The New Market Wizards: Conversations with America’s Top Traders
By Jack D. Schwager (HarperBusiness, 1994)
In his follow up to the critically acclaimed international bestseller, Market Wizards, Jack D. Schwager returns to pick the brains of America’s top trading gurus; to glean the type of information you would have to work in the financial industry for a lifetime to attain.
The author, Jack D. Schwager is a well-known hedge fund portfolio manager and public speaker specializing in analytics for the financial industry. He holds a BA in economics from Brooklyn College as well as an MA from Brown University, and is currently the co-portfolio manager for the ADM Investor Services Diversified Strategies Fund.
In this volume, Schwager delves into the psychology of the world’s star financial minds analyzing what works and sometimes equally important, what doesn’t; so you may apply their winning methods to your capital management.
- Part I Trading Perspectives discusses trading from a global perspective, offering up anecdotes for misadventures in trading as well as a Hussein allegory
- Part II The World’s Biggest Market, contains an interview with Bill Lipschutz, The Sultan of Currency
- Part III contains particularly useful information for the trader looking to play the long game, entitled Futures, it contains long-term strategies looking towards the future of emerging markets as well as new investment opportunities traders should keep their eyes out for. Monroe Trout outlines The Best Return that Low-Risk can Buy, While Al Weiss offers up a more personal look at interpreting financial trends in The Human Chart Encyclopedia.
- Fund Managers and Timers makes up part IV of the book offering advice on Bottom-up, and top-down investing strategies. Gil Blake gives tips on becoming a consistent money manager, Victor Sperandeo closes the chapter with valuable council on the nature of aging markets
- Part V is all about Multiple Market Players, delving into the more esoteric strategies of Wall Streets elite as they take some slightly unorthodox approaches to carving out their names in competitive markets.
- The Money Machines will be of particular interest to aspiring traders with backgrounds in mathematics and physics; Part VI of the book covers market theories, mathematical strategies, as well as constructive ideas interpreting the market as a machine.
- Part IV of the book offers insight you are unlikely to find in any other source, as it discusses The Psychology of Trading equipping the reader with the proper mindset for success in the financial world
- Part VII, The Closing Bell, offers a nice bookend on the piece, putting lessons from the book into a digestible index as well as some reflection on the lessons from the author.
A quick search of the book’s title will find the investigative researcher face-to-face with glowering reviews from like-minded readers, while Futures Industries deemed the title “required reading.”
In summation, The New Market Wizards is a stunning volume in the Market Wizards cannon, and a valuable addition to any reader looking to add a little magic to their capital management game.
Reviewed by: William Oscar Updyke