The New Market Wizards: Conversations with America's Top Traders [NOOK Book]

Overview

In The New Market Wizards, successful traders relate the financial strategies that have rocketed them to success. Asking questions that readers with an interest or involvement in the financial markets would love to pose to the financial superstars, Jack D. Schwager encourages these financial wizards to share their insights. Entertaining, informative, and invaluable, The New Market Wizards is destined to become another Schwager classic.

In this sequel to the ...

See more details below
The New Market Wizards: Conversations with America's Top Traders

Available on NOOK devices and apps  
  • NOOK Devices
  • Samsung Galaxy Tab 4 NOOK 7.0
  • Samsung Galaxy Tab 4 NOOK 10.1
  • NOOK HD Tablet
  • NOOK HD+ Tablet
  • NOOK eReaders
  • NOOK Color
  • NOOK Tablet
  • Tablet/Phone
  • NOOK for Windows 8 Tablet
  • NOOK for iOS
  • NOOK for Android
  • NOOK Kids for iPad
  • PC/Mac
  • NOOK for Windows 8
  • NOOK for PC
  • NOOK for Mac
  • NOOK for Web

Want a NOOK? Explore Now

NOOK Book (eBook)
$13.29
BN.com price

Overview

In The New Market Wizards, successful traders relate the financial strategies that have rocketed them to success. Asking questions that readers with an interest or involvement in the financial markets would love to pose to the financial superstars, Jack D. Schwager encourages these financial wizards to share their insights. Entertaining, informative, and invaluable, The New Market Wizards is destined to become another Schwager classic.

In this sequel to the bestselling Market Wizards, Schwager taps into the minds of today's top financial wizards and reveals the secrets of their astonishing success. "Provides unique insight into the arcane world of currency trading as well as other fast-moving markets."--U.S. News & World Report.

Read More Show Less

Editorial Reviews

Richard Dennis
Jack Schwager simply writes the best books about trading I've ever read. These interviews always give me a lot to think about. If you like learning about traders and trading, you'll find that reading this book is time well spent.
Ed Seykota
Jack Schwager's deep knowledge of the markets and his extensive network of personal contacts throughout the industry have set him apart as the definitive market chronicler of our age.
John Train
Very interesting indeed!
Robert R. Prechter Jr.
Successful trading demands longtime experience because it requires firsthand knowledge. If there is a shortcut to this requirement, however, it is in reading about the experiences of others. Jack Schwager's book provides that shortcut. If you find yourself sweating upon occasion as you read, then you're as close to the trading experience as you can get without actually doing it yourself.
Wall Street Journal
Are great traders born or do they acquire their kills on the way up?...The New Market Wizards provides some interesting insights.
Industry Futures
Should be required reading for anyone who selects managers for institutional or even personal portfolios.
From the Publisher
"...they are the most highly readable investment books you will find...you'll find them riveting and fun..." (Shares, 10 October 2002)
Read More Show Less

Product Details

  • ISBN-13: 9780061750274
  • Publisher: HarperCollins Publishers
  • Publication date: 10/13/2009
  • Sold by: HARPERCOLLINS
  • Format: eBook
  • Pages: 512
  • Sales rank: 332,813
  • File size: 682 KB

Meet the Author

Jack Schwager is a managing director and principal of The Fortune Group, an alternative asset management firm regulated in the UK and the United States. Schwager is the Senior Portfolio manager for Fortune's Market Wizards Funds of Funds, a broadly diversified series of institutional hedge fund portfolios. He also serves on the board of Fortune's research affiliate Global Fund Analysis, a leading source of independent hedge fund research. His prior experience includes 22 years as the director of futures research for some of Wall Street's leading firms and 10 years as the co-principal of a commodity trading advisory firm.

Mr. Schwager is perhaps best known as the author of the best-selling Market Wizards (1989), and the equally popular The New Market Wizards (1992). A third volume in this series, Stock Market Wizards, published by HarperCollins, was released in early 2001. Mr. Schwager's first book, A Complete Guide to the Futures Markets, which was published in 1984, is considered to be one of the classic reference works in the field. More than a decade later he revised and expanded this original work into the three-volume series, Schwager on Futures, consisting of the following titles: Fundamental Analysis (1995), Technical Analysis (1996), and Managed Trading: Myths and Truths (1996). He is also the author of Getting Started in Technical Analysis (1999), which is part of John Wiley's popular "Getting Started" series.

Mr. Schwager is a frequent seminar speaker and has lectured on a range of analytical topics with particular focus on the characteristics of great traders, hedge fund investment, performance measurement, technical analysis, and trading system evaluation. He holds a B.A. in Economics from Brooklyn College and an M.A. in Economics from Brown University.

