Niederhoffer new book

I have an anecdote to share regarding Neiderhoffer. I read Education of a Speculator soon after it was first published. I thought (and still think) it was the best book on speculation ever written. I also admired his intelligence (summa cum laude from Harvard), athleticism (world squash champion), his devotion to his parents, and the business success he achieved despite a modest, working-class upbringing.
Needless to say, I was excited to hear that Neiderhoffer was doing a book signing at the Borders in the World Trade Center.
Since it was near work, some coworkers and I decided to go.
I get to the signing early and spot Neiderhoffer walking around the bookstore in a funny colored (purple, I think) suit. I had heard he was eccentric, and his manner of dress seemed to confirm this.
I walk up to him with the intention of introducing myself and telling him how much I enjoyed his book. I said "Hi Mr. Neiderhoffer" but he didn't even look at me and barely said "hi" in a rather disdainful way.
The talk he gave later was not much better. My coworkers and I could barely hear him. The entire time he gave the speech he had this smug look.
He seemed so full of himself that night that it completely turned me off. Honestly, he seemed like he had some narcissistic personality disorder.
When I heard about his blow up later, I couldn't help but look back on the impression I got of him that night at Borders. For all his intelligence and learning, it seemed like hubris had gotten to him.
But as many others have mentioned, his ability to bounce
back from such a crushing defeat is admirable. I hope that I have the same resilience of spirit to deal with setbacks. Since
his blow up, Neiderhoffer has been very generous about his strategies in the various articles he has written. He said in an interview that he is trying to make amends and restore his reputation. I have learned a lot from many of the articles he has written. In particular, his ability to think differently is inspiring. But if he ever comes out with another book, I think I will skip book signing :)
 
His comeback, is no better than a prop trader who blow's out his 50k account, and struggles for a period, then makes the come back and starts to earn a decent living again.

There is nothing special about nieder hoffer, the only difference between him and anyone else is his size. Don' forget, he's gambling with someone else's money, really a different mindset, then when you have everything of yours on the line.
 
Had occasion to speak with Mr. Neiderhoffer several times during my training. Certainly he was an intelligent person, and I have no knowledge of him socially. The gentleman who trained me did know him socially and his comment "The man's an odd duck"....

I found over the years, that it does not take tremendous intellect to have success in the markets, but rather a combination of intellect, discipline and the ability to put things in context. I have mentioned the need for "context" in a couple of my posts recently. Without it a smart person can think him/herself into a corner, finding themselves at a dead end. That is what happened to to this guy. Except for the celebrity he was able to cultivate along the way, and his family's money, he would be out on the street today, looking for a job at a boutique firm.

There are many intelligent, competent professionals working for Wall Street firms who obtain excellent results on a consistent basis. YOU FOLKS do not hear of them, because their are people WITH MONEY who do not want you to know they exist. Mr.Neiderhoffer is old news. A guy who had promise but couldn't maintain his discipline. In this business it is the equivalent of falling on your sword. You only do it once.

Naturally there are (still) Neiderhoffer "groupies" on the fringes of the financial community, and just like the empty headed rock groupies, these folks generally have not had much in the way of success on their own. They tend to believe that this man has some mojo that might rub off on them if them just stand close enough. Aint gonna happen.

I wouldn't pay 10 cents for his book.

Steve
 
Quote from power_uptick:

barely said "hi" in a rather disdainful way.
More...

Some people have issues socially and he may just be shy or insecure but you shouldn't take it personaly because you don't know him.




steve46

I've officially nominated you as ET's BIGGEST moron.

Where do your self delusions end ?????????

Folks .. this fool (steve46) has told us he's been everything from a Mafia boss to an engineer to a movie producer and now he's rubbing shoulders with Neiderhoffer:eek:
 
Quote from Exodus:

Some people have issues socially and he may just be shy or insecure but you shouldn't take it personaly because you don't know him.




steve46

I've officially nominated you as ET's BIGGEST moron.

Where do your self delusions end ?????????

Folks .. this fool (steve46) has told us he's been everything from a Mafia boss to an engineer to a movie producer and now he's rubbing shoulders with Neiderhoffer:eek:
More...

Maybe he's Tony Soprano....or better yet, "VITO" reincarnated. :D
 
I am sorry, I thought I had Exodus on ignore. I will fix that now.

I liked the joke about people who have social issues. Comming from fantasy creation such as yourself, it is a real hoot. :D

Now if you will excuse me, I have some legs to break, some necks to step on, and some pasta to eat. Then I have to do some partying with all kinds of movie stars (pick your own favorites).

