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The Chairman
Victor Niederhoffer

4/07/2004  

Never Lose on Two Different Sides in One Day
 

A correspondent mentions that he often sees a trader make two or three bad ones in a day from one side, shrug it aside and then come back on the opposite side.

"No problem -- I paid the price for humility and knowledge, et al."

Thrice-bankrupt dissipate Livermore has a similar rule to show the importance of sangfroid under pressure, something about buying 20000 and then selling 30000 merely to deceive.

The rules and advice smack of desperate gamblers to me and instead I follow an opposite strategy: Never lose on two different sides on the same day.