Altucher Tells The Truth About the Market

[d08]

I made the mistake of reading Altucher's book on trading strategies. It was as if he found out what backtesting was and decided to write a book about it pretending to know about the subject, all in 1 month. I couldn't believe that garbage actually got published.
So when someone like that gives you advice - you do the opposite.

 

[marketsurfer]

I made the mistake of reading Altucher's book on trading strategies. It was as if he found out what backtesting was and decided to write a book about it pretending to know about the subject, all in 1 month. I couldn't believe that garbage actually got published.
So when someone like that gives you advice - you do the opposite.

Altucher is a genius and has traded with (and obtained several of the strategies) from a top performing hedge fund-- not to mention running his own shop on 5th ave in NYC.

That book ( trade like a hedge fund) made me a killing when it first came out. The bankruptcy strategy in particular was (is) excellent among several others. It is among the best true life trading books ever published.

Sorry you don't get the value

surf

surf

 

[skilluk]

For those who don't know who James Altucher is, a "Master Hustler" is a pretty good description but probably an understatement.

Here are some fun facts:

1 He either got fired or walked out of every job he had. And by walked out I mean he'd be in a meeting and decide he's done with the job so he says "excuse me", walks out and the people never hear from him again.

2 He's written like 20 books.

3 He's started 20 businesses, I think 17 failed.

4 He made 10 million from one business and went stupid long tech stocks in the tech bubble and blew up - lost everything.

5 Somehow he goes from being near homeless to learning everything about trading, coding trading systems, and in a short while he's getting introductions to VN, B. Maddoff, Steve Cohen, and another trading super billionaire (who was "like a father figure" to him, maybe Soros?, he hasn't disclosed). He went from near homeless to having his own FoF with 100 million in just a couple of years.

6 He blows up yet again in 2008 and loses millions again.

7 Again he starts all over from zero and now he's a very successful blogger, speaker, consultant, board member of couple of companies, and startup investor. No doubt he's a mulltimillionaire all over again. But this time he's doing the smart thing and no messing with stocks.

He's also got a podcast going and some of his recent guest include: Nassim Taleb, Peter Theil, and Tony Robbins. These guys heavyweight champs in their field, they don't give interviews with just anyone.
And the best part of James is he does not try to hide his failures like a lot of people. He does the opposite and brags about them which is hilarious.

So he's definitely met with thousands of traders, and hundreds of HF guys and he know's the deal. Non of these guys are beating a passive long SPY strategy after adjusting for risk/leverage but they are master salesman - just like him.

 

[marketsurfer]

Altucher is the Morrisey of finance --- Emo to the core. He tells the truth, whether its popular or not and that's his appeal. Even though some of what he writes seems like fiction, its 100% true-- I know because I know many of the people he alludes to in the tales he writes about that seem made up. An amazing life!

 

[d08]

Altucher is a genius and has traded with (and obtained several of the strategies) from a top performing hedge fund-- not to mention running his own shop on 5th ave in NYC.

That book ( trade like a hedge fund) made me a killing when it first came out. The bankruptcy strategy in particular was (is) excellent among several others. It is among the best true life trading books ever published.

Sorry you don't get the value

surf

surf

He does not understand backtesting basics (as in ABC) such as a backtest with 5-10 trades being irrelevant.
Indeed, the book might've made a killing as he was smart peddling his garbage. He is the Herbalife of trading.
His book title was HIGHLY misleading as it has zero to do with how hedge funds trade.

So let me get this straight - he is a genius and a master of trading strategies, yet he keeps failing over and over again. Perhaps you two could form a "failed trader club" of some sort, you could pat each other on the back and tell yourself how amazing you both are and how the world just doesn't get you.

 

[marketsurfer]

He does not understand backtesting basics (as in ABC) such as a backtest with 5-10 trades being irrelevant.
Indeed, the book might've made a killing as he was smart peddling his garbage. He is the Herbalife of trading.
His book title was HIGHLY misleading as it has zero to do with how hedge funds trade.

