The Greatest Trading Book Ever Written
Next week Rob Booker and I are hosting a free webinar on the greatest trading book ever written. The details for the event are here https://www1.gotomeeting.com/register/762992801 and you want to register now because we have only 1000 seats and they are likely to be sold out soon. The webinar is about an old 1960’s classic called How I Made Two Million Dollars in the Market, by a very colorful character called Nicolas Darvas.
Darvas was the farthest thing from a Wall Street operator that you can imagine. He was a ballroom dancer -- someone who today might appear as a partner on Dancing with the Stars. That’s hardly a person who you would think could make a killing in the stock market. Furthermore, Darvas made his money at a time when computers did not exit, real time quotes were for professionals only and international communication was done by telegram.
In fact the book has the style and feel of a Rock Hudson-Tony Randall-Doris Day movie and you can almost imagine the narrow lapels, slim ties and the whole Mad Men vibe in its pages. Yet for all of its nostalgia, the book carries very valuable lessons for modern times.
How did a “regular” guy succeed at beating Wall Street at it own game? For a full discussion of his tactics you need to attend our webinar but suffice it to say Darvas did the opposite of most common wisdom that retail traders are taught from day one. Most importantly he did two things that are incredibly hard for many traders to do -- he gladly paid up and he ALWAYS bailed when the trade went against him.
Darvas’s book on trading stands the test of time not because it deals with the market -- (although it does a very admirable job of that) but because it offers an invaluable lesson on human nature which we can apply today just as easily as he did in the time of Don Draper.