“Trade like a Hedge Fund” – James Althucher (part I)

Apart from his blog that I had commented here (althucher confidential) he had written some books. One great book from him is "trade like Warren Buffet" that now I promise to make a post about it although it has been some years since I rode it.

The other one is "Trade like a Hedge Fund". I've have been reading it the last days. This book is divided in 20 chapters. There he explains some possible strategies for trade, make statistics about them, propose improvements, and do a final comment about them.

For the kind of trades I make the most interesting are:

-         Technique 1. Playing gaps.

-         Tec 3. Buying bankruptcies.

-         Tec 10. Deletions from the indexes.

-         Tec 12.  End of quarter, end of month.

-         Tec 13. Ten percent down – panic 101.

-         Tec 14. Taking advantage of option expiration day.

-         Tec 19. What does not work?

I will detail them in the next posts.

The book globally is very well written, clearly and you could extract some ideas. I would like to see how some of those ideas had been working under the stress of the financial crisis of 2008-09. Moreover we all now that the stock market is always changing. I'm sure that some improvement could be done around some of those techniques.

Valuation: 7