WALL STREET: The Darvas Effect
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What most readers of Darvas' book fail to realize is that the stop-loss order method must be used, as Darvas does, with the skill of a professional trader; it is not for amateurs. To stop the sudden swings, the floor governors of the exchange are closely watching 13 stocks with an unusual volume of stop-loss orders, have held several meetings to discuss the problems presented by the "Darvas Effect."
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