Darvas's theory from a investment letter

Darvas would simply search for these types of stocks. Stocks with positive momentum that were charging upward. Makes sense, right?

As Darvas himself once said:

"The only sound reason for my buying a stock is that it is rising in price. If that is happening, no other reason is necessary. If that is not happening, no other reason is worth considering."

But once he pinpointed one of these stocks, he had to put it to the test.

Darvas had to be sure that the price rise he initially saw wasn't a fluke. That this stock's momentum was the real deal... a sustained climb that was going to make him big gains.

So if a stock was going to keep its place in his portfolio, it would have to run through the "Hungarian Gauntlet".

The "Gauntlet" consists of a series of boxes, each more valuable than the last. Take a look and see for yourself below...

The Gauntlet

A stock starts in the lowest box. In order for Darvas to keep it, it needed to maintain it's upward trajectory and break through into the next box.

Each box represents a $5 price window. As long as a stock did not drop down into a lower box, Darvas would hold it and continue to make money.

Each section of the "Gauntlet" that the stock managed to get through made Darvas more and more money. But as soon as the stock showed him that it couldn't continue any further on the "Gauntlet", Darvas would sell and take his profits.

That's exactly what he did with the five stocks that made him $2 million in 18 months.

Those five stocks, Universal Products, Thiokol Chemical, Texas Instruments, Zenith Radio and Fairchild Camera each ran the "Gauntlet" far enough to add up to $2.45 million in profits for Darvas.

Here's the "Gauntlet" that Universal Products ran that ended up netting Darvas a profit of $409,000.

Universal Products

You can see that when Darvas initially purchased Universal, its price was right around $35... a new 52-week high for the company.

Universal continued to power its way through the "Hungarian Gauntlet" over the course of the next eight months, going as high as $102 a share.

Darvas ended up selling Universal after it faltered at its highest point and dropped down to around $89... which even a little off its high was still good enough to hand him over $400k.

See how it works? You find a company that's quickly gaining a head of steam and then you ride that freight train as far as it'll go before it runs out of fuel.

Along the way you crash through each and every barrier in your way, getting stronger and stronger as you go. The "Gauntlet" is the ultimate test of the will and power of a stock.

And with each passing grade it receives, you make more and more money!

It's so simple it's no wonder the ultra-skeptical government stiffs were ready to outlaw the strategy.

"Hungarian Gauntlet" user Peter Alford sums it up best when he notes:

"With more and more powerful computers available to traders, it seems that most try to use more and more complex systems with many, often conflicting and confusing indicators. They are in effect searching for the holy grail of trading that does not exist. What [the Hungarian Gauntlet] shows is that to be successful all you need is a system, simple enough to you that you can easily implement and stick to it."

Just take a look at what Darvas did with another of his five "two million dollar" stocks - Thiokol Chemical.

Check out its "Hungarian Gauntlet" path...

Thiokal Chemical

While he was traveling in Tokyo in 1958, Darvas noticed that Thiokol was experiencing some heavy trading and had jumped to $45 a share.

He bought in at around $47 and a few weeks later the stock was pushing up towards $50, ready to break through the "Gauntlet".

Three months later, he had made $250,000 and Darvas was heavily tempted to take the money and run. But as he would later say: "You have no reason to sell a rising stock."

The Thiokol stock ended up doing a 3-1 split after that and Darvas would watch as his 18,000 split shares ran the "Gauntlet" all the way up to $72.

When it hit the wall he then sold all his shares for an average price of $68... good for an incredible return of $862,000!

Using the "Hungarian Gauntlet" strategy, Darvas had made over $1.2 million off of just two stocks alone.

And he'd ride just three more through the "Gauntlet" to push his total 18-month return to over $2 million.

All of a sudden - Nicolas Darvas was a millionaire and an investment legend.

The Man Who Made Too Much...
And Told Everyone How He Did It

Darvas was rich. He was famous, both in the entertainment and financial worlds.

But one thing he wasn't was selfish.

Even though it had taken him years and countless losses to develop the "Hungarian Gauntlet" and experience the success it had brought him, he had no problem at all sharing his secrets with the world.

