Niederhoffer
So, yeah, Niederhoffer lost all his money again. Here are some quotes that I found interesting in the 12-page New Yorker article.
“He says that in twenty-eight years as a professional investor he hasn’t had a single truly satisfactory trading day.”
That is exactly how I feel.
And I like this one:
“My checkers teacher said even a bad system is better than no system at all.�
Checkers teacher? That’s a laugh. I wonder how many people make a living as a checkers teacher nowadays (especially now that checkers has been solved). “Chess teacher” will be just as humorous in 10 years, after chess is solved.
And this makes a lot of sense:
“I’d seen a lot of gamblers die broke. My father used to say I’d end up on the Bowery, like the other gamblers. I’d say, ‘Dad, I’ve got a system.’ He’d say, ‘Baloney. Those guys on the Bowery had more statistics and systems than you’ve got.’ I took what he said seriously. I told my assistant, who later became my second wife, ‘If I ever lose more than half my stake, close out all my positions. Don’t let me trade anymore.’
He is a libertarian and Ayn Rand’s name is mentioned in the article. From his website:
“Victor Niederhoffer believes the purpose of life is the pursuit of happiness and achievement, and that the voluntary transactions that flow naturally out of an enterprise system are the key to material and personal freedom, and peace.�
I know many people that feel as traders they contribute nothing of value to society. I think they are wrong and agree with Niederhoffer:
“I am proud to be a speculator,� Niederhoffer wrote. “I am proud that my humble attempts to predict Tuesday’s prices on Monday are an indispensable component of our society. By buying low and selling high, I create harmony and freedom.�
