[get] What I Learned Losing a Million Dollars!

[Joeblack1]

What I Learned Losing a Million Dollars (Columbia Business School Publishing)


Jim Paul's meteoric rise took him from a small town in Northern Kentucky to governor of the Chicago Mercantile Exchange, yet he lost it all―his fortune, his reputation, and his job―in one fatal attack of excessive economic hubris. In this honest, frank analysis, Paul and Brendan Moynihan revisit the events that led to Paul's disastrous decision and examine the psychological factors behind bad financial practices in several economic sectors.

This book―winner of a 2014 Axiom Business Book award gold medal―begins with the unbroken string of successes that helped Paul achieve a jet-setting lifestyle and land a key spot with the Chicago Mercantile Exchange. It then describes the circumstances leading up to Paul's $1.6 million loss and the essential lessons he learned from it―primarily that, although there are as many ways to make money in the markets as there are people participating in them, all losses come from the same few sources.

Investors lose money in the markets either because of errors in their analysis or because of psychological barriers preventing the application of analysis. While all analytical methods have some validity and make allowances for instances in which they do not work, psychological factors can keep an investor in a losing position, causing him to abandon one method for another in order to rationalize the decisions already made. Paul and Moynihan's cautionary tale includes strategies for avoiding loss tied to a simple framework for understanding, accepting, and dodging the dangers of investing, trading, and speculating
REvIEW:

A rare book indeed.
By rimshaker on November 27, 2007
Format: Hardcover Verified Purchase
"I'm a self taught investor/trader (arent we all) so I've collected my share of books. But this one by Jim Paul/Brendan Moynihan is the most unique book I have ever read so far. It's the only book which correctly points out that trading and investing are personal journeys; about finding out who are you, and then how to manage what you find out. Until you do, one can never be consistently successful at this game. This is largely why the public can never make a career out of trading. It never dawns on them that it's all about soul searching and then applying your strengths while controlling your weaknesses. Everyone is different; which is why there are infinite ways to make a profit. There are no "secrets" to trading. It never dawns on them that investing seminars are utterly useless. It never dawns on them that you don't have to watch CNBC either.

The book is basically two sections. Jim describes his life stories in the first part, then Brendan writes about the psychology of it all in the second part. Copies of this book are relatively pricey given the rarity. Wait until several sellers show up to take advantage of price competition. Good luck trying to find it in public libraries. This book is worth every dollar I spent to read it. It's one of those that you'd want to reread once a year so you never forget the correct way to approach the markets. The earlier in your career you get a chance to read this book, the better off you'll be."

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