Tim Ferriss Book Club Selection
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.
Also included is a bonus hour-long interview between co-author Brendon Moynihan and noted investor, business advisor, and best-selling author Tim Ferriss.
About the Tim Ferriss Book Club
#1 New York Times best-selling author Tim Ferriss (The 4-Hour Workweek, The 4-Hour Body) is a big fan of audiobooks and their potential to alter and improve lives. So, in 2013, he started an audiobook club for his community of 1.5 million blog readers. He selected books that had a dramatic impact on his life and thinking, producing great new recordings that bring these influential gems into the limelight. For more listens from Tim Ferriss’ Book Club, click here.
©2013 Brendan Moynihan (P)2014 Tim Ferriss
"One of the rare noncharlatanic books in finance." (Nassim Nicholas Taleb, from Antifragile: Things That Gain from Disorder)
“The book points out very early that many successful investors have opposing styles and theories on how to make money, and that they can not all be right at the same time. The most important point to take from the book is how to avoid losing money...” (Steve Osbiston, Financial Times Advisor)
“A novel approach aimed at pushing you inside your head and outside the losing habits most folks adopt right after multiple successes. A must-have for traders blessed with a string of hot trades.” (Ken Fisher, Fisher Investments, FORBES)
I loved the lessons on how to not lose money and how they can be applied to everyday life rather than just investing.
Very assertive voice
If it's different to the book and is universally acclaimed, then absolutely!
This book was a great listen. The author reiterates his experience which is very valuable for those reading.
Yes. The prinicples of losing a million dollars can be applied to many different areas in one's life surprisingly.
"Compendium of old-school (non-quant) trader lore"
This book is actually a couple decades old. Anyone interested in this sort of thing ought to listen through at least one book like this. I like personally losing big as a centerpiece to the work: it wipes out that phony "I made a zillion dollars easy!" baloney. It seems to me that, with a basic arc of the story being, this writer was young and pretty clever and made a few moves and wound up with a lot of other people's money (and trust) in his hands, and proceeded to blow up, lose all the trading positions and get closed out. This story is told well (and more briefly) in a fave book of mine, Taleb's Fooled by Randomness. Here, there is a lot of color and detail of an earlier era, though of course the situations are not fundamentally different. A lot of terminology (including informal terminology) is described, plainly and well. And the author seemingly wanted to cram in any personal wisdom that might seem to sort of fit.
This book shows its age in some other ways. How about Steve Jobs presented as a guy who started clever, burned out, and wound up in some nowhere company making no profit? Oops, bad timing as the worst moment in his career was focused on, and the historical next chapter had not yet begun. But this is alright -- it reminds us how the supposedly smart declarations and prognostications of the writers of any time are bound to their own unavoidable limitations, and often seem quaint and bizarre later. That's one reason I read older books: to see what people got WRONG. So much for all of our fond assumptions, and that's the core message of this book.
"There are better uses of your time"
No, The guy claims he spent years on the floor of the Chicago exchange but has no war stories from then, except lucking on to the CME executive board because he wore a nice suit. Instead he relives his frat day in school and his his undeserved promotion in the Army. By contrast In Pit Bull Marty Swartz has some great stories of his trading days. In all those years Jim Paul had none? On day one in the pits every trader learns Stops are in Emotions are out. But in all those years he did not learn that, in fact he says he learned nothing in the pits he just rode the coat tails of better traders. He then lost a million dollars on a very stupid trade. Leveraged to the teeth and did not watch it. Then the book goes on to quote a bunch of business books (not trading books) and he rambles on about Coke buying Colombian pictures. He then says in books he could not find details on a good time/way to put on a trade, so he knows nothing about entering a trade, but he wants to tell you how to exit. His advice, have a plan that suits your style -- end of story what the heck does that mean? Well it turns out If you loose money you are an ego maniac with a bad plan and if you make money you are smart and have a plan?The book was written years ago so it is funny that he picks as an example Steve Jobs who he says is a looser with a big ego who failed at Next computer and Bear Sterns as great traders with the plan. Well we all know Jobs made a comeback with the iPhone and Bear Sterns blew up in 2008.
