Am I too of negative soul in this column towards trading and the financial industry ? This claim came from a German reader that in a polite way dropped an email underlining that trading is much more nicer than I paint it. Yes, he is right. Much nicer if you know to do it. Otherwise you risk to lose your skirt and since 99% of the traders are sitting on the losing side I am just putting the real world in its clear perspective.
And always talking about the Tomasini’negativity I would suggest my skeptical reader to purchase the book “Do you sincerely want to be rich ?”, by Charles Raw with Godfrey Hodgson and Bruce Page (Originally published André Deutsch, 1971, ISBN 0-233-96328-6; reprinted by the “Library of Larceny“, 2005, ISBN 0-7679-2006-6 ). It costs some dollars on Amazon and it open the eyes on one of the most symbolic events that shaked the financial industry bringing to the failure of many US and European banks.
Bernard Cornfeld, born in Turkey from a Romanian – Russian Jewish family but raised in New York, at the beginning of his career, after graduation from the Columbia University, he was a social worker. Then he started his way in the financial industry as a marketing manager for the Dreyfus fund. In 1960’s Bernard “Bernie” left New York and after a period in Paris got a devastating intuition: to enroll the American expatriates in Europe, mostly bohemien idle persons, to sell mutual funds to the US servicemen in Europe, anxious to avoid to pay taxes on their savings.
Just a former social worker hardened in selling could have such an idea: the focus was on the selling not on the trading. And the Bernie soldiers were an army of 25.000 people many of them without a clear education and social identity. And the Bernie’s 18 funds, the IOS (International Overseas Services), raised more in excess than $ 2.5 billion. Even if Bernie was a supporter of the polygamy and was used to live with at least 10 girlfriends at the time (he founded also a model agency) in his many mansions and castles around the world, the IOS went burst and the investors lost their money. Courts acquitted Bernie after 11months in jail.
“Do you sincerely want to be rich ?” was the sentence the 25.000 Bernie’salesmen were used to pull out when they approached their prospective customers and it became the by word of Bernie’s success. If you analyze the story of IOS you will find the hallmarks of all the financial events – crisis / booms / busts – of the last centuries. It is really a sentence that gives the real perspective of the trading arena. No other work no other business is so direct such as trading for money and riches. And paradoxically it is the most difficult job in the world, a job where just 1% succeed in the long run.
My dear German reader, take for granted that after reading this book you will really be happy if you will just make a decent profit in the long run leaving all illusions to the Bernie’s supporters. You will sincerely be happy when you will just make a living from trading. Sure.