Have been flirting with this type of trading for years, but never took the plunge.
An explanation might be that I`m too impatient to wait for the right opportunity, because this type of trading is longer term trend trading.
For the last year my trading has been excellent and I`m doing it full-time but I give too much back in cutting my losses a little late.
What I like about Darvas is the very tight stop loss. He would put in an order just above the all-time high and a stop loss order just under the all-time high. Probably get stopped out almost all the time.
Although in his examples his stop loss order was at least a dollar below his entry.
When the trade was underway, he moved the stop loss just under the bottom of the top box.
Now I look at the charts of all those killer trades he made, but if he really placed the stop loss there, he would have been stopped out long before he was.
He must have changed his views a little after doing those trades.
Wonder too if the choice of stocks is big enough in Oz or that I would be better off trading on the US market.
I would like to discuss this type of trading with other interested members.