Market Wizards

The world's top trader's reveal the secrets of their phenomenal success! How do the world's most successful traders amass tens, hundreds of millions of dollars a year? Are they masters of an occult knowledge, lucky winners in a random market lottery, natural-born virtuosi Mozarts of the markets? In search of an answer, bestselling author Jack D. Schwager interviewed dozens of top traders across most financial markets. While their responses differed in the details, all of them could be boiled down to the same essential formula: solid methodology + proper mental attitude = trading success. In Market Wizards Schwager lets you hear, in their own words, what those super-traders had to say about their unprecedented successes, and he distils their responses down into a set of guiding principles you can use to become a trading star in your own right. Features interviews with superstar money-makers including Bruce Kovner, Richard Dennis, Paul Tudor Jones, Michel Steinhardt, Ed Seykota, Marty Schwartz, Tom Baldwin, and more Tells the true stories behind sensational trading coups, including the one about the trader who turned $30,000 into $80 million, the hedge fund manager who's averaged 30% returns every year for the past twenty-one years, and the T-bond futures trader who parlayed $25,000 into $2 billion in a single day! "e;Market Wizards is one of the most fascinating books ever written about Wall Street. A few of the 'Wizards' are my friends and Jack Schwager has nailed their modus operandi on the head."e; --Martin W. Zweig, Ph.D., Editor, The Zweig Forecast

The world's top trader's reveal the secrets of theirphenomenal success!How do the world's most successful traders amass tenshundreds of millions of dollars a year? Are they masters of anoccult knowledge, lucky winners in a random market lotterynatural-born virtuosi--Mozarts of the markets? In search of ananswer, bestselling author Jack D. Schwager interviewed dozens oftop traders across most financial markets. While their responsesdiffered in the details, all of them could be boiled down to thesame essential formula: solid methodology + proper mental attitude= trading success. In Market Wizards Schwager lets you hearin their own words, what those super-traders had to say about theirunprecedented successes, and he distils their responses down into aset of guiding principles you can use to become a trading star inyour own right.* Features interviews with superstar money-makers including BruceKovner, Richard Dennis, Paul Tudor Jones, Michel Steinhardt, EdSeykota, Marty Schwartz, Tom Baldwin, and more* Tells the true stories behind sensational trading coupsincluding the one about the trader who turned $30,000 into $80million, the hedge fund manager who's averaged 30% returns everyyear for the past twenty-one years, and the T-bond futures traderwho parlayed $25,000 into $2 billion in a single day!"Market Wizards is one of the most fascinating books everwritten about Wall Street. A few of the 'Wizards' are myfriends--and Jack Schwager has nailed their modus operandi onthe head."Martin W. Zweig, Ph.D., Editor, The Zweig Forecast

Preface to the Paperback Edition ixPreface xvAcknowledgments xviiPrologue xixMy Own Story xxiPart I Futures and Currencies 1Taking the Mystery Out of Futures 3The Interbank Currency Market Defined 7Michael Marcus: Blighting Never Strikes Twice 9Bruce Kovner: The World Trader 51Richard Dennis: A Legend Retires 83Paul Tudor Jones: The Art of Aggressive Trading 115Gary Bielfeldt: Yes, They Do Trade T-Bonds in Peoria 139Ed Seykota: Everybody Gets What They Want 151Larry Hite: Respecting Risk 175Part II Mostly Stocks 193Michael Steinhardt: The Concept of Variant Perception 195William O'Neil: The Art of Stock Selection 221David Ryan: Stock Investment as a Treasure Hunt 239Marty Schwartz: Champion Trader 257Part III A Little Bit of Everything 281James B. Rogers, Jr.: Buying Value and Selling Hysteria 283Mark Weinstein: High-Percentage Trader 321Part IV The View from the Floor 343Brian Gelber: Broker Turned Trader 345Tom Baldwin: The Fearless Pit Trader 367Tony Saliba: "One-Lot" Triumphs 385Part V The Psychology of Trading 405Dr. Van K. Tharp: The Psychology of Trading 407The Trade: A Personal Experience 429Postscript: Dreams and Trading 435Final Word 439What I Believe 22 Years Later 441Appendix 1: Program Trading and Portfolio Insurance 453Appendix 2: Options--Understanding the Basics 455Glossary 461Excerpt: Edward Thorp 473