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Nicolas Darvas

Nicolas Darvas

Nicolas Darvas (1920–1977) was a self-taught investor and author. He is best known for his book, “How I Made $2,000,000 in the Stock Market.”

Career

Dancer

Hungarian by birth, Darvas trained as an economist at the University of Budapest. Reluctant to remain in Hungary until either the Nazis or the Soviet Union took over, he fled in June 1943 at the age of 23 with a forged exit visa and fifty pounds sterling to Istanbul, Turkey. Sometime later, he met up with his half-sister Julia. who became his partner in a dancing team in Europe and the United States.

In April 1953 the two appeared with Judy Garland and Bob Hope. By 1956, they were touring.

Investor

During his off hours as a dancer, he had read some 200 books on the market and on speculators, sometimes reading up to eight hours a day. He began his studies by reading the following:

  • ABC of Investing, by R. C. Effinger
  • The Stock Market, by Dice & Eiteman
  • The Securities Market: And How It Works, by B. E. Schultz
  • Your Investments, by Leo Barnes
  • Profits In The Stock Market, by H. M. Gartley
  • Consistent Profits In The Stock Market, by Curtis Dahl
  • You Can Make Money on the Stock Market, by E. J. Mann

The two books which he read almost every week were The Battle for Investment Survival, by Gerald M. Loeb, published in 1935, and Tape Reading and Market Tactics, by Humphrey Bancroft Neill, published in 1931.

Darvas invested in a couple of stocks for which the share price had risen. The stocks continued to rise and he subsequently sold them at a profit. He subsequently came up with an approach and plan for trading stocks from which he received $2,450,000.00 in 18 months, during the 1957-58 bull market,seven years since his first trade.

From the week ending 12/16/1957 through the week ending 7/27/1959, the S&P 500 rose over 53%. Market moves of that size have only happened seven times since 1950, according to Yahoo Finance weekly S&P 500 prices.

His main source of stock selection was from Barron’sThe magazine was usually a week-old edition, since he was traveling in his performing dance troupe. He would use cables and telegrams to send his buy and sell stop orders to his broker in New York City. From now on Darvas would select a stock when it made a good advance on strong volume, with favourable fundamental company research.

Darvas claimed his method often revealed the signs of insider trading before a company’s release of favourable news to the public.

His stock selection method was called “BOX theory”. He considered a stock price wave as a series of boxes. When the stock price was confined in a box, he waited. He bought when the price rose out of the box. He simultaneously set a stop-loss just under this trade price.

At the age of 39, after accumulating his fortune and also being exposed in Time magazine, Darvas documented his actions in the book, How I Made 2,000,000 in the Stock Market. The book describes his “Box System”, which he used to buy and sell stocks.

1960 criminal investigation

Time magazine subsequently reported that the New York Attorney General had “thrown the book” at Darvas, charging that his story was “unqualifiedly false” and that it could find “ascertainable” profits of only $216,000. The action was the first to be taken under a broadened state law that banned fraud or misrepresentation in giving investment advice.

In a follow up, dated 13 January 1961, Time reported that the probe was blocked by the court, which ruled that the investigation by Attorney General Louis J. Lefkowitz was an “unwarranted invasion of the free press”. Time also reported that state investigators admitted that they had not been able to track down all of the dancer’s brokerage accounts.

Darvas called the charges false, a “cynically irresponsible action, book burning by publicity”. He stated, “I keep out in a bear market and leave such exceptional stocks to those who don’t mind risking their money against the market trend”.

Darvas claimed to have never sold short. He said in 1977, “I have never done it myself because psychologically I am not cut out for short selling. But I think markets have now changed their character so much that all experienced investors should seriously consider it. It is not for the proverbial widows and orphans, though.” 

The Anatomy of Success

In his third book, he wrote “Later, I went on to explore and become successful in other fields, the fashion industry, theatrical producing, real estate are just a few”. Here he claims “the formula for success remains essentially the same”. In the book he set out what he called “the rules to be followed”. “But one must know the correct route”. In his last book, You Can Still Make It In the Market,. Darvas gives the rules for a method called “Dar-Card”.

Death

Darvas died in 1977.