Read More Show Less

Read an Excerpt

Trading Perspectives

Misadventures in Trading

On the lecture tour following the completion of this book's predecessor, Market Wizards, certain questions came up with reliable frequency. One common question was: "Has your own trading improved dramatically now that you've just finished interviewing some of the world's best traders?" Although I had the advantage of having plenty of room for dramatic improvement in my trading, my response was a bit of a cop-out. "Well," I would answer, "I don't know. You see, at the moment, I'm not trading."

While it may seem a bit heretical for the author of Market Wizards not to be trading, there was a perfectly good reason for my inaction. One of the cardinal rules about trading is (or should be): Don't trade when you can't afford to lose. In fact, there are few more certain ways of guaranteeing that you will lose than by trading money you can't afford to lose. If your trading capital is too important, you will be doomed to a number of fatal errors. You will miss out on some of the best trading opportunities because these are often the most risky. You will jump out of perfectly good positions prematurely on the first sign of adverse price movement only to then see the market go in the anticipated direction. You will be too quick to take the first bit of profit because of concern that the market will take it away from you. Ironically, overconcern about losing may even lead to staying with losing trades as fear triggers indecisiveness, much like a deer frozen in the glare of a car's headlights. In short, trading with "scared money" will lead to a host of negative emotions that will cloud decision makingand virtually guarantee failure.

The completion of Market Wizards coincided with my having a house built. Perhaps somewhere out in this great country, there is someone who has actually built a house for what they thought it would cost. But I doubt it. When financing the building of a house, you find yourself repeatedly uttering that seemingly innocuous phrase, "Oh, it's only another $2,000." All those $2,000s add up, not to mention the much larger sums. One of our extravagances was an indoor swimming pool, and to help pay for this item I liquidated my commodity account--in the truest sense of the word. It was my sincerest intention not to resume trading until I felt I had adequate risk capital available, and an unending stream of improvements on the house kept pushing that date further into the future. In addition, working at a demanding full-time job and simultaneously writing a book is a draining experience. Trading requires energy, and I felt I needed time to recuperate without any additional strains. In short, I didn't want to trade.

This was the situation one day when, in reviewing my charts in the afternoon, I found myself with the firm conviction that the British pound was about to collapse. In the previous two weeks, the pound had moved straight down without even a hint of a technical rebound. After this sharp break, in the most recent week, the pound had settled into a narrow, sideways pattern. In my experience, this type of combined price action often leads to another price decline. Markets will often do whatever confounds the most traders. In this type of situation, many traders who have been long realize they have been wrong and are reconciled to liquidating a bad position--not right away, of course, but on the first rebound. Other traders who have been waiting to go short realize that the train may have left without them. They too are waiting for any minor rebound as an opportunity to sell. The simple truth is that most traders cannot stand the thought of selling near a recent low, especially soon after a sharp break. Consequently, with everyone waiting to sell the first rally, the market never rallies.

In any case, one look at the chart and I felt convinced this was one of those situations in which the market would never lift its head. Although my strong conviction tempted me to implement a short position, I also felt it was an inappropriate time to resume trading. I looked at my watch. There were exactly ten minutes left to the close. I procrastinated. The market closed.

That night before leaving work, I felt I had made a mistake. If I was so sure the market was going down, I reasoned, I should have gone short, even if I didn't want to trade. So I walked over to the twenty-four-hour trading desk and placed an order to go short the British pound in the overnight market. The next morning I came in and the pound was down over 200 points on the opening. I placed a token amount of money into the account and entered a stop order to liquidate the trade if the market returned to my entry level. I rationalized that I was only trading with the market's money, and since my plan was to cease trading on a return to breakeven, I was not really violating my beliefs against trading with inadequate capital. Thus, I found myself trading once again, despite a desire not to do so.

This particular trade provides a good illustration of one of the principles that emerged from my interviews for Market Wizards. Patience was an element that a number of the supertraders stressed as being critical to success. James Rogers said it perhaps most colorfully, "I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime." In essence, by not wanting to trade, I had inadvertently transformed myself into a master of patience. By forcing myself to wait until there was a trade that appeared so compelling that I could not stand the thought of not taking it, I had vastly improved the odds.

During the next few months, I continued to trade and my equity steadily increased, as I seemed to be making mostly correct trading decisions. My account grew from $0 (not counting an initial $4,000 deposit that was quickly withdrawn once profits more than covered margin requirements) to over $25,000. It was at this juncture, while traveling on a business trip, that nearly all my positions turned sour simultaneously. I made some hasty decisions between meetings, virtually all of which proved wrong. Within about a week, I had lost about one-third of my gains. Normally, when I surrender a meaningful percentage of my profits, I put on the brakes, either trading only minimally or ceasing to trade altogether. Instinctively, I seemed to be following the same script on this occasion, as my positions were reduced to minimal levels.

At this time, I received a call from my friend Harvey (not his real name). Harvey is a practitioner of Elliott Wave analysis (a complex theory that attempts to explain all market behavior as part of a grand structure of price waves).* Harvey often calls me for my market opinion and in the process can't resist telling me his. Although I have usually found it to be a mistake to listen to anyone else's opinions on specific trades, in my experience Harvey had made some very good calls. This time he caught my ear.

"Listen, Jack," he said, "you have to sell the British pound!" At the time, the British pound had gone virtually straight up for four months, moving to a one-and-a-half-year high.

"Actually," I replied, "my own projection suggests that we may be only a few cents away from a major top, but I would never sell into a runaway market like this. I'm going to wait until there are some signs of the market topping."

"It will never happen," Harvey shot back. "This is the fifth of a fifth." (This is a reference to the wave structure of prices that will mean something to Elliotticians, as enthusiasts of this methodology are known. As for other readers, any attempt at an explanation is more likely to confuse than enlighten--take my word for it.) "This is the market's last gasp, it will probably just gap lower on Monday morning and never look back." (This conversation was taking place on a Friday afternoon with the pound near its highs for the week.) "I really feel sure about this one."

I paused, thinking: I've just taken a hit in the markets. Harvey is usually pretty good in his analysis, and this time he seems particularly confident about his call. Maybe I'll coattail him on just this one trade, and if he's right, it will be an easy way for me to get back on a winning track.

So I said (I still cringe at the recollection), "OK Harvey, I'll follow you on this trade. But I must tell you that from past experience I've found listening to other opinions disastrous. If I get in on your opinion, I'll have no basis for deciding when to get out of the trade. So understand that my plan is to follow you all the way. I'll get out when you get out, and you need to let me know when you change your opinion." Harvey readily agreed. I went short at the market about a half-hour before the close and then watched as prices continued to edge higher, with the pound closing near its high for the week.

Read More Show Less

Table of Contents

Partial table of contents:
TRADING PERSPECTIVES.
Misadventures in Trading.
Hussein Makes a Bad Trade.
THE WORLD'S BIGGEST MARKET.
Bill Lipschutz: The Sultan of Currencies.
FUTURES--THE VARIETY-PACK MARKET.
Randy McKay: Veteran Trader.
The Silence of the Turtles.
Al Weiss: The Human Chart Encyclopedia.
FUND MANAGERS AND TIMERS.
Gil Blake: The Master of Consistency.
Victor Sperandeo: Markets Grow Old Too.
MULTIPLE-MARKET PLAYERS.
Tom Basso: Mr.
Serenity.
THE MONEY MACHINES.
CRT: The Trading Machine.
Mark Ritchie: God in the Pits.
Blair Hull: Getting the Edge.
THE PSYCHOLOGY OF TRADING.
Zen and the Art of Trading.
Charles Faulkner: The Mind of an Achiever.
CLOSING BELL.
A Personal Reflection.
Appendix.
Glossary.
Read More Show Less

Customer Reviews

Average Rating 5
( 8 )
Rating Distribution

5 Star

(7)

4 Star

(1)

3 Star

(0)

2 Star

(0)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously
Sort by: Showing 1 – 15 of 8 Customer Reviews
  • Anonymous

    Posted August 15, 2002

    Insightful, again.

    Excellent followup to the first Market Wizards.

    0 out of 1 people found this review helpful.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted June 26, 2002

    Great follow-up

    Although a sequel is (almost) never as good as it's predecessor this book is still definately worth reading. As mentioned in my review of the first, I believe this series will go down as one of the classics.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted May 18, 2000

    It's in the Top 5 of trading books

    Fun read with lots of trading meat to digest, too. I'd suggest the timeless trading books are not those written about new indicators but, rather, are by long-time traders that tell you how they got it done.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted January 18, 2010

    No text was provided for this review.

  • Anonymous

    Posted January 2, 2010

    No text was provided for this review.

  • Anonymous

    Posted January 15, 2010

    No text was provided for this review.

  • Anonymous

    Posted December 17, 2011

    No text was provided for this review.

  • Anonymous

    Posted March 17, 2011

    No text was provided for this review.

  • Anonymous

    Posted January 2, 2010

    No text was provided for this review.

  • Anonymous

    Posted December 28, 2009

    No text was provided for this review.

  • Anonymous

    Posted December 28, 2009

    No text was provided for this review.

  • Anonymous

    Posted February 19, 2010

    No text was provided for this review.

  • Anonymous

    Posted January 18, 2010

    No text was provided for this review.

  • Anonymous

    Posted April 13, 2013

    No text was provided for this review.

  • Anonymous

    Posted July 27, 2011

    No text was provided for this review.

Sort by: Showing 1 – 15 of 8 Customer Reviews

If you find inappropriate content, please report it to Barnes & Noble
Why is this product inappropriate?
Comments (optional)