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Does it make sense to hope for big gains with trading slow moving stocks, dull stocks of dull companies or even slower moving currencies? Or to do the opposite and chase tiny intraday movements with an exhausting maximum of concentration? Is it wise to invest in stocks that fell back and hope that there was no sufficient reason for their fall? I don't say that there are no other ways to trade, but in my opinion the best possib....

This trading system could be viewed as the successor of the Darvas method.

Ideally this trading system enables its followers to earn with a modest amount of work a maximum of return.

A necessary part of any trading system is sound money management.

Major parts of it, like the entry rules, got replaced completely and all in all it is much more refined as a system.

For that reason one whole chapter is devoted to psychology, including a comprehensive list of what can possibly go wrong with solutions or at least ideas to get on the right track.

Darvas essentially had none, as he grossly over-traded back then.

There is a frame of precise rules that incorporate the "tricks" of trading at the high, but there is also the trader.

While money management principles have to work on their own as a final safety net, this system supports them with strong help from the trading side.

But luck was with him, as he started directly at the beginning of a bull market.

Simply diversifying into many stocks is not the answer, because that would dilute not only the single failure but also the single gain away.

This is a semi-automated system that tries to beat completely mechanical ones.

Instead, using the right borderlines, knowing what you can do and what not, is the key.

This system maximizes the long-term performance and keeps the principal risks in check.

Some of the trading rules represent a stiff stop-loss system.

There are other differences like money management.