Top Investment Tips From Hedge Fund Manager Victor Niederhoffer

Victor Niederhoffer is a hedge fund manager that has established numerous companies including Niederhoffer, Cross and Zeckhauser, Inc., and investment bank which sold privately held firms to public companies. The business name was later changed to Niederhoffer Henkel, under the tutelage of Lee Henkel, former general counsel to the IRS.

1. Passion is the ticket to success
Niederhoffer believes that an innate passion for trading is by far the most important criteria for keeping things exciting and interesting. 

“Only those with passion can become masters.”

2. Trial and error in trading is inevitable 
The trading and investment industry is incredibly volatile with extremely unpredictable outcomes. Traders will undoubtedly experience many losses along the way, but learning from them and refining strategies is what will separate the best from the amateurs. 

“There are so many ways to lose, but so few ways to win. Perhaps the best way to achieve victory is to master all the rules for disaster, and then concentrate on avoiding them.”

3. Survival of the fittest
“Only the strongest players can swim in the shark-infested waters of the Masters’ Seas.”

4. Slow and steady wins the race
If we received everything we’ve ever wanted all at once, we wouldn’t truly know what to do with it. Success will arrive in its due time and it’s important to remain patient until then. 

“Success does not come all at once; even for masters it comes in stages, separated by years.”

5. Maintain exclusivity
“It is inconceivable that anyone will divulge a truly effective get-rich scheme for the price of a book. There is ample opportunity to use wealth in this world, and neither I nor my friends, nor anyone else I have ever met, has so much of it that they are interested in putting themselves at a disadvantage by sharing their secrets.”