Have nice holiday everyone.

Steve
 
You know I was just thinking about this last comment from Mr. Hosebag, and it occurred to me that this is an important issue.

I HAVE been very fortunate, lucky, whatever the word is, to have been in the company of smart, successful people in this industry. Sometimes it has been just in passing as with Mr. Neiderhoffer and sometimes I have had the privelege of watching them in the execution of their work, over an extended period of time, as with the gentleman who trained me. Now that I think about it, I will bet that it is one reason why I am where I am today. I think it is very important to see sharp people doing good work. It is so obvious when you think about it. That is why the sons and daughters of famous and/or highly skilled folks often go on to the same or similar success in their vocations.

So that is a kind of "wrapup" comment on that subject. On the other side, when I hear negative or snide comments like the one above, I would bet that person (whoever they are) is struggling along precisely because they never did have any exposure to skilled professionals. For me, it all seems to make sense.

Again Happy 4th to everyone.

Steve
 
Quote from WDGann:

...Neiderhoffer's a genius...
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wow. WOW.

I remember when chasinfla was the only person on this site who could find something good to say about Dr. Niederhoffer. This was, of course, way before the recent buzz, before his "comeback." This was back when he was a "loser" and Taleb was in the running to be God.

Iggy Pop once said, "If you believe them when they tell you you're great, you'll have to believe them when they tell you you suck."
 
Quote from steve46:

That is why the sons and daughters of famous and/or highly skilled folks often go on to the same or similar success in their vocations.
More...

Generally agree, though not with this choice of simile. The sons/daughters of these people often experience success due to a pre-built contact base, incestuous professional relationships and a general shortest path to relative success not available to the average youngster in life.

A highly significant percentage of succcessful/famous people are successful due to the luck factor. IMHO, the success of most fame/power siblings is down to the proximity of their parentage and little else.
 
The Victor book is at Amazon.com:

Name: Practical Speculation (Paperback), by Victor Niederhoffer (Author), Laurel Kenner (Author)

The link:
http://www.amazon.com/gp/product/cu...ate&n=283155&s=books&customer-reviews.start=1

Read following reviews there.

5 of 7 people found the following review helpful:
a horrible mismash of trivia, confusion, and self-promotion, January 28, 2007
By Q (my office) - See all my reviews

The author's main qualification for writing this book is having lost millions (perhaps billions) of investor dollars mismanaging a hedge fund during the 1990s. He's very defensive about his abysmal history, and his main defense consists of reprinting for us the abusive emails he received after the fiasco. Poor Victor! Had to struggle to keep his kids in expensive private schools. You might think he learned some humility from his mistakes, but just the opposite. He is another vain, self-promoting, self-obsessed investment banker, and that will never change. He never tires of reminding his readers about the tennis and squash awards he's won, and he even includes a picture of his squash award! All this could be forgiven if he actually gave some valuable investment advice, but this book is just a horrible miasma of misinformation. He would try to convince readers that earnings don't matter and don't bear any relationship to stock performance, that P/E ratios don't matter. He gives several statistical analyses that, as another reviewer points out, are deeply flawed, contradicting other solid research. His confusing explanations are apparently meant to disguise the flaws in his research. There's no coherent plan to the book, just a bunch of poorly written chapters on random topics, such as correlating tennis to stock investing. I wish I could find something good to say about this book, but it stinks on every level. It offers no valuable information on stock investing, it's boring and confusing, and the author is so full of himself that it's pathetic.
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4 of 8 people found the following review helpful:
Flawed Statistics, July 17, 2006
By Matthew Forbes "mforbes1" - See all my reviews


I found "Practical Speculation" lacking. The first two chapters were interesting, but the analysis of data in subsequent chapters were flawed, in my opinion.

Niederhoffer cites scatter plots as demonstrating correlation/predictibility of various aspects of the market. I looked at many graphs and didn't see much that showed statistical correlation. The correlation coefficients (R-squared values) were all very low.

The trading ideas were interesting, but the analysis behind them was misleading. You need strategies with better correlations to hurdle transaction costs, and then, maybe, you can make some money.
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If you go to the site, open the reviews. These two you shall see.

You read it. You get that he blew up twice. Why? He like long term, capital, not understand the risk of a 5-sigma event.

These events should happen once a lifetime but have happened every 3-6 years, which is about how often he as had problems.

He should know better but greed comes. He trades too much a position, and looses so much money that he has to get out of the position. Simply, “Overtrading.”
 
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