Book Review: R. Foster Winans' 'Trading Secrets'

In 1985, former Wall Street Journal "Heard on the Street" columnist R. Foster Winans was sent to prison for tipping off a charismatic young stock broker about the topics of his columns. By trading on the information before it went to press, Peter Brant made an estimated $700,000 while paying Winans only about $15,000.

The book that he wrote while his case was on appeal, Trading Secrets, is a classic of temptation, insider trading, and the seduction of fast money.

When it was published in 1986, The Chicago Sun Times called it "a captivating book...combination morality play, soy thriller, and journalism primer."

And that's exactly what it is. Like movies like Wall Street and Boiler Room, Trading Secrets tells the story of how an ordinary guy earning $30 thousand a year got swept into the American Nightmare, all with what started as a seemingly innocent compromise to help raise some money to make a down payment on his house.

Throughout, Winans doesn't shirk responsibility for what he did, and seems most concerned about the effect that his conduct had on his partner, David.

Wall Street tales of redemption are surprisingly common. Most recently there was former boiler room boss Jordan Belfort's The Wolf of Wall Street, a less than apologetic, self-indulgent stroll through his drug-induced career.

Trading Secrets is easily the best of the post-indictment tell-all's I've read and, if you haven't read it, pick up a copy now.