MARKET WIZARDS – MICHAEL MARCUS (BY JACK SCHWAGER)

MARKET WIZARDS – MICHAEL MARCUS (BY JACK SCHWAGER)


In the last video we talked about the inventor of the CAN SLIM trading system – William O’Neil. Today, I will present Michael Marcus, a trader who was so successful at one point that he did just as much profit as His trading colleagues …. I mean COMBINED. In his early career, Michael Marcus learned from Ed Seykota, another legendary trader who we talked about earlier in this miniseries. Because Marcus wasn’t always such a great success. During his first few trades, which he executed together with a fellow named John, he expressed his trading activities like this: “Our next trade, in wheat, didn’t work either.” “But after that we went back to corn and that trade worked out better – it took us 3 days to lose our money!” “We were measuring the success by the number of days it took us to lose.” This just goes to prove that everyone must start somewhere and that we basically should be happy that we don’t have so much money when we start out. The most important takeaway that Michael Marcus presents in my opinion is the importance of taking your own decisions when trading. I will add that this goes for any type of investing. Even if you have friends that are great at what they’re doing in the markets, don’t take their advice regarding specific stock picks. Marcus explains it like this: “Every trader has strengths and weaknesses. Some are good holders of winners, but may hold their losers a little too long.” “Others may cut their winners a little too short, but a quick at taking their losses.” “As long as you stick to your own style, you get the good and the bad in your own approach.” “When you try to incorporate someone else’s style you often wind up with the worst of both styles. I’ve done that a lot!” In the end, one must have the courage to hold on to the position and accept the full risk. If you are in a trade because your best friend thinks it’s a good idea, you won’t be able to stick with it in case of adversity. Therefore, you shouldn’t be in that trade in the first place! This is not to be confused though with having someone else managing your money entirely. That could be a good option in some instances. Just realize that if you opt for this strategy, you’ll never be able to become a good investor yourself one day. And since you are watching this channel, I’m hoping guessing that that is what you’re trying to achieve. In the next episode we will study Bruce Kovner, the padawan of Michael Marcus, who at the time of the writing of Market Wizards, had had an astonishing 87% yearly return during the last 10 years. That is crazy! I hope to see you again for that one. Bye for now.

2 Comments

  • The Swedish Investor

    January 16, 2019

    What do you think about buying stocks that friends/analysts/YouTubers recommends? Have you had success with this in the past? Please share your experience with us in the comments down below! ⏬

    🧙‍♂️ All Market Wizards 🧙‍♂️

    – Paul Tudor Jones (part 1/7): https://bit.ly/2YvvEsy

    – Richard Dennis (part 2/7): https://bit.ly/2FAG5m2

    – Ed Seykota (part 3/7): https://bit.ly/2FHCofE

    – William O’Neil (part 4/7): https://bit.ly/2JLM24R

    – Michael Marcus (part 5/7): https://bit.ly/2WyhRjp

    – Bruce Kovner (part 6/7): https://bit.ly/2FKc9oT

    – Michael Steinhardt (part 7/7): https://bit.ly/2V0MZHV

    Reply
  • Mark Evangelista

    January 17, 2019

    I feel the $ on the next vid.
    Keep it up. Got my support Erik.😎
    Keep cool

    Reply

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