Management Book Review onTHE

MONEY MYTH

By:

KARAN SAHU

AUTHOR: ALEXANDER DAVIDSON

A Classic Introduction to the Modern World of Finance and Investing

• Paperback – 262 pages

• Publisher – FT Publishing

International

• 1st Edition 2012

• ISBN: 978-0-273-75520-3

• Author – ALEXANDER

DAVIDSON

About AuthorAlexander Davidson is a senior editor at Thomson

Reuters GRC, and holds the Securities Institute diploma,

and some technical analysis and accounting

qualifications. In his early career, Alexander Davidson

worked as a securities dealer and is author of the city best

seller, The City Share Pushers.

He followed up with other books, particularly on stock

market investing, which have gained wide acceptance in

investing and trading circles. He has written several

Times guides to financial markets, including The Times:

How the City Really Works, now in its third edition. His

latest book, published in May 2012, is Money Myth, a

ground-breaking read for investors which explains

financial markets through the myths of the ancient world.

Davidson has often contributed as a guest writer to the

national press, has broadcast widely on TV and radio on

financial matters, and has presented at London

conferences for financial investors. He is also the author

of an acclaimed history of school uniform.

Some other books of Alexander Davidson

• Everyone's Guide to Online Stock Market Investing

• How to Win in a Volatile Stock Market

• The 10-week Flexible Investment Plan

• How to Win as a Stock Market Speculator

• How to Understand the Financial Pages

• How the Global Financial Markets Really Work

• How the City Really Works

About the Book

Financial markets use persuasion,propaganda and salesmanship tosurvive. They smooth overweaknesses and highlight theirstrengths to seduce us into partingwith our money. Investmentproducts wrapped in euphemismsand simplified language hidecomplexity and unclear risk.

This book helps us to understandthe real risks involved in investing,make informed decisions and takecontrol of your investments.

What others say:

“For those who wonder where thefinancial system is taking us butcannot resist the temptation to getinvolved themselves, AlexenderDavidson’s book takes the readeron an invigorating romp ofmarkets and the whole panoramaof the financial status quo.”

- Gavin Oldham,

Chief Executive,

The Share Centre

Summary of the Book

The Graeco-Roman myths give us far more understanding of how financial markets work than technical explanations. The book, The Money Myth, gives us insight into both.

Numbers are the language of business but they can be spurious, and The Money Myth shows us how. The oracle in ancient Delphi was a clever fraud, giving prophesies that were ambiguous, or guesswork, or based on knowledge of what was likely. The forecasts of City analysts are similarly unreliable.

Nor can we trust the watchdogs. The UK’s new tripartite regulatory regime is soon to replace the old failed one, and it barks as loud as Cerberus, the three-headed guard dog of classical mythology. This hound may similarly be placated by drugged sweet cakes.

Summary of the Book

Like the regulator, financial institutions reconstruct themselves. The large banks that helped cause the crisis typically stay in business. This is the secret of the City’s success. It is a version of the reincarnation, part of the ancient Greek culture, which tellingly demanded atonement for past sins.

Misinformation conceals the truth. The City uses public relations to spin its story, much like the sophists of fifth century Athens. The resulting news flow to investors, like the shadows shown to prisoners in the cave of Plato's The Republic, is a poor representation of reality.

The big and powerful survive in financial markets, and, in their anxiety to be part of it, investors buy into it. They are reluctant to cut losing positions, and minimize losses that way, a lesson that Odysseus teaches when he sacrifices some of his men to a man eating monster to get the rest of them to safety. This book shows us the old truths predominate in our world of algorithmic trading and Cloud computing, and informs us on the technologies.

Summary of the Book

Ancient philosophy and

mythology help us to keep a

cool head and invest more

wisely when the modeling and

numbers have failed.

The Money Myth is a unique

and powerful new tool to boost

our market understanding and

investment approach.

What did you like about the book ?

• Simplicity in concepts• Simple language• All the concepts are explained with the

flow charts are diagrams for betterunderstandings

• At the end of the book some usefulinformation are their for investors like:

1. Twelve wake-up investment rules2. Twelve regulatory trends3. Investment software checklist4. Useful web sites5. Other resources6. Meaning of some critical words

Shall I recommend this book to my friends?

Yes

What is my rating towards this book?

Thank You

Happy Investing