As previously observed, extraordinary successes tend to be considered extraordinaryprecisely because it is hard to teach (relative to the then-current level of understanding and systematization). On the other hand, famous failures are much more likely to contain lessons on what to avoid next time.
Books about epic screwups have constituted some of my more enlightening reading. Do you have any such books to recommend?
Please break up multiple recommendations into multiple comments, one book per comment, so they can be voted on and discussed separately. And please say at least a little about the book's subject and what sort of lesson you learned from it.
"What I Learning Losing a Million Dollars" by Jim Paul and Brendan Moynihan (1994)
Subject: Analysis of catastrophic trading mistakes woven through the autobiography of a highly confident commodities trader. He made $250k in one day. Thereafter he went on to take greater risks in commodities markets, counting his profits before they were realized. At one point he considered renting a Concord jet to celebrate his imagined gains. Over the course of several months, however, due to a combination of misfortune, hubris , denial, and creative rationalization, his entire position was wiped out and he lost over $1 million.
This is the only non-quack popular book of its kind I know of which deconstructs the psychological mistakes a trader can make. The book is self-published, and until recently, was out of print. Sadly, one of the authors, Mr. Paul, perished in the attacks on the WTC. Not widely known about, the book is fortunately avalable once again.
The lessons contained in it are related not just to trading, but to life in general. Honest and unflinching in its analysis of self-deception, overconfidence, and how to guard against them. This book is unique.
Followup to: Unteachable Excellence
As previously observed, extraordinary successes tend to be considered extraordinary precisely because it is hard to teach (relative to the then-current level of understanding and systematization). On the other hand, famous failures are much more likely to contain lessons on what to avoid next time.
Books about epic screwups have constituted some of my more enlightening reading. Do you have any such books to recommend?
Please break up multiple recommendations into multiple comments, one book per comment, so they can be voted on and discussed separately. And please say at least a little about the book's subject and what sort of lesson you learned from it.