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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01/27/2005
Rip Currents, by James Sogi

A rip current is a strong current in the ocean that can sweep a swimmer out to sea. Never fight it or attempt to swim straight against it to avoid exhaustion, rather swim diagonally across it and with it thus crossing it until reaching a point where the current is not so strong and thence to a position of safety. I would never before believed that surfing would teach lessons for a lifetime of speculation, but there it is. The market is fighting a strong current and attempting to swim diagonally across the current until a place or time that the current abates. Of course many have been drowned when swept out to to sea or under the water and drowning after panicking or becoming exhausted. There are many cross currents and dangerous eddies. My friend had his surf board swept out to sea gone forever yesterday in large surf, and he barely made it in to shore swimming against the rip current.