# Nicolas Darvas > Mediated Wiki article. Canonical URL: https://mediated.wiki/source/Nicolas_Darvas > Markdown URL: https://mediated.wiki/source/Nicolas_Darvas.md > Source: https://en.wikipedia.org/wiki/Nicolas_Darvas > Source revision: 1338645425 > License: Creative Commons Attribution-ShareAlike 4.0 International (https://creativecommons.org/licenses/by-sa/4.0/) {{Short description|Hungarian dancer, self-taught investor and author}} {{Use mdy dates|date=October 2022}} {{more citations needed|date=December 2014}} '''Nicolas Darvas''' (1920–1977) was a [Hungarian](/source/Kingdom_of_Hungary) dancer, self-taught investor, and author, best known for his book, ''How I Made $2,000,000 in the Stock Market''. ==Career== ===Dancer=== [Hungarian](/source/Kingdom_of_Hungary) by birth, Darvas trained as an economist at the [University of Budapest](/source/E%C3%B6tv%C3%B6s_Lor%C3%A1nd_University). Reluctant to remain in Hungary until either the [Nazis](/source/Nazis) or the [Soviet Union](/source/Soviet_Union) took over, he fled in June 1943 at the age of 23 with a forged [exit visa](/source/exit_visa) and fifty [pounds sterling](/source/pounds_sterling) to [Istanbul](/source/Istanbul), Turkey. Sometime later, he met up with his half-sister Julia, who became his partner in a dancing team in Europe and the United States.{{cite book|title=The Darvas System for Over-The-Counter Profits|year=1971|no-pp=true |page=back cover}} In April 1953, the two appeared with [Judy Garland](/source/Judy_Garland) and [Bob Hope](/source/Bob_Hope).{{citation needed|date=December 2014}} By 1956, they were touring.[http://www.caths.org.au/julia.jpg] {{webarchive|url=https://web.archive.org/web/20090914025948/http://www.caths.org.au/julia.jpg|date=September 14, 2009}}[http://www.caths.org.au/darvas.jpg] {{webarchive|url=https://web.archive.org/web/20090930090141/http://www.caths.org.au/darvas.jpg|date=September 30, 2009}} ===Investor=== During his off hours as a dancer, he had read some 200 books on the market and on [speculators](/source/speculators), sometimes reading up to eight hours a day.{{cite book |url=https://content.time.com/time/magazine/0,9263,7601590525,00.html |title=Time magazine |date=May 25, 1959 |page=85}} He began his studies by reading the following:{{cite book|title=How I Made $2,000,000 in the Stock Market|year=1960|pages=chapter 2, p. 26|no-pp=true}} * ''ABC of Investing'' by R. C. Effinger * ''The Stock Market'' by Dice and Eiteman * ''The Securities Market: And How It Works'' by B. E. Schultz * ''Your Investments'' by Leo Barnes * ''Profits in the Stock Market'' by H. M. Gartley * ''Consistent Profits in the Stock Market'' by Curtis Dahl * ''You Can Make Money on the Stock Market'' by E. J. Mann The two books which he read almost every week were ''The Battle for Investment Survival'', by [Gerald M. Loeb](/source/Gerald_M._Loeb), published in 1935, and ''Tape Reading and Market Tactics'', by Humphrey Bancroft Neill, published in 1931.{{cite book |url=https://content.time.com/time/magazine/0,9263,7601590525,00.html |title=Time magazine |date=May 25, 1959 |pages=84–85}} Darvas invested in a couple of stocks for which the [share price](/source/share_price) had risen. The stocks continued to rise and he subsequently sold them at a [profit](/source/Profit_(economics)). He subsequently came up with an approach and plan for trading stocks from which he received $2,450,000.00 in 18 months, during the 1957–58 [bull market](/source/Market_trends), seven years since his first trade.{{cite book|title=Wall Street: The Other Las Vegas|year=1971|no-pp=true |page=Chapter 1}} From the week ending December 16, 1957, through the week ending July 27, 1959, the [S&P 500](/source/S%26P_500) rose over 53%. Market moves of that size have only happened seven times since 1950, according to Yahoo Finance weekly S&P 500 prices.