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

Larry Hite's autobiography tells the story of a true market wizard who, as young man, most wrote off due to his poor eyesight, dyslexia, and clumsiness. It's a story of optimism and grit by one who ingeniously used his natural limitations as sources of strength. Hite became so accustomed to failure in his youth that rejection as an adult in the world of business did not faze him or slow him down. Combined with his natural intelligence, mental math ability, and extroversion, that thick skin helped him build the largest systematic hedge fund of its day, Mint Investment Management Company.At first glance “The Rule” reads as an entertaining autobiography with personal stories from Hite's life and words of encouragement for newer traders. But, on a deeper level, Hite builds a case that his success is not a fluke. On the contrary, he argues that anyone who seriously seeks to make a living as a trader/investor needs to set clear and specific goals, maintain unwavering persistence in the face of failure, and overcome personal shortcomings by involving others with complimentary skills. The latter forms a big part of Hite’s success. He generously shared his firm’s profits with people who brought important skills to the table such as statistical analysis and information technology.This is not a “how-to” investment book in any sense. Hite’s "Rule" and other savvy tips will not be news to most investors or speculators. Hearing them again from one of Hite's accomplishments does, however, reinforce one's belief in their value. Most important in my mind is his admonition to stick to a system or, better yet, a mix of strategies, without variance. That is the only way to measure your edge with confidence to enable tweaks and improvements over time.You have to read between the lines to pick up nuggets of wisdom that you can use for further research on your own. Hite mentions game theory, Bayesian analysis, and systematic trend following as important elements of his success. But he does not probe or even explain these things at more than a very basic level, if that. The failure to explain a bit more about those technologies short-changes readers to some degree, many of whom buy a book like this to help them open new avenues for their own research. The book includes no reference section or footnotes to point readers towards helpful books, articles, or websites to learn more.Perhaps the key lesson to take away from this book is summarized in Hite's now-famous basic rules about trading and life (first published 32 years ago): (1) "If you don't bet you can't win," and (2) "If you lose all your chips, you can't bet."Larry Hite’s “The Rule” is a worthwhile read for any serious market participant. Investment success is as much a matter of psychology, attitude, introspection, and grit as compared to method, strategy, or luck. Reading the biographies of great traders can help you learn stuff they do not teach in school.

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interesting story for sure, and some decent life-coaching inspiration, so if you are buying it for that then you'll be happy - but I don't think that's what most people buy it for. A lot of bluster, a treatise on how to lie and b/s people, nonsense repetition and inconsequential flim flam, all written at a level intended for an elementary school audience, over-simplified and incomplete. Don't buy this book

This book might be a game changer as far as the perspective of risk management. Not only does Larry Hite gives a perspective of risk management from an equities standpoint. He gives a risk management perspective from a lifestyle standpoint as well.

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!

I love this book. Mr. Hite has the ability to make the readers think about possibilities that pertain to trading and life. What a champion for those who need a mentor in his brilliant book. Thank you Mr.Hite!

Larry Hite's no BS, staightforward trading approach has been a refreshing read. The concept of an asymmetric leverage is a very powerful one. His multi asset & multi trading strategy is an approach that few asset managers are competent to handle, but, in my view, is the key to generating high risk-adjusted returns.

An underrated book on the principles of trend following. A must read for swing and position traders.

Larry hite tells how to develop your own methods against odds to do a particular thing....I can definitely say, it's a not a book for traders only....it is the book for all 👍.

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.

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 🌟🌟🌟🌟🌟

The only thing that keeps popping in my mind is that, if this man can achieve success despite several shortcomings, every person is capable of gaining success.

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.