How I Made $2,000,000 in the Stock Market

by Nicolas Darvas

As I only handled five to eight stocks at a time, I automatically separated them from the confusing, jungle-like movement of the hundreds of stocks, which surrounded them. I was influenced by nothing but the price of my stocks.

If I was wrong—I was sold out. This happened automatically as something apart from me. I was no longer proud if the stock went up, nor did I feel wounded if it fell. I knew now that the word “value” cannot be used in relation to stocks.

If one horse is going to win, it will win, even if thousands of onlookers are cheering for another one.

The situation reminded me of George Bernard Shaw’s remark at the opening night of one of his plays. After the curtain fell everyone cheered and clapped except one man who booed. G.B.S. went up to him and said: “Don’t you like my play?” The man replied, “No, I don’t.” Whereupon Shaw said: “Neither do I, but what can the two of us do against all that crowd?”

I would select stocks on their technical action in the market, but I would only buy them when I could give improving earning power as my fundamental reason for doing so.

Yell “fire” in a crowded theatre and what happens? People rush for the exit, killing, injuring each other. A drowning man will struggle, grasp his would-be rescuer and perhaps pull him under too. They are unreasonable, wrong attitudes, yet instinct will dictate them.