When to Sell a Stock BEFORE It Breaks Its Trend

by Darrin Donnelly on January 10, 2011

Click on chart to enlarge.

Click on chart to enlarge.

As Darvas traders, we’re essentially trend traders.  We identify a hot stock, buy it when it breaks out of a base, and hold it for as long as it continues in a strong upward trend (or vice versa in a downtrending market). 

There are two main reasons to sell a stock that has been trending higher. 

1) It falls through a support level we’ve identified within the upward trend.  Thus, the stock breaks its trend.

2) It flashes warning signs that tell us it is no longer a market leader.

Reason No. 2 can be very difficult to implement.  [click to continue…]

Nicolas Darvas Honored

by Darrin Donnelly on January 7, 2011

Nicolas Darvas searching for stocks.On Thursday, Investor’s Business Daily honored Nicolas Darvas by profiling him in their esteemed “Leaders & Success” section.

The IBD write-up offers a nice little overview of Nicolas Darvas’ amazing success story as well as a brief glimpse into Darvas’ trading philosophy and method.

It’s nice to see Darvas still being honored more than 50 years after his story was introduced to the world.

You can access the artcile from Investor’s Business Daily by clicking here.

If you want more on the Nicolas Darvas story, you can download his 20-page biography for free by clicking here.

The 40 Hottest Stocks to Watch

by Darrin Donnelly on January 5, 2011

A new year is officially here and that means new market leaders are emerging.

Here’s a list of the 40 hottest, fastest-moving growth stocks on the market right now. 

As Darvas traders, our goal is to whittle down this list of 40 to the handful of stocks that make up the very best of the best.  We only want to be trading those ELITE market leaders. 

In Darvas Trader PRO, you’ll find the stocks that make that elite list.  But for a broader view of candidates you might want to consider trading, here’s a list of 40 stocks with tremendous Darvas potential.

AAPL – While I just don’t think AAPL has what it takes to be a true “Darvas stock” (with the potential to double in value over the next 6-12 months), you have to follow this stock as it has become a strong indicator of the market’s health.

ALTR – This stock hasn’t touched its 50-day moving average line since September and it’s currently finding support along the 10-day line. [click to continue…]

How to Set Realistic Trading Goals in 2011

by Darrin Donnelly on January 3, 2011

How to set trading goals.

How to set trading goals.

A new year is upon us and that means it’s time to reevaluate your goals.

When it comes to success – in any field – study after study has proven that those who set specific goals and write them down consistently reach much higher levels of success than those who don’t set specific goals.

It seems like such a small thing to do in order to greatly increase your odds of achievement, but sadly, most people simply fail to do it.  They go through life waiting for “something to come along” and carry them to success.  Of course, these people spend their whole life waiting for someone else or some kind of “perfect timing” to come along…and it never does.

Writing down specific goals changes everything.  It puts you in a PROACTIVE position instead of a REACTIVE one. 

Once you have your goals in hand, you now set the agenda for everything you do.  At any given moment, you can look at your list of goals and determine whether or not what you’re doing right this very moment is bringing you closer to achieving your goals.

For traders, goal-setting can be a little tricky.  [click to continue…]

How to Eliminate Worry and Stress from Your Trading in 2011

by Darrin Donnelly on December 30, 2010

Less worry, less stress, and more success in 2011.

Less worry, less stress, and more success in 2011.

Please forgive the shameless self-promotion at the end of this article, but there’s something I need to say as we head into 2011.

First off, I want you to ask yourself three questions as we enter the New Year:

1) What kind of year do you want to have in 2011? 

2) What kind of money do you want to make in the stock market? 

3) MOST IMPORTANTLY: How are you going to get the results you want?

When it comes to investment advice, there’s no shortage of hype and B.S. being promoted all over the Internet.  It seems that everywhere you turn, someone is promising you the key to riches in the stock market. [click to continue…]

A Quick Overview of “The Darvas System”

by Darrin Donnelly on December 27, 2010

Stock trader Nicolas Darvas in 1959.Based on some of the emails I’ve received over the past few months, I realize that a lot of people who visit this site may not be completely familiar with what we refer to here as “the Darvas System” (a.k.a. “the Darvas method,” “Darvas boxes,” “Darvas trend trading,” etc.). 

Some may have heard of Nicolas Darvas and his amazing success story.  Some may be vaguely familiar with those “Darvas boxes” they hear about.  And others may have stumbled upon this site without having ever heard of Nicolas Darvas or his trading method.

This article is for all those Darvas “newbies” AND for those Darvas trading veterans who can always use a quick refresher course.

Consider this the “CliffsNotes” version of the Darvas System – the starting point to make sure we’re all on the same page when talking about the Darvas System.

In short, this article will try to give a broad overview and answer the following: What exactly is the Darvas System and how has it evolved since being introduced 50 years ago? [click to continue…]