As many of you know, I have a very high regard for Victor Niederhoffer. He has been instrumental in helping shape many facets of my short term trading methodology. His web site, DailySpeculations.com, is one of my "must-read" sites on a daily basis........... and I've been quoted afew times there. With that said, Victor will probably never have the opportunity to manage a single dime of anyone else's money again.
Here's why. The following comments have been made by Victor over the years Read them and see the irony of those words being said by such genius and yet such a gun-slinger in the markets.
"When trading, survival is key. Chance plays a large part in the outcome of every game, and you must leave a large enough margin so that the normal fluctuation in conditions don't do you in."
"Losing should be a lesson. Everyone loses and all great competitors use their losses to improve their games. When you lose, consider it a normal part of the competitive arena and strive to bounce back through attention to detail, hard work, and practice."
"There are so many ways to lose, but so few ways to win. Perhaps the best way to achieve victory is to master all the rules for disaster, and then concentrate on avoiding them.”
Now read this article.
http://www.newyorker.com/reporting/2007/10/15/071015fa_fact_cassidy?printable=true
The first rule at Chippewa Partners and to every money manager worth his fees who is a fiduciary as we are, is to do no harm to any client under any circumstance.
The second rule is to never forget the first rule.
Victor, I am almost certain, may have never understood the first rule.
Never, ever forget, the market is a living, breathing beast that can quickly devour the Victor's of the world.
When you argue with her you lose.
Always.
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