading in 2010, which talks about the most important lesson I learned. If I have more time, I will formalize this review and offer more a substantive treatment of my trading for the year.

A new feature I plan to put on this site is a collection of in-depth analyses of my previous stock selections. I had wanted to do this for quite some time, but have not found the time to do so. Now that I am getting back into the swing of things, I feel re-energized. The reason I want to do this is two-fold. First, it serves as a historical record of my selections. Second, I hope to provide some insight into my application of the Darvas method. The idea is to generate topics for discussion and dialog. Feel free to email me your comments.

Unfortunately I get the feeling that the posting will be slow-going, mostly because I basically have to find records of and re-analyze all my old stuff, all while coming up with new stuff. Stay tuned.

Update - June 2009

I have put up some new content aroud the site. One piece I have put up is a section on currency trading (foreign exchange, forex, or FX trading). It's a work in progress. During the 2008-2009 downturn in the stock market, I had a lot of free time to explore this very exciting (and risky!) area of finance. I hope you enjoy reading about it (what little I know I have shared with you). Most of it was off the cuff, so I'm sure as time goes on I will be adding/removing content and improving on the ramble. Feel free to write me with corrections and suggestions.

The Darvas Box Theory in Action

The following are live charts from stocks that I found using the Darvas box theory. I found these using the Darvs box screener that I am working on (always a work in progress!), and traded them in a real account with real money. Take a look for yourself below. I've only posted a few choice examples, but you get the idea. Now you can stop wondering if the Darvas method still works!

Does it work all the time? Of course not. Most of the failures are because I did not follow all the Darvas rules, or because the market took a sudden turn and I got stopped out. I have lots of failures, but the bottom line is this: I am making money with the Darvas box theory system. Isn't that the point anyway?

I got all the charts from Yahoo charts. I really like these new charts they have.

Darvas Box Theory Example - BIG
BIG tanked soon after I bought it, but I still managed a tidy gain of over 100%! How? By using options.

Darvas Box Theory Example - SSYS
You see how SSYS dropped a lot after I bought it in mid June? Well I should have sold out, but I didn't. Luckily for me that worked out. I did this trade with options, and again earned over 100%. In case you're wondering, Darvas himself was known to ignore his rule occassionally (but he did sell and repurchase).

Darvas Box Theory Example - SWN
Even back in 2004, energy stocks were doing well. I bought shares of SWN since I hadn't discovered stock options yet. If I did use options, I'm sure I would have made a lot more profit.