![]() The most important thing is money management, money management, money management. Then, the last words I have at the bottom of the page are: Work, work, and more work. When T-bonds and T-bills differ in respect to their individual relationship between price and the moving average-one above the moving average, the other below-have no position until one confirms the direction of the other. My biggest losses have always followed my largest profits. ![]() So, after a strong run of profits, I try to play smaller rather than larger. ![]() I’ve had periods where I can be profitable for twelve days in a row, but eventually you just get battle fatigue. I’ve found it difficult to sustain excellent trading for more than two weeks at a time. Those are the types of divergences I always look for.īefore putting on a position always ask, “Do I really want to have this position?”Īfter a successful period, take a day off as a reward. Has a stock held above its most recent low, when the market has penetrated its most recent low? If so, that stock is much healthier than the market. I try not to go against the moving averages it is self-destructive. Is the price above or below the moving average? That works better than any tool I have. I always check my charts and the moving averages prior to taking a position. The following excerpts from Market Wizards focus on Schwartz’s trading rules and his advice to traders.įrom time to time, you have alluded to your trading rules. Nine of these were four-month contests in which he averaged a 210% return nonannualized! In his single one-year contest, he scored a 781% return. During this period, he had entered ten public trading contests. Schwartz took pains to point out that his two worst months-losses of 3% and 2%-were the months his children were born and he was unavoidably distracted. In Market Wizards, the first book of the series, Schwager interviewed Marty Schwartz, a short-term technical trader who had run a $40,000 account into over $20 million while never realizing a drawdown of more than 3% (based on month-end data) in the process. ![]() A new never before seen video recalling this interview will be hosted to FundSeeder later this week. The following is an excerpt from Jack about Marty Schwartz. The Market Wizards series is a collection of books written by Jack Schwager that captures the philosophies, traits, experiences, and advice of great traders, seeking to draw out lessons that could help all traders from novices to professionals. ![]()
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