The Mindful Trader

 

The Mindful Trader Newsletter !​ ​Issue #1 - Apr 29, 2023 Hi, ​ I am Arun Bau, founder of Mindfluential Trading, I am excited to send you our first newsletter of “The Mindful Trader”. As we know, In Trading - Mindset & Psychology matters more than 70% of your trading success; the rest is your strategies and risk management techniques. We will start off this newsletter with one main psychology topic that affected me most during my trading journey (and it still does to a small extent) - “The EGO Factor”

The Ego is a powerful emotion that can affect many areas of our lives, including trading decisions. This Ego factor can affect a trader in 3 ways (not necessarily in the same order) 1st way: One of the main ways that ego can manifest in trading is through overconfidence. ​ When we are overconfident as traders, we may take on too much risk by increasing the position sizing or jumping into trades that are not based on proper analysis. When I started trading, I made profits quickly in earlier days; it created a sense of overconfidence in me, thought it was very easy to make money from trading. it did not take many days before I realised that I was wrong. 2nd way: Another way that ego can impact our trading is through the need to be right. When focused on being right, we may hold onto losing positions for too long or refuse to cut our losses when we should. ​ This can lead to significant losses and damage to our trading accounts. This is especially true if we have a big ego and don’t like to admit we’re wrong. I am from a finance background, and when I started trading, I had a false belief that I could easily pick the stocks for trading as I know how to analyze the company financials etc. So I always felt my analysis has to be right. Later I realised that there is no relation between short-term trade decisions and the fundamental analysis of a company. Trading losses over a period of time will keep teaching you to get comfortable in accepting that: “Your analysis can go wrong no matter how good it was. You must start managing/adjusting your positions according to the new sentiment/analysis and not stick to your initial mindset when you entered the position.” 3rd way: In addition to the above two main ways that ego can affect our trading, there are other ways that it can manifest. For example, we may become attached to a particular trade or investment, even if it’s not performing well, simply because it’s “our” trade. This can lead to holding onto a position for too long and missing out on better opportunities. The ego might not always be the main reason for this, but sometimes Hope also makes us stick to trade even if it’s performing badly. Say any Finance Creator / Telegram channel / Analyst have recommended stock and you are took that trade without doing your own analysis; in such cases, you do not want to exit with a loss because you are biased towards the view of those who recommended it. If you exit that trade, you must accept the mistake you did not analyse before taking the trade, so your ego may not let you do that, and you continue to hold on to it. So how can we overcome our egos and become better traders? One way is to focus on the process rather than the outcome. By focusing on our trading process and ensuring that we follow our rules and strategies, we can avoid making emotionally-driven decisions based on ego. It’s also important to cultivate a growth mindset, which means viewing losses and mistakes as opportunities to learn and improve rather than as personal failures. ✔️Practical Personal Hack: The kind of emotions that we show in normal life indirectly impacts what kind of decisions we take in trading. ​ So if you are the kind of person who gives more importance to ego and refuses to accept your own flaws, be it with colleagues in the office or your partner or with friends. ​ Then the same egoistic patterns tend to repeat in your trading as well, making you less responsive to accepting your mistakes. Try to work on the emotional responses in your regular life by being more accepting of what is right and wrong, ​ If you are wrong, and if you accept it. It makes you a better person than trying to prove you are right. It can take time to work on balancing your ego because it’s a kind of Onion - It has many layers to it depending on your personality. No single answer works or all. In summary, our ego can be a powerful force that affects our trading decisions. By being aware of how it can impact us and taking steps to overcome it, we can improve our trading performance. It takes time but worth it. Remember, trading is a journey, and staying focused on the process and continuing to learn and grow as a trader is important. Tips to keep your ego in check Keep a trading journal where you record your trades and analyze your decision-making process. This can help you identify patterns of behaviour that are driven by ego and make adjustments to your approach accordingly. ​ Seek feedback from other traders or a mentor, as an outside perspective can help you recognize when your ego is getting in the way. By staying humble and open to learning, you can continue to improve your trading skills and achieve success in the long run. ​ Comparing yourself with other traders and getting into the unnecessary competition is another way the ego can affect our trading. It is important to remember that each trader has a unique style and approach, and there is no "right" way to trade. Thats it for this newsletter. Thank you for reading our first "The Mindful Trader" Newsletter. Hope it was helpful. Stay tuned for more valuable insights and tips to improve your trading performance.

Victor Sperandeo Career

 

Victor Sperandeo Career, Life and Net Worth – All You Need to Know

Lorea Lastiri·April 13, 2023

People

7 min read

Last Updated on April 13, 2023

Victor Sperandeo is a visionary trader and financial commentator with over 45 incredibly successful years under his belt. Victor is known in financial circles as “Trader Vic” and is widely renowned for his proven track record in the trading field. 

Not only has he been trading on his behalf, but he also handled investments of big names like George Soros and Leon Cooperman. 

