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Explains how to apply the methods and traits of high-level, successful traders in investment strategies, describing how to stay positive in down markets, the dangers of overtrading, and how to conduct a self-analysis to find the best personal trading method.
List of contents
Foreword by Peter L. Brandt xi
Preface xv
Chapter One: Failure Is Not Predictive 1
Chapter Two: What Is Not Important 9
Chapter Three: Trading Your Own Personality 15
Chapter Four: The Need for an Edge 23
Chapter Five: The Importance of Hard Work 27
Chapter Six: Good Trading Should Be Effortless 35
Chapter Seven: The Worst of Times, the Best of Times 41
Chapter Eight: Risk Management 47
Chapter Nine: Discipline 61
Chapter Ten: Independence 69
Chapter Eleven: Confidence 73
Chapter Twelve: Losing Is Part of the Game 77
Chapter Thirteen: Patience 83
Chapter Fourteen: No Loyalty 93
Chapter Fifteen: Size Matters 103
Chapter Sixteen: Doing the Uncomfortable Thing 115
Chapter Seventeen: Emotions and Trading 125
Chapter Eighteen: Dynamic versus Static Trading 135
Chapter Nineteen: Market Response 145
Chapter Twenty: The Value of Mistakes 157
Chapter Twenty-One: Implementation versus Idea 163
Chapter Twenty-Two: Off the Hook 167
Chapter Twenty-Three: Love of the Endeavor 173
Appendix: Options--Understanding the Basics 177
Notes 185
About the Author 189
About the author
JACK D. SCHWAGER is a recognized industry expert in futures and hedge funds and the author of a number of widely acclaimed financial books. He is currently a principal of PortfolioFit (portfoliofitadvisors.com), an advisory firm that specializes in constructing tailor-made futures and FX managed account portfolios for clients, and the co-;portfolio manager for the ADM Investor Services Diversified Strategies Fund, a portfolio of futures and FX managed accounts. Mr. Schwager is also one of the founders of Fund Seeder (Fundseeder.com), a platform designed to find undiscovered trading talent worldwide and connect unknown successful traders with sources of investment capital.
Mr. Schwager is the inventor of the Jack Schwager Commodity Index (JSCI) family, a set of dynamically adjusted commodity indexes that incorporate spread structure, systematic inputs, and volatility-based risk adjustments. The indexes are scheduled to be launched in early 2014 in cooperation with Aquantum AG and UBS.
Mr. Schwager is perhaps best known for his best-selling series of interviews with the greatest hedge fund managers of the last three decades:
Market Wizards (1989),
The New Market Wizards (1992),
Stock Market Wizards (2001), and
Hedge Fund Market Wizards (2012). His latest book
Market Sense and Nonsense, a compendium of investment misconceptions, was published in November 2012. He is also the author of the three-volume
Schwager on Futures series and
Getting Started in Technical Analysis. Mr. Schwager is a frequent seminar speaker and has lectured on a range of analytical topics including the characteristics of great traders, investment fallacies, hedge fund portfolios, managed accounts, technical analysis, and trading system evaluation.
Summary
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? This book deals with these questions.
