Portfolio Boss

Favorite Trading Book Recommendations

Corona Del Mar, CA


Howdy Friend!


I was reading some book reviews on Amazon. Many are now recommending that people just go look up the subject on YouTube. So I did, and when it comes to trading -- BIG MISTAKE!


Go on YouTube and type in "how to backtest a trading strategy." The first video has hundreds of thousands of views, and is of a guy backtesting by eye. That's nuts. It only goes downhill from there as I scrolled down the page.

So what's the best way to learn how to trade?


To learn from veteran traders who have been there, done that.


For anyone who is serious about trading, the Market Wizards series of books by Jack Schwager is an essential read. These books offer invaluable insights and lessons from some of the most successful traders of our time.


By interviewing traders who have achieved outstanding results, Schwager provides readers with a glimpse into the minds of these extraordinary individuals, and offers a unique perspective on what it takes to succeed in the world of trading.


One of the key benefits of the Market Wizards books is that they provide a wealth of real-world examples of successful traders and their strategies. These traders come from a diverse range of backgrounds, have different personalities and approaches to trading, and use a variety of strategies to achieve success.


As a result, by examining the strategies and techniques of these traders, readers can gain insights into what works and what doesn't, and how to apply these lessons to their own trading.

Paul Tudor Jones: The Billionaire


For example, in the first Market Wizards book, Schwager interviews legendary trader and hedge fund manager, Paul Tudor Jones. He is famous for his macroeconomic approach to trading, and for his ability to profit from major market trends.


(And infamous from his appearance in the documentary "Trader"...in which he seems to be trading on pseudoscience: Elliott Wave Theory).


In his interview with Schwager, Jones emphasizes the importance of having a clear trading plan, and the discipline to stick to that plan, even when things get tough.


He also talks about the importance of managing risk effectively, and of constantly reviewing and refining your trading strategies.

Michael Marcus the Trading Stud with Homes Across the World


In the same book, Schwager also interviews Michael Marcus, who is another legendary trader and hedge fund manager. Marcus began his trading career with only $30,000, and went on to make millions of dollars in profits.


In his interview with Schwager, Marcus emphasizes the importance of having a long-term perspective, and of being willing to make mistakes and learn from them. He also talks about the importance of having a positive mindset, and of being willing to take calculated risks.

Bruce Kovner: The Billionaire Trend Follower


In the second Market Wizards book, Schwager interviews traders such as Marty Schwartz, known for his expertise in technical analysis, and Bruce Kovner, who is one of the most successful trend-following traders of all time.


In his interview, Schwartz emphasizes the importance of understanding market psychology and being able to read market indicators (not really my cup of tea because it's not repeatable, and therefore not science).


Kovner, on the other hand, talks about the importance of managing risk and keeping emotions in check. He was quite lucky right out of the gate, but nearly blew up on a soybean trade.


One of the things that makes the Market Wizards books so valuable is the fact that they offer a range of perspectives on trading.


By examining the strategies and techniques of traders from different backgrounds and with different approaches to trading, readers can gain a broader understanding of the markets and what it takes to succeed.


The Market Wizards series of books by Jack Schwager is an invaluable resource for anyone who is serious about trading. By examining the strategies and techniques of some of the most successful traders of our time, Schwager provides readers with insights and lessons that can be applied to their own trading.


Whether you are a beginner or an experienced trader, the Market Wizards books are an essential read, and can help you to take your trading to the next level. I've made a list of traders that were interviewed in four of his books at this end of this newsletter. Jack Schwager is also the co-founder of Fundseeder where they match investment money with breakout traders.


Longtime Portfolio Boss member Josh Jarrett has been tearing it up over there, placing in what looks to be the Top 5 out of tens of thousands.


Here's his audited performance:

What's his secret?


It's not drawing lines on charts, I can tell you that. It's not trend following. He's not using any of the 100 technical indicators you can use in off the shelf software.


He's certainly not using the news to generate trades. I'll talk more about how he got to the top in a future update.

Trade smart,

Dan "Prince of Proof" Murphy


Market Wizards: Interviews with Top Traders (1989)


Michael Marcus
Bruce Kovner
Richard Dennis
Paul Tudor Jones
Ed Seykota
Marty Schwartz
Tom Baldwin
Tony Saliba
William O'Neil
Gary Bielfeldt

The New Market Wizards: Conversations with America's Top Traders (1992)


Michael Steinhardt
William Eckhardt
Richard Dennis
James B. Rogers Jr.
Ed Seykota
Marty Schwartz
Tom Baldwin
Paul Tudor Jones
Gary Bielfeldt
Bruce Kovner
Van K. Tharp
Joel Greenblatt
Blair Hull
Michael Lauer
Mark Weinstein

Stock Market Wizards: Interviews with America's Top Stock Traders (2003)


David Ryan
Mark Cook
Mark Minervini
Jim Rogers
William O'Neil
Dr. Alexander Elder
Gil Blake
Linda Bradford Raschke
Tom Basso
James P. Lewis
Victor Sperandeo
Laurence A. Connors and Linda Bradford Raschke
Dr. Van K. Tharp

Hedge Fund Market Wizards: How Winning Traders Win (2012)


Ray Dalio
Colm O'Shea
Edward Thorp
Jaffray Woodriff
Jamie Mai
Michael Platt
Steve Clark
Martin Taylor
Joe Vidich
Kevin Daly
Jimmy Balodimas
Scott Ramsey
Joel Ramin
Brad Rotter

Disclaimer: The results listed herein are based on hypothetical trades. Plainly speaking, these trades were not actually executed. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under (or over) compensated for the impact, if any, of certain market factors such as lack of liquidity. You may have done better or worse than the results portrayed.

Insert Image
Insert Image

Related Articles