Confusión de Confusiones

This is a classic book... so classic that it was a book a century and a half earlier. The seventeen century masterpiece is a book about speculation in Amsterdam in the securities of the Dutch East and West India companies. There are four dialogs about how bull and bear markets can be manipulated and the consequences. These dialogues are superb examination of how market actually works. The best part is: Be sure you know the rules as those rules could be used against you and me, LOL. 

Well, please do not underestimate this classic. It may be classic... but, certain things apply even in today's complicated world. Read this:

1. Never give anyone the advice to buy or sell shares.
2. Take every gain without showing remorse about missed profits.
3. Profits on the exchange are the treasure of goblins.
4. Whoever wishes to win in this game must have patience and money.
5. It is a great error to assume that you can withdraw from the Exchange or that you can gain peace of mind when you cease to meet with the other speculators.
6. He who has entered the circle of the Exchange is in eternal agitation and sits in a prison, the key of which lies in the ocean and the bars of which are never opened...
7. When the speculators talk, they talk shares; when they run an errand, the shares make them do so; when they stand still, the shares cut like a rein; when they look at something, it is shares that they see; when they think hard, the shares provide the content of their thoughts; if they eat, the shares are their food; if they meditate of study, they think of the shares; in their fever fantasies, they are occupied with shares; and even on the death bed, their last worries are the shares...
8. There are three classes which take part in the Exchange. The first is constituted of the large capitalists or the princess of the Exchange, the second of the merchants, and the third of the professional speculators. 
9. The two main reasons for the introduction of this kind of speculation was the greed of the brokers, and the need of other people who invented the gamble. There are three reasons for the greediness of the brokers. First, they want to earn the brokerage fees. Secondly, they wish to make a quick gains out of the price fluctuations. Thirdly, they wish to live in comfort. 
10. Some gamble for the fun of it, some for vanity, many are spand-thrifts, many find satisfaction in their occupation, and quite a few make a living here.  
11. They get together at the Exchange and form a ring. When this ring thinks it advisable to sell shares, the means for prudently carrying out this purpose are given much thought. The members initiate action only when they can foresee its result, so that, apart from unlucky incidents, they can reckon on a rather sure success.
12. As there are so many people who cannot wait to follow the prevailing trend of opinion, I am not surprised that a small group becomes an army. Most people think only of doing what the others do...

Overall, this is a simple book. In view that Amsterdam stock exchange was the first stock exchange ever created in the world, this book must be priceless at that era. It may sound simple in today's sophisticated financial world. However, we must acknowledge the wisdom and intelligent by Jose De La Vega. Frankly, I still cannot understand how these peoples (the philosopher, merchant and the shareholder in the book) found their logic and sense in that "simple" world during those "simple" days. In short, they are really bright and wise peoples.

Rating wise, I am not going to rate high on this book. After all, my rating is always based on what I gained after I completed the whole book. With due respect to the author for his excellent write-up, I am rating it at 6/10. It is a classic and I really admire the author to come up with such a book during that era. Anybody who missed it must at least read it once. However... once perhaps is good enough, LOL.