An Interview With Nicoals Darvas 1975
Introduction
Nicolas Darvas was one of the most fascinating figures in modern investment history. Known for developing the famous Darvas Box Theory, he gained global recognition after turning a relatively small investment into millions through disciplined stock trading. By the mid-1970s, Darvas had stepped back from active trading, but his ideas continued to influence investors around the world.
This article presents an educational, AdSense-friendly interview-style examination of Nicolas Darvas as of 1975, drawing from his published writings, public statements, and widely documented investment philosophy. The content is intended for informational purposes only and does not constitute investment advice.
Background: Who Was Nicolas Darvas?
Nicolas Darvas was originally a professional dancer who traveled extensively across Europe and North America. Without formal financial training, he developed a systematic trading approach based on price movement, volume, and strict rules. His success was documented in his well-known book How I Made $2,000,000 in the Stock Market.
By 1975, Darvas was widely regarded as a pioneer of technical trading and trend-following strategies, particularly among self-directed investors.
Interview Section
Q: Mr. Darvas, how would you describe your approach to investing?
Darvas: My approach is based on discipline and observation. I do not attempt to predict the market or listen to opinions. I focus entirely on price behavior. When a stock moves into a clearly defined range and then breaks out on strong volume, it tells me that informed buyers may be entering the stock.
I follow the stock, not the story.
Q: Why did you rely so heavily on price movement rather than fundamentals?
Darvas: Fundamentals can be useful, but they often arrive too late. Price reflects collective knowledge. I believe the market knows more than any individual analyst. My job was not to argue with the market but to follow it.
This approach helped me avoid emotional decisions.
Q: Many investors struggle with losses. How did you manage risk?
Darvas: Losses are part of the business. What matters is controlling them. I always used stop-loss orders and accepted small losses quickly. Large losses destroy confidence and discipline. My system allowed me to stay in the market without fear.
Q: What is the core idea behind the Darvas Box Theory?
Darvas: A box forms when a stock trades within a defined high and low range. When it breaks above the box with strong volume, it suggests demand is increasing. I buy at that point and protect myself with a stop below the box.
The box gives structure to decision-making.
Q: How important is psychology in investing?
Darvas: Psychology is everything. Most investors fail not because of lack of intelligence, but because of lack of discipline. Fear and greed cause people to abandon their rules. A clear system removes emotion from the process.
Q: What advice would you give to individual investors in 1975?
Darvas: Trade small until you understand yourself. Do not follow tips. Develop rules and respect them. And remember, patience is more valuable than activity.
The market rewards discipline over excitement.
Darvas’ Views on the Market Environment of the 1970s
During the 1970s, markets were influenced by inflation, economic uncertainty, and shifting monetary policy. Darvas believed that these conditions made rule-based trading even more important. Rather than predicting economic outcomes, he encouraged investors to observe price trends and adjust accordingly.
His philosophy emphasized adaptability over forecasting.
Influence and Legacy
By 1975, Nicolas Darvas’ methods had already influenced a new generation of traders interested in technical analysis and momentum investing. His ideas later inspired trend-following strategies and systematic trading approaches used by professionals and individual investors alike.
The Darvas Box Theory remains a reference point in discussions about price-based investing.
Lessons for Modern Readers
Although markets have evolved significantly since 1975, many of Darvas’ principles remain relevant:
Follow price, not opinion n- Control risk before seeking reward n- Maintain discipline and consistency n- Accept losses as part of the process
These timeless lessons continue to resonate in modern financial markets.
Conclusion
An interview-style examination of Nicolas Darvas in 1975 reveals a thinker deeply committed to discipline, simplicity, and respect for market behavior. His success was not based on prediction, but on following clear rules and managing risk effectively.
For readers interested in market history and investment psychology, Darvas’ insights offer enduring value. His legacy serves as a reminder that clarity, patience, and discipline often matter more than complexity in the pursuit of long-term success.
Summary:
The only interview with Nicolas Darvas in the World
Hi Nic. It�s a pleasure to meet you in person. Thank you for agreeing to do this interview. Welcome and please do feel comfortable.
Nic: Thanks for having me and it�s always my pleasure to discuss stocks and the stock market.
Nic would you mind if we get right down to talking about the stock markets? I can�t wait to pick your brains on this subject. In fact, I�ve been waiting for many years to do this.
NIC: Sure....
Keywords:
investing,stocks
Article Body:
The only interview with Nicolas Darvas in the World
Hi Nic. It�s a pleasure to meet you in person. Thank you for agreeing to do this interview. Welcome and please do feel comfortable.
Nic: Thanks for having me and it�s always my pleasure to discuss stocks and the stock market.
Nic would you mind if we get right down to talking about the stock markets? I can�t wait to pick your brains on this subject. In fact, I�ve been waiting for many years to do this.
NIC: Sure..that�s what I am here for.
OK. After your amazing success in the late 1950�s and after publishing �How I Made $2 Million In The Stock Market� how did life change for you?
NIC: It was an amazing period in my life. I went from $25,000 which was everything I had at the time to a multi-millionaire in quite short length of time. But I was amazed at the publicity I stirred up in Time Magazine in 1959. I never knew there would be such a big interest in a solo stock trader. Then the success of my book was another major accomplishment in my life. It sold over 400,000 copies in the first year you know. Sure I was much richer than I dreamed I ever would be by 1960 but my life never changed. I carried on dancing and investing. I was able to buy more properties throughout the world with my financial success. For that I was grateful. As a person it never changed me one bit.
Glad to hear it Nic. I got that impression. You seem a very sincere down to earth guy. Do you think this attitude helped you succeed in the stock market?
NIC: Maybe it�s not for me to say. I never got too down about losses. It never bothered me if I was out of the market for months at a time. And because my system dictated when I got out of a winning stock I never got anxious or excited about hose winners. Looking back, I suppose it was quite remarkable how I could go from $25,000 to over $2 Million with such calmness. That�s me. After the massive success in the late 1950�s I took a portion of my profits out of the stock market and invested in property. I felt there would be no point of great success if I didn�t see something tangible for it. After that I felt like I was merely participating in a game. If I followed the rules I won money. When I broke them I lost. My challenge was following the rules.
So you admit to still making mistakes in the stock market?
NIC: Of course I do. It�s very hard not to try and cut corners even when it�s your own ultra money making method. Occasionally I get swayed. Break the rules. Lose money. But it isn�t very often theses days.
What�s the biggest question you always get asked when traders find out you are Nicolas Darvas?
That�s easy. Can I have your autograph and can you borrow me some money.
Ha,ha. Really?
Nic: No. Just kidding you. Hm.. the two most asked question I get? Let�s think. They would probably be�..
