As someone who likes to call himself a ‘value investor’ reading a book on top traders would be blasphemous. None the less, as an avid reader, I had a go. And boy the book is full of inspiration.
The author does a wonderful job of interviewing people who are at the top of their game. The edition I read was updated in 2012. The interviews were done in the 1980s period by the looks of it. It may seem outdated, but the principles that are discussed are timeless. The author also makes a good effort to explain certain industry-specific terms and has a comprehensive appendix.
The book interviews people who trade in
Further two sections talk about – The view from the floor and Psychology of trading.
The things I learnt are
The trader who stands out for me is Larry Hite.
. . . successful investment was really a matter of odds, and if you could compute the odds, you could find and test methods that could beat the market.
– Larry Hite
When I was a broker, my boss taught me that if you don’t call your client when he is losing money, someone else will
This is so true. When things go wrong, I ditch emails and either pick up my phone of making sure I am on-site meeting my client face to face appraising them of the situation in person.
The follow-up is to understand trending following further. A thesis to test out is to find fundamentally sound companies and then apply the principles of trend following. I am sure it is easier said than done.