Jack Schwager is a fund manager, an industry expert in futures and hedge funds and has a number of books to his name. Schwager first book entitled, “A Complete Guide to the Futures Markets (1984)” is considered to be one of the classic references works in the field and it is what put him on the global top investor radar.
His best-selling series of interviews with the greatest hedge fund managers of the last two decades: Market Wizards (1989), The New Market Wizards (1992), and Stock Market Wizards (2001) were also best sellers.
Jack Schwager was a partner in the Fortune Group, a London-based hedge fund advisory firm, which specialized in creating customized hedge fund portfolios for institutional clients.
Schwager was a Director of Futures research for some of Wall Street’s leading firms. He was also the co-principal of Commodity trading advisor (CTA) for 10 years.
Jack Schwager is currently the co-portfolio manager for the ADM Investor Services Diversified Strategies Fund, a portfolio of futures and FX managed accounts.
He is also an adviser to Catalytic Investment Group Pte Ltd, a Singapore-based fund management company, for their multi-manager multi-strategy fund.
Jack Schwager was a Director of Futures research for some of Wall Street’s leading firms
Jack Schwager recommends that traders find an approach that fits their personality. He is an advocate of using both technical and fundamental analysis in decision making.
The first rule is to “know when you are getting out before you get in”, according to Schwager. “You have to have a plan to get out before you get in,” he adds. Jack Schwager recommends that traders don’t marry their positions.
Loyalty is your enemy in trading. “Loyalty is good with family and pets the but for trading, you want to be the most disloyal person around. If there is any reason you don’t believe in something get out immediately” said Schwager.
“The real market wizards will not only get out they will trade the other way”, adds Schwager.
What about trading software?
“I come from the school where you don’t want to design things specifically for a market because you’ll get stuff that did great in the past only to breakdown in the future”.
The real market wizards will not only get out they will trade the other way – Jack Schwager
Jack Schwager has written several trading, finance related books such as; “A Complete Guide to the Futures Markets” (1984), “Market Wizards” (1989), “The New Market Wizards” (1992), “Getting Started in Technical Analysis” (1999) and “Stock Market Wizards” (2001)
Schwager is also the creator of new technical indicators.
Three of his most recent proprietary tools include the Trend Weight (TW), Overbought/Oversold Weight (OOW) and the Directional Weight (DW) indicators.
The Trend Weight combines short, intermediate and long-term trend signals into a single composite number. The OOW is intended to reflect when the trend may be getting extreme and more vulnerable to reversal. The OOW will build gradually (with opposite sign) as the trend progresses and you’ll as a counterweight to TW. Finally, the Directional Weight (DW) is the addition of the TW and OOW.
The DW will typically initially increase in an up trending market but then begin to decrease as a growing OOW (of opposite sign) begins to outweigh further increases in TW.
Jack Schwager is a partner of TradeShark software, which is investment analysis software.
He has lectured on a range of analytical tools and commented on the characteristics of great traders.
Loyalty is good with family and pets the but for trading, you want to be the most disloyal person around. If there is any reason you don’t believe in something get out immediately – Jack Schwager
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