Any thoughts on this article?

[chasinfla]

Originally posted by Babak
Commissio,

I would have to agree. For someone to make it to a degree that Neiderhoffer had (mansion, art, connections, etc.) and then to not protect it shows that he didn't belong there in the first place.

that's rich. that's absolutely rich. and so full of holes...

 

[Banjo]

He succumed to arrogance, a lack of respect for the diametrically opposed portion of the equation.

 

[Commisso]

Originally posted by chasinfla


that's rich. that's absolutely rich. and so full of holes...

Since he is such a "great" trader Chasin why don't you try to invest your money with him...

 

[PuffyGums]

Niederhoffer did what a lot a hedgers do which is load up on size to make up for the lower profit potential of a hedged position. Some of those relationships the hedges are built on seem sooo reliable and dependable the trader may think he has a money machine. So what do you do when you really believe you have a money machine? Lever the heck out of it. Sometimes, lightning does strike twice and in truth those hedges are built on correlations, not physical or mathematical laws.

 

[chasinfla]

Originally posted by Commisso


Since he is such a "great" trader Chasin why don't you try to invest your money with him...

not only is he a great trader, he is a great human being.

a) i trade my own money.
b) the truly great traders seem to be busy posting critiques of him.

 

[Mr Subliminal]

Originally posted by Commisso
Frist off I would really like to know if that is Taleb that writes the letter to Niedehoffer in the introduction to Education of A Speculator???

Commisso, I have the book in front of me and I can't seem to find your "letter". Do you have a page reference? FWIW, Taleb is not mentioned in the Notes (p. 415), Select Bibliography (p. 423) or Index (p. 429).

 

[marketsurfer]

chas,

i must agree with you. victor is truly an american hero and has my utmost respect.


all the best,

surf

 

[daniel_m]

Originally posted by chasinfla
interesting argument. I counter with this: It takes that kind of aggressiveness to reach the top. Once there, it's unnatural to cease being that way. (else you were a pretender all the way up, and pretenders almost NEVER get to the top. In trading, there are too many tests along the way designed to weed them out.)

Is that what it's all about to you Chas, getting to the top?

Who gives a f**k about the top?? And the "top" according to who's definition? Was he the richest? Did he have the best annual percentage return? The best reward to risk ratio? What does it take to reach the top??

It takes aggressiveness to reach the top? Have you ever wondered where that line about "old traders/bold traders" comes from?

I trade to reach my own personal financial goals. My goals are definitely "realistic" and achievable (they've been done by other traders thousands of times). The only way I can lose is if my strategies stop working, I can't find new ones, and slowly bleed to death. There's no way I'd blow out on one freak occurance. That would take a stock to move 100 points intraday and me with no way to get out. (Yeah, technically there is a chance of that happening. That's a risk I'll take anyday.)

I thank my lucky stars every day that there's people that think like you in the markets. Makes it so much easier for the rest of us.

Daniel

 

[AAAintheBeltway]

Originally posted by rmodasia
"All those dollar, and fifty-cent, options that Empirica has accumulated—few of which will ever be exercised—soon begin to add up. By looking at a particular column on the computer screens showing Empirica’s positions, anyone at the .rm can tell you precisely how much money Empirica has lost or made so far that day. At 11:30 A.M., for instance, they had recovered just twenty-eight per cent of the money they had spent that day on options. By 12:30, they had recovered forty per cent, meaning that the day was not yet half over and Empirica was already in the red to the tune of several hundred thousand dollars.The day before that, it had made back eighty five per cent of its money; the day before that, eightyfour per cent; the day before that, sixty five per cent; and the day before that also sixty five per cent..."


Maybe I'm missing something but does anyone here understand how they are recovering so much of the option premiums on a daily basis?

I had the same question. I think it must be based on a mark to market on the entire protfolio, not just the change in the positions they put on that day.

 

[TriPack]

It seems like this whole deal about Niederhoffer and those who would call him the greatest trader of all time revolves around two issues:

1) Niederhoffer may be the greatest trader when he is winning.

2) Niederhoffer may be the worst trader when he is losing.

It reminds me of the classic basketball matchups between Wilt Chamberlain and Bill Russell. Some may argue that Chamberlain was the most dominating offensive player of all time. Others may say that Bill Russell was the most effective defender in the game. When it came down to championships, Bill Russell's team always came out on top. Maybe defence is more important than offence?