Fri, Dec 9, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Opalesque Book Review: Learning from losses rather than winnings

Thursday, September 12, 2013

amb
Brendan Moynihan
Benedicte Gravrand, Opalesque Geneva:

Nick Leeson of Barings Bank, Toshihide Iguchi of Daiwa Bank, Yasuo Haminaka (Mr. Cooper) of Sumitomo, John Rusnak of Allfirst Bank, Chen Juilin of China Aviation Oil Corporation, Jerome Kerviel of Société Générale, and more recently, Bruno Iksil of JP Morgan (the London Whale)… were all people who made large trading losses. What goes on in a trader’s mind when he is losing on his positions and yet sticks to them? What are the psychological flaws that lead to such great losses? To know more about it, you could read the second edition of "What I Learned Losing a Million Dollars" (Columbia Business School Publishing), which came out this year.

This book of less than 200 pages was first published 20 years ago, but the story is timeless. Written by Jim Paul (1943-2001), who had a 25-year career in the futures industry, and Brendan Moynihan, editor-at-large for Bloomberg News, the first half of the book tells the story of a trader who made it and lost it. The second half of the book examines the psychological factors behind trading loses, and offers some points to take home.

"The mistakes are timeless and so are the reasons for avoiding them," writes Moynihan. "The book simply identifies the mental processes, characteristics, and emotions – and the losses that accompany them."

The story of Jim Paul, who rose very fast ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest