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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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3/17/05
The Executioner, by James Sogi
Kalimaonauna was King Kamehameha's executioner. He stood 7 feet tall and close to 400 pounds. His face was tattooed black. If a commoner got in the King's shadow, he would bash their head in....no questions. He was a bad dude and I get the chills just thinking of him. He was my 100% Hawaiian friend's great great grandfather and is buried on their land.
Today, big market kahunas have their own executioners to get fills. They nod and with a short wave of the hand, the markets move as their executioners work their bids. They say. "Buy in that area down there."
Me, I gots to do my own fills.
Which brings up the skills of execution. My father used to lecture me, "Jim, dollar cost average". He meant over the years, which was his holding period, invest a portion of your pay check regularly. As with many other things he told me, it took about 40 years to understand what he meant. I finally got the joke. I'm an expert at getting the top tick and rarely get the bottom tick, so at the right times it can be good to average into a position. At least there is a fighting chance of eking out a small overplus thereof.
To Quote Practical Speculation, (Now in paperback, Russian and Japanese) authors Laurel Kenner and Dr. Victor Niederhoffer ask," Do you ever wonder why the average price you pay is always higher than the average price for the day and the average price you sell is always lower? They suggest use limit orders and, "buy 5 percent below the current market price", and attend the Kennerhoffer School of Bargaining in Chapter 15 On the Fine Art of Bargaining for an Edge. By the way, if you haven't re-read both Practical Speculation and Education of Speculator again recently, do it. I strongly recommend it. With things learned this year, it's like reading a different book with new vistas opening up that I sailed straight over my head on the first and second reading.