Be Careful Which Stockmarket Tips You Choose To Pursue

The Nicholas Darvas Stockmarket Tips Success Story (part 38)

As I flew around the world, I was constantly searching for stockmarket tips that would help me climb into the stratosphere because of the vision of their future. This attitude was a preparation for what I suppose you could call high-territory trading.

I looked for stockmarket tips that I thought could make new highs and I decided to give them my full attention when they had climbed on to the launching pad and were preparing to rocket up. Now these stocks would be more expensive than ever before and so they would look too dear to the uninitiated. But they could become dearer. I followed the stockmarket tips that told me to buy high and sell higher.

Using my stockmarket tips, I diligently attempted to find these expensive-but-cheap, high-velocity stocks. I searched constantly for them because I felt sure that they would move up at the first sign of a better market.

I carefully watched a dozen stockmarket tips, which seemed to be in this category, checking their quotations every week, analyzing their behavior for any sign of a hardening.

I closely observed their price action, and I was on the alert for any unusual activity as well. I had not forgotten the importance of volume in my stockmarket tips.


I also prepared myself to operate in higher-priced stockmarket tips. This was because of the brokerage commissions. When I examined the rates I discovered that it was cheaper to invest $10,000 in a $100 stock than in a $10 stock. Here is why:

Let us suppose I wanted to invest my $10,000 in one stock. I could do it in several ways. For instance I could buy:




In the case of the $10 stock $300.
In the case of the $20 stock $250.
In the case of the $100 stock $ 90.

If my stockmarket tips were correct, the broker's commission were not important. It came off my profit. But, if my timing was wrong and I was stopped out - it was another matter. Then the two commissions, one for buying and one for selling, had to be added to my loss. So as you see, my mistakes would be much less costly if I got involved in higher priced stockmarket tips.

As I watched the market continually sinking, I knew that it could not sink forever. Sooner or later stockmarket tips would begin to move upwards. They always had. Bear markets were always followed by bull markets. The educated art was to watch for the first signs, be sure they were real, and buy in before everyone else noticed and the prices began to rise too high. 

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