For those of your who don’t know of the book, Ugly Americans (link here), by Ben Mezrich, I suggest you give it a read. I stumbled on his writings when a friend in London passed me his book called “Rigged”, I was instantly hooked. The Eight (8) Rules of Carney, are from this book and ring deep to the markets (some gems in rules)! Ugly Americans is based on the true story of ‘John Malcolm’ and his road to success.
This isn’t a book on trading systems/advice, nor is it technical. It an easy read that does get your mind flowing to the endless possibilities we have in our life.
The Eight (8) Rules of Carney:
(Who the F is Carney? He was the hedge fund cowboy who partly trained ‘John Malcolm’.)
- Never get into something you can’t get out by the closing bell. Every trade you make, you’re looking for the exit point. Always keep your eye on the exit point.
- Don’t ever take anything at face value. Because face value is the biggest lie of any market. Nothing is ever priced at its true worth. The key is to figure out the real, intrinsic value — and get it for much, much less.
- One minute, you have your feet on the ground and you’re moving forward. The next minute, the ground is gone and you’re falling. The key is to never land. Keep it in the air as long as you fucking can.
- You walk into a room with a grenade, and your best-case scenario is walking back out still holding that grenade. Your worst-case scenario is that the grenade explodes, blowing you into little bloody pieces. The moral of the story: don’t make bets with no upside.
- Don’t overthink. If it looks like a duck and quacks like a duck — it’s a duck.
- Fear is the greatest motivator. Motivation is what it takes to find profit.
- The first place to look for a solution is within the problem itself.
- The ends justify the means, but there’s only one end that really matters. Ending up on a beach with a bottle of champagne.
I love number 2, 4, 5 and 8. At the end of it all, it’s all about the final result.