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