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The Psychology of Losing

Feedback in:

Mike. Are you ever returning to San Diego? How is yoga and world travels? Here is a quote from a guy that has sold millions of books and truly just about sums up the masses and the psychology of losing: “If you made money in 2008, you did something wrong” from Ben Stein. Ok, thought you would get a kick out of it.

Joe C.

I used that quote to start my Little Book of Trading released summer 2011.

I’m in Asia now and the yoga is great!

2008 Crisis: Reality TV

Feedback:

Hey Mike, Awhile ago you linked me up with your publishing agent. We had several pleasant email exchanges, now I can’t find his info. Can you provide please? In addition, your opinion on this project, I was contacted by a guy who worked with a major mortgage servicing company during the crisis. His job was to review hardship letters from folks about to lose their homes. He filed away 100’s of these and wants to do a book chronicling the crisis from the POV of the homeowner using the letters. Seems like a real life reality TV show type book to me and a great idea. Any thoughts on the viability of the idea? Thanks!

Dave

My publishing agent. Not sure on your proposed idea. I would need to see all of the raw stuff/data, etc. However, if you put your time and energy in — you will get back out what you give.

Trust, But Verify … Is Always Prudent

Feedback in:

I am currently reading “Market Wizards” and came across an interesting quote by Michael Marcus, who said, “I do believe that trend following systems are doomed to mediocrity. I believe that the era of trend following is over until and unless there is a particular imbalance in a market that overrides everything else.”

That book was written over 20 years ago. What has happened since?

“Speculation is Evil… You Greedy Bastard Covel!”

Alexander Ineichen writes:

“The financial crisis was not ’caused’ by a single event or a single group of investors. More likely, a series of conditions needed to be met for the dominos to fall one by one and the system to crack. The idea that hedge funds were the first stone to fall and thereby causing the chain reaction, seems infinitely improbable from what we know today. However, a disproportionate amount of regulatory zeal and political energy is spent on regulating ‘alternative’ funds. This we find odd, especially given that the ‘too big to fail’ issue is the single most important aspect related to systemic risk and is far from being resolved.”

He adds:

“Politicians blamed speculators for ‘causing’ oil to go to $147. However, politicians didn’t thank speculators for ‘causing’ oil going back to $35. This seems odd. In the Greece situation, it’s again the speculators who get blamed. Bismarck often remarked that if one likes laws and sausages it is best not to see them being made. This is probably also true for the price mechanism in a free market economy, as the impact of the market responding to bad news isn’t always pretty.”

Ineichen stop being so right.

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