Market Wizards: Interviews with Top Traders (Paperback)

by Jack D. Schwager (Author) "Of all the markets discussed in this book, the futures market is prob the one least understood by most investors..." (more)
Key Phrases: explosion position, interbank currency market, variant perception, Wall Street, New York, William O'Neil (more...)

Editorial Reviews

Review
"One of the most fascinating books ever written about Wall Street." -- --Martin W. Zweig, Market Forecaster

Product Description
A bestselling classic (more than 200,000 copies sold in hardcover and paperback) that delves into the minds of some of the world's most successful traders.

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Product Details

• Paperback: 480 pages
• Publisher: Harper Paperbacks (December 17, 1992)
• Language: English
• ISBN-10: 0887306101
• ISBN-13: 978-0887306105
• Product Dimensions: 8 x 5.3 x 1.3 inches
• Shipping Weight: 12.6 ounces (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars See all reviews (118 customer reviews)
• Amazon.com Sales Rank: #36,386 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

43 of 43 people found the following review helpful:

5.0 out of 5 stars 16 Financial Market Wizards Shared Their Stories Circa 1988., December 18, 2005

By	mirasreviews (McLean, VA USA) - See all my reviews (TOP 100 REVIEWER)    (COMMUNITY FORUM 04)

"Market Wizards" was the first of 3 Market Wizards books in which Jack Schwager interviews top traders in the financial markets about their backgrounds, experiences, and techniques. Published in 1989, the interviews in this book were conducted while the stock market crash of October 1987 was fresh in people's minds, which I found added some interest. Some of those interviewed made money on the crash, some lost money, and many have something to say about it. The book is divided into 5 sections, each containing a series of interviews. Jack Schwager introduces each interview by telling us a little about the trader, then we get an edited transcript of the interview, followed by a brief summary of that trader's philosophy. The information the traders provide about their techniques is enough to give a general impression of what they do, not enough to tip their hand, but is outdated in today's market anyway.

Perhaps because Jack Schwager was a commodities analyst, the first and largest section, "Futures and Currencies", is dedicated to commodities traders. Jack Schwager provides brief explanations of the futures and currency markets, then moves on to interviews of 7 commodities traders. Interview subjects include the great Michael Marcus, who multiplied his company account 2500-fold in a decade, and his protégé Bruce Kovner, perhaps the world's largest currency and futures trader at the time. Larry Hite tells some great stories about what not to do when playing the markets. Part 2, "Mostly Stocks", features interviews with 4 traders of stocks or index futures, including William O'Neil, his protégé David Ryan, and the man who won big several times in the U.S. Trading Championships, S&P futures trader Marty Schwartz. Part 3, "A Little Bit of Everything", includes Mark Weinstein and Quantum Fund co-founder James B. Rogers, Jr. Part 4, "The View from the Floor", interviews 3 traders who trade in the pits.

Part 5, "The Psychology of Trading", features an interview with Dr. Van K. Tharp, a research psychologist who studied "the psychology of winning" so as to come up with a "model" of winning traits which can then be taught to other people. He's a flake, in my view, who bases his practice on various "beliefs", but his "super-trader" classes probably provided him a nice income. Explanations of program trading, portfolio insurance, and options, which are referred to in several of the interviews, are provided in Appendixes in the back of the book. There is also a glossary of terms. "Market Wizards" is often touted as being superior to Schwager's latest Wizard book, 2001's "Stock Market Wizards", but I don't think it is. The names in this one are bigger, the information more vague, but "Market Wizards" has added historical interest at this point, since most of these people traded in the 1970s, when markets were more predictable, adapted to rapid change and increased competition in the 1980s, and then traded through the crash of 1987.

27 of 28 people found the following review helpful:

5.0 out of 5 stars The best trading book that doesn't tell you trading tips., March 12, 2000

By	Samson Hedges (Tempe, AZ USA) - See all my reviews

You read this book not to learn technical patterns or techniques that work. Actually, many of the traders interviewed have opposing views on some techniques. Some say one method won't work and another trader in the book uses that method and is making a killing.

No, you read this book to realize several things about yourself. If you want to make a success, you will have to work at it and stay committed. There is no way around it. Sometimes things will be difficult. Learn from your mistakes and learn that your biggest enemies are emotions and, in some cases, lack of knowledge. One common trait I see in this book is that the traders make it perfectly clear they have self-discipline. Some techniques are common between the traders, and they involve controlling their emotions after bad streaks or winning streaks.

19 of 19 people found the following review helpful:

5.0 out of 5 stars Essential Reading for all Investors, July 21, 2003

By	Barry Ritholtz (NY) - See all my reviews

I'm the Market Strategist for a NYC Investment Bank (billions under management). Someone gave me this book when I first got into the industry a decade ago; I find myself rereading it every 5 years.

I highly recommend it to anyone who is involved in the markets. Simply stated, this is THE book for anyone who wants to learn about trading or investing -- It is simply a must read.

What's so utterly compelling about the interviews is how consistent the themes are that arise from so many different traders; This is true regardless of the markets they work in (commodities, equities, currencies, bonds) or the style they employ (technical, macro-economic, fundamental, quantitative).

The basic concepts revealed by the Wizards are Discipline, Capital Preservation, Risk Management, Individual Responsibility, Flexibility, Intellectual Honesty and Consistency. Please note that these ideas have nothing to do with coming across a hot tip, or getting a big IPO allocation, or chasing the "darling of the day." It's especially relevant, given some of the speculative excesses of the most recent (March '03) rally.

This book should cause all investors, both novice and experienced, to step back and consider their strategies and methodologies. These are much more important than finding the next "flavor of the month." This is especially true now that a new group of stock pickers have been inundating the airwaves.

7/21/03