So he sat down and wrote a book entitled How I Made $2 Million In The Stock Market.

Pretty straightforward title no? How could you NOT want to read that?

In the book, Darvas detailed every step he took in developing the "Gauntlet".

He outlined his failures and his successes. His reasoning behind buying the stocks he did, and how he finally figured out his method for success.

The book sold nearly 200,000 copies in its first eight weeks. 10 times that number are probably in print today.

TIME Magazine did a full story on Darvas and his investing success. He was the toast of the town and the party guest everybody wanted to talk to.

And that's when Louis Lefkowitz said: "Enough."

Darvas's fame and fortune seemed too good to be true. From penniless Hungarian immigrant to stock market millionaire in just 18 months?

Not to mention, the "Hungarian Gauntlet" strategy just seemed way too easy to be true. Just follow a stock's rising price until it drops - then sell?!?

No wonder Lefkowitz believed Darvas was lying about his results. If it wasn't fabricated, then it had to be a fluke.

And yet, Lefkowitz was never able to prove that Darvas did anything but make the money he said he did. His investigation was shut down a year later... completely unsuccessful.

But that doesn't mean there isn't still danger that the "Gauntlet" could once again come under fire... especially during the prime market conditions we're about to enter into.

That's why I urge you to adopt this strategy NOW. Before it's targeted again.

I'd hate to see good honest Americans lose out on the chance to retire early thanks to Darvas's simple yet powerful method.

People like "Hungarian Gauntlet" user Mark Crisp, who tells us:

"The amazing thing is his method still works today. I have personally traded it and made over 400%..."

Or Steve Burns who reports:

"I've made thousands when I have traded like Darvas."

The only difference between what they've done and what you can do today using the "Hungarian Gauntlet" is that unlike Steve, I wholeheartedly believe that you could use it to make not just "thousands" but potentially $1 million in the next 12 months.

Why am I so confident? Well you see, you need more than just the "Gauntlet" strategy to follow in Darvas's footsteps to wealth.

Just like he realized when he bought Universal Products and Thiokol Chemical, it takes a special kind of stock to withstand the "Gauntlet".

And I'm here to tell you exactly which ones can do it.

How to Know Which "Horse" to Back

So if Nicolas Darvas wrote a best-selling book on his "Hungarian Gauntlet" theory that explains exactly how it works down to the finest details...

Why am I bothering to write you this letter?

What could you possibly need me for?

Well picture this. You start hearing some stories of people you know who've made a killing at the racetrack lately.

Naturally you want to hit the jackpot too, so you head over to the track and ask how to place a bet.

Once you figure out the betting system, you take your racing form, walk up to the window and get ready to place the wager that's going to make you rich.

Then the clerk asks you "Which horse do you want?"

And that's when you realize just how lost you really are.

You see, it's easy to learn the rules of betting. It's whole other thing to learn what makes a horse a winner. The breeding, the training, the jockey, the conditions of the track and how each horse reacts to them...

You might as well play Russian roulette with your life savings if you're thinking of wagering it without knowing a thing about the horses running the race.

And guess what? The stock market is just like a big old horse race. And it's up to you to decide which "horse" to back.

It's not so hard to figure out the logistics of a successful investment strategy - to understand the reasoning and fundamentals behind it.

What's not so easy to figure out which stocks to apply that strategy to.

A market strategy is only as strong as the stocks it's powering.

It took Darvas years to devise the "Hungarian Gauntlet." But it took him just as long to learn how to identify the stocks with the best chance to run the "Gauntlet" and make him his millions.

Well, I'm almost positive you don't have years to do the same. And you shouldn't have to wait that long to build (or rebuild) your wealth anyway.

That's why -- now that you understand the bare essentials of the "Hungarian Gauntlet" I'm going to tell you the identities of not one, but THREE of the best stocks in the world today to use it on.

Unless you'd rather scour the internet, financial pages and talk shows looking for these stocks yourself... then you can put this letter aside, and I wish you all the luck in the world.

But I'm supremely confident that almost all of those resources are going to point you right back towards the one specific market segment I'm writing you with today.

And that segment is agriculture.