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Niederhoffer's advice Michel Pireu     | Business Day Friday, February 1, 2019
Some of Victor Niederhofferís financial advice to his 12 year old son:

Never get in over your head. Never sell short. Buy and hold is the best strategy. Stocks have gone up 50,000 fold in the last 110 years so itís a good place to put any savings. Always keep something in reserve. Beware of down Fridays. Be mindful of stopping when you have a good gain rather than what most people do in stopping at a big loss. Remember that you have to get out of an investment as well as get in. That means that you have to take account of the liquidity of your position. Be mindful of ever-changing cycles. Remember deception is everywhere. Things are seldom what they seem. The spider and plants have a million ways of hiding the true or emphasizing the false. Humans have all these deceptions plus what they have learned from nature, war, and politics. Take account of the potential worst case scenarios and put what youíll do in writing. Knowledge of accounting is very useful. Make sure you value your time when taking into account the cost of any activity. Learn about real estate as well as stocks. If a man can beat you, walk him, i.e. donít play poker with a man named Doc. Boldness always trumps brilliance. Just make sure you can back it up Ė at least most of it. It's okay to fail. Take lessons away from every failure and use them in future endeavours. Avoid local bias. Remember that if two or three people tell you something, it doesn't make it so. Don't waste your time on things that donít interest you, you'll find money elsewhere. Saying no leaves you more power than yes as itís much easier to change a no to a yes. The one thing that is constant is change. Be ready to adjust.

 
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