Books

  • How I Made 2,000,000 in the Stock Market. Published in 1960.
  • Wall Street: The Other Las Vegas. Published in 1964.
  • The Anatomy of Success. Published in 1965 .
  • The Darvas System for Over-The-Counter Profits. Published in 1971 .
  • You Can Still Make It in the Market. Published in 1977.
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J. Welles Wilder Jr.

J. Welles Wilder Jr.

J. Welles Wilder Jr. (Born in 1930s ) is an American mechanical engineer, turned real estate developer, turned technical analyst, best known for his work in technical analysis. He commenced 13 years of full-time market research and trading in his “retirement.” He became interested in buying silver, and concluded that futures were the best way to gain leverage. He embarked to study and learn all he could about futures markets.

Wilder is the father of several technical indicators that are now considered to be core indicators in technical analysis software. These include Average True Range, the Relative Strength Index (RSI), Average Directional Index, and the Parabolic SAR.

Wilder also founded Delta Society International, expounding the theory of the delta phenomenon in the 1980s, about what he refers to the perfect order of the markets.

Wilder is the author of four books:

  • The Delta Phenomenon;
  • Wisdom Of The Ages In Acquiring Wealth;
  • Adam Theory Of Markets; 
  • New Concepts In Technical Trading Systems.

 

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Alan Leo

Alan Leo

Alan Leo, born William Frederick Allan, (Westminster, 7 August 1860 – Bude, 30 August 1917), was a prominent British astrologer, author, publisher, astrological data collector and theosophist. He is often referred to as “the father of modern astrology”.

His work stimulated a revival of astrology in the Western world after its decline at the end of the 17th century. Leo was a devout theosophist and he worked many of its religious concepts such as karma and reincarnation into his astrology. He used the Theosophical Society’s vast international connections to publish, translate and disseminate his work across Europe and America.

Astrological technique and influence

Leo, who took the name of his sun-sign as a pseudonym, is credited with starting the movement towards a more psychologically-oriented horoscope analysis in astrology, being the first astrologer to argue for a loose interpretation of possible trends of experience rather than the specific prediction of events. His influence has been described as marking a ‘turning point’ in horoscope delineation, because, as astrological historian James Holden explains:

Thereafter, what has been more recently called “event-oriented” astrology gradually receded in favor of character analysis and vague descriptions of possible areas of psychological harmony or stress.

In 1890, Leo, invited George R.S. Mead to found an occult lodge in Brixton, South London. Towards the end of his life, in 1909, and again in 1911, Leo travelled with his wife to India where he studied Indian astrology. As a result of his studies in India, he later attempted to incorporate portions of Indian astrology into the western astrological model.

Leo’s book The Art of Synthesis (1912) was a probable influence on Gustav Holst’s work The Planets. In this book, Leo gave the planets descriptions such as “Mars the Energiser”.

In 1915 Leo founded the Astrological Lodge of London.

Legal controversies and death

In 1914, aged 54, Leo faced prosecution against the charge that he “did unlawfully pretend to tell fortunes” through astrology. The case was dismissed for lack of evidence, but it led to Leo’s belief that astrology needed to be revised to be legitimised. His advice to fellow astrologers was:

Let us part company with the fatalistic astrologer who prides himself on his predictions and who is ever seeking to convince the world that in the predictive side of Astrology alone shall we find its value. We need not argue the point as to its reality, but instead make a much-needed change in the word and call Astrology the science of tendencies.

In 1917 Leo stood trial again on a similar charge. Despite his insistence that he told only “tendencies” and not “fortunes”, he lost his case and was fined £5 plus costs. Leo was convicted of fortune-telling on 16 July 1917. He died a few weeks later from an apoplexy (cerebral haemorrhage), at 10:00 am on 30 August 1917, whilst on a holiday at Bude in Cornwall, which was intended to restore his health after the ordeals of the trial. He had used the ‘holiday’ as a period in which he rewrote hundreds of pages of astrological text to “recast the whole system and make it run more along the lines of character reading and less as the assertion of an inevitable destiny”, despite being warned by his wife that “he needed rest badly after the worry and anxiety of the law case”, and was overworking himself and heading for a breakdown. After his sudden death the rewriting of his work was completed by his friend and colleague H.S. Greene. Greene also remarked on how the 1917 prosecution had caused worry for Leo during the process of the trial.

