The New Market Wizards

Taps into the minds of today's trading superstars to reveal the secrets of their astonishing success

In these absorbing interviews with star performers in the financial markets, Schwager humanizes the mechanics and psychology behind the trading world in such sophisticated instruments as currencies, stock options, commodity futures, and mutual-fund accounts by individuals, investment firms and group-trading computerized "money machines." One trader focuses on market response to news events, another calculates mathematical probabilities--one even cocks an ear to the noise level on the exchange floor. All rank assiduous research, self-confidence, a specific plan and the courage to cut losses among essentials to success. Few consider their work gambling, but Schwager entertainingly argues that a successful trader needs many of the qualities of a good poker player. Though the subject matter is esoteric, there is much here to attract the general reader, and Schwager appends a "primer" of technical basics.

You may not know their names, but they are the trading elite--a select group of super-money makers whose trading prowess has become the stuff of legend. They are speculators in everything from stocks and bonds to options and commodity futures who make millions--often in a matter of hours--and leave their peers in the dust. In this enthralling sequel to his international bestseller, Market Wizards, Jack Schwager interviews these stars, asking the questions that everyone with an interest in the financial markets would love know the answers to and receiving the kind of frank, occasionally bewildering answers that make this book as much a page-turner as its predecessor.
* Interviews with spectacular winners across the full spectrum of financial markets, revealing how they do it and what, personally, separates them from the herd
* Superstar traders describe the financial strategies behind their phenomenal successes, as well as the painfully instructive lessons learned from their worst losses
* Reveals that, despite their various quirks and differences, all the biggest winners rank diligent research, self-confidence, a specific plan and the courage to cut losses as the keys to winning big
* Throughout, Schwager provides valuable insight and analysis to help put interviewees responses into perspective, and he provides a technical basics primer at the end of the book

Preface xiii
Acknowledgments xv
Prologue: The Jademaster xvii
Part I: Trading Perspectives
Misadventures in Trading 3
Hussein Makes a Bad Trade 13
Part II: The World's Biggest Market
Bill Lipschutz: The Sultan of Currencies 19
Part III: futures-The Variety-Pack Market
Futures: Understanding the Basics 83
Randy McKay: Veteran Trader 87
William Eckhardt: The Mathematician New Market Wizards 121
The Silence of the Turtles 161
Monroe Trout: The Best Return That Low Risk Can Buy 175
Al Weiss: The Human Chart Encyclopedia 207
Part IV: Fund Managers And Timers
Stanley Druckenmiller: The Art of Top-Down Investing 217
Richard Driehaus: The Art of Bottom-Up Investing 247
Gil Blake: The Master of Consistency 269
Victor Sperandeo: Markets Grow Old Too 293
Part V: Multiple-Market Players
Tom Basso: Mr. Serenity 327
Linda Bradford Raschke: Reading the Music of the Markets 345
Part VI: The Money Machines
CRT: The Trading Machine 367
Mark Ritchie: God in the Pits 373
Joe Ritchie: The Intuitive Theoretician 401
Blair Hull: Getting the Edge 425
Jeff Yass: The Mathematics of Strategy 455
Part VII: The Psychology Of Trading
Zen and the Art of Trading 481
Charles Faulkner: The Mind of an Achiever 485
Robert Krausz: The Role of the Subconscious 517
Part VIII: Closing Bell
Market Wiz(ar)dom 543
A Personal Reflection 565
Appendix 567
Glossary 573
Trading Resource Guide 585