We are getting there
No, not even close
There is no actionable advice here, just feel bad admonishment. The author has no real advice beyond, get a plan. There is no back-testing, no proof, he just (poorly) regurgitates other books many off topic. Chuck this book and read David Aronson - Evidenced Based Technical Analysis, John Murphy's Technical Analysis of the Financial Markets or a little lighter, Elder's Come Into My Trading Room. Also follow top blogs like "cme4pif Weekend Market Comment". All of these detail real signals to enter and exit the market and of course risk control.
"Decent book worth the read"
This book is an entertaining story, it appears it is beging to show the signs of time, it speaks of a the 60's - 90's and at the pace of today's world that feels like lifetimes ago. Well narrated. and a good lesson. However much of the book is just a man confessing he was a "right place right time" guy who lost it all because he never should have been there.
"I was compelled to finish this book."
I thought of this book as a 3 star experience. I gave it 4 stars because I was compelled to listen to the entire performance, including the interview at the end. That means there is greater value in the story than what I cognitively believed. Good job.
"Must read, gets a bit dull at times "
This book has to be read by anybody so you can understand the importance of protecting your downside, having a gameplan and defining your purpose in the market or in your business ventures. After a while I had some problems pushing on and kept losing attention but that might have been because of my personal state of mind.
"View From The Other Side"
I picked up this book when amazon offerered a two for one sale. I didn't think much of it as I chose to read the other book in my selection first. I chose this book because I thought it would be insightful to here a view from the otherside. So many books in my collection talk about the exuberance in the market and shed a positive light on it. What I got in this book was what I wanted, a much more darker view.
So many books, talk about how to make money. They talk about the risk of losing money, then leave it on the surface, never indulging in it This book indulges in the losses. In fact, it is all about the downside, which balances out all the exuberance of making money you probably had before reading this book.
What you get is an authentic personal account of someone who been the the proverbial trenches and back. You can ride that sucker all the way through. If an enjoyable story about the personal losses of other people is what you want, you should read this book. If you want a book that doesn't reconfirm your disgust for the arragant, pompus, jackasses on wallstreet, maybe don't read this book. Even though the author may be all those things, he is no idiot. He admits to them, and doesn't try to sugarcoat it. He is honest, and blatent about his mistakes, which is why this book is insightful.
"Wish I had seen this book 12 years ago"
I only wish that I had read or listened to this book back before 2001. My family, friends, and I lost almost half a million dollars on a stock that we all got hyped up and excited about. Road it all the way up and then all the way down to nothing. Makes me sick to this day. Anyone who buys stocks or shorts the market needs to listen to this book. It could save you a fortune.
This book was written with honesty and integrity. I loved listening to the stories and getting awesome advice. So true. Completely unexpected!
I found this book to be clear, direct, and refreshingly relatable. A quick read or listen that drives home a number of points while peeling away all the bs that you find in the usual financial books. It revolves around a core value and point of view that truly puts you on a path to the proper ways to manage and mitigate risks in the markets by developing a strategy of knowing how to lose or better yet reduce how how often you lose and when to cut your losses.
"Engaging and worthwhile"
It is a different take on the usual "How to make a million dollars doing x, y, z".
Actually the piece at the end where the guy who penned the book tells about his experience of the interviews etc
He was a great narrator throughout the book. I would look for his name in future audio books.
Hard to say without giving too much of the plot away. There are many high and low points through the book.
Highly recommended, in my top ten audio books for the past few years.
"Traders will love this book"
I'm a trader, buy & (mostly) sell indices so naturally I was keen to hear this story given my early losses. I almost gave up on the book as the beginning is almost exclusively early life story. I felt it was too detailed but once he talks about his experiences you'll nod your head & smile ruefully knowing you've made the same e cruising errors.
Definitely worth your time.
"Quite entertaining and well narrated"
The narration is better than other books, the few I have listened to I have struggled with how lifeless and boring the narrator is, strange if thats what you get paid to do!
No doubt about it Jim has had an interesting life so there's plenty of good material to go at.
The only thing I found is that there are some key concepts that are attributed to Jims failure (as in losing a million dollars) and these concepts are re-visited and re-iterated several times and in Part 3 of the book it gets tedious, otherwise very good.
"Fundamentals for anyone employing risk"
Understand your Why
Shifting from college to war zones to trading and what they all had in common.
This book is just brilliant at getting you to look at you past success/ failures.. and review them in a way that would make sure the rest of your life choices are made with the right objectives for what you actually want to achieve.
Interesting stories. Worth listening to if you are in business or trade or thinking of joining the industry. Good work
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