Chicago, UNITED STATES: (L to R) CME Group Board members John Sandner, Leo Melamed, Chairman Terry … [+]
Leo Melamed has one of the most inspiring stories in the history of capital markets. He is known as the God Father of financial futures (he created stock market futures, currency futures, treasury futures, CME’s electronic trading platform Globex, and he helped build transform the Chicago Mercantile Exchange into a global powerhouse). In Leo’s most recent book, Man of The Futures, he shares some of the highlights of his exceptional journey and this is easily one of my favorite books of all time. I have had the great honor and pleasure to interview Leo on my SmartMoneyCircle.com Podcast – here and every time I speak to him I learn a lot.
1. Plan For The Future
The first big lesson that jumped out at me is to look forward and plan for the future. As a quick overview, Leo is a holocaust survivor. Thankfully, his father had the foresight to leave Poland (before it was too late). They had an unforgettable journey east until they made it to Japan, and then ultimately, the United States.
During that journey, Leo learned how to think differently than most people, he learned how to value currencies, and he learned how to look to the future and think of possibilities that may unfold and then take action to position yourself to get ahead of what is coming. This shaped his professional career and helped him transform the Chicago Mercantile Exchange into a global power house.
2. The American Free-Market System Is Incredible
(It is not simply an economic system, it is a way of life)
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The second big lesson for me is Leo’s steadfast belief in the incredibly powerful American free-market system. Leo speaks several languages, he’s met just about every President and major Central Banker in modern history, he has saved the CME by creating Globex and electronic trading system, and he believes in the American Free-Market system as a way of life. Anyone can thrive in a free-market, it is a level playing field that rewards anyone who is willing to raise above the crowd and win.
3. Freedom To Think Is Priceless
Another timeless lesson Leo shares is that the freedom to think is priceless. In today’s economy, properly executed ideas can truly change the world. Back in the 1980’s and 1990’s the CME was faced with a major dilemma because electrotonic trading would replace floor trading, it was just a matter of when, not if. Leo had to make the very difficult decision to embrace it and get ahead of it in order to save the CME. He know, if he didn’t embrace electrotonic trading, someone else would and that could end the CME. He had the gumption to stand up and take action, even though it was against the popular opinion at the time, and the free-market rewarded him by turning the CME into the largest futures exchange in the history!
4. Competition Is The Hallmark Of Success
Leo’s next big timeless lesson is that competition is good for you and for the economy and it is the hallmark of success. One of the main benefits of living and working in today’s economy is that the “market” is open and anyone with a properly executed idea can thrive. As your idea works, and people notice, invariably competition will arise. Other people will try to jump on the gravy train and compete with you and take market share. Most people are scared of competition and that’s why most people don’t make it to the big leagues. Leo has a different approach, he embraces competition and believes that competition is the hallmark of success. He knows that in an open market, competition is inevitable so why not embrace it, learn from it, compete, and win, instead of running from it or hiding. Embracing our competition, allows you to level up, and perform at a higher level, which in turn will make you win more.
5. Be Honest, Especially About Your Mistakes
Another timeless principle Leo shares is the importance of being honest, especially about your mistakes. It is very important not to hide your mistakes, especially from yourself. In fact, most (unsuccessful) people do that and that’s one of the reasons why most people fail to thrive. It is very easy to make excuses and/or come up with just about any reason under the sun why something didn’t work or “change the story” you tell yourself about why something didn’t work. There are many problems with doing that and the biggest could be that you will likely repeat that mistake again in the future. Winners win, because instead of doing that they are intellectually honest, face their mistakes, address them quickly, and move on and hunt for the next win.
6. Embrace Change
The sixth timeless lesson that Leo shares in his book is the importance to embrace change, especially when it comes to technology. Technology is constantly changing and it is very important to embrace change and get in front of it. If Leo didn’t embrace technology, and create Globex, when he did, who knows where the CME would be right now. Having a forward-looking mindset is imperative to getting ahead and thriving in a free-market.
There are many more lessons that will “jump out at you” as you read the book. Leo’s story is amazing and extremely inspirational for anyone who wants to get ahead and thrive.
