Great Advice from Nicolas Darvas

by Darrin Donnelly on March 24, 2011

Nicolas DarvasNicolas Darvas wrote the following passage in 1977:

Bitter experience taught me that I could not possibly win in the market if I allowed emotion to influence my decisions.  So one of the first steps I took was to keep well away from the marketplace and insulate myself from its ever-changing moods.

While I continue to trade on Wall Street, I keep the market and its emotional atmosphere at arm’s length.

I do not want to know what people on Wall Street are thinking or saying.  I am not interested in the latest business forecasts, analysts’ opinions, brokers’ views, or tipsters’ gossip.

The stock tables tell me everything I need to know. 

It is WHAT STOCKS ARE DOING and NOT WHAT PEOPLE ARE SAYING that determine my actions.

This has, for a long time, been the cornerstone of my market approach and remains so today.

The modern-day translation: sometimes you need to turn off CNBC and just trust your damn charts.


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{ 2 comments… read them below or add one }

John Hunter March 25, 2011 at 8:27 am

I think most all the time, turning off CNBC is wise. They do occasionally have interviews with people worth listening to, Buffett, Rodgers… but even then they often dumb it down so much it isn’t worth much.


Darrin Donnelly March 25, 2011 at 10:26 am

I agree completely. As a trader, you feel obligated to having it on, especially for some of the great interviews they do (Jack Welch, Bill Miller, along with the names you mentioned), but I think it does a lot of damage to traders who can’t “tune it out” and find themselves swayed by all the conflicting opinions.


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