Jack D. Schwager - The little book of market wizards: lessons from the greatest traders

Contents

Little Book Big Profits Series

In the Little Book Big Profits series, the brightest icons in the financial world write on topics that range from tried-and-true investment strategies to tomorrows new trends. Each book offers a unique perspective on investing, allowing the reader to pick and choose from the very best in investment advice today.

Books in the Little Book Big Profits series include:

Cover design: Paul McCarthy

Copyright 2014 by Jack D. Schwager. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library in Congress Cataloging-in-Publication Data:

Schwager, Jack D., 1948

The little book of market wizards : lessons from the greatest traders / Jack D. Schwager.

pages cm. (Little books big profits series)

ISBN 978-1-118-85869-1 (hardback) ISBN 978-1-118-85862-2 (ePDF) ISBN 978-1-118-85864-6 (ePub)

1. Investments. 2. Investment analysis. I. Title.

HG4521.S35782547 2014

332.6dc23

2013045083

To Jo Ann

The most important person in my life

With love

Foreword

As a long-standing tradition each year during the Christmas to New Years break, I watch The Bourne Trilogy and read Jack Schwagers Market Wizards series The Bourne Trilogy for pure entertainment, the Market Wizards series to prepare me emotionally and mentally for the coming year of market combat.

No authorliving or deceasedhas created such a rich archive of printed material on the profession of market speculation as has Jack Schwager. An entire generation of traders owes a debt to the Market Wizards series and to Jack for at least some portion of its success. There is no doubt in my mind that the Market Wizards series will remain just as timely 80 years from now as Edwin Lefvres Reminiscences of a Stock Operator remains today.

What novice and aspiring market participant would not want to spend time with and pick the brains of 59 of the worlds most successful and accomplished market traders? That is exactly what Jack Schwagers Market Wizards books offer, bringing to us all the insights, processes of market operations, risk management principles, and key lessons from Hall of Fame stock, interest rate, foreign exchange, and futures market speculators.

As someone who has lived off trading profits since 1981, I am not a fan of the how-to trading books that provide the step-by-step details of another traders secret sauce. I am a staunch believer that all consistently profitable traders have two things in common: an approach to the markets reflecting ones unique personality and aggressive risk management. At each reading of the Market Wizards books, these two components of profitable trading emerge in fresh new ways, challenging me to reflect on my own method of market speculationpast, present, and future.

The Little Book of Market Wizards brings new life to the Market Wizards series. In one sense, it is a CliffsNotes versiona quick reminder of all the interviews that have come before. Yet, in a different sense, the book brings remarkably new dimensions that only Jack Schwager could tease out of his extensive interviews with the trading greats.

The Little Book of Market Wizards is the thematic interpretation of Jacks five dozen interviews over four books in which he boils down all the Market Wizards content into buckets or categories vital for trading success.