In The New Market Wizards, successful traders relate the financial strategies that have rocketed them to success. Asking questions that readers with an interest or involvement in the financial markets would love to pose to the financial superstars, Jack D. Schwager encourages these financial wizards to share their insights. Entertaining, informative, and invaluable, The New Market Wizards is destined to become another Schwager classic.
As in the previous volume, Schwager starts with a frank discussion of his own trading experience, followed by a surprising diversion comparing Saddam Hussein’s invasion of Kuwait with a trade that went wrong.
The rest of the book is broken into five parts including interviews with different types of traders and brief discussions of the lessons to be learned from them, plus a part on trading psychology and a final part summarising the wisdom gained from all of the interviewees in 42 golden rules.
The New Market Wizards Editorial Reviews
From Publishers Weekly
In these absorbing interviews with star performers in the financial markets, Schwager ( Market Wizards ) humanizes the mechanics and psychology behind billion-dollar daily world trading in such sophisticated instruments as currencies, stock options, commodity futures, and mutual-fund accounts by individuals, investment firms, and group-trading computerized “money machines.”
One trader focuses on market response to news events, another calculates mathematical probabilities–one even cocks an ear to the noise level on the exchange floor. All rank assiduous research, self-confidence, a specific plan and the courage to cut losses among essentials to success. Few consider their work gambling, but Schwager entertainingly argues that a successful trader needs many of the qualities of a good poker player.
Though the subject matter is esoteric, there is much here to attract the general reader, and Schwager appends a “primer” of technical basics.
Copyright 1992 Reed Business Information, Inc.
“Should be required reading for anyone who selects managers for institutional or even personal portfolios.”–Futures Industry” Are great traders born or do they acquire their skills on the way up?…”The New Market Wizards provides some interesting insights.” –Wall Street Journal”
From the Inside Flap
Taps into the minds of trading superstars to reveal the secrets of their astonishing success
You may not know their names, but they are the trading elite—a select group of super-moneymakers whose trading prowess has become the stuff of legend. They are speculators in everything from stocks and bonds to options and commodity futures who make millions—sometimes in a matter of hours—and leave their peers in the dust. In this enthralling sequel to his international bestseller, Market Wizards, Jack Schwager interviews these stars, asking the questions that everyone with an interest in the financial markets would love to know the answers to and receive the kind of frank, incisive answers that make this book as much a page-turner as its predecessor.
In these absorbing interviews with star performers in the financial markets, Schwager humanizes the mechanics and psychology behind the trading world across a spectrum of financial markets including stocks, futures, currencies, and options by individuals, investment firms, and group-trading computerized “money machines.”
One trader focuses on market response to news events, another calculates mathematical probabilities—one even cocks an ear to the noise level on the exchange floor. All rank assiduous research, self-confidence, a specific plan, and the courage to cut losses among essentials to success. None consider their trading gambling, but Schwager entertainingly argues that a successful trader needs many of the qualities of a good poker player.
Although filled with insights that even professional traders will find valuable, Schwager’s text remains entire accessible to the general reader.
Interviews with spectacular winners across the full spectrum of financial markets, revealing how they do it and what, personally, separates them from the herd.
Superstar traders describe the financial strategies behind their phenomenal successes, as well as the painfully instructive lessons learned from their worst losses.
Throughout, Schwager provides valuable insight and analysis to help put interviewees’ responses into perspective.
From the Back Cover
Praise for The New Market Wizards.
“Jack Schwager simply writes the best books about trading I’ve ever read. These interviews always give me a lot to think about. If you like learning about traders and trading, you’ll find that reading this book is time well spent.”
—Richard Dennis, President, The Dennis Trading Group, Inc.
“Jack Schwager’s deep knowledge of the markets and his extensive network of personal contacts throughout the industry have set him apart as the definitive market chronicler of our age.”
“Very interesting indeed!”
—John Train, author of The Money Masters
“Successful trading demands longtime experience because it requires firsthand knowledge. If there is a shortcut to this requirement, however, it is in reading about the experiences of others. Jack Schwager’s book provides that shortcut. If you find yourself sweating upon occasion as you read, then you’re as close to the trading experience as you can get without actually doing it yourself.”
—Robert R. Prechter, Jr., Editor, The Elliott Wave Theorist
“Are great traders born or do they acquire their skills on the way up? . . . The New Market Wizards provides some interesting insights.”
—The Wall Street Journal
“Provides a unique insight into the arcane world of currency trading as well as other fast-moving markets such as options and commodities.”
—U.S. News & World Report
“Should be required reading for anyone who selects managers for institutional or even personal portfolios.”
About the Author
Jack Schwager is a managing director and principal of The Fortune Group, an alternative asset management firm regulated in the UK and the United States. Schwager is the Senior Portfolio Manager for Fortune’s Market Wizards Funds of Funds, a broadly diversified series of institutional hedge fund portfolios. He also serves on the board of Fortune’s research affiliate Global Fund Analysis, a leading source of independent hedge fund research. His prior experience includes 22 years as the director of futures research for some of Wall Street’s leading firms and 10 years as the co-principal of a commodity trading advisory firm.
Mr. Schwager is perhaps best known as the author of the best-selling Market Wizards (1989), and the equally popular The New Market Wizards (1992). The third volume in this series, Stock Market Wizards, published by HarperCollins, was released in early 2001.
Mr. Schwager’s first book, A Complete Guide to the Futures Markets, which was published in 1984, is considered to be one of the classic references works in the field. More than a decade later he revised and expanded this original work into the three-volume series, Schwager on Futures, consisting of the following titles: Fundamental Analysis (1995), Technical Analysis (1996), and Managed Trading: Myths and Truths (1996).
He is also the author of Getting Started in Technical Analysis (1999), which is part of John Wiley’s popular “Getting Started” series.
Mr. Schwager is a frequent seminar speaker and has lectured on a range of analytical topics with particular focus on the characteristics of great traders, hedge fund investment, performance measurement, technical analysis, and trading system evaluation. He holds a B.A. in Economics from Brooklyn College and an M.A. in Economics from Brown University.
The New Market Wizards Contents
Part I: Trading perspectives
- Misadventures in Trading
- Hussein Makes a Bad Trade
Part II: The World’s Biggest Market
Part III: Futures-The Variety-Pack Market
- Randy McKay
- William Eckhardt
- Monroe Trout
- Al Weiss
Part IV: Fund Managers and Timers
- Stanley Druckenmiller
- Richard Driehaus
- Gil Blake
- Victor Sperandeo
Part V: Multiple-Market Players
- Tom Basso
- Linda Bradford Raschke
Part VI: The Money Machines
- Mark Ritchie
- Joe Ritchie
- Blair Hull
- Jeff Yass
Part VII: The Psychology of Trading
- Charles Faulkner
- Robert Krausz
Part VIII: Closing Bell
- Market Wiz(ar)dom
- A personal reflection