Victor Niederhoffer

A successful trader, and indeed a businessman, must possess tremendous willpower and drive to succeed . Victor Niederhoffer's story is a true example of one of the world's most successful traders, who made fatal management mistakes and lost, to put it mildly, everything.

Having survived convictions, trials, the sale of personal property, and 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 have become a true bible for many beginners, as all the knowledge and experience he gained were printed on the pages. These are not the musings of a philosopher far removed from stock trading, but genuine advice and practical points from the lips of one of the most successful traders in the world.

The future diamond of the stock market world, Victor Niederhoffer, was born in Brooklyn in 1943. The family was quite ordinary, middle class, as his father was a respected police officer and his mother was a teacher.

The most interesting thing is that even as a child, Victor did not associate himself and his future profession with the professions of his parents, since his grandfather Martin, an active stock trader, became his role model.

Youth and the first steps to success

Victor Niederhoffer was an excellent athlete, particularly at tennis and squash. That's why, when reading his biography, you'll see how this future millionaire became a multiple-time US champion.

However, his heart was always drawn to the stock market, so after graduating from Harvard, he earned a doctorate from the University of Chicago. Crucially, his doctoral thesis focused on explaining stock price fluctuations.

At the time, everyone thought stock price fluctuations were chaotic, but it was his work that shattered that myth. Even as a student 

Victor Niederhoffer opened a brokerage firm with his partner, Frank Cross. The firm's authorized capital was only $400, but surprisingly, business took off.

In the early 1980s, Victor began actively trading metals, stocks, and futures . His initial successes allowed him to open his own firm, Niederhoffer Investments.

The success and prosperity of his brainchild were so rapid that even George Soros himself invested 10 million dollars in Niederhoffer's management and arranged for his own son to study with Victor.

First defeat

Victor Niederhoffer and his company remained leaders in the futures and stock markets until 1997. Most interestingly, Victor had a passion for investing in emerging economies, such as Turkey and Thailand.

In fact, the hope for national development dealt the fund its first blow. Viktor managed to invest almost the entire fund's capital in Thai securities, and just a week later, the stock prices fell by 20-30 percent.

Within a month, losses from the misguided strategy had exceeded $50 million. The second devastating blow came in October 1997, when the US economy plunged 7.2 percent in a single day.

After two such defeats, Niederhoffer's company went bankrupt with massive debts. He was forced to sell off his antique collectibles and mortgage his apartment.

Unexpected growth

Victor Niederhoffer became a global example of what not to do; the press ridiculed him, and all his colleagues and partners refused to work with him. Victor lived in this state for almost two years, until a friend decided to open an account for him where he could trade independently.

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 talented investor grew his account from 2 million to 365 million. He then reopened the hedge fund and actively attracted investors from the US. In 2007, after suffering minor losses, Victor decided to close the account.

Today, he is actively involved in training traders, and his family of five daughters and one son manages two large hedge funds.