Over the last couple weeks, the market has behaved erratically.
You can’t really blame Mr. Market for his lack of consistency. Washington has been engaged in what can only be described as the epitome of dysfunction and the earnings season has provided us with many surprises – both good and bad.
In a time like this, you’ve got to be following a proven system.
The great thing about the Darvas Trading System is that Nicolas Darvas designed it in such a way that it virtually guarantees you’ll exit your positions and hit the sidelines prior to a major Downtrend.
When leading stocks start falling below support or failing their breakout attempts, the Darvas System forces us out of the market.
When leading stocks breakout properly, bounce back at key support levels, and pull back only on lighter volume, the Darvas System keeps us in the market and riding the best-performing stocks.
It’s really pretty simple stuff.
So why do so many people make trading so complicated? I think it’s an ego thing. They want to get on CNBC, make a bold prediction, and then brag about being right for the next year (conveniently disregarding all the times they were wrong, of course).
In short, they’re more interested in being “right” than rich.
And it’s a recipe for disaster.
No one can consistently predict the day-to-day fluctuations of the market and the latest political debates. Oh sure, it’s a lot of fun to try. But the purpose of trading isn’t to amuse yourself, it’s to make big money.
Find a technical-based system and then follow it. For me, it’s the Darvas System. For you, it might be something else. But whatever it is, stick with it.
* To follow the Darvas System – with EXACT buy and sell points – click here and download Darvas Trader PRO.