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