I have been consuming quite a few trading books recently so have taken the opportunity to write my own trading book reviews.
The New Market Wizards by Jack D. Schwager is a compelling and insightful window into successful traders. For those wondering, it is called the New Market Wizards because this is a sequel. I should have read the original first but for whatever reason I started with this version. Before I get into the detail about the sequel, it is probably worth noting that I have already ordered a copy of his first book and I am waiting for everyones favourite online delivery company to deliver it.
Schwager delves into the minds of some of the most successful traders and investors, offering readers a glimpse into the strategies, mindsets, and philosophies that have propelled these market wizards to financial success. After all, that is why everyone who trades or are interested in trading buy this book isn't it? We want to know if there are some secrets that we haven't implemented within our own trading.
One of the book's greatest strengths is its diversity. Schwager interviews a wide range of market participants, including futures traders, stock traders, and those involved in other financial instruments. Each interview provides a unique perspective on the markets, demonstrating that there is no single "right" way to trade. This variety will make the book valuable to both novice and experienced traders, as it shows that success can be achieved through different methods, depending on one's personality, risk tolerance, and market understanding. For me, showing that there is no right or wrong in trading provides a lot of comfort. It's interesting to read that some of these legends believe that you have to match your personality with a suited trading style.
The conversational style of the interviews makes the book an engaging read. Schwager clearly has a knack for asking the right questions, often probing deeper into the thought processes and decision-making strategies of his subjects. The interviews are not just about trading techniques but also delve into the psychological aspects of trading, such as handling losses, dealing with market stress, and maintaining discipline. These insights are particularly valuable, as they highlight the often-overlooked importance of psychology in trading success. I have certainly taken a few very valuable nuggets to use in my own trading psychology.
Due to the structure of the book it is easy to pick it up and put it down as each interview is a new chapter. It is not like one of those books where you would have to continuously keep reading it so as to not lose your place. That being said, I read the entire book over a few days as I was continuously wanting to learn more from these legends and with each chapter there was always a takeaway or an ahhh moment.
Another notable aspect of The New Market Wizards is its timelessness. Despite being published in the early 1990s, many of the lessons and principles discussed in the book are still relevant today and if you are an active trader, I can assure you that you will be able to relate to a number of the lessons being outlined that some of these traders provide. The markets may have evolved, but the underlying principles of successful trading—discipline, risk management, and continuous learning—remain constant.
However, the book is not without its drawbacks. Some readers may find that the interviews occasionally become repetitive, as certain themes and advice recur throughout. The book provides a wealth of information and inspiration but if you are looking for trading systems it does not offer a step-by-step guide on any specific trading system, which some readers may be seeking.
One really important observation I had about all the interviews in this book was the fact that each and every interviewee, all of which could have retired an age ago were still trading. It showed to me that trading is a lifestyle, a hobby, and more importantly a passion that all of those interviewed clearly had. Trading is a craft for which whoever picks it up wants to keep getting better at it, whether we have made our money or not. Markets and the moves that they make are fascinating and absorbing. For all of us that aspire to be great, a number of us will already have a passion for trading, just like all these market wizards! Isn't that a great start?
Overall, The New Market Wizards is a must-read for anyone interested in trading or investing. Schwager's ability to extract wisdom from some of the best minds in the financial world makes this book a valuable resource, filled with lessons that can help traders of all levels improve their skills and mindset.
Trade Clearly!
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