{{citation needed|date=December 2014}} His main source of stock selection was from [''Barron's''](/source/Barron's_(newspaper)). The magazine was usually a week-old edition, since he was traveling in his performing [dance troupe](/source/dance_troupe). He would use [cables](/source/cablegram) and [telegrams](/source/telegrams) to send his buy and sell [stop order](/source/stop_order)s to his broker in New York City. From now on Darvas would select a stock when it made a good advance on strong volume, with favourable [fundamental](/source/Fundamental_analysis) company research. Darvas claimed his method often revealed signs of [insider trading](/source/insider_trading) before a company released favorable news to the public. His stock selection method was called "BOX theory". He considered a stock price wave as a series of boxes. When the stock price was confined in a box, he waited. He bought when the price rose out of the box. He simultaneously set a stop-loss just under this trade price. At the age of 39, after accumulating his fortune and also being exposed in [Time magazine](/source/Time_magazine), Darvas documented his actions in the book, ''How I Made 2,000,000 in the Stock Market''. The book describes his "Box System", which he used to buy and sell stocks. ===Author=== Darvas is best known for his book, ''How I Made $2,000,000 in the Stock Market''. ====''The Anatomy of Success''==== In his third book, he wrote ''"Later, I went on to explore and become successful in other fields, the fashion industry, theatrical producing, real estate are just a few"''. Here he claims ''"the formula for success remains essentially the same"''. In the book he set out what he called ''"the rules to be followed"''.{{cite book|title=The Anatomy of Success|year=1965|pages=xiv–xv}} ''"But one must know the correct route"''.{{cite book|title=The Anatomy of Success|year=1965|page=xxvii}} ===1960 Criminal Investigation=== ''[Time](/source/Time_(magazine))'' subsequently reported that the [New York Attorney General](/source/New_York_Attorney_General) had "thrown the book" at Darvas, charging that his story was "unqualifiedly false" and that it could find ascertainable profits of only $216,000.{{cite magazine|title=Time|date=December 19, 1960|page=79}} The action was the first to be taken under a broadened state law that banned fraud or misrepresentation in giving investment advice. In a follow up, dated January 13, 1961, ''Time'' reported that the probe was blocked by the court, which ruled that the investigation by Attorney General [Louis J. Lefkowitz](/source/Louis_J._Lefkowitz) was an "unwarranted invasion of the free press". ''Time'' also reported that state investigators admitted that they had not been able to track down all of the dancer's brokerage accounts.{{citation needed|date=December 2014}} Darvas called the charges false, a "cynically irresponsible action, book burning by publicity".{{cite web|url=http://www.time.com/time/magazine/article/0,9171,873372,00.html|archive-url=https://web.archive.org/web/20071231121359/http://www.time.com/time/magazine/article/0,9171,873372,00.html|url-status=dead|archive-date=December 31, 2007|title=WALL STREET: $216,000 or $2,000,000?|date=December 19, 1960|work=[Time](/source/Time_(magazine))}} He stated, ''"I keep out in a bear market and leave such exceptional stocks to those who don't mind risking their money against the market trend"''.{{cite book|title=You Can Still Make It in the Market|year=1977 |page=126}} Darvas claimed to have never [sold short](/source/Short_(finance)). He said in 1977, ''"I have never done it myself because psychologically I am not cut out for short selling. But I think markets have now changed their character so much that all experienced investors should seriously consider it. It is not for the proverbial widows and orphans, though."''{{cite book|title=You Can Still Make It in the Market|year=1977 |page=89}} ==Death== Darvas died in [Paris](/source/Paris), France in 1977.{{cite book|title=You Can Still Make it in The Market(softcover)|year=1978|no-pp=true |page=About the author}} ==Books== * ''How I Made $2,000,000 in the Stock Market''.