The Rule: How I Beat the Odds in the Markets and in Life - and How You Can Too

The Rule: How I Beat the Odds in the Markets and in Life - and How You Can Too

Posted by jack_miller | Published a year ago

With 66 ratings

By: Larry Hite, Scott R. Pollak, et al.

Purchased At: $30.00

The empowering story of Larry Hite’s unlikely rise to the top of the hedge fund world - with critical insights and lessons you can take to the bank

In The Rule, legendary trader and hedge fund pioneer Larry Hite recounts his working-class upbringing in Brooklyn as a dyslexic, partially blind kid who was anything but a model student - and how he went on to found and run Mint Investment Management Company, one of the most profitable and largest quantitative hedge funds in the world. 

Hite’s wild success is based on his deep understanding that markets are flawed - just like people. Through his early-life struggles and failures, Hite came to know himself well - his fears, his frustrations, his self-doubt, and his tolerance for all of the above. This motivational book reveals that by accepting the facts of his life and of himself, he was able to accept markets as they are. And that was the key to his success. 

In these pages, you’ll walk of the footsteps of an investing legend, who imparts smart, practical trading lessons throughout the journey. Making a successful living in trading isn’t about beating the markets. It’s about meeting markets where they are, embracing the fact of risk, knowing yourself, and playing it strictly by the numbers. 

The Rule shows that investing decisions are not only bets or gambles, but investments in time, energy, and attention. By focusing on realistic returns on your investments - versus what you expect or hope to get - you immediately improve your probability for success.

I really enjoyed the story of his life, but, that's not what I bought the book for. I was hoping to see his take on the indicators, moving averages and other technical analysis that goes into the very complex question of trend. He treats it as if its a binary issue "I buy when the trend is up' and 'I immediately get out as soon as the trend turns down'. That is extremely disingenuous without going into detail about what technical analysis he used to come to that conclusion. Again, his life's story is inspirational, and if that's the reason I bought the book, I wouldn't feel ripped off. It isn't the reason I bought the book and I do feel ripped off.

- ellie_baker

As a trend follower and momentum trader I eagerly waited for this book. So sad, it simply wasn’t too useful. Hite is a successful trader but this book doesn’t reveal what’s behind the curtain. Thankful it’s a fast read so I can move on to better books and reread useful trading books.

- hugh_scott

This book gives amazing insights into how Larry Hite got started and to his thought processes behind trading. He's lived a very interesting life, and that is worth the price of the book by itself. To those that are upset that he didn't give out the secret sauce to his trading systems, what do you expect? There are good backtesting software packages out there and market data isn't really that expensive these days, especially if you are a trend follower and use end of day data. Don't be lazy. Do the work to figure out your own systems!

- gordon_moore

100% disappointed -like others have already said not worth it.... the interview conducted by Jack Schwager in Market Wizards was considerable more insightful. In fact, the best parts of the book are chunks of writing that seemed to have been "copy/paste" from the Schwagers interview.

- kaliyah_price

Emphasizing that the quality of one’s life is about the choices one makes. So is trading. Not a book about trading or investing, but more the approach and philosophy to be successful at trading/investing. Feels like I had a good chat with the mentor.

- rayan_peterson

Admittedly outside my realm, I am interested in how people move through their lives - choices they make and how they fair in the end. This book peaked my curiosity and pointed me in a direction I needed to go.

- maddox_scott

Thanks Adam Khoo for recommending this books...One the best books i read to find my edge in the market. This book will not just teach you to be successful in the market it also teach many best lessons in life. Is to know what you need and know what you want.

- willie_brown

A good primer on the concepts of asymmetrical investing. Larry has a very inspirational story of overcoming personal challenges. He did explains how he used asymmetrical concepts to create the first billion dollar hedge fund.

- lillianna_bailey

I believe I am the first person to review this book who has actually purchased it. So, this review has no bias but my own and is totally independent.

It is important to state, this book does not provide you with exact rules saying you must buy here, sell here, place a stop here and diversify across these specific markets, and so on. So, please do not think you are buying a set of exact "Rules" in a list format. Fortunately, these tactics are not shared with us as the majority of us would not stick to it or understand its purpose.

It is even more important to know the strategies Mr. Hite uses and continues to use are shared with us. Following the trend, cutting losses, diversify to reduce risk and catch trends are shared with examples. This gives us the ability to design a system which we will stick to and can be profitable. As long as we use the mentioned fundamental "Rules". My own backtesting as shown this to be true.

There is plenty of information provided in this book which personally gives me more ideas to test and improve my own systems. It also provides ideas which I never even considered. "Thank you for sharing your knowledge and experience".

The book tells us how Mr. Hite applied trend following strategies not just in the market but in life. Can you really be a trend follower in the markets but not in your personal life? Will there be a greater chance of internal conflict which may break your rules if you are not?

The additional advantage of reading this book is that it fills in the gap to Mr. Hites interviews in Market Wizards, also, the information provided by Alex Greyserman in Trend Following with Managed Futures and Mr. Covel series of books such as Trend Following and Trend Commandments, and many other books. This was really helpful to me as I had a lot of questions I felt on Mr. Hite could answer. This book has answered a lot of those questions.

I would rate this book amongst Edwin Lefevre - Reminiscences Of A Stock Operator, Nicolas Darvas - How I Made $2,000,000 In The Stock Market, Michael W. Covel - Trend Following, and Jack D. Schwager - Market Wizards.

I would highly recommend this book to anyone beginning or experienced in trading.

Thank you Mr. Hite. The book was well written and very clear.

- zion_ramirez

5 stars for inspiration, 1 star for reiterating things found elsewhere. Hence an average 3 star rating.
I, like other readers, was expecting a LOT from this book rather than the reiteration of material that now is discussed at length in SSRN. The human and personal story is superb and highly motivational but what about the nitty gritty of trading? If you are inspired by this book then buy Curtis Faith, Andreas Clenow, Gary Antonacci, the second book of Covel and then the excellent Nick Radge. THAT will certainly fill the knowledge gaps about being a trend follower. For something more robust you need to get the book from Kathryn Kaminski on Trend Following and the books from Robert Carver (ALL 3 of them).

Btw: sells the book at $14, at £22... why?

- zahra_diaz

Really enjoyed this book! It can sometimes be challenging to relate to People who are wildly successful. I myself have taken part in negative self talk/excuses. This book firmly puts those mystical arguments to bed.
Perseverance and consistency is the order of the day.
They’re golden nuggets of information to be mined throughout the book.

The book finished with “ My life is proof that a loser can win” I don’t agree with this. Larry Hite was never a loser, he just scaled mountains from an early age. He’s possibly too humble. He cemented his legend with his actions and the Market Wizards but penning this book he’s become a beacon of hope.
Thanks ever so much Larry!

5 stars 🌟🌟🌟🌟🌟

- ricky_hughes

Pretty average book for investment book category.

- brixton_ruiz

Risk control is paramount in both trading and investing. Really liked the way author has reminded all through the book to let odds work for you rather against you. Recommend this book to beginners and pros alike.

- kamryn_foster

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