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Investment Books Review #1: Market Wizards – Essential Reading
for All Traders
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Investment Books Review #1: Market Wizards
– Essential Reading for All Traders
Market Wizards by Jack D. Schwager is essential reading
for any trader, as it gets inside the minds of some of the world’s
all time best traders – and they’ve collectively made billions.
Whilst these traders are all different in character, and
the trading methods they deploy, they all share the common traits
that you must have to make big profits consistently.
Let’s look at Market Wizards, and How Jack Shwager manages
to put together a classic work of trading insight.
Market Wizards Format
The format of the book is essentially just interviews of
some of the greatest traders of all time, and them sharing their
wisdom. They may all be different types of traders, but in many
ways, they’re all the same in terms of essential character traits
- and this is why Market Wizards is such a valuable book.
Market Wizard Trading Strategies
Readers are not going to learn specific trading strategies,
as none of the traders discusses specifics - they only make
generalizations. There are however some points that are revealed
about their methods of trading:
. Most of the traders have essentially simple strategies,
which they use to make money.
. The trading method, or strategy is only one part
of the equation - the other is discipline, which comes from
confidence.
. All the traders know their strategies work – they’ve
developed and tested them - and have the confidence to continue
following their strategies through losing periods.
Many traders make the mistake of trying to follow other
people’s methods, and of course, when losses occur they lose
their discipline and lose money.
Character traits that are common to all the traders interviewed
by Jack Shwager include:
1. All those interviewed had the desire to succeed,
and the mindset to achieve their goals - with many overcoming
significant obstacles along the way.
2. All the traders have supreme confidence in what
they are doing - and have the attitude that they will make money.
3. All the traders talked of discipline as being key
to success.
4. All the traders focus on protection - and stressed
money management as a key element in trading.
5. All the traders stressed patience - and waiting
for the right opportunity.
6. All the traders stressed acting independently and staying
away from the crowd.
Finally, they all stressed a love of what they do.
When you read Market Wizards, you are struck by the fact
that no one can actually give you success - it’s up to you and
you alone.
You need to rely on yourself.
Trading is actually quite simple, but to get the right mindset,
and method, and be able to apply it with discipline, requires
unwavering self believe and confidence.
Market Wizards by Jack D. Schwager, is simply one of the
most inspirational trading books of all time, and is required
reading for novice or pro - as this book can put you on the
road to trading success.
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