Market Wizards

THE INVESTMENT CLASSIC "e;I've read Market Wizards at several stages of my career as it shows the staying power of good down-to-earth wisdoms of true practitioners with skin in the game. This is the central document showing the heuristics that real-life traders use to manage their affairs, how people who do rather than talk have done things. Twenty years from now, it will still be fresh. There is no other like it."e; NASSIM N. TALEB, former derivatives trader, author of The Black Swan, and professor, NYU-Poly "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, PhD, Editor, The Zweig Forecast "e;It is difficult enough to develop a method that works. It then takes experience to believe what your method is telling you. But the toughest task of all is turning analysis into money. If you don't believe it, try it. These guys have it all: a method, the conviction, and the discipline to act decisively time after time, regardless of distractions and pressures. They are heroes of Wall Street, and Jack Schwager's book brings their characters vividly to life."e; ROBERT R. PRECHTER, JR., Editor, The Elliott Wave Theorist

THE INVESTMENT CLASSIC"I've read Market Wizards at several stages of my careeras it shows the staying power of good down-to-earth wisdoms of truepractitioners with skin in the game. This is the central documentshowing the heuristics that real-life traders use to manage theiraffairs, how people who do rather than talk have done things.Twenty years from now, it will still be fresh. There is no otherlike it."NASSIM N. TALEB, former derivatives trader, author ofThe Black Swan, and professor, NYU-Poly"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, PhD, Editor, The ZweigForecast"It is difficult enough to develop a method that works. It thentakes experience to believe what your method is telling you. Butthe toughest task of all is turning analysis into money. If youdon't believe it, try it. These guys have it all: a method, theconviction, and the discipline to act decisively time after timeregardless of distractions and pressures. They are heroes of WallStreet, and Jack Schwager's book brings their characters vividly tolife."ROBERT R. PRECHTER, JR., Editor, The Elliott WaveTheorist

Preface, ixPrologue, xiiiMy own story, xvPart 1: Futures and CurrenciesTaking the mystery our of futures, 3The interbank currency market defined, 7Michael Marcus: Blighting never strikes twice, 9Bruce Kovner: The world trader, 51Richard Dennis: A legend retires, 85Paul Tudor Jones: The art of aggressive trading, 117Gary Bielfeldt: Yes, they do trade T-bonds in Peoria, 141Ed Seykota: Everybody gets what they want, 151Larry Hite: Respecting Risk, 175Part 2: Mostly StocksMichael Steinhardt: The concept of variant perception, 193William O'Neil: The art of stock selection, 219David Ryan: Stock investment as a treasure hunt, 237Marty Schwartz: Champion trader, 257Part 3: A Little Bit of EverythingJames B. Rogers, Jr.: Buying value and selling hysteria, 283Mark Weinstein: High-percentage trader, 321Part 4: The View From the FloorBrian Gelber: Broker turned trader, 345Tom Baldwin: The fearless pit trader, 367Tony Saliba: "One lot" triumphs, 387Part 5: The Psychology of TradingDr. Van K. Tharp: The psychology of trading, 411The trade: A personal experience, 431Postscript: Dreams and trading, 437Final Word, 439Appendix1: Program trading and portfolio Insurance, 441Appendix 2: Options--understanding the basics, 443Glossary, 447