Market Wizards By: Jack Schwager This book is a must read for anybody who is looking to learn something about trading and investing. It covers various categories - commodities, equities, currencies and bonds. The interviews of the “wizards” are with traders and since the book was published right after the stock market crash of October 1987, they prove to combine to be a very interesting perspective piece.
The book focuses less on the techniques followed by the traders but outlines the perseverance and commitment that each of them had to their jobs. Each interview is preceded by a brief introduction of the trader which is then followed with the details of the interview. Each piece has a conclusion which briefs the Jack’s understanding of the trader’s philosophy. Jack Schwager himself was a commodities analyst; therefore the book deals with commodities traders extensively.
The first and the largest section Futures and Currencies focuses on this. The book encompasses interviews with stock market stalwarts such as Michael Marcus and his protégé Bruce Kovner. Larry Hite instructs how not to play with the markets which is an exciting read. On the stocks and index trading, interviews with William O'Neil and his protégé David Ryan coupled with US champion Marty Schwartz (several times) are stellar.
Since the book features the traders psyche through the crash of 1987, it has gained historical importance. Although some of the techniques are outdated the philosophy of trading remains unchanged through centuries, which is captured extensively by Jack Shwager. This is a great read for anyone trying to gain a broader understanding of the market or who is interested in the history of finance.