Stock Market Wizards: Interviews with America's Top Stock Traders

Stock Market Wizards: Interviews with America's Top Stock Traders

by Jack D. Schwager




Acclaimed trading expert and bestselling author of the Market Wizards books, Jack Schwager, has returned with a new and fascinating collection of interviews with the best stock market traders and investors of our time.

Focusing exclusively on successful players in the stock market, Schwager delivers informative profiles and trading strategies from fifteen traders and investors who have ridden the most dynamic bull market in U.S. history to stunning success.

The past decade has witnessed the market-shaking introduction of the Internet, a collapse in commodity prices, and dramatic failures in some of the world's leading hedge funds. How have these traders managed to dwarf the already substantial gains realized by the stock market during the 1990s, while largely sidestepping the market's periodic downdrafts? What separates them from ordinary investors, and even the vast majority of professional fund managers? And what lessons can the average trader or investor learn from these exceptional traders?

Schwager gets the answers from phenomenally successful traders, including 

  • Michael Lauer, an outspoken fund manager, who explains why he believes many of the country's leading mutual funds are following a flawed strategy and whose own fund provided investors with a 50-fold return in seven years
  • Mark Cook, a midwestern farmer who registered back-to-back annual gains of 563 and 322 percent in national trading contests he entered in 1992 and 1993 and has continued to realize stratospheric returns in his own account since then
  • Steve Lescarbeau, who developed a computerized trading model that has earned him an average of 70 percent per year with an incredibly low maximum drawdown of only 3 percent
  • Steve Cohen, a modern-day trading legend who manages billions and who has averaged trading returns of 90 percent during the past seven years with only three down months (the worst, a minuscule 2 percent loss)
  • Mark Minervini, a junior high school dropout, who has averaged a 220 percent annual return during the past five years, while keeping his maximum quarterly loss to a fraction of one percent

These are just a few of the traders you'll meet in Stock Market Wizards' all-star lineup of market masters.

In the final chapter, Schwager pulls it all together, distilling the essential advice and insights from all the interviews into a list of 65 market lessons, which are bound to be invaluable to both novices and market professionals.

Stock Market Wizards gives you the stories, tips. and an inside glimpse into today's vibrant market and the traders who can ride the bull, battle the bear, and still come out on top.

Product Details

ISBN-13: 9780471485551
Publisher: Wiley, John & Sons, Incorporated
Publication date: 03/28/2001
Pages: 352

About 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.

Table of Contents

Author's Note to the Paperback Edition 


Prologue: An Inauspicious Beginning 

Stuart Walton: Back from the Abyss 1

Steve Watson: Dialing for Dollars 34

Dana Galante: Against the Current 56

Mark D. Cook: Harvesting S&P Profits 79

Alphonse "Buddy" Fletcher Jr. : Win-Win Investing 114

Ahmet Okumus: From Istanbul to Wall Street Bull 136

Mark Minervini: Stock Around the Clock 160

Steve Lescarbeau: The Ultimate Trading System 184

Michael Masters: Swimming Through the Markets 206

John Bender: Questioning the Obvious 222

David Shaw: The Quantitative Edge 243

Steve Cohen: The Trading Room 266

Ari Kiev, M.D.: The Mind of a Winner 280

Wizard Lessons 293

App Options - Understanding the Basics 319

Index 323

What People are Saying About This

From the Publisher

In 1989, professional futures trader Schwager wrote the electrifying Market Wizards, featuring incisive interviews with some of the world's most successful traders, discussion of a wide variety of techniques and markets, and a detailed chronicle of various traders' track records. It quickly became a bestseller. Five years later, Schwager published The New Market Wizards, less detailed and with more generic interviews. Now, six years after, the third installment continues this unfortunate trend. The subjects of Schwager's new interviews are less than impressive, and his questions have gone soft. To make matters worse, subjects were allowed to amend their words later, resulting in many lifeless, boilerplate responses. Instead of analyzing specific trading decisions, theories or track records, subjects spend most of the interviews talking about their childhoods or disparaging ex-bosses and co-workers. Even this dirt fails to engage the reader, since Schwager has changed the names of the maligned parties. Only the author's brief, energetic commentaries on the interviews display the insight of Schwager's earlier work. Inexperienced traders may benefit from some of the platitudes in these interviews, but experienced traders already know to cut their losses. (Jan. 31) Forecast: Bolstered by an author tour (with guest appearances by some of the "wizards") to New York City, Chicago and Boston and a syndicated radio feature, Schwager's third book may get some initial sales from fans of Market Wizards and those looking for more up-to-date trading information. Poor reviews and word-of-mouth, however, probably will hurt this book's sales, as they did the previous sequel. Copyright 2000 Cahners Business Information. —Publishers Weekly

Schwager (Market Wizards, New Market Wizards) interviews 15 top traders, attempting to cull their secrets in order to explain their winning methodologies. It's not a terribly original approach, and many of the questions and answers sound remarkably alike. While none of the interviewees is as recognizable as Fidelity's Peter Lynch, all have produced impressive returns for their investors. Many share characteristics that helped shape their trading philosophies: becoming interested in the stock market through their fathers, experiencing numerous failures in early trading but never giving up, and developing a strong work ethic and self-confidence. Discipline, according to the author, is the one trait that all of his subjects have in common, enabling them to ride out the turbulence of the stock market each day. The book concludes with a list of 65 wizard lessons. One of the more insightful traders described himself and his colleagues as "detectives. We are trying to find out information that is not widely dispersed and then put all the pieces together to get an edge." Reading this book might help readers develop their own edge in investing. Appropriate for larger public libraries.—Richard Drezen, Washington Post News Research, New York City Bureau Copyright 2000 Cahners Business Information.—Library Journal

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