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Mike specifically what was challenged in latest book was my view that discretionary traders will ultimately fail. Gulp-swallow my pride. I am a mechanical trader and do not see that changing because it fits me. I have done discretionary and some of my weaknesses it exploits in a way that I realize I am not wired for it. But my bias is that everyone will ultimately fail that is discretionary but this book indirectly challenged that premise. In the book there are Hedge Funds using both discretionary and mechanical with long term successful results. The results cannot be challenged easily because they are over a long period of time and his criteria is very thorough for each person whose interview made it into the book. One particular fund runs part of their capital mechanical and part discretionary and both are successful which was really interesting. Lets just say this was a great slap in the face. I like my bias to be kicked around with hard data which lends itself to my mechanical side.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
Have not read the book, but I've heard this many times before and I always looked at it like gambling in a casino. A lot of people say trading is a zero sum game, but really, it's more like Roulette with zero and double zero - or worse (slippage and commissions, not even including HFT or insider info, etc).
This means the more you play, the more likely you are to eventually go broke.
Was talking to some people recently and wanted to ask this question. First, some info.
When I started trading full time I very much had goals in mind. The goals are basically identical today as they were then, which is to accumulate enough money …
Which was basically asking the question: "When is enough, enough??". Personally, I have an exit strategy. It does not mean I will completely stop trading, because that is my passion. But it does mean that I will change trading from a profession to a hobby, and I will consider myself retired, at some point in my career when I have reached my goals.
I also think you have to constantly evolve in this profession. What worked last year probably doesn't work this year, it requires subtle changes as the markets are always changing.
Was there a particular interview where this was discussed? Or was this Jack's assessment?
@Big Mike Jack does not make to many of his own assessments in the book. What he does is ask great questions and lets things come out then summarizes at the end of each chapter the major points. So that is why I mentioned it challenged my bias indirectly. There were specific chapters that hit my bias more than others. Although I cant recount which ones specifically. One particular fund that does both systematic mechanical and discretionary really got my attention.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
@Big Mike that is another take away from the book "on evolving as the market evolves". It made me really take a look at how I can do that as a mechanical trader. I have hard fast rules but there are ways I am looking at systematically changing as the market changes. Instead of my mechanical system just dying eventually can I make small incremental adjustments to my rules but at the same time not over tweak that keep it valid for longer time frame? I believe I can but will take some work.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
Absolutely love the market wizards books! My situation is just like big mike when i first read the book, I was not ready and over the years as i progress along my trading journey, the books became my anchor and I continuously refer back to the book for advice.
Question for Jack: Out of all the traders that you interviewed, which trader has the most lasting impression on you and why?
Another question for Jack: As I enjoy your latest book very much, do you intend to write the 5th market wizard book? If not, why so? If yes, what would be the likely theme?
Question: I am surprised that Al Brooks, Lance Beggs or Mike Reed were not interviewed in any of the books. I am curious as to why: didn't meet you criteria or declined?