The New Market Wizards

The second instalment of the Market Wizards series brings in names like Stanley Druckenmiller and Linda Raschke. Published in 1992, spanning everything from large-scale macro trading to short-term technical scalping, it continues the interview format of Market Wizards, Schwager's first volume, also in this catalogue.

Each chapter goes a bit deeper than the previous book into each trader's actual process: how they build a position, how they adjust it when the market moves against them, and how they decide a trade no longer makes sense. These interviewees have more years behind them when they speak to Schwager, so there is more distance and more self-criticism in their answers.

The thread connecting these traders is again emotional management, not strategy. Druckenmiller runs enormous macro positions; Raschke trades on very short timeframes with mechanical rules. Their markets and horizons differ, but both describe the same discipline when it comes to cutting a trade that isn't working.

If you already read Market Wizards, this second part gives somewhat more concrete tools and interviewees who explain their process more accessibly. It works well whether you're coming from the first volume or starting directly with this one; and if you want to complete the trilogy, this catalogue also has Unknown Market Wizards, focused on retail traders operating without the backing of a large firm.