The American Hedge Fund

In case you're wondering, right now I'm reading an advance copy of "An American Hedge Fund" by Timothy Sykes. So far I've enjoyed it quite a bit and will be adding it to my recommended reading list when I'm finished. The book isn’t out for sale just yet, but will be later this year.

For a brief sample, here's a quote:

"My best trades have occurred when I happened to glance at the markets and recognize an opportunity. While market study is important, it can lull you into a false sense of security; the first rule of the market is that it changes on a dime. Don't get sucked into trying to analyze every variable. The greatest opportunities stand out from the rest of the market noise, so observing the markets from a great distance allows for better hunting. Many traders weaken their profit potential before they enter a trade because obsessive research clouds their objectivity. After all their hard work, they cannot accept the fact that the most effective course of action might be the exact opposite of their findings. Great amounts of money are lost by people who adhere to their research without remaining flexible enough to respond to changing market conditions that occur at any particular moment. A stock can always turnaround in a hurry, but only fools count on their ability to predict those turnarounds for their livelihood. Short term trades that turn into long term situations often become the source of great financial and mental agony. Sometimes you need to acccept defeat and move onto new opportunites."