Author Topic: How I made 2 Million dollars  (Read 5359 times)

Mr_Dividend

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How I made 2 Million dollars
« on: January 14, 2017, 03:17:44 pm »
https://vantagepointtrading.com/wp-content/uploads/2010/05/How-I-Made-2000000-in-the-Stock-Market.pdf

This book is frequently on the must read list of traders - well worth the read. Short book - takes a couple of hours to read at most.

What I found interesting:

How he did well when travelling, but not well when he had information overload
How he entered shares even after they had run pretty hard.
His very small stops - advantage of trend following?
Pretty much going all in on trades - 2-3 shares it seems.

JAPalmer

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Re: How I made 2 Million dollars
« Reply #1 on: January 15, 2017, 01:34:47 pm »
Really enjoyed reading that  ;)

MoneyChief

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Re: How I made 2 Million dollars
« Reply #2 on: January 16, 2017, 01:50:54 pm »
When is part 2 coming out? How I lost the 2 million in the stock market, lol.

Pluto

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Re: How I made 2 Million dollars
« Reply #3 on: January 18, 2017, 12:58:00 pm »
Interesting. Thanks for that.

How much of it do you think was because he was in the middle of a bull market? I guess it got him out when the markets turned so you've got to give him some credit.
He didn't diversify much and often had over 30% in 1 share, sometimes even 100%, so it could easily have gone the other way.

Looks like he used quite a bit more Technical Analysis than Fundamental Analysis in making his decisions, I like that since I don't know how to read much into company reports/etc  :)

Some software even includes a Darvas Box Indicator...
https://www.linnsoft.com/techind/darvas-box-dbox

This summarises his approach pretty well for me:

Quote
I shall not follow advisory services.
I shall be cautious of broker advice.
I shall ignore Wall Street sayings or truisms, no matter how ancient or revered.
I shall only trade stocks on major exchanges with adequate volume.
I shall not listen to (or trade off of) rumors or tips, no matter how well researched they may sound.
I will use a sound strategy instead of gamble…I must study this strategy (originally this approach was fundamental analysis, which didn’t work for him, so he developed his Darvas Box trading method).
I will hold one position for longer, as opposed to juggling a bunch of positions for a short period of time.


jaDEB

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Re: How I made 2 Million dollars
« Reply #4 on: February 03, 2017, 02:43:52 pm »
Thanks Mr Dividend, good read.

The plain fact was that I was reading too much, trying to do too much.
That is why I rapidly reached the stage where I could read the
figures on the stock market quotations but they no longer told me
anything.


When I was abroad, I visited no boardrooms, talked to no one, received no telephone calls,
watched no ticker.

At 7 P.M. I start to work studying my daily telegram and deciding
what my future dealings will be.

It began to be a strange life. I sat in the Plaza every evening, reading my
telegram and filing it. There was nothing further I could do. I felt elated
and restless, but powerless. I was like a scientist who, after years of
work and research, has successfully launched a rocket to the moon, and
now as he tracks it climbing higher and higher he has a tremendous
sense of achievement and also a strange let down feeling of inactivity.

The answer this time was easy. It was the old tried and trusted answer: I
did not have any reason to sell a rising stock. I would just continue to
jog along with the trend, trailing my stop-loss behind me. As the trend
increased, I would buy more. If the trend reversed? I would, as ever,
flee like a disturbed burglar.

I was working while Wall Street slept.
jaDEB

If it scares you, it's a sign you need to do it

jaDEB

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Re: How I made 2 Million dollars
« Reply #5 on: February 06, 2017, 05:04:22 pm »
Doing his Block method - see if it works

NPN - 220000 / 210000
ANH - 150000 / 140000
PPC - 700 / 650
BIL - 25000 / 22500
ACL - 1600 / 1400

 :laugh:
jaDEB

If it scares you, it's a sign you need to do it

Maurice

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Re: How I made 2 Million dollars
« Reply #6 on: February 06, 2017, 06:45:32 pm »
Which brokers offer stop loss selling?

jaDEB

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Re: How I made 2 Million dollars
« Reply #7 on: February 06, 2017, 07:25:00 pm »
No idea, some1 else will have to answer. I go thru broker, but it is self managed.
jaDEB

If it scares you, it's a sign you need to do it