Have you ever wondered how can the world’s leading traders collect tens of millions, or if not hundreds of millions, dollars per year? Now, you will get to know it right from the mouths of people such as Ed Seykota, Bruce Kovner, Marty Schwartz, Michel Steinhardt, Paul Tudor Jones, Tom Baldwin, Richard Dennis, and more through the book “Market Wizards: Interviews with Top Traders” by Jack D. Schwager.
As the book title suggests, the book gives us interviews directly with the top tarders.
Michael Marcus, a top trader highlighted the importance of news and his best in the year 1979. He recalls watching the TV coverage of Afghanistan’s invasion. He stated being in California gave him an edge since he could trade in Hong Kong while my New York counterparts were sleeping. He contacted Hong Kong to check if anyone was aware of the situation, but no one appeared to be; the pricing remained the same. Marcus recalls, before anyone understood what was going on, he was able to acquire 200,000 ounces of gold.”
Bruce Kovner is a currency market whiz. The insights into his cognitive processes provided by his interview are very fascinating. Kovner explains how he makes judgments by ‘envisioning’ several future situations and then narrowing them reduced to a particular focal scenario through a deductive procedure. According to him, imagining alternate possibilities is the real work of a successful trader. He tries to conjure up a variety of mental images of how reality should be and then wait for one to be verified. Most of these images will certainly turn up to be incorrect… but then, all of a sudden, 9 out of 10 elements will appear to be correct in one image. Following the 1987 October Crash, it became definite to him the only remedy was for Treasury Secretary Baker to let the Dollar go, given the conjunction of a requirement for stimulative operation demanded by immense world monetary turmoil, the Bank of Japan’s and German Bundesbank’s reticence to embrace potentially inflationary initiatives, and the continued broad US deficits. Someone had to act as a stimulant, and the United States would be that person.”
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Market Wizards: Interviews with Top Traders By Jack D.Schwager Pdf Download
The interview with Paul Tudor Jones exposes how he created a name for himself by identifying market peaks and bottoms, which is one of the most challenging components of the game. To a significant extent, this is a techie’s game.
Jones is well-known for correctly predicting the 1986 stock market meltdown and profiting from it. According to Jones, they had been anticipating a significant stock market crash until mid-1986 and had prepared contingency plans in case of a financial crisis. They knew the market was beginning to crash on Monday, October 19 when they came in.
Sentiment indicators have long been used to predict market peaks and bottoms. He said that certain firms are just rewarded by the market, and he attempts to locate these companies. They may be fortunate as a result of a lengthy run of quarters in which the firms’ reported earnings have exceeded expectations, or for some other reason. Because of this, the market gravitates toward certain equities, which he must locate.
Steve Watson believes that, while phoning the CFOs of larger companies might be tough, we can always acquire the information we need by calling the correct person and posing the proper questions. Although we can’t deny that it’s simpler to reach the CFOs of smaller companies since they’re more accessible, it’s also not difficult to reach the staff of larger corporations. He took the “a-pig-at-the-trough” method, pioneered by the business where he worked.
The book also contains tales of market experiences, such as the account of a trader who turned $30,000 into $80 million after losing multiple times, and even an electrical engineer from MIT who achieved returns of 250,000 percent throughout sixteen years using automated trading.
Market Wizards: Interviews with Top Traders Full Book Pdf Download By Jack D.Schwager
Some men in the interviews provide more information than others, but you may still learn a lot. Most of these men invest not just in Equities, but also in currencies, commodities, and other assets, thus broadening one’s viewpoint is beneficial. Regardless of the asset type, the majority of investment principles apply. Individuals used a variety of approaches. However, they can all be reduced to the same basic formula: sound approach Plus the right mindset Equals trading success.
In Market Wizards, Schwager enables you to hear what those traders had to say about their exceptional success in their words, and he simplifies their comments into a framework of principles you can apply to become a trading star.
This iconic interview-style investing literature from a financial professional is indispensable for traders and skilled financiers, as well as anybody interested in the financial markets.
The book is no How-To-Do book, but a quality informative book with several insights and inspiration for any trader and a book that might never be outdated.
If you still haven’t been through this amazing book, go through this phenomenal read today. Happy Trading.