Victor Sperandeo made much of his money trading commodities, particularly in the metal and energy sectors. He shot to international fame by famously predicting the stock market crash of 1987. 

Nowadays, he is based in Grapevine, Texas, and serves as the president of Alpha Financial Technologies, LLC.

Throughout his career, Sperandeo has maintained that investors should strive for objectivity and consistency within their trading choices. 

Whether you are a stock market veteran or a newcomer, you can learn a lot from the life and career of Victor Sperandeo – particularly his uncanny ability to identify rising stock market trends and gauge potential risks.

This article will examine the biography and career of the legendary trader, investor, and financial commentator in detail.

Table of Contents  Hide 

Victor Sperandeo – Overview

Victor Sperandeo’s Personal Life

Victor Sperandeo’s Career

Victor Sperandeo’s Net Worth

Victor Sperandeo’s Trading Strategy

Study Victor Sperandeo to Become a Better Trader

Victor Sperandeo – Overview

• Name: Victor Sperandeo
• Gender: Male
• Date of birth: March 16, 1945
• Birthplace: Queens, New York
• Current residence: Grapevine, Texas
• Nationality: United States
• Occupation: Trader, index developer, financial commentator, best-selling author
• Famous for: Predicting Black Monday in 1987 and being an astute financial observer and trader

Victor Sperandeo’s Personal Life

Born in Queens, New York, Victor was always into taking risks and making money from an early age. According to an interview published in The New Market Wizards: Conversations with America’s Top Traders, Victor developed a keen passion for poker during his teen years.

He realized early on that winning in poker was all about managing odds. Although he did pretty well playing poker, he didn’t want to be a professional card player, and at the age of 20, he decided to dive into the New York job market.

A career in OTC trading caught his eye, and, thinking that his poker background might help him, he went for it. Later on, Victor admitted that the idea of pursuing a trading career was the best decision of his life.

Today, apart from being a successful trader and investor, Victor is also a popular public speaker and a best-selling author.

Victor Sperandeo’s Career

Victor started his trading career straight out of high school. His beginnings were far from the glamor of Wall Street. He began as a quote boy at Filer Schmidt & Co., earning minimum wage before moving on to a slightly better-paying position as a statistical clerk for Standard & Poor.

Sperandeo didn’t consider his work particularly exciting and is said to have had difficulty focusing on it. As a result, he was later on dismissed.

After this unsuccessful stint on Wall Street, seeking greater autonomy in trading decisions, Sperandeo found his true calling as a dealer in the over-the-counter (OTC) options market.

One of his bets proved hugely successful, as he earned $50,000 in commissions in just six months. High on confidence, Victor decided to launch his own firm in 1971.

After securing a partner, Victor Sperandeo launched Ragnar Options. The USP of the firm was that it was one of the first firms on Wall Street to offer guaranteed quotes on options without charging exorbitant premiums.

The strategy proved so successful that Ragnar became among the largest OTC option dealers in the world within six months of launch. After a while, the company merged operations with another Wall Street firm. Sperandeo then quit and joined Interstate Securities in 1978.

At Interstate, he was in charge of managing private accounts. Victor learned a lot on the job, but when Interstate went public in 1986, they decided to dissolve their trading group.

Starting His Own Money Management Firm

Fresh out of a job, Sperandeo traded his personal account for over a year before deciding to start his own money management firm, Rand Management Corporation.

The company stringed together eighteen consecutive winning years before registering its first loss in 1990.

Over the years, “Trader Vic” traded futures for some leading corporations, including EAM Group, HSBC Bank, and Nomura.

Currently, he serves as the CEO and President of Alpha Financial Technologies, LLC.

Victor was inducted into the Trader Hall of Fame by Trader Magazine in 2008.

Victor Sperandeo’s Net Worth

Not much is known about Victor Sperandeo’s net worth. However, when the DJIA fell by over 20% during the 1987 crash, he is said to have made 300% returns during a single day by shorting the Dow.

According to some estimates, Victor’s net worth is between $1 and $7 million.

Victor Sperandeo’s Trading Strategy

Victor is an astute financial observer who believes in following rules that take emotions away from your trading activity. He insists that all traders follow investment rules designed to make their trading choices as objective as possible.

In his best-selling book “Trader Vic – Methods of a Wall Street Master,” he notes that keeping your emotions in check when trading is necessary. He says avoiding rationalizing yourself into taking unwarranted risks or choosing a position too early or too late is crucial.

Sperandeo also insists that he abides by specific rules that can help investors gain solid returns and avoid mistakes, especially in the long haul.

Rule 1: Trade With a Plan

According to Victor, having a carefully-defined plan and sticking to it is crucial when trading stocks. He believes confusion is your biggest enemy since it can provoke an emotional response, thus hurting your performance.

Having a trading plan and sticking to it enables you to better navigate periods of high market volatility and protect you from taking high risks.

Rule 2: The Trend Is Your Friend

Sperandeo highlights the importance of this rule and notes that, despite it, it is often ignored. 

