Book Club: "The Education of A Speculator" - Victor Neiderhoffer
Victor Niederhoffer is definitely a trader worth learning from. A protege of the great George Soros, he’s had pretty much every experience a trader can have in his illustrious career (including losing all of his client’s money). Education of a Speculator, is part autobiography, part trader education, and part psychology course. Niederhoffer draws on his experiences as a young child and as a world class squash player to perform at a high level in the financial markets. He believes there are more lessons in the subtleties of life than there are in ‘how to trade’ textbooks. Overall a fantastic read for the right audience, true speculators are a dying breed these days as markets become more and more accessible to the average Joe. If you want an insight into a fierce competitor and trader this is the book for you, followed by “Reminiscences of a Stock Operator (about the great Jesse Livermore) it doesn’t get much better than this. If you’re new to speculating, probably not the book I’d start with though.
A truly fantastic essay by Malcom Gladwell was written that contrasts Niederhoffer’s style with that of Nassim Taleb, another favorite author and trader of mine. While it paints Niederhoffer in a reckless/negative light, he’s still a phenomenal trader to learn from, as is Taleb. If you like the essay, then both Taleb’s and Niederhoffer’s books will be of value.
http://gladwell.com/blowing-up/