So let me get this straight - he is a genius and a master of trading strategies, yet he keeps failing over and over again. Perhaps you two could form a "failed trader club" of some sort, you could pat each other on the back and tell yourself how amazing you both are and how the world just doesn't get you.

Absolutely wrong-- I know of a 500 million plus fund ( at the time) that a few of those strategies came from. remember this book was published in 2004-- much has changed since then.

Nope, the strategies made me a killing when the book first came out. Many of the strategies were used by the TOP PERFORMING FUND of that time period managed by a famous manager listed in a previous post--- I know where he got some of them as a fact--- that's the truth
and it wasn't from some anonymous internet poster. surf

PS-- most every trader, manager fails over and over unless they reach a certain "too big to fail" size, then many still fail-- very very few do not. its the nature of ever changing markets.

 

[d08]

Absolutely wrong-- I know of a 500 million plus fund ( at the time) that a few of those strategies came from. remember this book was published in 2004-- much has changed since then.

Nope, the strategies made me a killing when the book first came out. Many of the strategies were used by the TOP PERFORMING FUND of that time period managed by a famous manager listed in a previous post--- I know where he got some of them as a fact--- that's the truth
and it wasn't from some anonymous internet poster. surf

PS-- most every trader, manager fails over and over unless they reach a certain "too big to fail" size, then many still fail-- very very few do not. its the nature of ever changing markets.

Right, a "top performing fund" was using the strategies and he just decided to give them away in the book, are you serious? The strategies performed very poorly going forward, a typical sign of simple curve-fitting.

A "genius trader" might fail once in the beginning but never make the same mistake again. Someone who fails over and over again is simply a failed trader/manager. Absolutely anyone can produce profits for a brief period before blowing up, that's NOT a skill. I realize in the HF arena that might work as salesmanship often matters more than performance, which explains how he could thrive for as long as he did.

 

[marketsurfer]

Right, a "top performing fund" was using the strategies and he just decided to give them away in the book, are you serious? .

That's correct--- he took them from a fund. He is also a much better salesman than trader,but that's beside the fact that many of the strategies worked back then

 

[Maverick74]

Surf, Altucher seems like a really interesting guy. I have no problems with his failures or his books or the fact that he has managed to get up every time he gets knocked down. But his idea (and it's shared my many on ET) that the markets are dead or will be dead or vol is going to zero just demonstrates a complete misunderstanding of how markets work. That doesn't make him a bad person. I probably would rather have a drink with him then some quant who made billions front running ticks. I have learned far more from people who have failed in life then those who have succeeded. And that is probably where the value is in his books.

On a side note, I've been told by many, that one of the best books on trading is:

http://www.amazon.com/Learned-Milli...&sr=1-1&keywords=how+i+lost+a+million+dollars

I've never read the book but plan to at some point. But there is probably more valuable info in this book then in other books written by so called successful traders and managers.

 

[marketsurfer]

Surf, Altucher seems like a really interesting guy. I have no problems with his failures or his books or the fact that he has managed to get up every time he gets knocked down. But his idea (and it's shared my many on ET) that the markets are dead or will be dead or vol is going to zero just demonstrates a complete misunderstanding of how markets work. That doesn't make him a bad person. I probably would rather have a drink with him then some quant who made billions front running ticks. I have learned far more from people who have failed in life then those who have succeeded. And that is probably where the value is in his books.

On a side note, I've been told by many, that one of the best books on trading is:

http://www.amazon.com/Learned-Million-Columbia-Business-Publishing/dp/0231164688/ref=sr_1_1?s=books&ie=UTF8&qid=1415469502&sr=1-1&keywords=how i lost a million dollars

I've never read the book but plan to at some point. But there is probably more valuable info in this book then in other books written by so called successful traders and managers.

Great post, i agree. Good find on the book--- I was not aware of it, looks like a must read, thank you!

Believe it or not, Tony Robbins is coming out with a Market Wizard type book where he interviews PTJ among many other great money managers. I have mine pre-ordered-- it will likely be the best investment book of the 21st century.

http://www.amazon.com/MONEY-Master-...&qid=1415553821&sr=8-2&keywords=money+masters