The Little Book of Market Wizards E-Book

Jack D. Schwager

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Little Books. Big Profits
• Sprache: Englisch
• Veröffentlichungsjahr: 2014

Seitenzahl: 189

Beschreibung

An accessible look at the art of investing and how to adopt the practices of top professionals What differentiates the highly successful market practitioners--the Market Wizards--from ordinary traders? What traits do they share? What lessons can the average trader learn from those who achieved superior returns for decades while still maintaining strict risk control? Jack Schwager has spent the past 25 years interviewing the market legends in search of the answers--a quest chronicled in four prior Market Wizards volumes totaling nearly 2,000 pages. In The Little Book of Market Wizards, Jack Schwager seeks to distill what he considers the essential lessons he learned in conducting nearly four dozen interviews with some of the world's best traders. The book delves into the mindset and processes of highly successful traders, providing insights that all traders should find helpful in improving their trading skills and results. * Each chapter focuses on a specific theme essential to market success * Describes how all market participants can benefit by incorporating the related traits, behaviors, and philosophies of the Market Wizards in their own trading * Filled with compelling anecdotes that bring the trading messages to life, and direct quotes from the market greats that resonate with the wisdom born of experience and skill Stepping clearly outside the narrow confines of most investment books, The Little Book of Market Wizards focuses on the value of understanding one's self within the context of successful investing.

Leseprobe

Contents

Foreword

Preface

Chapter One: Failure Is Not Predictive

The Story of Bob Gibson

If at First You Fail

“One-Lot” Persists

Two Key Lessons

Chapter Two: What Is Not Important

Jim Rogers

Marty Schwartz

Reconciling the Divergent Views

Chapter Three: Trading Your Own Personality

Paul Tudor Jones

Gil Blake

Comparing Jones and Blake

Personality and Trading Systems

Chapter Four: The Need for an Edge

Money Management Is Not Enough

An Edge Is Not Enough

Chapter Five: The Importance of Hard Work

David Shaw

John Bender

The Paradox

Chapter Six: Good Trading Should Be Effortless

Zen and the Art of Trading

Chapter Seven: The Worst of Times, the Best of Times

When Everything Is Going Wrong

When Everything Is Great

Chapter Eight: Risk Management

Uncle Point and Kovner’s Dictum

How Not to Place Your Stops

An Option to Stops

Risk Management at the Portfolio Level

Quick Exits When Wrong

The Trader’s Dilemma

Underappreciated Reason for Avoiding Large Losses

It’s Not Rocket Science

Chapter Nine: Discipline

McKay’s Lapse of Discipline

Chapter Ten: Independence

A Personal Story

Chapter Eleven: Confidence

Chapter Twelve: Losing Is Part of the Game

The Link between Confidence and Taking Losses

The Rationalization of a Losing Trader

The Four Types of Trades

Willing to Lose

Chapter Thirteen: Patience

Century-Old Wisdom

A Master of Patience

The Power of Doing Nothing

The Wisdom of Sitting

Chapter Fourteen: No Loyalty

“The Market Was Telling Me I Was Wrong”

Jones Reverses Course

Caught by a Surprise

Surviving the Worst Trading Blunder Ever

A Bad Idea Transformed

Don’t Publicize Your Market Calls

Chapter Fifteen: Size Matters

The Power of Bet Size

The Danger of Size

Stepping on the Accelerator

Volatility and Trading Size

Correlation and Trading Size

Chapter Sixteen: Doing the Uncomfortable Thing

The Outperforming Monkey

The Inadvertent Experiment

Behavioral Economics and Trading

Why Emotions Affect Even Computerized Trading

Conclusion

Chapter Seventeen: Emotions and Trading

Expensive Excitement

You Can’t Win If You Have to Win

Impulsive Trades

Don’t Confuse Intuition with Impulse

Chapter Eighteen: Dynamic versus Static Trading

The Need to Adapt

Scaling versus Single-Price Entry and Exit

Trading around Positions

Chapter Nineteen: Market Response

Gold and the First Iraq War

McKay Gets Interested in Stocks

Dalio Is Surprised

A Most Bullish Report

Druckenmiller Is on the Wrong Side of the Market

The Invincible Position

The Submerged Volleyball

Buy the Strongest, Sell the Weakest

Correlation as a Clue

Chapter Twenty: The Value of Mistakes

Analyzing Your Trades

The Trader’s Log

Chapter Twenty-One: Implementation versus Idea

A Post-Bubble Trade

A Better Option

Chapter Twenty-Two: Off the Hook

A Unique Observation

On the Hook

Schwartz Saves Me Money

Chapter Twenty-Three: Love of the Endeavor

Appendix

About the Author

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 tomorrow’s 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:

The Little Book That Still Beats the Market by Joel Greenblatt

The Little Book of Value Investing by Christopher Browne

The Little Book of Common Sense Investing by John C. Bogle

The Little Book That Makes You Rich by Louis Navellier

The Little Book That Builds Wealth by Pat Dorsey

The Little Book That Saves Your Assets by David M. Darst

The Little Book of Bull Moves by Peter D. Schiff

The Little Book of Main Street Money by Jonathan Clements

The Little Book of Safe Money by Jason Zweig

The Little Book of Behavioral Investing by James Montier

The Little Book of Big Dividends by Charles B. Carlson

The Little Book of Bulletproof Investing by Ben Stein and Phil DeMuth

The Little Book of Commodity Investing by John R. Stephenson

The Little Book of Economics by Greg Ip

The Little Book of Sideways Markets by Vitaliy N. Katsenelson

The Little Book of Currency Trading by Kathy Lien

The Little Book of Stock Market Profits by Mitch Zacks

The Little Book of Big Profits from Small Stocks by Hilary Kramer

The Little Book of Trading by Michael W. Covel

The Little Book of Alternative Investments by Ben Stein and Phil DeMuth

The Little Book of Valuation by Aswath Damodaran

The Little Book of Bull’s Eye Investing by John Mauldin

The Little Book of Emerging Markets by Mark Mobius

The Little Book of Hedge Funds by Anthony Scaramucci

The Little Book of the Shrinking Dollar by Addison Wiggin

The Little Book of Market Myths by Ken Fisher and Lara Hoffmans

The Little Book of Venture Capital Investing by Louis C. Gerken

The Little Book of Market Wizards by Jack D. Schwager

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.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at [phone], outside the United States at [phone] or fax [phone].

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

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

332.6—dc23

2013045083

To Jo Ann

The most important person in my life

With love