By: Jack D. Schwager
In The New Market Wizards, Schwager compiles interviews he has given to the best traders in the world. This book is very similar to the original book, The Market Wizards. We believe great trading insight is in store for readers of both books. Retail investors and traders rarely get such open access to Wall Street’s finest, and Schwager does an excellent job profiling these top traders.
The book contains a mix of trading anecdotes and interviews. In each interview, the interviewee describes his personal experience in the financial markets. Understanding the psychology of the world’s most successful traders is an incredibly useful tool for novice and veteran traders alike. The track records of the traders profiled in both books provides evidence that winning in financial markets is less dependent on luck and more dependent on effort and skill.
Here is a glimpse of the preface of The New Market Wizards:
Here’s what I believe:
1. The markets are not random. I don’t care if the number of academicianswho have argued the efficient market hypothesis would stretch to the moon and back if laid end to end; they are simply wrong.
2. The markets are not random, because they are based on human behavior, and human behavior, especially mass behavior, is not random. It never has been, and it probably never will be.
3. There is no holy grail or grand secret to the markets, but there are many patterns that can lead to profits.
4. There are a million ways to make money in markets. The irony is that they are all very difficult to find.
5. The markets are always changing, and they are always the same.
6. The secret to success in the markets lies not in discovering some incredible indicator or elaborate theory; rather, it lies within each individual.
7. To excel in trading requires a combination of talent and extremely hard work-(surprise!) the same combination required for excellence in any field. Those seeking success by buying the latest $300 or even $3,000 system, or by following the latest hot tip, will never find the answer because they haven’t yet understood the question.
8. Success in trading is a worthy goal, but it will be worthless if it is not accompanied by success in your life (and I use the word success here without monetary connotation).
In conducting the interviews for this book and its predecessor. Market Wizards, I became absolutely convinced that winning in the markets is a matter of skill and discipline, not luck. The magnitude and consistency of the winning track records compiled by many of those I interviewed simply defy chance. I believe the Market Wizards provide role models for what it takes to win in the markets. Those seeking quick fortunes should be discouraged at the onset.
I think this book should be as meaningful to the layperson as to the professional simply because the elements that determine success in trading are totally applicable to success in virtually any field or to achieving any meaningful goal.
We rate this book 4.7/5.0.
Find The New Market Wizards on Amazon
You can read more, see customer reviews, and purchase this book on Amazon at: The New Market Wizards – Amazon