Movies when done right can teach and inspire to become successful or to pick a new career or hobby. In the financial world, there are movies that were adopted from bestselling books and novels. What’s more exciting is that many of these movies are reflecting big historical events and can teach important facts and how to avoid making major mistakes. Movies like Big Short, Wall Street, and Margin Call are a few to name. We are going to explain what was the major selling point for these movies and what we can learn from them.
What can movies teach you about financial trading?
Watching financial trading movies can teach many things including how to foresee important crises and recessions and how to avoid being scammed which is common in financial markets. Many inexperienced investors and traders fall for fraud especially when it comes to governments not acting to prevent them. Movies like Madoff and Too Big To Fail teach exactly these things. Sometimes major scams are so well disguised as a legit thing that it is very difficult to sport unless it’s too late. To avoid these mistakes of falling for fraud there are several steps to implement.
Avoiding scams and fraud – Main red flags
When a scam is well-disguised like in Madoff’s case it is extremely hard to spot red flags as even well-known investors may fall for it. But there are several red flags that can indicate that your financial service provider is not an honest one.
- Promising returns without losses: when a company promises you guaranteed profits without the notion of risks it could be a sign that the company is not honest. In the financial world losses are a part of business and there is nothing bad about losses. The key is to have most of the months and years in profits.
- The company’s products are not obvious: this is a major one, when someone promises great returns on your investment make sure they have working products to generate revenue. If a company is not clear about their services and products this may be a good sign of something bad going on.
- Advertising the rich lifestyle: focusing on a rich lifestyle and less on an actual business may be another red flag where scammers are trying to lure innocent people into traps.
It is always important to trust your common sense and check if promises made about astonishing returns sound too good to be true. In many cases, if something seems too good it may be a fraud. One of the main methods of limiting losses when trading or investing is to have a clear predetermined risk management plan that can help you get out of difficult situations. A risk management plan together with an honest broker is the key to staying in the game of finance long term and staying in business in the long term is the new mantra for every business in these volatile times. Brokers like Axiory who have been working in the industry for a long time and are well-regulated can be your ticket to financial freedom and will help you stay safe from fraud while simultaneously providing you with a valuable trading education.
Top movies to watch about the financial world that was adopted from books
Books can be very inspiring, but movies can do it even better when done with enough talent and effort. Good book adaptations are a sight to behold and in the financial world, there are several movies that had a great impact on the minds of millions. So, what are the movies adapted from books you do not want to miss if you are interested in finance and trading?
1. The Wolf of Wall Street (2013)
The movie is based on a memoir of the same name by Jordan Belfort and describes how scammers work in general. The movie besides its lifestyle and crazy scenes also teaches how fraudsters may attempt to scam you from your dear savings or earnings. The movie is absolutely a must-watch for any investor or trader and will provide valuable insight into financial scams to avoid in the future.
2. The Margin Call (2011)
Written and directed by J.C. Chandor, this movie shows the events before the 2008 crisis took place. A talented scientist who is working at the firm discovers the impending doom of the financial system as derivatives are hugely overpriced and predicts the downfall of the whole market. The movie is full of Hollywood stars and deserves your attention. The movie is full of stars who portray every character realistically and give a glimpse of the 2008 crisis events from an insider perspective.
3. The Big Short (2015)
If you are interested in finance and trading and do not know who Michael Burry is you need to watch the movie called The Big Short right now! In the movie, Michael Burry is played by Christian Bale brilliantly and shows how knowledge and dedication can help you discover major flaws in the financial system and use them to your advantage. The movie contains many valuable lessons. Michael Burry is on Twitter and it is absolutely recommended to follow him and not miss his posts. He loves deleting his tweets shortly after posting so make sure to get alerts whenever he posts something new. The famous investor is an important guy you should follow closely and pay attention to all his ideas.
4. Wall Street (1987)
Do not get fooled by the old date on this one. The movie is absolutely a must-watch for anyone who considers themselves a trader or investor. This 1987 American drama tells a story of a young stockbroker (plaid by Charlie Sheen) who wants to work with his hero Gordon Gecko. He eventually becomes involved in shady activities and together with Gordon Gecko (a character plaid by Michael Douglas) the duo does some unethical trading. The movie d inspired many people to become stock brokers on Wall Street and was very well-received by film critics. The Wall Street got actually a sequel with Michael Douglas starring in it in 2010 called: Wall Street: Money Never Sleeps. The movie takes place 23 years after the first movie’s events and revolves around the 2008 financial crisis.