22 things you need to know about trading from Vic Niederhoffer

Discussion in 'Trading' started by marketsurfer, May 2, 2013.

  1. 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.

  2. 23. Any and all entry methods work.
    24. Make your entries tighter( anticipate the breakout rather than trading the breakout)
    25. Position management is the key to successful trading.
  3. 1) He sold premium, month after month, until he blew-out (3x, more?)
    8) He once sold par-puts on the CME SP at $3.00 in premium
  4. MrN


    I agree, great post! lots of wisdom that can benefit most any trader. i tweeted that one a few days ago.
  5. 1. Don't blow up
    2. Don't blow up twice
  6. cornix


    "Try not to sell markets that have big drifts upwards like stocks."

    Did I hear the word "trend"? :p
  7. TD80


    It is interesting that such an intelligent man still does not really understand his downfall, at least as evidenced by this list, perhaps it is cognitive dissonance? It is really a modern, real life parable.

    In the end, in speculation in which you have no outside risk manager, emotional intelligence will defeat intellectual capacity in the long run. One must understand and respect how horribly fallible one is in order to succeed...
  8. benwm


    Perhaps Surf should also start a thread,
    "22 things you need to know about trading from Bernie Madoff"?