Imagine how trading like a market wizard feels! When you wake up excited about the day’s trading and speculation, you’ll have the same excitement and drive that great athletes feel. Like an athlete, you’ll want to give everything you have to work. In short, you’ll want to wake up every morning excited to trade. You’ll want to give the market your all and work at it until you’re a winner.
Rich Dennis
After a brief stint in the hedge fund business, Richard Dennis turned a $400 trading account into a $200 million one. The founder of Turtle Traders, Dennis, has also built a successful trading firm. The company was born from a bet to see whether trading could be taught. In fact, his hedge fund suffered a 50% drawdown, and he closed it down in 1990 because of risky trading practices. However, his methods are not just for novice investors, and anyone with little experience can learn and follow his system.
While most traders prefer to take short-term positions and ride the short-term fluctuations, Dennis’s approach was a different story. He read Psychology Today to stay calm. He even boasted of staying in bed until the last minute and making it to the exchange just as trading was starting. In fact, he was mid-interviewing a reporter when he went to the bank! It was a story that will stick with you forever!
Marty Schwartz
When it comes to trading, Marty Schwartz is one of the most successful and publicized independent traders in the past couple of decades. Schwartz spent his early years trading oil futures and S&P futures and is now a big proponent of selling options premium. In his career, Marty has watched the market go through many changes and evolutions. In February 2015, he had his best month ever.
This audiobook features an improved recording by DJ Holte. This edition also includes the updated text from the revised edition from 2012. In this book, Jack Schwager interviews some of the world’s most successful hedge fund traders, including Bruce Kovner, Richard Dennis, Paul Tudor Jones, Michel Steinhardt, and Ed Seykota. In addition to these top traders, this audiobook also features interviews with Marty Schwartz, Tom Baldwin, and Ed Seykota. You’ll discover what these traders have in common and learn about how they succeeded.
Marty Schwartz’s work ethic
You’ve probably heard of Marty Schwartz, but how many of us know about his work ethic when trading like a market wizard? Schwartz is perhaps the most well-known independent trader of the past couple of decades, thanks to his outstanding performances in public trading championships and the interview he gave to Jack Schwager for the first release of his book. It’s no wonder why investors are interested in his trading method, but how can we learn more about his style of trading?
The secret to trading like a market wizard is to have a routine and a work ethic. You should always remember your trading plan. You should not make emotional decisions when you have a checklist. Using it will keep you focused and out of trouble and help you avoid making poor trade decisions. Marty Schwartz shares how his Marine training has helped him in his trading career. If you know your rules and you see that a trade is going against them, you’re more likely to walk away from it.
Michael Marcus
“Trades Like a Market Wizard” is a timeless classic that features interviews with seventeen market beaters. It is jam-packed with real-world anecdotes about the trading world. It’s a must-read for any investor or trader who is serious about achieving financial independence. You’ll learn how to become a market wizard in the process. Moreover, the book’s e-book version is available as a digital version for even more investment insight.
In Market Wizards, Jack Schwager interviews Michael Marcus about his trading philosophy and the rules of trend following. During the 1970s, this man-made a small fortune by trading his own money. He became a master trend follower and mastered fundamental trading rules, such as cutting losses. In the 1970s, the commodities bull market was extremely friendly for trend followers. The following are some of the strategies he followed while growing his bankroll:
Jesse Livermore
Many people consider the late stock-market guru, Jesse Livermore, the “Boy Wonder” of Wall Street. But what exactly is his secret? He traded like a market wizard because he understood human nature better than most. He traded like a market wizard because he understood that the path to success was as much about self-mastery as it was about mastery of the markets.
The author of Trade Like Jesse Livermore is an expert on Livermore. His book explores the technical aspects of his trading approach and shows readers how to apply them to their own investing strategies. He covers how to identify trends and patterns, one-day reversals, and spikes, as well as the various trading strategies Livermore used. By combining the principles of the book, you’ll be able to trade like a market wizard, too.
Don’t let the fear of losing overpower your spirit!
While a positive expectancy model is a good approach to trading, it can be undermined by a trader’s fear of losing. Instead of following every tick of the market, develop a trading plan with clear entry and exit points. This will help you remain objective instead of reacting to your emotions. As a result, trading is based on logic, not emotions. In this way, you’ll be able to focus on your trading plan rather than reacting to market emotions.
The number one reason traders abandon logical thinking is fear of loss. Losing money is the ultimate fear of traders. Once this fear reaches a certain level, it’s a crippling emotion. To overcome this, reduce your position size. Even if you can only risk half of your account balance per trade, do so. The fear of losing can be overcome by trading like a market wizard.