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Book Review: How I Lose a Million Dollars on the Stock Market - Jim Paul and Brendan Moynihan
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Book Review: How I Lose a Million Dollars on the Stock Market - Jim Paul and Brendan Moynihan

created Natalia Bojko8 February 2019

Currently, there are more and more books on speculation on the market. Methods of earning money on the stock market and the desire to learn about them attracts an increasing number of readers, and positions regarding forex fill up not only the shelves  traders. Among them, the joint work of Jim Paul and Brendan Moynihan deserves a special mention. Why is it so special?

"How I Lose One Million Dollars on the Stock Exchange"

how I lost on a million dollar billThis is one of the few books that does not tell you how to make money, but how not to waste your money. Practically, the first edition lacked a publication that would simply say how to defend against the loss of capital. This item should be a mandatory reading inspiring to take rational actions on the market.

From the first paragraph to the last sentence the book reads like an idealized story about the life of a boy from a provincial town who became a trader and earned a lot of money. Without going too far into the story (and the biography of the main character), this story seems unlikely until it begins to lose a fortune earned. In fact, from now on we get a collection of substantive advice and tips from the author. Paul insightfully (and without unnecessary concepts in the field of psychology) describes the mechanisms that make the potential trader engage in stock market speculation of his own until emotions and his sense of value become more important than earning money.

Awareness of risk

The quintessence and purpose of the book is to understand the risk the speculator takes. When setting up a position, Paul pays a lot of attention to the profit it achieves and to a possible potential loss. In the content, we will not find the exchange formula of success, but we will be able to find the formula of errors that we can avoid without difficulty. During reading, we often meet with the statement that there is no such thing as the secret of success. We often come across Paul's network of failures that stem directly from his experiences.

We can treat this book as purely entertainment, but in this small volume of the book you can discover an enormous collection of stock market wisdom. Jim Paul paid a real fortune to find her. This reading is a timeless message that the success of the stock market is not related to finding a genius strategy for earning money, but learning how to deal with losing it. Paul, presenting the most important mechanisms of the human psyche, emphasizes its importance in planning the investment strategy.

"It's unwise to break the rules before we learn to obey them." - TS Eliot - Jim Paul leaves us with this conclusion, and we strongly encourage you to read it.

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About the Author
Natalia Bojko
Graduate of the Faculty of Economics and Finance, University of Białystok. He has been actively trading on the currency and stock markets since 2016. It assumes that the simplest analyzes bring the best results. Supporter of swing trading. When selecting companies for the portfolio, he is guided by the idea of ​​investing in value. Since 2019, he has held the title of financial analyst. Currently, he is the co-CEO & Founder in the Czech proptrading company SpiceProp. Co-creator of the Podlasie Stock Exchange Academy project (XNUMXrd and XNUMXth edition).
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