24 Feb Market Wizards – Trader Interviews
Every once in a great while, a great book comes along which changes your perspective on your career. It's been said many times that if there were to be a trading "bible", Jack Schwager's Market Wizards would be it.
If you've never heard of the book, then you are doing yourself a disservice. If I were to put a label on the book, it would have to be "a guide to take your trading to the next level".
Why is it so important, does it have a "system" to trade inside? Well, not really. It's all about the mental game of trading and seeing for yourself how the pros handle losses, disappointment and gives you insight into their mindset each and everyday they trade the market.
Here are some of my favorite quotes from the book:
“If I have positions going against me, I get right out; if they are going for me, I keep them… Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in.”
Paul Tudor Jones
“Don’t focus on making money; focus on protecting what you have.”
Paul Tudor Jones
“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliche, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short.”
“I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell.”
Do you see a pattern here? Risk control, cutting losses, letting winners ride, etc. Yes, we've all heard these mantras many times - but how many times have you heard it directly from traders who manage millions and sometimes billions of dollars?
I'm including a link to the pdf download, only because one could easily find it on Google anyway (I see there are about 200 available downloads of it) so here it is:
Please visit Amazon and get your hard-copy. It's an absolute must-have on your trader's bookshelf.
Hope this helps.