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Mustachian Community => Mustachian Book Club => Topic started by: big_slacker on January 11, 2016, 01:58:31 PM

Title: What I learned losing a million dollars
Post by: big_slacker on January 11, 2016, 01:58:31 PM

Quick read that I heard about through Tim Ferris. A pretty quick read about hubris and how to avoid psychological mistakes in trading. Although we're not all futures traders it really doesn't matter, the psychology is valid for many financial situations like buying a house for instance. It also gives you some insight into how fast and loose some in banking/trading/finance really play it.

There is some minor trader technical jargon and the book drags towards the end when the summary is really to make a plan, stick to your plan and control your losses with the plan. Still worth reading considering it's short length and good message.

Title: Re: What I learned losing a million dollars
Post by: Nickels Dimes Quarters on January 11, 2016, 06:14:12 PM

Sounds like a good lesson to learn. I'll add it to my reading list.

Thanks.

NDQ

Title: Re: What I learned losing a million dollars
Post by: hodedofome on January 28, 2016, 09:23:19 PM

Haven't read it but heard all about it and it's on my list.


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Title: Re: What I learned losing a million dollars
Post by: digitaldetachment on May 10, 2016, 10:59:04 AM

I read this one on the recommendation of Nassim Taleb. 

What struck me most was the disconnect between the grand trappings of high-finance-status (huge compensation, expensive meals, tailored suits, amazing office views) the author achieved as a successful executive/operator ... and how little he (or anyone else around him) knew what he was doing. (Gambling without a real understanding of the risks.)

The author struck me as the one guy in a thousand willing to face facts and tell the truth about an entire industry. 

Basically a short mea culpa on how he fell victim to the "illusion of skill":
http://skepdic.com/illusionofskill.html

Title: Re: What I learned losing a million dollars
Post by: forummm on May 10, 2016, 12:13:52 PM

The title is killing me. My chest got a little tight. I can't imagine losing a million bucks. That's retirement for a lifetime.

Maybe he makes it back in book sales :)