|The Darvas Box Theory in Action
The following are live charts from stocks that I found using the Darvas box theory. I found these using the Darvs box screener that I am working on (always a work in progress!), and traded them in a real account with real money. Take a look for yourself below. I've only posted a few choice examples, but you get the idea. Now you can stop wondering if the Darvas method still works!
Does it work all the time? Of course not. Most of the failures are because I did not follow all the Darvas rules, or because the market took a sudden turn and I got stopped out. I have lots of failures, but the bottom line is this: I am making money with the Darvas box theory system. Isn't that the point anyway?
I got all the charts from Yahoo charts. I really like these new charts they have.
BIG tanked soon after I bought it, but I still managed a tidy gain of over 100%! How? By using options.
You see how SSYS dropped a lot after I bought it in mid June? Well I should have sold out, but I didn't. Luckily for me that worked out. I did this trade with options, and again earned over 100%. In case you're wondering, Darvas himself was known to ignore his rule occassionally (but he did sell and repurchase).
Even back in 2004, energy stocks were doing well. I bought shares of SWN since I hadn't discovered stock options yet. If I did use options, I'm sure I would have made a lot more profit.