According to him, there are three trends in the stock market- the short-term, the intermediate-term, and the long-term. While short-term trends change rapidly, you should maintain sight of intermediate- and long-term trends.

He says an investor should know which trend he is involved in and its correlation with the other two.

Rule 3: Use Stop Loss

According to Sperandeo, it is tough for investors to identify the point when the market starts going against them. That is why many traders fail to close a trade on time, leading to significant losses.

One of the safest ways to avoid this is to put in a stop-loss order. According to Victor, once you open a position, you should immediately place a second order to close the position when the market turns against you and hits the predetermined stop-loss threshold.

Rule 4: When in Doubt, Get Out

Sperandeo says that every long position you hold should be a “buy today,” and every short position you hold should be a “sell today.”

Victor is a big proponent of having the odds in your favor. He says getting out of the market is better if the changing conditions pile the odds against you.

Rule 5: Never Overtrade

Sperandeo believes investors should be more patient in waiting for the right opportunities and act only when as many factors as possible are in their favor.

He says you should only trade once you feel familiar with the price action of your market and at your own pace. On the other hand, overtrading and going against your trading plan is a recipe for disaster.

Study Victor Sperandeo to Become a Better Trader

Victor Sperandeo is one of the legendary traders on Wall Street who believes in a conservative and responsible trading strategy. 

He is known for his diligent market research and objective trading approach. 

If you are a trader looking to make it big, studying Victor Sperandeo’s trading strategy and philosophy can help you gain insight into responsible trading and solid returns without taking unnecessary risks.

Lorea Lastiri

Lorea is an expert content writer with over a decade of experience in the realm of finance and trading. Known for simplifying complex concepts, she delivers engaging and informative content. Beyond her professional pursuits, Lorea is an avid traveler, surfer, and scuba diver, embodying a true spirit of adventure.

Fair Isaac stock holds steady as FHFA allows VantageScore for mortgages

Analyst Ratings

Published 07/08/2025, 11:59 AM

 Investing.com - Fair Isaac Corporation (NYSE:FICO), currently valued at $39.38 billion and maintaining impressive gross profit margins of 80.83%, held its position after the Federal Housing Finance Agency (FHFA) announced a policy change allowing mortgage lenders to use VantageScore 4.0 as an alternative to FICO scores for loans purchased by Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC). InvestingPro analysis shows the company maintains a strong financial health score, with 12 key investment tips available for subscribers.

FHFA head Bill Pulte announced Tuesday that the agency would permit lenders to use VantageScore 4.0 without requiring new infrastructure, maintaining the existing tri-merge requirement. This decision differs from the FHFA’s previous paused plan that would have required both FICO and VantageScore for mortgages purchased by government-sponsored enterprises (GSEs).

Raymond James maintained its Outperform rating on Fair Isaac with a $2,230.00 price target following the announcement. The firm noted that while FICO scores will no longer be mandatory for GSE-purchased mortgages, the tri-merge requirement remains intact, preserving three revenue events for FICO when its scores are used. According to InvestingPro data, analyst targets range from $1,364 to $3,700, reflecting varied opinions on the stock’s potential, which currently trades at a P/E ratio of 71.72.

The investment bank highlighted several factors that may help FICO maintain its market position despite the new competition, including the mortgage-backed security ecosystem’s familiarity with FICO scores and lenders’ established risk models built around FICO metrics.

Raymond James also pointed out that FICO already competes successfully in auto, personal loan, and credit card markets without regulatory mandates, suggesting the company’s ability to maintain its position in a competitive environment. The company’s strong market position is reflected in its 14.72% revenue growth and robust return on assets of 32.61%. For detailed analysis and comprehensive insights, investors can access the full Pro Research Report available on InvestingPro.

In other recent news, Fair Isaac Corporation announced plans to launch two new credit scoring models that incorporate buy now, pay later (BNPL) loan data, with availability slated for Fall 2025. This development aims to offer lenders enhanced visibility into consumer repayment behaviors by integrating BNPL transactions with traditional credit data. In analyst updates, Baird upgraded Fair Isaac’s stock rating from Neutral to Outperform, citing an attractive risk/reward scenario despite recent regulatory challenges, while lowering the price target to $1,900. Jefferies also raised its price target for Fair Isaac to $2,500 and maintained a Buy rating, highlighting optimism about the company’s scoring business and software platform. Similarly, BofA Securities increased its price target to $3,700, retaining a Buy rating, based on the company’s growth potential and innovations showcased at the recent FICO World event. Concerns over potential changes in the mortgage credit scoring landscape have sparked discussions, notably regarding the privatization of Government-Sponsored Enterprises (GSEs) and possible shifts from tri-merge to bi-merge credit scores. Despite these challenges, analysts from RBC Capital remain positive, believing that FICO’s pricing power and industry standard status will remain intact. These developments reflect a dynamic period for Fair Isaac as it navigates regulatory challenges and seeks to capitalize on emerging opportunities in the financial services sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.