Darvas System Success Stories
by Darrin J.
Editor of DarvasTrader.com
If you’re new to the Darvas System, you might be a little skeptical about some of the success stories that get associated with it.
When I first heard about it 10 years ago, I too was extremely skeptical.
After all, the Darvas System was introduced to the world in 1960
with a book titled,
"How I Made $2,000,000 in the Stock Market."
Not exactly subtle and not exactly your typical stock market
I think it's good to be skeptical. There most certainly IS a ton of hype and B.S. that gets promoted in the financial world.
So what did it for me? What made me such a believer in the Darvas System?
Why would I dedicate my career to trading with it?
Why would I commit 12-hour workdays to making sure I’m creating the best stock market newsletter possible, completely dedicated to the Darvas System?
(By the way, you can subscribe to that
newsletter at this link.)
Here’s how the Darvas System won me over.
For a trading system – or any type of success system, for that matter – to win me over, I think it needs to do two things to prove it works.
The first type of proof comes from a “logic” standpoint. It must make logical sense to me. Using common sense, I need to understand “why” it works and have no problem accepting the foundation of the system. Even better, back-tested results are a great way to support the logical case behind it.
But the second type of proof is much harder to come by.
The second type of proof I need before buying into a trading system is this: I need to see real-world results.
I need results that go beyond hypothetical back-testing and a logical foundation. I need to see actual people who have come along and essentially said, “Here’s what I did and, yes, it actually worked for me. Here are my results to prove it.”
In light of this rationale, I feel the best part about
the Darvas System is that it not only worked in the real world for Nicolas Darvas – making him a multi-millionaire in less than two
years - but, it helped other people become millionaires as well.
Some Amazing Success Stories
I want to take a moment and share some truly amazing trader success stories.
These stories are FAR from typical, but each one shows how a trader took the principles of the Darvas System, tweaked it to their own personality and specifications, worked extremely hard to master their system, and then persevered through the ups and downs of the stock market to become hugely successful and wealthy.
are more success stories and testimonials available here.)
William O’Neil is probably the most famous name on this list of Darvas Millionaires.
From 1962-1963, O’Neil took a $5,000 account and turned it into $200,000. He used his winnings to buy a seat on the NYSE and never looked back. He would later become the founder of the highly-respected financial newspaper,
O’Neil lists Nicolas Darvas as one of his trading strategy’s primary influences and recommends that all traders learn from his teachings.
Beginning in 1999, over a period of less than two years, Dan Zanger turned his $10,000 account into $42 million. His amazing story garnered national attention, but what wasn’t surprising was the method he used to produce such phenomenal returns.
Zanger quickly become somewhat of a celebrity in trading circles and his advice was highly sought after. He recommended Darvas’ strategy and told traders that the Darvas System is, “widely used and followed today by the best traders in the world, and still this breakout method is little understood by most…”
His statement could not have been more accurate.
Zanger is still a big advocate of Darvas’ teachings and he tells traders that applying the Darvas method will “yield fortunes beyond the reader’s wildest dreams.”
Zanger was listed by Trader Monthly magazine as one of the top 100 traders in the world with an annual income of $25 million!
David Ryan got started with a $20,000 account in 1982. He more than doubled this account in less than one year.
This quick success gave Ryan the confidence to enter the prestigious U.S. Investing Championship in 1985. He won the event with a return of 161%. To prove that his performance was not a one-hit wonder, he entered the competition again in 1986 and, despite finishing in second place, achieved a gain of 160%.
Ryan ended up winning the event twice and from 1985-1987, he produced a compounded return of 1,379%!
Not surprisingly, Ryan credits Darvas as being a major influence on his trading method.
In 1985, a nearly bankrupt Gary Smith took a meager $2,200 and turned it into an account that now produces annual profits of more than $190,000.
How did he get started? He credits Nicolas Darvas for having the most impact on his career as a fulltime trader.
In 1999, Gil Morales wowed investment circles with a one-year return of 971%! But how did he do in the bear market that followed? In the period ending from 1998 through 2005, Morales achieved a total return of 10,904.25%!
Today, Morales is a sought-after fund manager and highly recommends that investors learn from Nicolas Darvas’ teachings.
Ced Moses made a big name for himself when he entered and won the 1991 U.S. Investing Championship with a record-setting return of 379%! He would go on to start his own hedge fund where triple-digit returns became the norm and he was named to Nelson’s list of The World’s Best Money Managers.
Who does he credit as a major influence on his trading strategy? You guessed it, Nicolas Darvas.
are more success stories and testimonials available here.)
What They All Have in Common
These prolific traders all became well-known for achieving seemingly impossible returns in a very short period of time. They all started with relatively small accounts and turned them into fortunes. And they all have one thing in common: their tremendous respect for
the Darvas Trading System.
Perhaps there is something to this system after all?
It should also be noted that each of the above-mentioned traders chose to make their stories public by entering contests, writing newsletters or books, starting hedge funds, and so on. One must wonder just how many Darvas millionaires are out there who prefer to stay out of the public eye.
Don’t Listen to the Naysayers
I wrote this article for two reasons.
First, I wanted to show how the Darvas System has helped achieve phenomenal results for many different individuals in many different market conditions over the past 50 years.
I also wanted to include this as a motivator for traders to read and re-read.
The world is full of naysayers and complainers who will assure you that the success achieved by these Darvas traders is impossible. Remember the individuals included in this article when someone tells you “it can’t be done.” They are living proof that it can be done again and again.