Thanks for the article, Pekelo! It seems like he was averaging down and I guess that's what led to his success and his down fall. PA
By the way he had more than 2 blow outs... Well, not total blow outs (no references to the exact size), but his managed funds took giant hits both in 1987 and on 9/11. "Last fall, Niederhoffer sold a large number of options, betting that the markets would be quiet, and they were, until out of nowhere two planes crashed into the World Trade Center. "I was exposed. It was nip and tuck." Niederhoffer shook his head, because there was no way to have anticipated September 11th. "That was a totally unexpected event." http://www.gladwell.com/2002/2002_04_29_a_blowingup.htm "On Tuesday, October 20, 1987, a day after the Dow dropped five hundred and eight points, Niederhoffer and Soros played tennis, as usual. Both men had lost a lot of money in the crash, and Niederhoffer had trouble concentrating; Soros, however, was calm. Donât worry, he told Niederhoffer, the market will reopen tomorrow, and there will be plenty of opportunities to make back our losses." http://news.kontentkonsult.com/2007/10/blow-up-artist-niederhoffer.html The bottomline is that in 20 years on at least 4 occasions when the market went down, so did his funds...Matador also had a 30% DD in 2002 July...
While you're at it Mod, you might want to check Pension Admin's IP address as well. The schizophrenic DG has a history of chatting amongst his aliases. The one alias feigns ignorance while the other fills him in on the details. This guy is such an obvious nutjob sociopath, it boggles the mind.
Pension_Admin is Pension_Admin. BTW: Mod, you should check der_kommissar's IP to see if he is cold/c-kid. He doesn't make sense and he is full of negativity. I am surprise I haven't got a PM from him shouting at me.
Educate me - why does someone that allegedly successful need defending from anonymous posters on a mean-nothing chat board?