The subtitle of this book pretty much tells it all: How I Made $2 Million as a Stock Operator and Created a Hedge Fund. The blurb on the front cover touts it as “…A follow-up to the classics, Reminiscences of a Stock Operator and How I Made $2 Million in the Stock Market.
At the Traders Press booth at the recent New York City Traders Expo, the young author of this autobiography commanded my attention by pulling me aside and advising me of the magnitude of his many achievements…and by kindly presenting me with a complimentary copy of his own, newly self-published book.The tongue-in-cheek name of his publishing company, BullShip Press, sets the tone for its first publication, An American Hedge Fund.
It is a “look at me” and “look over my shoulder” accounting of how, at a tender age, the author gained an interest in the stock market and in trading stocks. This sounded a familiar bell with the undersigned, whose father instilled in him an interest in stocks at the age of 12…and who was already actively trading throughout high school and college -- an experience and background similar to that of Mr. Sykes.
The first thing that catches the reader’s eye when you start to thumb through this book is page after page of endorsements and reader comments from folks from all over the industry…including some rather well known and highly respected names, such as Michael Covel, Tom Sosnoff and James Altucher. The comments range from highly laudatory to comments such as “Why 26-year-olds who write autobiographies probably shouldn’t bother actually publishing them.”
Without going into all the myriad details that make up the book, suffice it to say that this is a story of how the author took a relatively small sum of Bar Mitzvah money and parlayed it into more than $2 million in the stock market (before ensuing drawdown)…and it is an interesting one. No detail is left out, including the author’s feelings, biases, preferences, and opinions. After you get used to the idea that most paragraphs will consist largely of the words “I”, “me” and “my”, the story is actually pretty interesting.
To his credit, Sykes does indeed lay bare his weaknesses, referring to himself often as “cocky”, “arrogant” and the like…which is refreshing candor.
He is not at all subtle in his proclamations that the hedge fund industry, despite $2 trillion invested in it, is an area in which accurate information is withheld from the investing public by governmental authorities, who are intent on protecting themselves from those they perceive as naïve investors. His own efforts to raise capital for his own hedge fund met continual roadblocks, and because he is outspoken, he was not permitted to advertise and market his skills and wares in a manner that would be permitted in other avocations.
In my opinion, one will learn little useful information about trading from this book…Sykes is quite vague about his methodology (for example, “I would go short when the stock cracked critical levels on the downside.”). His total disregard for conservative money management considerations is downright scary (for example, his adamantly steadfast opinion about Cygnus and his huge positions).
It doesn’t come anywhere close to being another Reminiscences or Darvas…yet, it is an interesting read and inexpensive. On that basis, I would recommend it. The best lesson to be learned, perhaps, is that “pride goeth before a fall”. But, that pride also took Sykes to a level seldom ever achieved by the average trader.
In his trading, the author concentrated primarily on “penny stocks”…and has an 8-hour, 4-DVD set (PennyStocking) dealing with how he counsels trading in them. That package, which the author also kindly provided me, sits on my desk awaiting review…and it should be of interest because little material is available on this subject…and I’m hopeful that the trading advice that it renders will prove worthwhile. When time permits, this package may be the subject of a future review in this column. Review by
Edward Dobson, President
Traders Press, Inc.
Greenville SC
Full table of contents and additional information may be located on http://www.traderspress.com
