I think leeson just went through what everyone experiences, the fact that he was focused on recovering loses, trying to make back the loss, i think it was an intial 20k loss that a colleague of his generated through trading, he was trying to make it back, he also seemed to frequently think the markets too low, it has to go back up, this was when the nikkei was free falling from 18000. we have all probably had thoughts along those lines, except he was playing with bigger numbers so it seems more dramtic, he was fearing exposing the situation because he feared that he would blow away the illusion to everyone (pressure of other peoples expectations and beliefs about who nick was) everyone thought he was a superstar , his bosses saying how easy it was to make money in the markets, but Nick lacked the strength to stand up in a crowd of 100 and say actually thats not the way it is, he feared the crowd gasping in disbelief and then calling him a loser etc, fraud... and i wouldn't be surprised if he got the cancer through that period of great mental emotional turmoil, he was young he was just going through what everyone else in trading gets exposed to.
I wish him well and would just say to him , nick dont worry you just took a 650 million loss on that trade, learn from it.
he was just a young man, doing what a lot of young men would do, thats what it is to be human.
the world leaders all bang on about making profits , how many of those are made without some kind of fraudulent activity, exploitation of third world workers etc. how many companys in the states have set up production in mexico, just to pay peanuts to the locals so they get a better bottom line..
"let he or she who is without sin cast the first stone"
jd
I wish him well and would just say to him , nick dont worry you just took a 650 million loss on that trade, learn from it.
he was just a young man, doing what a lot of young men would do, thats what it is to be human.
the world leaders all bang on about making profits , how many of those are made without some kind of fraudulent activity, exploitation of third world workers etc. how many companys in the states have set up production in mexico, just to pay peanuts to the locals so they get a better bottom line..
"let he or she who is without sin cast the first stone"
jd
peedee, i agree with you. I think trading is easy- only we make it difficult- because we bring other factors into the equation eg. focusing on the money rather than the trade itself.
Our normal attitude to life in work, relationships etc. is the complete opposite of the mindset that is required to be a consistent and successful long term trader. it is because this understanding is intangible and difficult to grasp, that many would be traders fail
Our normal attitude to life in work, relationships etc. is the complete opposite of the mindset that is required to be a consistent and successful long term trader. it is because this understanding is intangible and difficult to grasp, that many would be traders fail
dont forget when assessing people in whatever they do the western way is still blinded and like to promote "The culture of blame"
i remember reading that an executive at IBM cocked up contracts costing millions to the firm, a colleague asked the big boss, 'So when are you going to fire him?' Fire him? the boss replies, "iv'e just spent 3 million training him'
jd
i remember reading that an executive at IBM cocked up contracts costing millions to the firm, a colleague asked the big boss, 'So when are you going to fire him?' Fire him? the boss replies, "iv'e just spent 3 million training him'
jd
oatman
i guess that about sums it up it
jsd
funny thing in life - but when crooks get caught out - they tend to regret and be sorry for their criminal actons - but when they were spending their ill gotten gains - regrets dont seem to register too high
but he was not a murderer as such - maybe indirectly someone toppped themselves over barings - i dont know? - but he had a shot at the big time - due mostly to inept, stupid managment - balanced with greed all round - but he blew it in as big a way as possible anyway
is there a lesson in it for others?
had he focused on the broking business - he could have carried on making a mint for barings as broking means you get a cut of each and every trade done - but without risk and without trades having to be successful
had he stuck with arbing - utilising the low exection costs and efficient market access - as well as dumping any **** trades on unsuspecting brokerage customers - he could have made a mint
had he only traded intraday, and not long term, and cashed up at the close of each and every one of his trading days right from the start - therfore creating cash consolidtion of his losses for each day, he would have clicked that he was digging a deeper and deeper hole and he would have dealt with the issue right at the start
but we all **** up in life to one degree of another - i have done my share - but either we learn from it ourselves and/or our **** ups help others to learn - all part of the big picture!
i guess that about sums it up it
jsd
funny thing in life - but when crooks get caught out - they tend to regret and be sorry for their criminal actons - but when they were spending their ill gotten gains - regrets dont seem to register too high
but he was not a murderer as such - maybe indirectly someone toppped themselves over barings - i dont know? - but he had a shot at the big time - due mostly to inept, stupid managment - balanced with greed all round - but he blew it in as big a way as possible anyway
is there a lesson in it for others?
had he focused on the broking business - he could have carried on making a mint for barings as broking means you get a cut of each and every trade done - but without risk and without trades having to be successful
had he stuck with arbing - utilising the low exection costs and efficient market access - as well as dumping any **** trades on unsuspecting brokerage customers - he could have made a mint
had he only traded intraday, and not long term, and cashed up at the close of each and every one of his trading days right from the start - therfore creating cash consolidtion of his losses for each day, he would have clicked that he was digging a deeper and deeper hole and he would have dealt with the issue right at the start
but we all **** up in life to one degree of another - i have done my share - but either we learn from it ourselves and/or our **** ups help others to learn - all part of the big picture!
This page gives a good dissection of the buildup of positions Leeson took. At the peak he was long a staggering 55000 contracts.
http://risk.ifci.ch/137560.htm
I read the book and what pissed me off was how he tried to tell the reader that it just was'nt his fault. He blames his superiors for not have stricter controls, blames the head office for giving into his repeated request for millions of dollars for margin requirements. He tries to convey the message that if you leave a kid in a candy store unattended....what do you expect ?
A childish defence.
http://risk.ifci.ch/137560.htm
I read the book and what pissed me off was how he tried to tell the reader that it just was'nt his fault. He blames his superiors for not have stricter controls, blames the head office for giving into his repeated request for millions of dollars for margin requirements. He tries to convey the message that if you leave a kid in a candy store unattended....what do you expect ?
A childish defence.
With d benefit of hindsight, it is easy to start criticising Leeson but how many ppl trading smaller positions (in comparison to what he was trading) are (and will continue) to make similar mistakes. We all make mistakes including the so-called experts and experienced traders.
Bigbusiness
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It is one thing making mistakes with your own money but I think to do it with other peoples money is a lot worse. He was also deceiving people by making them believe he was making lots of money when actually he was loosing it. I also think he should have taken more personal responsibility. There are lots of other people who have done the job he was doing and didn't get in to the mess he made. But he served his sentence and has paid for his crime.