A good speculator is a lonely man

theeducationofaspeculator.jpg

” MUMBAI: What does it take to become a successful speculator? It is likely that everyone would have a different answer to this question. But, Victor Niederhoffer has a very interesting take on this. In the preface to his book, The Education of a Speculator, Niederhoffer writes, “Join me in seeing how humdrum everyday experiences, combined with the wisdom of immortals, can help you appreciate and maybe even learn the nitty-grity of buying low and selling high.”

He elaborates: “Successful speculations arise naturally from the ordinary, simple and humdrum events of life. Games, music, nature, hoodoo, horses, and sex are great teachers. The successful speculator expedites a current price to its inevitable level. The techniques of expediting – and its cousin, hustling, are useful in all fields.”

The point being made is that a successful speculator has to put his everyday experiences to good use.

And Niederhoffer doesn’t believe that studying what other successful speculators have done in the past is of any help. “If I did hold an “open sesame” to the markets, I wouldn’t share it. There is ample opportunity to use wealth in this world, and neither I nor my friends, nor anyone else I have ever met, has so much of it that they are interested in putting themselves at a disadvantage by sharing their secrets. This would only cast their “edge” into oblivion and return them to being mere mortals who struggle for their daily bread. Man cannot live by bread alone, but it helps if others don’t bake it using your recipe.”

cont….

note:  That book above was written just prior to him blowing up, if you want to read something of his with a less hubris I suggest this one.

Advertisements

~ by searching4alpha on March 7, 2007.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: