“Market Wizards. Interviews with Top Traders” by Jack D. Schwager


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Traded futures on the commodity markets. Started with corn, chips and cereals. Schwager’s colleague in the joint fund.

A successful trader who earns more than all other traders in the company.

  • Sold when the price rose and then fell;
  • It is important to follow the trend, stop losses and maintain profitable positions;
  • Without maintaining a profitable position, you will not be able to pay for unprofitable ones;
  • Previous daily highs are important. Places orders usually larger than standard and with a very close stop. The market will either rush in the right direction, or close on the stop;
  • The best deals are those in which 3 factors act at once:

✔ Technical

✔ Technical

✔ Psychological

  • Correctly reduce the number of transactions in order to wait for the most profitable ones. I received all profit from transactions when all 3 factors were optimal. The rest of the time I traded because of the love of trading;
  • When news is released, the market reacts positively to them if it goes in the same direction. If the market direction is different, then the news is ignored;
  • The market is becoming more and more professional, the old systems are losing their effectiveness;
  • Trend-following systems are ineffective because many people use them. Especially if you enter in the middle. Perhaps the trend has already ended;
  • Close positions if the reason for the movement is not clear to you. Big players will always give themselves away. Therefore, having noticed unexpected and inexplicable movements, you need to get out of it correctly, and then look for the cause;
  • Exit the market when the volatility and the pace of price movement become completely insane (hysteria).

On the 3rd day, you should be very, very careful. On the 4th almost always go out. The rule on the fifth day of the marginal price increase, exit completely Market Wizards;

  • Became a connoisseur of one market – cocoa;
  • Believes that it takes talent to get into the top echelon of traders;
  • Intuition is important.
  • No more than 5% of the capital per transaction”
  • Use SL, actually place a stop loss”
  • Waiting for good deals
  • Immediately close a position that you no longer like. Even after 5 minutes.

The same if in doubt. It’s never too late to return!

  • Get enough sleep, especially in case of uncertainty;
  • Trade your way. When you follow someone, you copy only part of his technique, and you run the risk of getting the worst on both sides;
  • Tries to avoid conversations with other traders, not to listen to experts;
  • Conduct your analysis;
  • Reduce positions and trade in case of failures, until they stop completely. Building positions leads to collapse. One failure breeds another. The best thing to do is to rest;
  • Say to yourself: “I was hoping to make money in this position, but it doesn’t work, so I’m leaving.” Russ Kovner
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