From the archives: 10 Things I’ve Learned About Markets, from Victor Niederhoffer
Posted on April 20, 2011:
-
"There is no such thing as easy money"
-
Events that you think are affected by cardinal announcements like the employment numbers at 8:30 am on Friday are often known to many participants before the announcement
[An example supplied on April 18 by Mr. Rogan: "The Reason For Geithner's Weekend Media Whirlwind Tour: White House Learned About S&P Downgrade On Friday" (zerohedge )]
-
It's bad to try to make money the same way several days in a row
-
Markets that have little liquidity are almost impossible to profit from.
-
When the stock market is way down, policy makers take notice and do what they can to remedy the situation.
-
The market puts infinitely more emphasis on ephemeral announcements that it should.
-
It is good to go against the trend followers after they have become committed.
-
The one constant, is that the less you pay in commissions, and bid asked spread, the more money you'll end up with at end of day. Too often, a trader makes a fortune on the prices showing when he makes a trade, and ends up losing everything in the rake and grind above.
-
It is good to take out the canes and hobble down to wall street at the close of days when there is a panic.
-
A meme about the relation between today's events and those of x years ago is totally random but it is best not to stand in the way of it until it is realized by the majorit of susceptibles
-
All higher forms of math and statistics are useless in uncovering regularities.