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22 things you need to know about trading from Vic Niederhoffer
- Thread starter marketsurfer
- Start date
Regardless of success or setbacks Niederhoffer has had, as Surf has suggested he is without a doubt one of the greatest in terms of aiding others in having success and in teaching a model for thinking about the markets that works.
Surf mentions The many centi-millionare hedge fund traders that are from his shop, but it is more than that. I find it extremely unlikely that any other person has helped more never on the floor, not connected traders create seven figure trading accounts. Regardless of anything else, his teaching and generosity of knowledge have been exceptional.
Surf mentions The many centi-millionare hedge fund traders that are from his shop, but it is more than that. I find it extremely unlikely that any other person has helped more never on the floor, not connected traders create seven figure trading accounts. Regardless of anything else, his teaching and generosity of knowledge have been exceptional.
Quote from MrN:
Regardless of success or setbacks Niederhoffer has had, as Surf has suggested he is without a doubt one of the greatest in terms of aiding others in having success and in teaching a model for thinking about the markets that works.
Surf mentions The many centi-millionare hedge fund traders that are from his shop, but it is more than that. I find it extremely unlikely that any other person has helped more never on the floor, not connected traders create seven figure trading accounts. Regardless of anything else, his teaching and generosity of knowledge have been exceptional.
Thanks, MrN. No question about it. I simply don't understand the hate vibe toward him on this site--- it must be some kind of jealousy or extreme hatred of seeing someone achieve what they have not been able to accomplish. keep up the good work, surf
Quote from marketsurfer:
Thanks, MrN. No question about it. I simply don't understand the hate vibe toward him on this site--- it must be some kind of jealousy or extreme hatred of seeing someone achieve what they have not been able to accomplish. keep up the good work, surf
I don't hate the guy. The truth is that he blew up in short puts at least 3x. If that's your benchmark for success then so be it. Guy was managing $150MM for a reason. All those contacts don't amount to shit when you're known for risking it all on a single bet in short gamma. Great if you win, but it didn't turn out that way.
Idolize Tepper if you value a guy who risks a huge nut on a single position. THAT guy can trade!
Quote from atticus:
I don't hate the guy. The truth is that he blew up in short puts at least 3x. If that's your benchmark for success then so be it. Guy was managing $150MM for a reason. All those contacts don't amount to shit when you're known for risking it all on a single bet in short gamma.
AUM was over 500MM at one point with Matador. surf
Have to disagree with some of these e.g.
1. If you have an edge you need to press it so long as the reasons for it are still valid. Refusing to trade it again would be throwing away money.
2. Shorting vol and fading stop-loss orders in obvious places can work well in inactive markets
5. The upward drift in stocks is minimal on trading timeframes (hours to months). If there's a great short-setup in a market, this totally overwhelms a 0.03-0.04% upward daily drift. And in bear markets the drift is downwards, not up.
6. Terrible advice. Often, fading central banks is the best play e.g. 1992 ERM crisis, 1997 Asian and Russian devaluations, 1999-2001 Argentina & Brazil devaluations, 2007-2008 western stock bear market, 2001-2002 bear market in USA, Greece bear market 2007-2012. Sometimes the best trade is to go with a central bank, other times that would be the worst possible trade.
7. This would have you being long dot.coms in April 2000, or housing in 2005-2007.
8. HFT firms have made a fortune in recent years from exploiting small profits per trade.
1. If you have an edge you need to press it so long as the reasons for it are still valid. Refusing to trade it again would be throwing away money.
2. Shorting vol and fading stop-loss orders in obvious places can work well in inactive markets
5. The upward drift in stocks is minimal on trading timeframes (hours to months). If there's a great short-setup in a market, this totally overwhelms a 0.03-0.04% upward daily drift. And in bear markets the drift is downwards, not up.
6. Terrible advice. Often, fading central banks is the best play e.g. 1992 ERM crisis, 1997 Asian and Russian devaluations, 1999-2001 Argentina & Brazil devaluations, 2007-2008 western stock bear market, 2001-2002 bear market in USA, Greece bear market 2007-2012. Sometimes the best trade is to go with a central bank, other times that would be the worst possible trade.
7. This would have you being long dot.coms in April 2000, or housing in 2005-2007.
8. HFT firms have made a fortune in recent years from exploiting small profits per trade.
Quote from marketsurfer:
Lots of hard earned wisdom here:
1. Never try to make money the same way twice in a row.
2. Don't trade inactive markets.
3. Don't assume that the relation between your two favorite markets will stay the same from year to year.
4. Be alert to big minimums on Monday as they tend to reverse.
5. Try not to sell markets that have big drifts upwards like stocks.
6. Try to go with with the central banks.
7. Be one with the idea that has the world in its grip and be on the side of the market that will further that grip.
8. Never go for small profits as the vig is too great relative to your gain as a %.
9. Don't trade when a loved one is very sick.
http://www.dailyspeculations.com/wordpress/?p=8337