Managed to snag up this book Market Wizards by Jack D. Schwager. Mention this book to any seasoned trader and there will be high chance he would have read it before.
It is always my intention to tap knowledge from those who have made it in the business, and this book is just what I needed. Very broadly, the author Jack D. Schwager, interviews big name traders and investors from all industries, from futures, currencies, stocks and even the floor traders and ends with a chapter on trader psychology. Some names interviewed included Micheal Marcus, Richard Dennis, Paul Tudor Jones, Ed Seykota, Jim Rogers, Mark Weinstein, Dr. Van K.Tharp. Each of them provided some insight on how they trade, their mindset while trading, and even some methods.
A few things that I took out of this book:
1) There is no fixed method in trading. Some use fundamentals while others use purely technical analysis. Some go by their trading guts. What is really important is their consistency in making profits over and over again.
2) Many did go through a big loss in their initial trading stages before they start managing risk. Managing risk is a big component of their business. I can’t emphasize this more.
3) Most, if not all, treat trading like a game that they BADLY want to win. There is a need to dissociate yourself from the money it brings. There is a need to have a strong desire to win. There is a need to focus on trade execution, more than making money itself. The best traders treat it like a game, money is just a scorecard which they do very well.
This book is a good bedtime read. The interview-based nature makes it a conversational piece rather than a dissertation. Little nuggets of wisdom with huge value is contained in many of the straightforward answers given by the traders. I think I’ll go source for the other book, The New Market Wizards, by the same author when I’m done with my other trading books soon.
Check out Market Wizards again at Amazon.com.