EP 027: @JackSchwager shares the key lessons learned from many of the worlds greatest traders

Aaron Fifield Podcast 15 Comments


The chances are you’re already very familiar with this weeks guest, and if you’re not – then I’ll have to presume you’re new to the realm of trading.

Jack Schwager is the author of a number of widely acclaimed financial books, including the timeless Market Wizards series – commonly referred to as all time favourites by many of our past guests.

As well as a bestselling author, Jack is widely recognised as an industry expert on markets, hedge funds and trading advice. He’s also the co-founder of FundSeeder; a platform designed to find undiscovered trading talent, and connect successful traders with capital from investors.

During the interview we discuss Jack’s lifetime involvement with markets, some of the key lessons he learnt firsthand from interviewing many of the worlds greatest traders, and so much more…

I hope you enjoy this interview, as much as I enjoyed hosting it. It was an absolute honour to speak with Jack for almost 90 minutes.

“There’s a million ways to make money in the markets, unfortunately they’re all very difficult to find.”

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“Look for the trading method that’s right for you, and it’s not going to be the same for everybody.”

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“Know where you’re getting out before you get in.”

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Lessons learnt in this interview:

  • What inspired Jack to write his first book ‘A Complete Guide to the Futures Markets’, and how the idea for the Market Wizards series came to life.
  • Jack expands on the reasons why markets are not random, and why he firmly stands by this statement – also elaborating on the ‘Efficient Market Hypothesis’.
  • Does the same opportunity exist in today’s markets as it did for the Market Wizards? Jack shares his thoughts on this topic, and a concept that explains why the majority of traders must lose money.
  • The story of Michael Marcus – how he overcame disastrous beginnings and multiple failures, before trading a $30,000 account to $80,000,000 in 12 years. Jack regards Michael as one of the most successful traders of all time.
  • Why it’s essential to be flexible in every way, and why great traders have no trouble exiting a position in the wrong direction, to flip it and go the other way.
  • The one trader Jack interviewed who breaks all the rules – Jimmy Balodimas. Why this trader does everything you’re not supposed to do yet still manages to make huge profits each year.
  • Trading Methods: Simple vs. Complex. Jack highlights why there’s no correct answer, as some trading methods require complexity to tease out the edge, and without it they would not succeed. This comes back to, finding a method that meshes with your personality.
  • How Jack defines a trading edge, and why the best money management in the world is worthless without an edge.
  • Why every traders needs to be aware of the ‘Well-Chosen Examples’ – this is one of Jack’s pet-peeves.
  • How FundSeeder is building a platform to find undiscovered trading talent around the globe, and eventually connect them with capital from outside investors.
  • The advice ‘know where to get out before you get in’, very well could be some of the greatest wisdom Jack received during his interviews. While this is very simple, he shares the two key reasons why this should not be overlooked.
  • And much, much more…

Links and resources mentioned:

  • Market WizardsInterviews with Top Traders. The first installment of the Mark Wizards series, includes the full story of Michael Marcus which Jack discussed during the interview.
  • The New Market WizardsConversations with America’s Top Traders. Another classic, documenting the story and insights of legendary traders.

  • Hedge Fund Market WizardsHow Winning Traders Win. The most recent installment of the Market Wizards series, and also recommended as a must read by numerous guests featured on the CWT podcast.
  • Market Sense and NonsenseHow the markets really work, and how they don’t. This is Jack’s most recent book, which challenges assumptions and exposes common investing myths.
  • FundSeeder.com – A platform designed to reveal undiscovered trading talent, where traders link to their broker and display a track-record of verified trades. Traders also have access to visualization tools to analyze progress.
  • TradeShark.com – For more info on the set of 4 indicators Jack has developed with Tradeshark, here is a link to a series of videos with a deeper explanation.
  • JackSchwager.com – Jack’s personal website where you can find more interviews, articles, books and additional info.
  • @JackSchwager – Also be sure to follow Jack on Twitter to stay up to date with his latest movements.

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