Tuesday, June 04, 2013
Is this the greatest trading book of all time?
This is my dog-eared copy of Market Wizards, the seminal collection of trader interviews conducted by Jack Schwager in the 1980's. My copy is full of annotations, along with other parts that I have highlighted or underlined. I have quoted extensively from the book on this blog, and with good reason.
There are a million and one ways to trade the markets, and the traders interviewed in the book cover a large part of that spectrum. There are several common denominators, however, and Schwager summarises them at the end of the book (there is a more comprehensive list of principles at the end of the follow up book, The New Market Wizards). It was this book that introduced me to the likes of Ed Seykota and Larry Hite, two prominent trend followers who helped shaped my own approach to the markets.
These traders and their success have stood the test of time, and the interviews themselves are full of little nuggets of wisdom. Some younger or inexperienced traders may read through the book and wonder what all the fuss is about, however these are some of the most successful traders of their time - if several traders talk about the same thing as being critical to their success (regardless of their trading method or timeframe) then you can be sure it is something you want to factor into your own approach to the markets.
I firmly believe that, if you can absorb the lessons contained within the book, then you can achieve success in your own trading. If you've never read it, then go grab a copy now!