Oct

28

With all the market soaring again and panic out of the air for a time, it's good to gain equilibrium by turning to the endless store of 10,000 Wiswell proverbs he created for checkers, life, and markets at our weekly meetings over a 20 year period.

Here are some of my favorites from volume 5.

The Speed Artist

One thing you can be sure of, the faster you move, the sooner you'll lose.

Double Time Player

The real secret of patience is to continue thinking while it's your opponents move "tomorrow never comes"

If you want to become a good player, there is one thing that you must learn to do: you need to analyze the games before, during, and after the playing. Don't put it off till tomorrow.

A Cardinal Rule

A move once made can never be unmade.

Strength

The player with a strong double corner is double hard to corner.

Your Daily Prayer

Before every game say the following: "I can defend myself from my opponent but who will defend me from myself".

The Trading Game

Every exchange makes a fundamental difference in the character of your game. Therefore every trade should be made with great care regarding the new formation.

The Shadow

Some of your best moves were moves you never made and they saved you from many defeats. What you don't do is as important as what you do.

Jumping to Conclusions

If you jump to conclusions you can lose at checkers, chess, or commodities.

Stop Look and Learn

The player who hesitates is often saved Friend or Foe.

Having the opposition in chess is comparable to having the move in checkers (or having the swings in your favor in markets, or having one extreme after another make you money). Both can be very friendly and at times very unfriendly. Trust and verify.

Treasure Hunt

All the right moves are there on the board, waiting to be made. Your job is to find them.

anonymous writes: 

I've found with regard to waiting that when a market moves out of bounds of regular activity, wait until you are no longer eager to make the trade and then buy. The first impulse is too early many times. If one is early one lets the forces of capitulation out of their error too easily. The waterfall can last longer than one thinks. Eagerness is a killer.

Steve Ellison writes: 

I am guilty of such "one-way thinking" because I have difficulty finding situations in which the forward expectation for the S&P 500 is actually negative. I won't say that I have never found such a situation, but they are hard to come by.


Comments

Name

Email

Website

Speak your mind

1 Comment so far

  1. miltie on November 3, 2015 12:35 pm

    Niederhoffer,

    I’ve been reading several authors who discuss the idea of how deliberative practice of around 10,000 hours can lead to one becoming an expert in a chosen field or area whether it be sports, music, writing etc. The theory was first proposed by a Swedish psychologist and then a more nuanced version of the theory was popularized by Malcolm Gladwell. You may be familiar with the theory.

    I’m curious, if one were to test this theory when it comes to trading, what would be the best way to go about doing so? Let’s say I have decided to spend my 10,000 hours of deliberative practice developing my skills as a trader. In your opinion what would that practice consist of? In other words if you were to test this theory on a subject what would you have that person do as part of that practice? How much time should be devoted to reading or actual trading whether in a real or simulated environment? Also, as far as reading goes is there anything beyond your reading list which you have posted on your website that you would ad?

Archives

Resources & Links

Search