Apr

29

 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.

10. Round numbers will be broken.

11. Play the yen to break 100 and the S&P to break 16000 and Apple to swing from below 400, e.g.

12. Gold has been a store of value for a long time. When it gets hit hard, think of all the people in the world and the institutions that use it for insurance.

13. Don't sell premium in the grains as they move explosively.

14. Never trade so that you exceed your margin. (You will have to get out at the close unless it moves in your favor and that makes you weak).

15. Don't listen to tips or try to follow fast moving operators as you won't know when they are going to change positions and how strong and on what basis their views are made.

16. Let your profits run after you have a big loss and get back to even sell to the sleeping point.

17. Don't take positions that you plan to extricate from in inactive trading hours.

18. After or just before a major announcement don't use limits.

19. Only buy the worst markets or stocks at the end of a quarter or year.

20. Never trade when you're out of the office or on vacation or on a whim.

21. Beware of trading when the market is going to be closed and you will not be able to extricate from your position like European markets when they close for a month around Christmas.

22. Don't short big up opens.

Okay, that's a start. Hopefully, I am more adept at this kind of thing a trader should know than I am at the things a man should know.


Comments

Name

Email

Website

Speak your mind

10 Comments so far

  1. Anatoly Veltman on April 29, 2013 1:02 pm

    I found 21 of these extremely correct and useful.

    Now, it seems the Chair exempts Gold (where we know that Central Banks don’t want you to own it)

  2. Bill Wolfe on April 29, 2013 8:31 pm

    One should know about the relationship of time and space in forecasting future price. A FREE copy of "Seeing the Future" can be downloaded at www.WolfeWave.com .

  3. Jeff Watson on April 30, 2013 2:34 pm

    Never, ever be in the position that you have to add margin. That’s throwing good money after bad in most cases.

  4. Charalampos on April 30, 2013 4:56 pm

    Hello Dear Victor,can you please explain this part, it looks like looking at bying and selling on difrent levels,(big pozitions)is not what useful 15. Don’t listen to tips or try to follow fast moving operators as you won’t know when they are going to change positions and how strong and on what basis their views are made.

  5. Anatoly Veltman on April 30, 2013 7:43 pm

    Jeff, we touched on this at Spec Party 2010. It’s same as stopping yourself out - which is not a good thing, in most cases

  6. Eric Black on May 3, 2013 11:56 am

    how does one who turned a small stake into a large amount, rebuild his trading stake without being distracted by having to work another job? how can one find others that may be willing and able to provide this trader some start up capital for another chance at getting back in the game?

  7. Daily Quant Ideas from Paststat » Blog Archive Be alert to big minimums on Monday as they tend to reverse ! on May 5, 2013 9:17 am

    […] When Vic the Chair writes something , we generally tend to read the article twice at minimum. The 4th point in this 22 Things a Man Should Know About Trading, from Victor Niederhoffer ”Be alert to big minimums on Monday as they tend to reverse” caught our attention and we intend to test the same on a lazy Sunday […]

  8. kora on May 5, 2013 10:27 am

    Be alert to big minimums on Monday as they tend to reverse !

    looking at 2% drops on Monday on SPY since 2000 , they tend produce an average 1.6% profit by the weekend ( the system withstood a largest loss of -15%)
    & it was a profitable long only trading system in 2008 !!

    http://paststat.com/blog/be-alert-to-big-minimums-on-monday-as-they-tend-to-reverse/

  9. Sanjay Kohli on May 11, 2013 11:32 pm

    Get enough sleep before work, then concentrate & work your mind during trading with a lot of preparatory research after for the next trading day. It’s a lot of work contrary to what many people think :-)

  10. Vladimir Ivanov on May 13, 2013 6:48 am

    Add from myself one the thing: throw into the furnace all the clever books, indicators, news, rumors and the rest - on the well-trodden path easily get caught in the trap. I walked in on other people’s paths and sooner or later I have been looted. Had to pay expensive for themselves price to find the Golden Grail. Have a great idea and I alone can’t do it.

Archives

Resources & Links

Search