Steve Burns, the man who made $150,000 while trading part-time with the Darvas System, has just published a new book that belongs on EVERY trader’s bookshelf. In fact, I’m so impressed with this book that I wrote the Foreword for it.
This new book is called NEW TRADER, RICH TRADER and here is my Foreword, just as it appears in the book:
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I was thrilled when I first heard Steve Burns’ story.
First off, here was someone who not only survived one of the worst periods in the history of the stock market, but he actually traded his way to a six-figure fortune during this period.
But more than the fact that Burns thrived during such a tough period for investors, I loved learning that he was just a “regular guy” trading with his retirement account. He wasn’t some Wall Street big shot who managed other people’s money to make his fortune and he wasn’t some type of financial academic who looked back on the rocky market and offered a hypothetical model of what an investor should have done.
No, Steve Burns was like most people. He had a job, a family, and a mortgage to worry about. He was simply interested in securing his own financial future with wise investment decisions.
But Burns was unlike most people in that he didn’t blindly follow the traditional buy-and-hold “Wall Street wisdom” and he didn’t trust his money in the hands of others. He took charge of his financial future by studying what actually worked and implementing his strategy in the simplest way possible.
Burns found his investment method of choice in the trend trading strategy known as “The Darvas System.” This system was invented in the late 1950s by a successful ballroom dancer (read: non-Wall Street professional) named Nicolas Darvas who used his strategy to turn $30,000 into more than $2 million in less than two years. The Darvas System implements a simple charting method for riding the upward trends of big-earning growth stocks and then exiting positions when the trend is broken.
While the Darvas System has evolved a great deal over the past 50-plus years, it has remained, at its core, a very simple way to trade stock trends: you buy a great stock when it breaks out of its top base, you hold it for as long as it remains in a steady uptrend (ignoring the “normal” pullbacks along the way), and you sell it when it finally breaks its uptrend. This very simple and proven theory is actually quite difficult for most people to follow due to the human emotions and psychological barriers that come with holding a stock during a long uptrend despite pullbacks.
The keys to successful trend trading are removing your emotions from the trade, avoiding all the Wall Street “noise” and stock guru “predictions,” and keeping your buy and sell rules as simple, clear, and easy-to-implement as possible.
Steve Burns has mastered the keys to successful trading and in this book, he reveals the rules, techniques, and lessons that are essential to trading success.
If you’re new to the stock market, understanding these rules will save you years of frustration and painful losses. If you’re a seasoned pro, consider this the “commandments of trading” that need to be repeatedly pounded into your head.
I believe that anyone who wants to earn big money trading stocks (or steadily grow their nest egg without losing big money) should keep this book on their desk at all times. I see it as an essential handbook of trend trading and I believe a generation of traders will be very thankful that Steve Burns took the time to write this wonderful book.