Market Wizards: The Next Generation
I think Market Wizards: The Next Generation is the third book in Jack Schwager’s Market Wizards series that I’ve read. Whilst not a trader myself, I’ve always enjoyed gaining a better understanding of how the various traders featured in these books operate. There are common traits that emerge throughout the interviews, but each trader also brings their own unique approach, making for consistently fascinating reading.
For anyone unfamiliar with the series, the structure is simple. Each chapter focuses on an individual trader, opening with a brief overview before moving into an interview format. Some traders are identified by name, whilst others prefer to remain anonymous. Each chapter concludes with a summary of the key lessons and observations.
What I enjoy most about these books is that whilst an interest in markets may be what initially draws you in, they are just as much books about mastery as they are about trading.
The traders featured all employ different methods, styles and philosophies, but what unites them is that they’ve managed to solve the puzzle of sustained success in an extraordinarily difficult field. More importantly, the interviews reveal what sits beneath that success. Discipline, persistence, self-belief and a commitment to refining their craft.
One of the recurring themes throughout the book is that very few of these traders experienced a smooth path. Many endured significant setbacks, with nearly all blowing up one or in several cases many of their trading accounts, before eventually finding an approach that worked for them.
This also helps the book, and the wider Market Wizards series, serve as a useful reality check for anyone considering trading as a profession.
There are countless courses, books and videos promising an easy path to trading success. What Schwager’s interviews reveal is something far less glamorous but far more realistic. Whilst the traders featured have achieved exceptional results, they’ve also invested enormous amounts of time, effort and emotional resilience into getting there.
Some books require concentration to work through, whilst others feel effortless. I've always found the Market Wizards books fall firmly into the latter category. Perhaps that's because I'm naturally drawn to stories of mastery and peak performance, but I suspect much of it comes down to Schwager's skill as an interviewer and his ability to draw out the lessons behind the achievements.
Another worthy addition to the series and one that earns its place in the library of traders, investors and anyone interested in what it takes to become exceptional at game many fail at.
Who’s It For?
If you're interested in getting into trading, this is worth reading simply to understand what the journey from amateur to professional can actually look like. Not necessarily because you'll achieve the same level of success as the traders featured, but because it provides an honest picture of the commitment required and the blow ups likely to occur along the way.
If you’re an experienced trader you’ll no doubt enjoy hearing from others who have excelled in their field.
Even if you're primarily an investor rather than a trader, there's still plenty to take away. The lessons around discipline, persistence, decision making and mastery extend far beyond the world of trading itself.