{{cite book |last=Darvas |first=Nicolas |author-link= |date=1960 |title=How I Made $2,000,000 in the Stock Market |url= |location= |publisher= |page= |isbn= 978-1614271697}} Published in 1960 (hardcover). Available in French (softcover)[http://www.boursetrading.info/Comment-j-ai-gagne-2-000-000-en-Bourse_a672.html Comment j'ai gagné 2.000.000$ en Bourse]" Chapter 1 – Canadian Period. Chapter 2 – Entering Wall Street. Chapter 3 – My First Crisis. Chapter 4 – Developing the Box Theory. Chapter 5 – Cables Round the World. Chapter 6 – During the Baby-Bear Market. Chapter 7 – The Theory Starts to Work. Chapter 8 – My First Half-Million. Chapter 9 – My Second Crisis. Chapter 10 – Two Million Dollars. Appendix – Interview With Time Magazine * ''Wall Street: The Other Las Vegas''. Published in 1964 (hardcover). Chapter 1 – The Casino Chapter. 2 – The Dealers. Chapter 3 – The Croupiers. Chapter 4 – The Touts. Chapter 5 – Personal Protection : Hedging My Bets. Chapter 6 – Playing in the Casino – My Buying Game. Chapter 7 – Playing in the Casino – My Selling Game. Chapter 8 – Figuring My Winnings Appendix – Index of Stocks. * ''The Anatomy of Success''. Published in 1965 (hardcover). * ''The Darvas System for Over-The-Counter Profits''. Published in 1971 (hardcover). * ''You Can Still Make It in the Market''. Published in 1977 (hardcover) Republished on August 20, 2008; {{ISBN|0-9820556-7-6}}, {{ISBN|978-0-9820556-7-0}} In his last book, Darvas gives the rules for a method called "Dar-Card".{{cite book|title=You Can Still Make It In the Market|year=1977|page=11}} ==Books referencing Darvas== {{Page numbers needed|section|date=December 2014}} *''How To Make Money In Stocks: A Winning System In Good Times And Bad'', by William J. O'Neil (1988) *''How I Made Money Using the Nicolas Darvas System'', by Steve Burns (August 17, 2010) *''Lessons from the Greatest Stock Traders of All Time'', by John Boik (May 21, 2004) *''How Legendary Traders Made Millions'', by John Boik (March 23, 2006) *''Mastering the Trade'' by John F. Carter (December 7, 2005) *''New York City Vaudeville (NY) (Images of America)'', by Anthony Slide (July 26, 2006) *''How to Make the Stock Market Make Money for You'', by Ted Warren (Dec 1994) *''The Best: TradingMarkets.com Conversations With Top Traders'', by Kevin N Marder (September 15, 2000) *''The Transformation of Wall Street: A History of the Securities and Exchange Commission and Modern Corporate Finance'', by Joel Seligman (June 26, 2003) *''Protecting Your Wealth in Good Times and Bad'', by Richard A. Ferri (April 18, 2003) *''Sixties Going on Seventies (Perspectives on the Sixties)'', by Nora Sayre (May 1996) *''The Astute Investor'' (Second Edition), by Eric L. Prentis (March 27, 2006) *''The Perfect Speculator'', by Brad Koteshwar (June 30, 2005) *''Swing Trading for Dummies'', by Omar Bassal (2008) ==See also== * [William J. O'Neil](/source/William_J._O'Neil) * [Jesse Livermore](/source/Jesse_Livermore) ==References== {{reflist}} ==External links== * [http://www.worldcatlibraries.org/search?q=au%3ANicolas+Darvas&qt=faceted&fq=ap%3ANicolas+Darvas+%3E+ln%3Aeng Book search for Nicolas Darvas] at [WorldCat](/source/WorldCat) * [https://www.investopedia.com/articles/trading/07/darvas-box.asp The Darvas Box: A Timeless Classic] * [https://www.aryaamoney.com/Blogs/stock-market/inspiring-story-of-a-dancer-who-made-2-million-from-the-stock-market-part-ii Dancer Who Made $ 2 Million From The Stock Market] * [http://www.sportswithin.com/drawChart.php Online tool to plot Darvas Boxes] {{Authority control}} {{DEFAULTSORT:Darvas, Nicolas}} Category:1977 deaths Category:Hungarian male dancers Category:Hungarian investors Category:Hungarian money managers Category:Hungarian stock traders Category:Hungarian writers Category:1920 births Category:20th-century Hungarian economists Category:Hungarian emigrants to the United States --- Adapted from the Wikipedia article [Nicolas Darvas](https://en.wikipedia.org/wiki/Nicolas_Darvas) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Nicolas_Darvas?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.