How I Made 2 Million Dollars In The Stock Market...

I love the stock market - it's a pretty exciting place. It can really get addictive (though it's good to keep a cool head). Sometimes it can be a bit of a roller-coaster ride - but that's part of it's charm... Most of my personal investments go into stocks.

(By the way, business can be exciting too. I still get excited whenever sales are being made!)

Thanks Phil for the recommendation. I looked up "The Brainwashing of the American Investor" by Steve Selengut on Amazon.com and it looks very interesting! I'll try to get a copy.

- Dien Rice


Great ideas for extra streams of income...

Thanks, Dien. Also, I hope I didn't come off as pooh-poohing Buffet or Graham. I think there's a lot of merit in their methods and I'm glad to hear that you've had success with them (I know many people have). I just wanted to throw out another approach which has worked well for me.

Yes, the stock market can be exciting, but overall, I think it is a bit of a slower way to make money. If having your own business is like having a financial "car," then investing is like taking a financial "bus."

Ok, enough rambling today. ;)

Best to you,
--Phil

> I love the stock market - it's a pretty
> exciting place. It can really get addictive
> (though it's good to keep a cool head).
> Sometimes it can be a bit of a
> roller-coaster ride - but that's part of
> it's charm... Most of my personal
> investments go into stocks.

> (By the way, business can be exciting too. I
> still get excited whenever sales are being
> made!)

> Thanks Phil for the recommendation. I looked
> up "The Brainwashing of the American
> Investor" by Steve Selengut on
> Amazon.com and it looks very interesting!
> I'll try to get a copy.

> - Dien Rice

> Yes, the stock market can be exciting, but
> overall, I think it is a bit of a slower way
> to make money. If having your own business
> is like having a financial "car,"
> then investing is like taking a financial
> "bus."

I agree. I'd say running a business and investing in stocks are not really in the same category.

For the most part, running a business is an active pursuit, much like a job, that takes up much of your time. Investing in stocks, on the other hand, is more passive (unless you happen to be a day trader or do it for your job, of course).

So with that in mind I think you'd expect to earn more from running a business.

If you're a "value investor" or use "fundamental analysis" then running a business and investing in stocks are linked, because these people value stocks by trying to value the underlying business, rather than predicting where stock prices will be tomorrow.

And if you develop skills in valuing listed businesses, then these skills transfer well to running your business in terms of assessing the value of new projects and opportunities you can take on or leave.

Ok, I too will stop rambling now. :)

- Thomas.

> Anybody read it and tried it? It was written
> in the 1950's. I read about a chapter of it
> at the bookstore. Highly entertaining.

I read it and would recommend it. It's one of the classics.

As you read it, you'll see that his theory of buying and protecting with moving stop losses (boxes) is simple, and that the theory and idea CAN still be used profitably today.

However, you'll also read his story of investing from Canadian mining stocks to the far reaches of the world investing by the newspaper numbers only. And you'll see that the probability of doing it the way he did with a few huge (lucky) kills is unlikely.

Interesting but unwise in the time of dot bombs.

But like I said, worthwhile for you smart sowpubbers. No Elliot waves, fibonacci numbers, double bottoms, or retracement figures. Find what works for you.

Being a poor college student with an addiction to fast cars, I have a lack of money at the time or I could give you a more first hand real trading account, Adam. Wish I could. Hopefully soon.

> Got distracted, set it down and now need to
> go back and buy it.

You will have to go back and buy a copy!

-Erik

> ... by Nicholas Darva.
Much of it is valid today. a must read to any savvy investor. (along with Lefever book)




My Book Club

For an explanation of 'Darvas boxes,' a major component of his system, visit gerryco.com.

This person, Jim Gerry, has put together a graphical analysis of how to form your own boxes and a page which will create them for you using yahoo's historical data.

You will still need to peruse the book to get an understanding of where this 'boxes' concept originated.

All the best
-ed
> ... by Nicholas Darva.

> Anybody read it and tried it? It was written
> in the 1950's. I read about a chapter of it
> at the bookstore. Highly entertaining.

> Got distracted, set it down and now need to
> go back and buy it.

> - Adam.




gerryco.com