Daily Speculations

The Web Site of Victor Niederhoffer & Laurel Kenner

Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter;  a forum for us to use our meager abilities to make the world of specinvestments a better place.



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James Sogi: Ecology

The goal as a trader does not have to be to become a top line predator, even if one is throwing around a lot of money. That is why Chair's metaphor of the ecology of the market is so beautiful. There are so many niches. The ants, bugs, birds, the fish...they all have a place, and something to eat, even when the lions are starving.

Leverage is something one uses when one doesn't have enough money. When one really has enough money, a fellow or gal could buy some treasuries or some land then go see how fast the yacht will go, and forget about it. After a while the money just starts piling up anyway.

More "stuff" doesn't make you happier. In fact, I hypothesize that less "stuff" makes you happier, thus my goal, started some years ago, is to get rid of all my "stuff". Yes, I'm happier now. Why? Because I don't always crave more "stuff". Getting rid of it is finite, acquiring it is Sisyphean.

Bank balances are not highly correlated with happiness. When your account doubled, were you twice as happy? No, you weren't.

Happiness is a by product of:

  1. Health,
  2. Family,
  3. a Passion in a life interest, and
  4. Financial security,

in that order. That's the truth.