Archives of “opponents” tag

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Niederhoffer on making errors

  
  Education
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As a squash player, I was gifted. I had all the right things going for me. I practiced. I was very good with the racket, and I had tremendous anticipation. But I tended to play an errorless game by hitting a slice on my backhand, which took a lot of power off the ball. That wasn’t a disaster, but it was definitely a weakness in my game. My opponents always used to say that on a good day they could beat me, because they could hit more spectacular shots than me. But they never did. I went for about 10 years without losing a game, except to [the great Pakistani squash player] Sharif Kahn. He made about six, seven errors a game—but he also made eight or nine winners. I would make about zero errors per game but only one or two winners. He had the edge on me about 10-4, and I regret that I was never willing to accept the risky shots and confrontations, never willing to play a more error-full game.

In my market career, I took too many risks. In my squash career, I didn’t take enough.

I wish I had applied my squash methods to my speculating. I’d be a very wealthy man if I had.

The Battle is With Yourself

  
  Education
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“Years of experience eventually teach you that your main battle, always, is with yourself — your propensity for errors, for rationalizing marginal hands into good hands, lack of concentration, misreading other players, emotional eruptions, impatience, and so on. Your opponents are merely dim outlines that come and go. Few of them ever reach the exalted heights of damage that you can inflict on yourself.”

– Larry Phillips, Zen and the Art of Poker

Many great traders have expressed some version of the opinion, “Your greatest opponent is yourself.” Do you agree?

If so, what are the implications?

On the positive side, if “we have met the enemy and he is us,” as Pogo once said, what does that say about growth opportunity?

If you had perfect discipline, perfect motivation, and perfect emotional control, how good (or great) a trader could you be? 

Niederhoffer on making errors

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #

As a squash player, I was gifted. I had all the right things going for me. I practiced. I was very good with the racket, and I had tremendous anticipation. But I tended to play an errorless game by hitting a slice on my backhand, which took a lot of power off the ball. That wasn’t a disaster, but it was definitely a weakness in my game. My opponents always used to say that on a good day they could beat me, because they could hit more spectacular shots than me. But they never did. I went for about 10 years without losing a game, except to [the great Pakistani squash player] Sharif Kahn. He made about six, seven errors a game—but he also made eight or nine winners. I would make about zero errors per game but only one or two winners. He had the edge on me about 10-4, and I regret that I was never willing to accept the risky shots and confrontations, never willing to play a more error-full game.

In my market career, I took too many risks. In my squash career, I didn’t take enough.

I wish I had applied my squash methods to my speculating. I’d be a very wealthy man if I had.

Book Review: "Warrior Trading"

  
  Education
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Talk about stretching a metaphor beyond breaking point, this book delivers. The metaphor in question goes something like this: “The Market can be likened unto a battlefield”. No arguments there; least of all from me, I’m covered in trading scars.

But based on the above, the author concludes that if the market is a battlefield, then successful traders (such as himself it should be noted) are the new age equivalent of the ancient Samurai Warriors and Knights, carving up enemies and vanquishing any foolish dumb money who dare to get in their way. The mindless herd and the Mum n Dad investors must all be mercilessly put to the sword.
Like a modern day Elric of Melbnibone, the goal of these Warriors of Wall Street is not be the Stealer of Souls but rather the Stealer of Your Money. They ride out each day into the field to seek glory armed with their two deadly weapons (fundamental and technical analysis) plus the third ingredient – advanced mind control achieved by 20 minutes of zen meditation on a Sunday.
Quote: … “They enter the fray with a focus that inspires awe in their opponents, even as the warriors cut them down. But warriors do not celebrate their victories – they remain still and focused, ready to strike and enter a fresh battle, for they know that opportunity may arise at any moment.” 1
Quote: … “The warriors can be seen standing – perhaps exhausted, but still standing – upon the battlefield with many a slain enemy lying lifeless, or in agony, around them.” 2

I dunno folks, this is all a bit too homoerotic for my liking.


Chess and Trading

  
  Education
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As an avid fan of the game of the KINGS, I have never paid attention before between the amazing similarities between chess and trading, until I read a BRUCE PANDOLFINI book called “Every move must have it’s purpose”

This is an amazing game that is not fully devoted to trading but to the concepts of business and chess and how they look alike.

Understanding the concepts is basic in chess or trading. Concepts are more important than theory.

