Table Of ContentPraise for
THE RULE
Larry Hite was one of the pioneers of trend-following trading.
He founded Mint Asset Management, which became the first
billion-dollar hedge fund. I interviewed Larry for my first
Market Wizard’s book, not merely due to his track record, but
also because I heard him speak and loved his droll sense of
humor. I asked him why he would bother writing a book after all
these years—certainly not for recognition or money, both of
which he has in surplus. Ironically, I discovered he provides the
answer in the introduction. The Rule is a breezy read in which
Hite reflects on his life and provides his take on the lessons of
trading and life—spoiler alert, they are both the same.
—Jack Schwager, author of the Market Wizards series
Super
traders
that stand the test of time are a rare breed—Larry Hite is one of
them; he’s a living legend in the trading space. I love his book! It
has great lessons for trading and life. It’s definitely on my top
list of stock market must-reads.
—Mark Minervini, US Investing Champion, featured in
Stock Market Wizards and author of the #1 bestseller Trade
Like a Stock Market Wizard
Larry Hite’s chapter in Schwager’s first Market Wizards book
was the one that most affected my trading and career. His Rules
in this book on bet size, embracing loss, and dealing with
psychology are so important to trading success. His comments
on bet sizes directly led to my work on position sizing and
contributed heavily to my favorable return-to-risk ratios. This
book a must-read for every trader.
—Tom Basso, founder of Trendstat Capital Management,
Inc., and currently enjoying retirement at enjoytheride.world,
an educational website for traders
I’m thankful that Larry Hite took the time to write such a
personal and powerful book. In addition to sharing phenomenal
wisdom and excellent trading principles, the book chronicles his
life story, from underdog to the highest level of trading success.
The principles he generously shares can improve your personal
and trading life, and readers will come away from this book
feeling empowered and ready to face life’s challenges.
—Steve Burns, NewTraderU.com
From a dyslexic, visually
impaired youth to a
legendary multimillionaire Market Wizard, Larry is living proof
that anyone can overcome and turnaround the greatest of life
odds to achieve success in the financial markets and in life. This
book is an inspiration to traders, investors, and anyone who
wants to live their life to their fullest potential!
—Adam Khoo, Asia’s Leading Wealth and Success Coach,
Professional Stock, Forex, and Options Trader
Copyright © 2020 by Larry Hite. All rights reserved. Except as
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For my grandchildren, so that they will know they have
choices.
And for all the young people born with disabilities, in the hopes
that their limitations become a source of strength.
CONTENTS
ACKNOWLEDGMENTS
FOREWORD by Michael Covel, author of
Trend Following and TurtleTrader
INTRODUCTION: Get in the Game
PART I SHEEPSHEAD, PORK BELLIES, AND
BLACKJACK
1 Know Who You Are: How I Learned from
Failure
2 Find the Game You Love: My Education as a
Trader
3 Working the Odds: Your Time and
Opportunity Horizon
4 Trend Following: Cut Your Losses and Let
Your Winners Run
5 How to Lose Money, Including How I Lost
Millions
PART II THE MINT FUND, MARKET WIZARDS, AND
