Market Wizards

Study Notes by Zhipeng Yan

Market Wizards
Interviews with Top Traders
Jack D. Schwager

Part I FUTURES AND CURRENCIES ....................................................................... 2 Michael Marcus: Blighting Never Strikes Twice ........................................................... 2 Bruce Kovner: the World Trader. ................................................................................... 4 Richard Dennis: A Legend Retires ................................................................................. 6 Paul Tudor Jones: The Art of Aggressive Trading ......................................................... 7 Gary Bielfeldt: Yes, They do Trade T-Bonds in Peoria …ver más…

I later used that surfing technique as a desk trader. Although that approach worked real well then, I don’t think it would work as well in today’s markets. 4. The best trades are the ones in which you have all three things going for you: fundamentals, technicals, and market tone. First, the fundamentals should suggest that there is an imbalance of supply and demand, which could result in a major move. Second, the chart must show that the market is moving in the direction that the fundamental suggest. Third, when news comes out, the market should act in a way that reflects the right psychological tone. For example, a bull market should shrug off bearish news and respond vigorously to bullish news. If you can restrict your activity to only those types of trades, you have to make money, in any market, under any circumstances. All my profits come from the trades that met the criteria. The other trades broke even and kept me amused. The thing that saved me was that when a trade met all my criteria, I would enter five to six times the position size I was doing on the other trades. 5. I believe that the era of trend following is over until and unless there is a particular imbalance in a market that overrides everything else. Another exception would be if we were to enter a major inflationary or deflationary environment. One reason we don’t have many good trends anymore is that the central banks are preventing currency moves from