I took it easy today and read the book American Sucker by David Denby….a story of a man in a mid-life crisis looking for redemption and riches by trading tech stocks about the time the tech bubble was bursting. The author is a writer and movie critic with the New Yorker magazine so you’ll see many references to movies and other journalists and books throughout the book.
The book doesn’t show up in any stock-related book lists I think because he failed as a trader. But I think his emotions and actions are very typical of many new traders that just jump in.
If you were trading in the tech bubble of the late ’90s and early 2000′s, as I was, this book will bring back a lot of memories. The author explains many of his motivations, actions and results of his life, including trading, his mistakes, losses and ever-present hope of making money…that never came.
His emotions and reasons reflect the actions of traders then and now….things like greed, listening to other’s tips and recommendations, and rationalizing news and data to fit his wants. He talks about ImClone’s Sam Waksal, Merrill Lynch’s Henry Blodget, Dennis Kozlowski and Martha Stewart. The books ends pretty much with the demise of Waksal and Blodget and other tech bubble scandals.
You won’t find any info on technical or fundamental analysis, economic or financial theories, nor any trading strategies. It is an entertaining book, although you feel sorry for a person losing so much, both fiscally and emotionally. But you may find yourself walking in the author’s shoes, especially if you too think that trading stocks is a get-rich quick way to life. As Debny said,
“I wanted to be wealthy…. I didn’t make it.”
Sometimes, entranced by the screens, watching equities, options and futures change colors, charts moving in a wave, and indicators pointing in every direction, I just have to scream....
