Jan
12
Heard on The Street
January 12, 2021 | Leave a Comment
Zubin Al writes:
Recently at a restaurant at lunch, two blue collar guys, one older, one
younger guy with a beard, both in electricians uniforms sit down and I
overhear the young guy explaining to the older guy about buying stocks,
and how if they double how much money he can make. He says he doesn't
care how much it goes down, and that he will hold on. The conversation
moves to Bitcoin, and the younger guy doesn't quite understand how it
works but that it keeps going up. To myself I'm thinking, "hmmm". I
remember in late 1999 walking into the broker's office where I see a
young woman who I remember waiting tables there buying stocks. I recall
taxi drivers during that same period talking stocks as conversation in
the cabs.
Dr Gangineni Dhananjhay writes:
I have also got a similar experience in India. Near the brokerage
company where I regularly go to trade, I visit a Coffee stall. The
person running the coffee shop started giving stock advice. Which stocks
to buy and sell and general market opinion. I got afraid. Of course
this is an anecdotal evidence. I am seeing more of my relatives and
family members giving me stock advice. Time to be cautious ??
Jack Cook writes:
Masseuse was working on my lats and telling tales of retiring on all the
Cisco stock he had.
new army of social media-enabled day traders is helping push stocks to
records and turning companies into market sensations. As trading by
individual investors boomed during the coronavirus pandemic, so has the
popularity of online communities where they gather. Platforms including
TikTok, Twitter, YouTube, Reddit, Instagram, Facebook and messaging
platform Discord have become the new Wall Street trading desks.
Individual investors gather to talk about hot stocks like Tesla Inc.,
boast of gains and commiserate about losses. These investors do more
than just talk, though. They piggyback on each others' ideas and trades,
helping fuel the momentum that has propelled some companies to
triple-digit or bigger gains in 2020.on.wsj.com/3bxmPHI
Jul
9
Trading and Life (II), from Gangineni Dhananjhay
July 9, 2009 | 6 Comments
I have found myself subconsciously applying my trading rules and experience to life events. Cutting losses early and getting rid of bad position without waiting or hesitation is one example. One small anecdotal example: My wife booked an ordinary bus ticket to see her sister. She is reluctant and wanted to go in a different, air-conditioned bus. But the reservation clerk refused to refund any money as the bus is about to start. I immediately decided to offer a 50% discount to the ticket collector of the bus who can sell it at full cost to any other passenger on the way. Thus I have traded my bad position and cut my loss while at the same time keeping my spouse happy. I think this is one of few times she appreciated my trading skill.
Mar
11
How Not To Run a Trading Operation, from Gangineni Dhananjhay
March 11, 2009 | 2 Comments
My favorite excerpt and handout for all MBA (Finance) students before starting a class on Forex or Financial Markets is "The Old Speculator and the Yen" from EdSpec. The mind starts playing games once you are on long wait with the market. Particularly in India where I am forced some times to trade in the Brokers' office which is not very different from a poker table. The situation is exactly like the post "How not to run a trading Operation." No wonder public always loses more money than they have any right to. With unsolicited, free opinions flying around, cries and howls of a missed trade recognized by hind sight, reckless regret of past mistakes, criminal recounting of past price in comparison to present prices (as if price has an obligation to return with out regard for the operating context) losses are guaranteed to happen.
Nov
29
“Education of a Speculator,” reviewed by Gangineni Dhananjhay
November 29, 2007 | 1 Comment
I discovered Victor Niederhoffer accidentally when I chanced upon his book Education of a Speculator in Indian Pavements, a seller of used books. I immediately grabbed with both hands at the ask price. Since then it's been a long process of education and self discovery. Even my nine year old daughter Gangineni Hita understands Victor and is fond of his stories, read to her occasionally at nights. As a teacher of finance, the first reading assignment on markets I give to graduate students is "The Old Trader and the Yen" from Ed Spec.
Constantly following Daily Speculations from 2005, I feel part of this soul searching revolution. I have read and re-read discovering new meanings in Ed Spec. The contribution of Victor to financial markets and his winnings outweigh any temporary trading losses.
Gangineni Dhananjhay continues:
I find it puzzling how so many market participants resist exposure to true knowledge. Is public willing to believe half-truths rather than facing facts? So much of what I try to teach from finance text books and theoretical models also goes against intuitive understanding of markets.
As the saying goes ”when the student is ready, teacher appears”. When I try to make analogies of the market as a dancing girl who becomes a witch and other effects of Vig & Spread, students are not ready and want to believe in the text book models of Fundamental & Technical analysis. How many students realise market owes no body anything and it’s a perpetual dance replenishing the market infrastructure itself.
As M!chael L#wis puts it in his article The Evolution of an Investor ”Your [the market intermediaries] job is to turn your clients’ net worth into your own”. Victor speaks in PracSpec about how market will not allow public to access real knowledge so that they can keep contributing. The law of ever changing cycles always keep the form away from the public. One thing that strikes me is how deep and how hard these legendary speculators swim in the markets . Many can't sustain the draw downs to experience their winnings.
“Speculator” has been defined and given a true interpretation in EdSpec. I devote sufficient time to differentiate between ” Investing, Speculating , Gambling” when I teach or discuss with students & market participants. But the lines get blurred once in thick of action in markets.
Archives
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- Older Archives
Resources & Links
- The Letters Prize
- Pre-2007 Victor Niederhoffer Posts
- Vic’s NYC Junto
- Reading List
- Programming in 60 Seconds
- The Objectivist Center
- Foundation for Economic Education
- Tigerchess
- Dick Sears' G.T. Index
- Pre-2007 Daily Speculations
- Laurel & Vics' Worldly Investor Articles