Victor Sperandeo also known as “Trader Vic“, Sperandeo is a trader, index developer, and financial commentator with over 40 years experience trading numerous markets. He has traded independently, and for many notable investors such as George Soros and Leon Cooperman.
Victor Sperandeo is widely regarded as an expert in commodities, particularly in the Energy and Metals sectors. His market crash prediction during a September 1987Barron’s interview earned him great recognition and highlighted his deep understanding of financial markets. In recent years, Mr. Sperandeo is best known for developing indexes and trading strategies that are designed to benefit from futures price trends. These include both actively managed strategies as well as rules-based algorithmic quantitative models.
Victor Sperandeo started his career on Wall Street straight out of high school, first as a quote boy and then switching to a slightly higher paying job as a statistical clerk for Standard & Poor’s. After another non-trading job in a Wall Street accounting department, Sperandeo talked his way into an option trading position. In the midst of the 1969 bear market, Sperandeo switched jobs twice until he launched his own firm, Ragnar Options, in 1971. (Within 6 months Ragnar was the largest OTC option dealer in the world.) Ragnar was eventually merged with another Wall Street firm. Sperandeo stayed on for a while but then joined Interstate Securities in 1978. This ideal arrangement finally came to an end in 1986 when Interstate went public and dissolved its trading group. Sperandeo traded his personal account for a little over a year before deciding to start his own money management firm.
Victor Sperandeo is author of three books detailing his philosophy:
In “Methods of a Wall Street Master” he published his returns over 10 year period
|1978 (10 months)||115.26%||15.18%|
10-year nominal annual rate of return for V. H. Sperandeo 70.71 % (does not include interest on cash balances).
While his view is hardly universal, Sperandeo downplays the significance of intelligence to trading success. Based on his experience in training thirty-eight traders, Sperandeo concluded that intelligence was virtually irrelevant in predicting success. A far more important trait to winning as a trader, he says, is the ability to admit mistakes. He points out that people who tie their self-esteem to being right in the mark ets will find it very difficult to take losses when the market action indicates that they are wrong.
He clearly put emphasis that trading is not your life, unfortunately most traders easily forget this:
“Being involved in this business requires tremendous dedication and desire. However, you shouldn’t make trading your whole life. You have to take time off. You need to spend time with loved ones. You need to balance your life.”
“Never average a loss – don’t add to a losing position”
“To be a successful trader, you have to be able to admit mistakes. People who are very bright don’t make very many mistakes. In a sense, they generally are correct. In trading, however, the person who can easily admit to being wrong is the one who walks away a winner.”