Black Monday (2019)

Trader's Film Library #72 · Drama series. A Wall Street comedy that counts down the days to the 1987 crash.

Original title: Black Monday · Type: series (3 seasons, 2019–2021) · Created by: David Caspe, Jordan Cahan · Usefulness for traders: ★★☆☆☆

What it's about

A comic take on 1980s Wall Street. Maurice “Mo” Monroe (Don Cheadle) runs the brokerage Jammer Group and has a plan that's supposed to give him an edge over the whole market. The first season counts down to 19 October 1987 – “Black Monday”. The cast also includes Regina Hall and Andrew Rannells. Three seasons on Showtime (2019–2021).

What it has to do with markets

The backdrop is real: on 19 October 1987 the Dow Jones lost about 22.6% in a single day, which to this day is its largest one-day percentage drop. Mechanical selling of futures as part of so-called portfolio insurance contributed to the panic. The series doesn't explain the mechanics of the crash, but it captures the trading culture of the time well: the phones, the egos, the leverage and the belief that “this time everything is under control”.

Lessons for traders

• one day can wipe out years of profits: always know your maximum loss
• mechanical selling by many participants at once fuels panic (herding, Atlas of biases #31)
• confidence before a big move is a warning, not an edge (overconfidence, Atlas of biases #11)

What to watch out for

It's a comedy with exaggerated characters and crude humour. You'll learn more about the 1987 crash itself from documentaries than from this series.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

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The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.