I read a very interesting piece over at Daily Speculations the other day. Victor Niederhoffer wrote a beautiful essay about False Eyes. False eyes occur as part of nature’s design, and equip animals to use deception to ward off predators. Victor elegantly, as always, found market parallels to the concept of false eyes. The discussion was smooth until one commentor, Lon Evans, decided to launch an ad hominem attack on VN. I was personally embarrassed that such a flame would go down on Daily Speculations, which embodies the spirit of Benjamin Franklin. Since my HTML skills are non-existent….here’s a link to the piece.
http://www.dailyspeculations.com/wordpress/?p=2680
Reading that flame from Lon Evans made me realize one thing. Lon is what the great Ayn Rand referred to as a second hander. A second hander is a person of mediocre skills, and no ego. He derives his satisfaction not by his actions, but by the perceptions of others. He’s spending his life trying to impress people, because that’s his source of pleasure…..what others think of him. A second hander wants acclaim without the real work in doing something that would garner acclaim. A second hander hates people who are the real deal, and are eternal pessimists, by the way. Second handers, in my opinion, are real whack jobs.
I applaud the moderators over at Daily Speculations for not filtering Lon’s replies. They allowed us to see up front what a second hander really is. Victor handled the attack perfectly by not responding to it. Victor taught us a lesson that’s applicable to real life in that we should ignore all second handers……
All I know is, I try not to whine when I’m losing or gloat when I’m winning. Good and bad situations juxtapose frequently, and it’s very easy to look, and be, really really wrong. So you can look like a real turkey - at least if you’re honest about it - which I have done a number of times in the past year.
But time changes the dynamic. The longer your outlook, the better the odds of whatever bad situation you are in righting itself. If you have a good money management system, you can be wrong about a lot of things but still come out ahead.
Our friend Lon seems pretty certain about his bearish outcome, (I admit I’ve taken the totally opposite viewpoint with him once or twice just to get a rise) but when he eventually takes a hit or gets it wrong, he’ll probably just go quiet. Not too many people talk about their losses or mistakes. It is truly, truly, humbling.
Cheers,
George
Comment by Allocator — February 21, 2008 @ 3:44 am
I’m glad the site isn’t filtering him. I’ve read some of his other replies where he mentioned that he trades e-minis..I wonder why he doesn’t step up to the plate and trade the regular full size S&P contract. He also said that Monday would close higher, even though the market was closed that day. I agree with another poster over there who said that he thought Lon was about to be humbled by the mistress of the market. Still, Lon makes for good drama and cheap entertainment…..I noticed you getting a rise out of him.
Speaking of the markets, I’m still very confused about the direction of the stock market. I really don’t have a clue.
Jeff
Comment by masteroftheuniverse — February 21, 2008 @ 3:54 am
George: All of the menbers of the [spec-list] write a lot about deception in markets. The Chair is smart enough to realize that Daily Speculations is linked to the WSJ and NYT on a regular basis. He doesn’t give out a lot of specific info, but the info could get into the public domain where others might make assumptions…dangerous assumptions about VN’s outlook and position. Acting upon these assumptions could ensnare onesself in a huge Venus Flytrap, with no way to get out. A real squeeze.
Jeff
Comment by masteroftheuniverse — February 21, 2008 @ 4:38 am
Dear George, Jeff, and MASTEROFTHEUNIVERSE(?),
Sorry for the need to educate such an accumulation of idiocy, but idiocy never ceases to require such.
1. (For Jeff) The e-mini is fungible with the pit. 5 minis = 1 pit. Probably a bit too sophisticated for your sorry intellect, but not my problem. In regards to “the market was closed that day.” You idiot! Yes, the cash market was closed that day, but Globex traded until noon, and guess what, moron? It closed 10 handles up. Learn the game before you spout off, huh? Imagine how it was that SnP went limit down at 1258 on MLK’s holiday, another day when “the market was closed.” You stupid fuck!
2. (For George) To date I’ve not experienced the “rise” you speak of. Is this some manner of personal narcissism you smugly assume while trolling a particular breed of nightlife. If so, I’m sorry, but I’m ignorant as to how such proclivities influence the afflicted. Again, sorry.
3. (To all) Yes, I’m currently bearish, and with profit. As I’ve freely communicated, I realized strike-price on puts at 1460, a fair bit of time in the past. Please inform me how it is I’m to “take a hit,” or “get it wrong” when I’m currently some 110 handles in the money. As my core position is an option play, the premium has been already been covered, so how is it I’m to suffer a comeuppance? Your reasoning defies reason.
4. (Again Jeff) You’ve been “confused” as to market direction from the day you first wet you feet in purchasing 32 shares of Yahoo. Don’t expect the befuddlement to evaporate.
5.(To MOTU) Lord, what Freud could tell us of you. MASTEROFTHEUNIVERSE? Wouldn’t John Galt have rolled of the tongue a tad more easily?
And finally, to all, one of your ilk demanded of me what a VicBot might be. Well, save me the verbiage; take a look in the mirror.
Sincerely,
lon
Comment by Lon Evans — February 25, 2008 @ 10:41 am
[...] http://masteroftheuniverse.wordpress.com/2008/02/17/second-handers/ [...]
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Hey Lon,
You must have really been bullied on the playground when you were a kid.
Jeff
Comment by masteroftheuniverse — February 26, 2008 @ 1:28 am
Well Lon,
Your response back there IS a rise - pretty venomous one at that. I never said I wished you a “come-uppance”. In fact in DS I wished you success.
You’ve been pretty vocal about your winning position in DS, and to me it times it sounds like gloating. So I was just speculating here as to whether you would be as open about your situation if you happened to make a big mistake or hit a losing streak like we all do. But based on your self-assessment that this will never happen, I suppose it’s a moot point.
As to calling Jeff a “stupid fuck”, “moron”, and “idiot”, I suspect he’s forgotten more about trading than you and I will ever know. He’s a patron of the arts, a deep thinker, and as far as I can tell a real gentlemen. He was actually defending Victor Niederhoffer by challenging your personally critical, and what some might consider rude, commentary. The course of action with respect to Jeff that I think would serve you best in the long run would probably be an apology. If you want a voice (that people will actually listen to) in these forums, you need to keep it civilized. Challenging ideas is one thing; making it personal and being insulting is something entirely different.
And I see I’m an idiot too by dint of practicing “idiocy”. Maybe I am, maybe I’m not. At the moment, enough people seem to like me the way I am, so I’ll just go with that and see how things turn out. But thanks anyway for trying to help me understand my shortcomings.
Cheers,
George
Comment by allocator — February 26, 2008 @ 5:03 am
Jeff,
We, most likely, will never find ourselves knocking back beers. We’re far to far apart in our realities for that. Having said this, I would like to say that my post was infantile and out of line. There were better ways to communicate, ones that were available to me, and that I consciously rejected. For this I apologize.
I’m no more comfortable admitting fault than the next guy, but when I’m wrong; I’m wrong. Please leave my jack-ass post available for all to witness. And please, delete this one.
Be well; and with prayers that your wife is too.
lon
Comment by Lon Evans — February 27, 2008 @ 7:43 am
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