” Before every game say the following : I can defend myself from
my opponent, but who will defend me from myself ?” Tom Wiswell
In The Education of a Speculator , Victor Niederhoffer
shares his experiences with Board games that were essential in his life
( checkers was his favorite) and in the lifes of many great traders/
speculators/investors as they prepared themselves and their minds
for their future profession and businesses.
Niederhoffer took lessons for 15 years at his office weekly from a
world champion (champion for 25 years and author of 17 books) ; Tom Wiswell .
George Soros played chess with his father , while hiding from
the Gestapo, for cookies. After his father had won and eaten all the cookies,
” they turned their attention to Monopoly. The vicarious pleasure of building
and renting, combining and selling for millions was as close as anyone could
get to the real thing those days.” (1944 , in Hungary ) .
He continued his chess playing in the U.S. . Helped keep the mind sharp .
T.H. Huxley provided a famous quote connecting board games and life :
” The chess board is the world, the pieces are the phenomena of the universe,
the rules of the game are what we call the laws of Nature. The player on the
other side is hidden from us. We know that his play is always fair,just and
patient. But also we know, to our cost, that he never overlooks a mistake or
makes the smallest allowance for ignorance. ”
Niederhoffer describes Warren Buffett as one of the world’s most
famous speculators ,” personifies Mr. Market as the omniscient
player-opponent in an almost identical fashion.
Sometimes, Mr. Market will buy your goods at Walmart prices.
On other occasions, he will buy from you at Tiffany retail.
The question is :Can you take advantage of his dispositions ? ”
Niederhoffer then explores the wisdom of Tom Wiswell ( Let’s Play Checkers)
and provides a framework to deliver it :
Rules of the Game
” The easiest thing in the world is to learn the checkers moves;
the hardest thing is to learn to play them correctly.
” To lose is human, to win is divine, to draw is an art. ”
Before the Game
“It isn’t only what you know that counts, its also what you don’t know; and don’t know that you don’t know.”
“The student playing much, suffering much and studying much: these are the three pillars of learning.”
“You may not have as much knowledge as your opponent, but you do have as much imagination–use it !”
During the Game
” Exercise judgement, exercise caution, exercise patience; and , finally, exercise. ”
“Indecision is fatal. It is better to make a wrong decision than build up a habit of indecision. ”
“Never let the fear of striking out get in your way.”
Deception
“No matter how bad your position is , never let your opponent see you sweat.”
“The best trap is the trap your opponent does not see.”
” It is always wise to remember that your opponent may be
as Machiavellian and scheming as you are. ”
” When your opponent allows you to make a very inviting move,
remember the story of the spider and the fly.”
After the Game
“You may make a move without knowing why,
but after you’ve lost the game the reason will be apparent.”
” A good scare may eventually help you to make a good score.”
“After suffering a disastrous defeat, listen to some good music.”
” A beautiful game is in the eye of the beholder; and that is usually the winner;
but a brilliancy is a game that can be admired by the loser, as well as the winner. ”
Niederhoffer says ” If only speculators would spend one-tenth the time analyzing
a completed trade that they spend implementing it,they would have a lot fewer losses. ”
Character of a Winner
” Only those with passion can become masters.”
” Success does not come all at once; even for masters it comes in stages, separated by years.”
” You are the architect of your own victories and defeats .”
” In order to win, you should analyze the play, you need to analyze the player
and you must,above all, analyze yourself. ”
” Those players who do not learn from experience, will not learn at any other school.”
” The good player is the one who knows he will always have a lot to learn. ”
Samples of Tom Wiswell’s proverbs were used to fill in and complete this framework.
The skills that you + your children can develop by game playing are the excellent skills
required in professional investing/trading and speculating.
The strategic thinking on many levels , the timely and possibility thinking as you look
at options/moves and the changes that happen with every turn. And then you must act !
Yet another good reason to go back to the game box for : checkers, chess and monopoly, and
play with your kids ( beyond the obvious reasons to be with your children).
It will help their development and your development.
Game on !
Let continue the discussion @ twitter : EnvoyCapRealty … or send a comment back below
nyeretsian@yahoo.com May 17, 2010
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