Let me do a quick lecture about those concepts.

 

The first concepts he points is “Play the board not the opponent”. This is an amazing concept and clearly fits any trader and their psychology. The board is the chart and the opponent in this case is our own emotions. A player must focus on the board and his game only. Same the trader.

 

The second concepts is “ Don’t ignore a good hunch” This can clearly applies to the traders especially like me, who trades intuitive. Many times You do not have an entry setup that fits your rule but it doesn’t violate either but You know there is a big move coming, I can not explain it butyou feel the move and you take it and voila clink$$.You may not understand it because we try to rationalize but our right side of the brain is telling us “this is correct”. Go for it.

 

Third concept “Play with a plan”.We need to have an edge, a methodology and stay with it. In chess if you do not have a strategy you are going to be massacred. Same in the markets. Move your pieces in a nonsensical way and you are out of the game in less than 12 moves. (more…)

Niederhoffer on making errors

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #

 

As a squash player, I was gifted. I had all the right things going for me. I practiced. I was very good with the racket, and I had tremendous anticipation. But I tended to play an errorless game by hitting a slice on my backhand, which took a lot of power off the ball. That wasn’t a disaster, but it was definitely a weakness in my game. My opponents always used to say that on a good day they could beat me, because they could hit more spectacular shots than me. But they never did. I went for about 10 years without losing a game, except to [the great Pakistani squash player] Sharif Kahn. He made about six, seven errors a game—but he also made eight or nine winners. I would make about zero errors per game but only one or two winners. He had the edge on me about 10-4, and I regret that I was never willing to accept the risky shots and confrontations, never willing to play a more error-full game.

In my market career, I took too many risks. In my squash career, I didn’t take enough.

I wish I had applied my squash methods to my speculating. I’d be a very wealthy man if I had.

 

Objectivity and The Fundamental Theorem of Poker

  
  Education
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 poker-

From David Sklansky’s The Theory of Poker:

Every time you play a hand differently from the way you would have played it if you could see all your opponents’ cards, you lose; and every time you play your hand the same way you would have played it if you could see their cards, they lose.

An analogy in trading can be made concerning objectivity while holding a position:

Every time you execute a trade that you would not have executed had you been flat, you lose; additionally, every time you refrain from executing a trade that you would have executed had you been flat, you lose. (more…)

The Battle is With Yourself

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #

Years of experience eventually teach you that your main battle, always, is with yourself — your propensity for errors, for rationalizing marginal hands into good hands, lack of concentration, misreading other players, emotional eruptions, impatience, and so on. Your opponents are merely dim outlines that come and go. Few of them ever reach the exalted heights of damage that you can inflict on yourself.”

– Larry Phillips, Zen and the Art of Poker

Many great traders have expressed some version of the opinion, “Your greatest opponent is yourself.” Do you agree?

If so, what are the implications?

On the positive side, if “we have met the enemy and he is us,” as Pogo once said, what does that say about growth opportunity?

If you had perfect discipline, perfect motivation, and perfect emotional control, how good (or great) a trader could you be? 

9 -Aphorisms for Trading

  
  Education
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“We depend on our opponents bad moves to make some wins.”

“Sometimes you have your opponent exactly where he wants you… and then it’s too late.”

“A trade once made can never be unmade.”

“There is a time to attack, and a time to defend–and a time to wait.” (the summer markets favor the latter).

“When your opponent offers you a piece as a gift. It is often better to just say no.”

“Instead of trying to learn all the openings it might be wise to just adopt two of three favorites.”

“Trading is like checkers. A single bad move can create a domino effect– and lead to loss.”

“After 15 years of paying checkers I’ve learned one thing. Those who hesitate are those who win the gold.”

“Cocksureness in checkers, trading or life is the badge of ignorance.”

What Warren Buffett said…

  
  Education
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W.B* For some reason, people take their cues from price action rather than from values. What doesn’t work is when you start doing things that you don’t understand or because they worked last week for somebody else. The dumbest reason in the world to buy a stock is because it’s going up.
* Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.
* The important thing is to keep playing, to play against weak opponents and to play for big stakes.
* Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.
* There are all kinds of businesses that Charlie and I don’t understand, but that doesn’t cause us to stay up at night. It just means we go on to the next one, and that’s what the individual investor should do. (more…)

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