042: How to Become a Stock Market Wizard – Jack Schwager

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I was looking for the holy grail of investing, this secret formula that would make me millions… 

So, I read the legendary book Market Wizards by Jack Schwager.

I didn’t find the holy grail, but what I did find was so much more.

I was fortunate enough to talk with Jack on all of the key lessons that he has learned interviewing the worlds best investors over the last few decades, and his latest installment to the Wizards series, The Little Book of Market Wizards.

If you’re in the investing world in any capacity, or you want to be, this is a must-listen episode. 

In This Podcast, You’ll Learn:

• The myth of the ‘holy grail’ of investing.
• Some common characteristics of the most successful investors of all time.
• Where failure fits into these stories of the greatest successes.
• Why there should be no adrenaline rush with good trading.
• The most important aspect of successful investing, bar none.
• The best advice Jack ever received.
• How to position size correctly.
• Why you must admit that you’re wrong, and what the best do about it.
• The importance of avoiding emotional trading.
• How the average Joe can get discovered for his trading skills.
• And much, much more! 

Contact Jack:

• Books on Amazon, including The Little Book of Market Wizards
  
• JackSchwager.com
• FundSeeder.com

I absolutely love what Jack did in the middle of our discussion. He made it absolutely clear on what the most important aspect of trading is: risk management.

Even though I didn’t find this holy grail when I read his first book, I did find out a few things: there are a ton of different styles and strategies that will work, you just have to find something that fits your personality, and the common denominator among these legendary investors is their focus on risk management.

As Larry Hite says, “By risking 1%, I am indifferent to any individual trade. Keeping your risk small and constant is absolutely critical.” And… “You can’t win if you don’t bet and you can’t bet if you lose all your chips.”

You have to manage your risk so you can keep betting!

Action Items:

• Read Jack’s book! It is simple, straight forward and full of great tips. I’m a big fan of all of those things. 🙂
• Focus on risk management. This is something that we’ll be helping people in our Mastermind really do, so be sure to join us or email me if you have any questions. As you heard Jack say, this is absolutely the most important thing!