Works

  • Practical Astrology.
  • The Astrologer’s Magazine, edited by Alan Leo, Vol. IV (1894) Vol. V series 1895
  • What is the Horoscope and How is it Cast. N.p., 1902.
  • How to Judge a Nativity. 2 vols. 1904. Reprint, London: Modern Astrology Office, 1928.
  • Astrology for All series 1903–.
  • The Progressed Horoscope. London: Fowler 1906.
  • Horary Astrology. London: Modern Astrology Office, 1909.
  • The Key to your own Nativity. London: Modern Astrology Office, 1910.
  • The Art of Synthesis. Originally published 1912 as “How to Judge a Nativity” in the Astrology for All series. London: Fowler 1968.
  • Casting the Horoscope. London: Modern Astrology Office, 1912.
  • Esoteric Astrology, first published 1913. Destiny Books, Rochester, Vermont, 1989.
  • Alan Leo’s Dictionary of Astrology, edited and completed by Vivian E. Robson. London 1929.
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H. Emilie Cady

Harriet Emilie Cady

Harriet Emilie Cady (July 12, 1848 – January 3, 1941) was an American homeopathic physician and author of New Thought spiritual writings. Her 1896 book Lessons in Truth, A Course of Twelve Lessons in Practical Christianity is now considered one of the core texts on Unity Church teachings. It is the most widely read book in that movement. It has sold over 1.6 million copies since its first publication, and has been translated into eleven languages and braille.

Biography

She was born on July 12, 1848, in Dryden, New York, to Oliver Barlow Cady and Cornelia A. Philips. Cady’s first job was as a schoolteacher in a one-room schoolhouse in her hometown. In the late 1860s, she decided to pursue the field of medicine, and enrolled in the Homeopathic Medical College of the State of New York. She graduated in 1871 and became one of the first woman physicians in America.

Spiritual development and writing career

Introduced to the teachings of Albert Benjamin Simpson, Cady became deeply involved in spiritual and metaphysical studies. She was inspired and influenced by Biblical teachings and the philosophy of Ralph Waldo Emerson. She was taught by Emma Curtis Hopkins, the New Thought “teacher of teachers” and a student of Christian Science and Mary Baker Eddy.

Cady associated with several prominent figures in the New Thought movement of the time, including: Emma Curtis Hopkins, Divine Science minister Emmet Fox, Ernest Holmes, founder of Religious Science, and Charles and Myrtle Fillmore, co-founders of Unity Church. Finding The Christ in Ourselves, a pamphlet she had written and sent unsolicited to Charles and Myrtle Fillmore, was published by them in the October 1891 issue of Thought. Beginning in 1892, a series of articles titled Lessons in Truth by Dr. Cady were published in Unity magazine. This material later was compiled into a book and was the first book Unity published.

Death

Cady died January 3, 1941, in Manhattan, New York City.

Books

  • Lessons in Truth, A Course of Twelve Lessons in Practical Christianity
  • How I Used Truth
  • God, a present help
  • The Complete Works of H. Emilie Cady
  • Coming into Freedom: Emilie Cady’s Lessons in Truth for the 21st Century Ruth L. Miller Pd.D.
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Raphael

Robert Cross Smith (1795-1832) was an English astrologer, writing under the pseudonym of “Raphael“.

Smith was born in Bristol on March 19, 1795. He married in 1820 and moved to London, where he became interested in astrology. Together with G. W. Graham, he published a book on geomancy in 1822.

Smith began to edit a periodical entitled The Struggling Astrologer in 1824, but failed to receive enough subscribers and the periodical had to be discontinued after a few issues. He collected the issues of the failed periodical in a volume entitled The Astrologer Of The Nineteenth Century in the same year. The volume claimed to be the “sixth edition”, but it is believed that editions one to five never existed. A substantially enlarged edition appeared in 1825 as the “seventh edition”, with additional material attributed to “Merlinus Anglicus Junior” (Merlinus Anglicus Junior: The English Merlin Revived was the title of a 1644 book by William Lilly). It was printed by Knight & Lacey of London.

From 1827 until his death in 1832, he edited an astrological almanac, entitled The Prophetic Messenger. Also published by Smith was The Familiar Astrologer and A Manual of Astrology, both in 1828.

Smith died on 26 February 1832 in London. His almanac continued to be edited as Raphael’s Ephemeris and would become a standard work in British and US American astrology. Raphael’s Ephemeris popularized the system of Placidian system of astrological houses in the English-speaking world and in modern western astrology in general.