22 things you need to know about trading from Vic Niederhoffer

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.

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I was wondering to myself before i read his list, "i bet he doesnt talk about risk management".

And he didn't surprise me.

Niederhoffer was very poor when it came to risk management, just like the LTCM guys.

Why the hell would anyone want to take trading advice from someone who has blown up multiple times late in their trading careers (nearly everyone blows up early) except maybe to figure out what not to do.

If you want to learn about great traders and trading principles, study guys like tudor jones, soros, seykota, trout etc.

eg

VN: "Never try to make money the same way twice in a row."

Compare that to:

PTJ: "Dont think about making money, think about protecting what you got".


Traders like PTJ are masters of risk management.
VN is a master of blowing up.
 
Quote from marketsurfer:

Yeah, I added it to my post, no one elses--- mods were mentioned so I thought others posts were being altered---- no lying, I am still not sure what the issue is.

By the way, a surf quant who was monitoring the TA twitter challenge feed for me in real time says he was blocked from watching the trades? What is that about?

surf
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This is achieving surreal-status. I stated that you edited YOUR post about proof after I had posted a response. No, I never suggested that you edited mine.

If you want to wager then please email me the Barclay's data expressing any Manchester/Matador AUM exceeding $500MM and I will happily post here that you won the bet. I'll not reveal any source info.
 
Quote from southall:

I was wondering to myself before i read his list, "i bet he doesnt talk about risk management".

And he didn't surprise me.

Niederhoffer was very poor when it came to risk management, just like the LTCM guys.

Why the hell would anyone want to take trading advice from someone who has blown up multiple times late in their trading careers (nearly everyone blows up early) except maybe to figure out what not to do.

If you want to learn about great traders and trading principles, study guys like tudor jones, soros, seykota, trout etc.

eg

VN: "Never try to make money the same way twice in a row."

Compare that to:

PTJ: "Dont think about making money, think about protecting what you got".


Traders like PTJ are masters of risk management.
VN is a master of blowing up.
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The guy accumulated 500M at his peak---- was ranked #1 hedge manager for years and you question his wisdom?


LOL. Trout is a direct Niederhoffer student and we all know Soros/Niederhoffer connection. That's 50% of your list! I betcha if you kept the list going you would name other VN students---- You guys crack me up --- VN has done what you dream about multiple times.
 
Quote from marketsurfer:

The guy accumulated 500M at his peak---- was ranked #1 hedge manager for years and you question his wisdom?


LOL. Trout is a direct Niederhoffer student and we all know Soros/Niederhoffer connection. That's 50% of your list! I betcha if you kept the list going you would name other VN students---- You guys crack me up --- VN has done what you dream about multiple times.
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Trout traded his own models when working as a floor trader for niederhoffers firm, VN could of learnt how to manage risk by watching Trout trade, but i doubt he bothered.

Soros always knew VN was going to blow up one day, this is what he wrote 2 years before VN first blew up in 1997.

“Victor Niederhoffer looked at markets as a casino where people act as gamblers and where their behavior can be understood by studying gamblers. He regularly made small amounts of money trading on that theory. There was a flaw in his approach, however. If there is a…tide…he can be seriously hurt because he doesn’t have a proper fail-safe mechanism.”
George Soros 1995.
 
Quote from southall:



“Victor Niederhoffer looked at markets as a casino where people act as gamblers and where their behavior can be understood by studying gamblers. He regularly made small amounts of money trading on that theory. There was a flaw in his approach, however. If there is a…tide…he can be seriously hurt because he doesn’t have a proper fail-safe mechanism.”
George Soros 1995.
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Victor Niederhoffer and George Soros are just two dumb rednecks with fortune.
 
I heard Karen is also writing a book called:

Option writing for Dummies: It is so easy, even a grandma can do it!

Foreword by Vic
 
I had heard by an ex-colleague who was acquaintances with vic that while he did blowup, his investors were given huge "dividends " each year. So in the end they had a modest return.

I have read he peaked at 150mm aum.

Though if he was giving money back then he could have had a theoretical 500 mm aum.

He wrote a book. I started to read it but it sucked.
 
Quote from zdreg:

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you,marketsurfer, are impressed by glitz. any similarity between your buddy, neiderhoffer and your buddy, sykes is purely coincidental. correct?
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Guys, please. Let us not mention VN and that idiot Sykes in the same thread let alone in the same sentence.

I actually like VN. He is very bright, and I think he'd be an interesting guy to talk market crap with and bounce a few ideas off. Would I ever give him any money to manage or recommend that others do the same? Absolutely not!

I like surf too, but I don't know why he supports that parasite TS?
 
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