📘 The Darvas Box Strategy: How a Dancer Beat Wall Street
Nicolas Darvas, a professional dancer turned investor, made over $2 million in the 1950s using a method now known as the Darvas Box Theory. His approach was based on identifying strong stocks making new highs and riding the momentum using technical signals—not insider tips.
Darvas believed that volume and price action reveal a stock’s strength. When a stock broke out of a "box" (a range formed by recent highs and lows) on strong volume, he saw that as a signal to buy. He ignored the news and didn’t care about fundamentals. His method was strictly price-based.
He would place stop-loss orders below the box to manage risk and trail his stops as the price moved up. His strategy was emotionless, disciplined, and trend-following.
Darvas’ success taught traders that you don’t need to be on Wall Street to beat Wall Street—just a solid method, discipline, and the courage to follow price, not noise.
🔁 Share if you found this useful!
