| This book was chosen by the Financial Times as one | | | | speculation - wherever it occurs. |
| of the ten best books ever written on investment - | | | | When the next stock market bubble comes along, |
| and with good reason - it’s a timeless classic! | | | | (and it will) investors are advised to recall the fate of |
| A Classic Insight into Crowd Psychology | | | | investors of an earlier time - and avoid their |
| First published in 1841, Extraordinary Popular Delusions | | | | misfortunes. |
| and the Madness of Crowds is often cited, as the | | | | Really, all investors should read this book - and critical |
| best book ever written about market psychology. | | | | acclaim for it is almost universal - and here are just a |
| Today, it is one of the most widely read books to | | | | couple of comments: |
| warn investors of stock market bubbles and busts. | | | | This is the most important book ever written about |
| The version published by Wiley also includes Joseph | | | | crowd psychology and, by extension, about financial |
| de la Vega’s 1688 classic, Confusion de | | | | markets. A serious student of the markets and even |
| Confusions - along the same subject lines. | | | | anyone interested in the extremes of human |
| Extraordinary Popular Delusions and the Madness of | | | | behavior should read this book! - Ron Insana, CNBC. |
| Crowds, explores the sometimes hilarious - and | | | | You will see between its staid lines (written in ye olde |
| sometimes devastating impact of crowd behavior- | | | | English and as ponderable as Buddha's navel) that, |
| and trading greed and fear on financial markets. | | | | despite what the media says, nothing really important |
| This book clearly shows us how crowd psychology | | | | has changed in the financial markets in centuries. - |
| has never changed - and how greed and fear are | | | | Kenneth L. Fisher, Forbes. |
| always present. | | | | Destructive Emotions |
| This book gives us three great examples - such as: | | | | Markets are still driven by the emotions of greed and |
| . The tulip mania of 1634 - when tulips actually traded | | | | fear today - just as they were in yesteryear - and |
| at a higher price than gold! | | | | this book graphically illustrates the point. |
| . The South Sea bubble. | | | | This book covers much more than just the financial |
| . The Mississippi madness. | | | | markets - it covers a whole gambit of situations, |
| These three examples confirm that greed and fear | | | | where the crowd makes stupid investments - based |
| have always been the driving forces of financial | | | | on their emotions, rather than logic. |
| markets - and furthermore, that being sensible and | | | | While this is not a book that tells you how to trade - |
| clever is no defense against the allure of a popular | | | | it does illustrate more clearly than any other book, |
| scheme, when big money is being made. | | | | how stupid investors are - when they submit to their |
| Think we don’t make the same mistakes today? | | | | emotions. |
| - Think again! | | | | Stand Away from the Crowd for Financial Success! |
| Just think back to the huge interest in, and the price | | | | This book is essentially a lesson in trading discipline - |
| rises and falls during the Dot Com frenzy of | | | | and how standing aside from the crowd, will make |
| speculation in the 1990’s. | | | | you a successful investor. |
| Lessons to be learned | | | | Read it - and absorb its timeless wisdom! |
| The moral of popular manias is - beware of frenzied | | | | |