Ep. 18: Jack Schwager Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
Michael Covel
4.6 • 732 Ratings
🗓️ 22 May 2012
⏱️ 66 minutes
🧾️ Download transcript
Summary
My guest today is Jack Schwager, an American trader and author. He is the author of the Market Wizard series. His books have remained relevant over the past 25 years, and for many traders they are the best trading books on the shelves today.
The topic is his book Hedge Fund Market Wizards.
In this episode of Trend Following Radio we discuss:
- Some of the commonalities between the many traders Schwager has interviewed, and the lessons that can be gleaned from their diverse approaches
- Schwager's new book opens with a quote regarding the importance of even-mindedness from rock climber Alex Honnold
- How topics seemingly unrelated to trading can contain relevant lessons
- Many of the other traders profiled in Hedge Fund Market Wizards are discussed, including Ed Thorp, Steve Clark, Jaffray Woodriff, and Ray Dalio.
- Schwager's big takeaways from his interviews have been, and the lessons he's learned from talking to some of the most successful traders in the game
- How markets behave differently in different environments
- The importance of asymmetric positive skew trades
- How diversification is the "only free lunch on wall street"
- How Schwager defines risk
- The "gain to pain" ratio
Jump in!
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I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.
To start? I'd like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/
You can watch a free video here: https://www.trendfollowing.com/video/
Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast
My social media platforms:
Twitter: @covel
Facebook: @trendfollowing
LinkedIn: @covel
Instagram: @mikecovel
Hope you enjoy my never-ending podcast conversation!
Transcript
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| 0:00.0 | This is Trend Following Radio, where great thinking comes alive. |
| 0:10.9 | Nobel Prize winners, legendary traders, bestselling authors, and the pros that know what drive us irrational human beings. |
| 0:21.2 | I am your host, Michael Coval. |
| 0:24.0 | Not filtered, raw, honest. |
| 0:27.4 | That's my passion. |
| 0:33.2 | You know, when I think back to my start of trying to get inside the mind of really good traders, |
| 0:42.1 | in the early 90s, there was only really one place to start. |
| 0:45.7 | And I remember picking up the book Market Wizards and reading it and thinking, I understand about half of this. |
| 0:56.3 | Like, it was, you know, it was, it was deceptively dense. And I'm sure a lot of people can still go back and read, uh, market |
| 1:03.5 | wizards and new market wizards and still not understand all the details. Because it's, it's right |
| 1:07.4 | there in front of you, but it's sometimes it's hard to get your arms around. So with that, and I don't think I'm the only person. |
| 1:14.2 | I think that those books really affect an entire generation. |
| 1:18.1 | I mean, those are still today. |
| 1:19.4 | If you haven't read them and you want to try and make money in the markets, what's wrong with you? |
| 1:25.9 | That's my question. |
| 1:26.7 | So I'm lucky today to talk to the gentleman |
| 1:30.4 | that wrote those books, Jack Swager. And Jack has a new book out that I think anybody that liked |
| 1:36.3 | the market wizards and like the new market wizards and like stock market wizards, this one's called |
| 1:41.0 | hedge fund market wizards. You're going to like it. I read it over the weekend. |
| 1:46.0 | It raises all kinds of questions. |
| 1:48.0 | It gets you thinking in the right way. |
| 1:50.0 | And anyways, Jack, thank you for being here on the show today. |
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