Winning Methods of the Market Wizards – Jack Schwager

Below is a nice intro to a seminar in which Mr. Schwarz (author of Market Masters) proposes to introduce traders to the methods and mindsets of the traders who have been supremely successful in making money from the markets.  He’s not talking about the guys who make money selling books about how to succeed in the market (though at least one he mentions has done that); he’s talking about the guys who put real money on the line in real trades and bring home really astounding profits.

In an effort to debunk the idea that there is a ‘magic’ method or formula to conquering the markets, Schwager highlights three different traders:

These individuals each have a very different approach to the markets (even to the point of denigrating each others’ style!), yet each is enourmously wealthy because of those distinct approaches.

It seems the biggest distinction in how these three trading titans approach the market is this: Jim Rogers is about as purely focused on fundamentals as you can be, while Misters Schwartz and Marcus rely almost exclusively on technical charts.  Schwager shares the story in which Rogers tells him, “I never met a rich technical trader . . . except the ones who sell their services”.  That always gets a big laugh, but it’s countered by Schwartz who calls that arrogant BS, and who tells us (through Schwager) that he was a fundamental trader on Wall Street for 10 years, and lost money every year.  Now that he relies on technical analysis he is making millions of dollars.  Talk about divergent world/market views!

Of course, this is part of the challenge AND fun of trading – whether stocks, options, futures or currencies – there is no one way to make money.  It is up to us as tuned in traders to create our own path to bringing home the bacon.

This intro continues in two more video clips: xxxxxx and xxxxxx.  See what else this influential writer and trader has to say about market mastery.