I thought it might be interesting to write a review about a book that inspired me to take up financial spread betting. The book is called ‘How I made $2,000,000 in the stock market’ by Nicolas Darvos.
I found the book on Amazon. It had been given a high recommendation from others who had bought it so I decided to give it a go.
It is written more as a story than an informative book. It is a story about a dancer, Nicola Darvos, who had spare money who wanted to start investing. He got involved with buy and selling equities.
He describes his early days as his ‘gambling stage’. He would follow all tips he heard whether he read them or got them from his broker.
Not surprisingly he lost money.
Not disheartened he continued and his investment style changed over time… more so from necessity and his changing environment. As a dancer he went on a world tour and therefore could only access limited information about his equities.
He could only get information wired to him through telegrams so he needed to limit the amount of information his was receiving. He only had basic price data.
This is where he moved on to what he calls his ‘technician’ stage and it is when he developed his ‘box theory’.
At last he started to have some success!
He then went to refine his strategy once again by combining price data with information about fundamentals. He calls this his ‘techno-fundamentalist’ stage.
The story continues to show that he goes on to nearly lose all that he accumulated so far but after taking a step back…really getting in tune with his trading style went on to make $2,000,000. He did this in just 18 months starting with $10,000!
This book is a really exciting book. There isn’t that much in terms of depth into the system but it is one of the most exciting books I have read on trading. He may not have used financial spread betting but he did trade on a margin and we can learn a lot from him.
One lesson that struck a real chord with me was about letting your winners run. We all know that in financial spread betting it is important to do that but as we all know it can be extremely difficult.
I have not read this book for a couple of years but it was the first one I wanted to share with you which should say a lot.
If you are in any way interested in financial spread betting then you will find this book truly inspirational.