Victor Niederhoffer
A successful trader, and even a businessman, must simply have tremendous willpower and desire to achieve
success. The story of Victor Niederhoffer is a real example from life when a man, being one of the most successful traders in the world, made fatal mistakes in management and lost, to put it mildly, everything.
Having survived conviction, trials, the sale of personal property, persecution from various brokers, this man not only did not give up, but, in spite of the whole world, conquered new heights and earned a huge fortune.
The books written by this trader became simply a bible for many beginners, since all the knowledge and experience that he received were printed on the pages, and these are not the thoughts of a philosopher distant from exchange trading, but really advice and practical points from the lips of one of the most successful traders peace.
The future diamond of the stock exchange world, Victor Niederhoffer, was born in Brooklyn in 1943. The family was the most ordinary, middle class, since his father was a respected policeman, and his mother was a teacher.
Youth and first steps to success
Victor Niederhoffer was an excellent athlete, and he was especially good at tennis and squash. That is why, reading his biography, you can see how this future millionaire became a repeated champion in the USA.
However, his heart was always drawn to the stock exchange, so after graduating from Harvard, he received a doctorate from the University of Chicago. It is very important that the topic of the doctoral work tended to explain the price fluctuations of securities.
At that time, everyone thought that stock price fluctuations were chaotic, but it was with his work that he destroyed this myth. Back in my student years
Victor Niederhoffer opened a brokerage company with his partner Frank Cross. The company's authorized capital was only $400, but strangely enough, things went uphill.
In the early 80s, Victor began active independent trading in metals, stocks and futures . His first successes allowed him to open his own company called Niederhoffer Investments.
The success and prosperity of his brainchild were so fast that even George Soros himself invested 10 million dollars in Niederhoffer’s management and assigned his own son to study with Victor.
First defeat
Victor Niederhoffer and his company remained leaders in the futures and stock markets until 1997. The most interesting thing is that Victor had a passion for investing every day in developing economies, for example in Turkey and Thailand.
Actually, the hope for the development of states dealt the first blow to the fund. Ta Victor managed to invest almost the entire amount of the fund in Thai securities, and literally a week later the securities fell by 20-30 percent.
Within a month, losses from the incorrectly chosen strategy amounted to more than $50 million. The second crushing blow came in October 1997, when the US economy collapsed by 7.2 percent in one day.
After two such defeats, Niederhoffer's company became bankrupt with huge debts. Therefore, he had to sell off his old collectible property and mortgage his apartment.
Unexpected growth
Victor Niederhoffer became an example for the whole world of what not to do, the press mocked him, and all his colleagues and partners refused to work with him. Actually, Victor lived in this state for almost two years, but his friend decided to open an account for him, where he could conduct independent trading.
When Brokers found out in whose name the account was opened, they all refused to carry out transactions or demanded exorbitant deposit requirements.
In 2001, this talent increased the account from 2 million to 365. Then he opened a hedge fund and actively attracted investors from the United States. In 2007, having received minor losses, Victor decides to close the account.
Today, he is actively involved in training traders, and his family of five daughters and one son manages two huge hedge funds.