First published in 1841, Extraordinary Popular Delusions and the Madness of Crowds is often cited as the best book ever written about market psychology. This edition includes Charles Mackay's account of the three infamous financial manias John Law's Mississipi Scheme, the South Sea Bubble, and Tulipomania. Together, these three historic episodes confirm that greed and fear have always been the driving forces of financial markets, and, furthermore, that being sensible and clever is no defense against the mesmeric allure of a popular craze with the wind behind it.
In writing the history of the great financial manias, Charles Mackay proved himself a master chronicler of social as well as financial history. Blessed with a cast of characters that covered all the vices, gifted a passage of events which was inevitably heading for disaster, and with the benefit of hindsight, he produced a record that is at once a riveting thriller and absorbing historical document. Over a century and a half later, it is as vibrant and lurid as the day it was written.
For modern-day investors, coping with the ups and downs of the stock market the moral of the popular manias scarcely needs spelling out. When the next stock market bubble comes along, as it surely will, you are advised to recall the plight of some of the unfortunates on these pages, and avoid getting dragged under the wheels of the careering bandwagon yourself.
"If you plan to read one book this month, then read this one. If you do not read anything, then start the reading habit with this book . . . although the book does not contain tools and methods for trading, it must be one of the best books for traders." Sudarshan Sukhani
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