Trading Lessons From Market Wizards - MUST READ

What if you could read the principles for success for some of the world's greatest traders? Well you can, here is how author Jack Schwager summed up the the similarities of the 'Market Wizards' he spent years interviewing in his books. I Have prepared a PPT- contains trading gems , which can be downloaded from this link :Download Link

Snippets are here 


  1.  It Is Absolutely Necessary To Have An Edge :You can't win without an edge, even with the world's greatest discipline and money management skills. If you don't have an edge, all that money management and discipline will do for you is to guarantee that you will gradually bleed to death. Incidentally, if you don't know what your edge is, you don't have one.
  2. Money Management and Risk Control
    Money management is even more important than the trading method. The Trading Plan
    * Never risk more than 5% of your capital on any trade.
    * Predetermine your exit point before you get in a trade.
  3. Trying to win in the markets without a trading plan is like trying to build a house without blue prints - costly (and avoidable) mistakes are virtually inevitable. A trading plan simply requires a personal trading method with specific money management and trade entry rules.
  4. Whether you win or lose, YOU ARE RESPONSIBLE for your own results. I've never met a successful trader who blamed others for his losses.
  5. The Need For Independence
    You need to do your own thinking. It also means making your own trading decisions. Never listen to other opinions.
  6. Losing is Part of the Game
    The great traders realize that losing is an intrinsic element in the game of trading. This attitude is linked to confidence. Because exceptional traders are confident that they will win over the long run, individual trades no longer seem horrible; they simply appear inevitable.
  7. The Importance of Varying Bet Size
    It can be mathematically demonstrated that in any wager game with varying probabilities, winnings are maximized by adjusting the bet size in accordance with the perceived chance of a successful outcome. 
  8. Being Right is More Important than being a Genius
    Think about winning rather than being a hero. Go for consistency on a trade-to-trade basis, not perfect trades.
  9. Hope is a Four-Letter Word
    Hope is a dirty word for a trader, not only in regards to procrastinating in a losing position, hoping the market will come back, but also in terms of hoping for a reaction that will allow for a better entry in a missed trade.
  10. You Can't Win If You Have To Win
    "Scared money never wins". If you are risking money you can't afford to lose, all the emotional pitfalls of trading will be magnified. The market seldom tolerates the carelessness associated with traders born of desperation.
Thank You !!

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