There is a lot that you can learn from an accomplished trader like Nicolas Darvas. It may be wise to be a little suspicious of trading experts and their stories. Darvas’ tale however is one worth seriously considering. After all, this is the man who made $2 million out of just $25 thousand. What is even more amazing about this accomplishment is that he wasn’t even a pure trader. He was a travelling ballroom dancer.

What exactly did Darvas do to make a fortune? He simply applied the lessons he picked up from his experiences. Here are his top learning points that you too can benefit from.

#1- Trading requires a plan.

Early in his trading career, Nicolas Darvas had moments when he simply traded based on what appeared to be attractive options. He made his choices based on what other traders were running after and based on his personal inclinations. This was the reason why he lost a lot of cash.

Darvas later learned that trading should not be ruled by emotional decisions. Decisions should instead be ruled by a logical trading system or plan. A system will give you some measure of control over the very few aspects that you can manage in trading. Although you cannot tell the market where to move and up to what point, you can indicate when and where you will enter or leave a trade. You can also indicate yourexact money management rules.

#2- Don’t follow advice at the expense of solid research.

The Darvas trading system became a reality only after Darvas lost a fair amount of cash as a result of following opinions. The truth is that, it can help you a lot to listen to what real experts say and know. What can be damaging is taking the advice of people who have no data to back their tips or who make opinions based solely on personal biases.

If you can’t tell exactly which expert is the real deal, the best course to take is to research on your own. When you make decisions regarding your trading plan, you need to make them based on technical findings and analysis. If there are some pieces of advice that do seem to make sense, check first if they are tested points.

#3- Admit ignorance and ask questions.

The Darvas trading method only became a success when its author admitted his ignorance over several aspects of trading. There is always a temptation to try to appear knowledgeable and confident in front of a broker or other traders. This however is one of the best shortcuts to acquiring significant losses. Recognizing your shortcomings is the first step to becoming a wise trader. When you become humble enough to admit that you do not know everything, you will be able to ask relevant questions and perform the research required to find the answers.

These are only three of the many other valuable lessons that traders can pick up from Nicolas Darvas. Although it may not work for some to replicate Darvas’ exact methods, it does make sense to look at what he has accomplished so you can make your own custom system.