| This book by Jim Paul and Brendan Moynihan is a | | | | and emotional that is part of any decision making |
| book any trader should read - The book correctly | | | | including trading. |
| states that there are lots of different ways to make | | | | Playing great defense |
| money and only a few ways to lose it. Therefore you | | | | The authors covers the key areas ALL losing traders |
| need to concentrate on not losing first | | | | fail in, that let losses get out of control. |
| If you have not read this book you will see the | | | | Key areas covered are: |
| markets in a completely different light and one that | | | | - The three biggest mistakes traders make and how |
| could lead you to bigger profits and is simply one of | | | | to avoid them. |
| the best investment books ever writtten. | | | | - Why the most important part of building wealth is not |
| What I Learned Losing a Million Dollars is a fascinating, | | | | losing it. |
| insightful, easy-to-read true story of Jim Paul's rise | | | | - The psychological pattern which all losses take in a |
| from a humble country background to jet-setting | | | | traders head, regardless of the position size |
| millionaire trader and Governor of the Chicago | | | | The discussion on the risk/reward ratio, and why most |
| Mercantile Exchange. | | | | other books get it wrong is perhaps the most |
| It is an examination of the lessons he learned from | | | | interesting part of the book. |
| losing a million dollars in the market which brought | | | | This point is worth the books price alone as the aothor |
| about his demise and then covers his rise from the | | | | explains |
| ashes. | | | | Why you have to take into account the |
| This book contains no technical theories and really | | | | PROBABILITY of return, and PROBABILITY of loss, |
| focuses on how NOT To lose money - there are | | | | when trading and not simply divide the size of your |
| plenty of ways to make money so how come most | | | | expected return by the size of your expected loss, as |
| traders lose it? | | | | most authors suggest - if you do you will lose! |
| The answer lies as we have stated that: | | | | This really is the key point of the book if you want to |
| It's not how you make money that's important there | | | | keep losses under control as it states in the preface. |
| are many ways to do that, but are only a few ways | | | | "This book is a case study of the classic tale of |
| to lose it and if you are mindful of them and don't | | | | countless entrepreneurs: the risk taker who sees an |
| make losing mistakes - you can emerge a winner. | | | | opportunity, the idea that clicks the intoxicating growth, |
| The book is essentially divided into two parts: | | | | the errors and the collapse. Our case is that of a |
| Section 1 | | | | trader, but as with all case studies and parables the |
| The first half of the book about Jim's life makes you | | | | lessons can be applied to a great many other |
| feel close to him and the experience he is facing as his | | | | situations. |
| world crashes around him. It's both funny and sad in | | | | If you want a book to show you the importance of |
| equal measure and is a superb fiction story. | | | | emotional discipline and the art of risk management, |
| Section 2 | | | | then this is it. |
| After the loss and its aftermath, comes the authors | | | | This book has recently gone out of print, so get your |
| views of what he had learned and this really is original, | | | | hands on a second hand copy or get to the library and |
| thought provoking and insightful. The authors show you | | | | read it. |
| how to identify and manage the risks, both monetary | | | | |