This book is simply one of the most highly rated books on social psychology and is very applicable to Forex traders or any trader for that matter, in understanding the role of the crowd in financial markets. Let's review it and see why, it's an investment classic book.
This book discusses the rise of electronic trading, the move towards High Frequency Trading and algo trading systems and looks at there impact on the global financial system. Its a good book and for me confirms a couple of key fact about algo trading methods...
Charles Mackay's Extraordinary Popular Delusions And The Madness Of Crowds was first published in 1841 and focuses on the psychology of crowds and mass manias which include financial ones and its not just these that are interesting - they all are in terms of how when a crowd takes over the individual, they do extraordinary and illogical things.
Simon Lack is actually a hedge fund manager and exposes the myth of the industry as one which makes money for clients and reveals the real truth about hedge funds. lets take a look at the book in more detail.
While this book was originally written for futures and commodity traders, its a must read book for any trader and is very applicable to currency trading. If you haven't read this book get it! Let's look at why Winner Takes All is a must read book.