Jimmy S.

Cox Presents
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Nicolas Darvas Trading Blueprint

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Limits of Liability/Disclaimer of Warranty

The Nicolas Darvas Trading Secrets Home Study Course provides impersonal educational trading information, and therefore, no consideration can or is made toward your financial circumstances. All material presented within is not to be regarded as investment advice, but for general informational purposes only. Trading stocks, futures, commodities and options does involve risk, so caution must always be utilized. We cannot guarantee profits or freedom from loss. You assume the entire cost and risk of any trading you choose to undertake. You are solely responsible for making your own investment decisions. Hypothetical or simulated performance results have certain limitations. Past performance is not necessarily indicative of future results. No stock, futures, or options system can guarantee profits. The risk of loss exists in stock, futures, and options trading. The author and publisher, its owners, or its representatives are not registered as securities broker-dealers or investment advisors either with the Australian Securities & Investment Commission or with any state securities regulatory authority. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest with or without seeking advice from such an advisor or entity, then any consequences resulting from your investments are your sole responsibility. The author and publisher of this book put forth their best efforts preparing this program. The author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents in this program. They disclaim any warranties (expressed or implied), merchantability, or fitness for any particular purpose. The author and publisher shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or any other types of damages. Both the author and publisher do not warrant the performance, effectiveness, or applicability of any sites that are listed in this book. All of the links listed here are for information purposes only and not warranted for content, accuracy, or any other implied or explicit purpose. This e-book contains material that is protected under international and federal copyright laws and treaties. Any unauthorized reprint or use of this material is prohibited.

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Pre-Watch Checklist Identify strong industries with solid 5-20 year outlook. Industries that are emerging and becoming fashionable. Identify strong companies within those industries. Reasonable current price level, already dear and not cheap. Listed stocks only no unlisted stocks.

Set Up Classic & Modern Darvas high price reached for the specified time period, followed by formation of a box near the high point. Classic: 52-week high; Modern 6-month or 52-week high General market mood is neutral or bullish NOT bearish. If general market conditions are unfavorable, proceed only with great caution, otherwise wait.

Breakout Darvas General market conditions are down or just following a down period. Stock under consideration showed strength prior to the downturn Price has turned upward and formed two boxes

Entry & Exit Classic - Automatic buy order set to the price at the top of the first box formed, activated on any trade above the top of the box. Stop loss placed to trigger upon any trade below the bottom of the box. Modern buy order executed upon a market close above the top of the first box, at the price of the top of the box. Stop loss placed to trigger at a market close below the bottom of the box. Breakout buy order executed upon a market close breakout above the SECOND box, at the price of the top of the box. Stop loss placed to trigger at a market close below the bottom of the second box. Aggressive Entry buy order executed prior to a market close breakout of the top of the first box. Stop loss placed to trigger at a market close below the bottom of the box. Delayed Entry buy order executed after the breakout of the first box, but after the price comes back down seeking a lower price. Stop loss placed to trigger at a market close below the bottom of the last valid box.

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Risk Management & Profit Protection All - Upon execution of a buy order, a stop loss order is placed as well per the conditions noted above. As new boxes form, the stop loss is moved up immediately following the formation of a new box, and set to the bottom of the newly formed box. All but Classic - If the price breaks out and runs up more than the height of the current box without forming a box, the trader may wish to move the stop loss orders up using ghost boxes.

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Darvas Trading Method Visually Represented

Copyright 2007 www.nicolasdarvastrading.com