Where to Start with Jack Schwager: A Reading Guide
Where to start with Jack Schwager — how to approach Market Wizards, his landmark interview series with the greatest traders of the modern era. A complete reading guide.
By Marcus Webb
Jack Schwager (born 1948) is an American commodity trading advisor, researcher, and author who spent decades working in futures market analysis before writing the interview series that became Market Wizards (1989). The book grew from a simple question: what distinguished traders who produced consistent, extraordinary results from those who did not? Schwager’s answer — gathered through extended conversations with seventeen of the most successful traders of the era — was not a single system or insight but a consistent set of disciplines that cut across radically different approaches. Market Wizards became the most widely read book in trading literature and led to a series of follow-up volumes covering different eras and trading styles.
Where to Start: Market Wizards (1989)
The essential Jack Schwager — and the most influential book in trading literature. Market Wizards begins from a counterintuitive premise: if you want to understand what makes traders successful, talk to the traders. This sounds obvious. In practice, most market literature consists of theoretical models, quantitative analysis, or anonymous case studies — sources that systematically exclude the specific human thinking and psychological reality behind the results. Schwager’s innovation was to pursue the people themselves and ask them, in extended interviews, how they actually think and operate.
The seventeen traders he interviews represent a wide range of approaches: Michael Marcus, who turned $30,000 into $80 million in commodities; Bruce Kovner, who manages billions in global macro; Richard Dennis, who trained the “Turtle Traders” to test whether his system could be taught; Paul Tudor Jones, who famously called the 1987 stock market crash; Ed Seykota, a trend follower who trades from a ranch in Nevada and has compounded at extraordinary rates for decades. Their methods differ in almost every specific: time horizon, markets traded, analytical approach, position sizing. What they share is another matter.
The consistent principles that emerge from radically different systems are the book’s essential insight, and they are more credible precisely because of the diversity of their sources. Every trader in the book manages risk strictly — cutting losses quickly, never allowing a single losing position to materially damage the portfolio, distinguishing between the risk you have accepted and the risk you have not noticed. Every trader lets winners run while exiting losers quickly. Every trader has developed the psychological discipline to act on their system when the market’s immediate signals feel contrary — to trust the process rather than the moment.
Ed Seykota’s chapter is widely considered the book’s most philosophically complete section. Seykota is a trend follower but also, unusually among the traders Schwager interviews, someone who has thought carefully about the psychology of trading and who has arrived at some uncomfortable conclusions. His observation that everyone gets what they want from the market — including the consistent losers, who may want the excitement, the self-punishment, or the drama — is the deepest psychological insight in the book, and it applies beyond trading.
The interview format has limitations that Schwager acknowledges. These are the traders’ own accounts of their thinking and trading — partial, retrospective, and inevitably shaped by the self-image each trader wishes to project. No one fails coherently in their own narrative; the losses are acknowledged but contextualised. Reading multiple interviews in succession provides calibration: the shared principles that emerge despite individual self-presentation are more reliable than any single trader’s explanation of why they succeeded.
Reading Jack Schwager
Market Wizards is the essential starting point and stands alone. Readers who want more should continue with The New Market Wizards (1992) and Hedge Fund Market Wizards (2012), which cover later generations of traders with updated market contexts.
For the full Jack Schwager bibliography, reviews, and biography, visit the Jack Schwager author page on Editors Reads.
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Frequently Asked Questions
Where should I start with Jack Schwager?
Market Wizards (1989) is Schwager's essential book — seventeen extended interviews with the most successful traders of the 1970s and 1980s, including Paul Tudor Jones, Bruce Kovner, Richard Dennis, and Ed Seykota. Each trader has a different system and approach, which makes the consistent principles that emerge across all of them — strict risk management, cutting losses quickly, psychological discipline — more credible than any single trader's advice. It is the most influential book in trading literature.
What is Market Wizards about?
Market Wizards presents Schwager's interviews with seventeen elite traders — futures traders, macro traders, trend followers, and technical traders — each explaining their approach, their edge, their psychology, and their most instructive failures. The interview format allows each trader to explain their actual thinking rather than a condensed or PR version of it. The book's central discovery is that traders with radically different methods share a consistent set of disciplines: cut losses quickly, let winners run, never risk more than you can afford to lose psychologically, and maintain the discipline to act on your system when it feels wrong.
Do I need trading or market knowledge to read Market Wizards?
Some familiarity with how financial markets work is helpful but not required. Schwager writes for a general reader willing to learn: the technical concepts are explained in context, the historical market situations are sketched with enough background to be comprehensible, and the psychological and philosophical content — which is the most durable part of the book — is universally accessible. Readers with no market experience will get less from the specific trading discussions but still benefit from the thinking about risk, discipline, and decision-making under uncertainty.
What should I read after Market Wizards?
After Market Wizards, Schwager's New Market Wizards (1992) and Market Wizards (updated) continue the interview series with a new generation of traders. Edwin Lefèvre's Reminiscences of a Stock Operator is the foundational trading classic, the fictionalised biography of Jesse Livermore — a trader whose insights about market psychology predate Schwager's subjects by half a century but remain remarkably current. For the psychology of trading specifically, Mark Douglas's Trading in the Zone is the most focused treatment of the mental discipline that Schwager's wizards all cite.
