HN Books @HNBooksMonth

The best books of Hacker News.

Hacker News Comments on
Hedge Fund Market Wizards: How Winning Traders Win

Jack D. Schwager, Ed Seykota · 5 HN comments
HN Books has aggregated all Hacker News stories and comments that mention "Hedge Fund Market Wizards: How Winning Traders Win" by Jack D. Schwager, Ed Seykota.
View on Amazon [↗]
HN Books may receive an affiliate commission when you make purchases on sites after clicking through links on this page.
Amazon Summary
Fascinating insights into the hedge fund traders who consistently outperform the markets, in their own words From bestselling author, investment expert, and Wall Street theoretician Jack Schwager comes a behind-the-scenes look at the world of hedge funds, from fifteen traders who've consistently beaten the markets. Exploring what makes a great trader a great trader, Hedge Fund Market Wizards breaks new ground, giving readers rare insight into the trading philosophy and successful methods employed by some of the most profitable individuals in the hedge fund business. Presents exclusive interviews with fifteen of the most successful hedge fund traders and what they've learned over the course of their careers Includes interviews with Jamie Mai, Joel Greenblatt, Michael Platt, Ray Dalio, Colm O’Shea, Ed Thorp, and many more Explains forty key lessons for traders Joins Stock Market Wizards, New Market Wizards, and Market Wizards as the fourth installment of investment guru Jack Schwager's acclaimed bestselling series of interviews with stock market experts A candid assessment of each trader's successes and failures, in their own words, the book shows readers what they can learn from each, and also outlines forty essential lessons―from finding a trading method that fits an investor's personality to learning to appreciate the value of diversification―that investment professionals everywhere can apply in their own careers. Bringing together the wisdom of the true masters of the markets, Hedge Fund Market Wizards is a collection of timeless insights into what it takes to trade in the hedge fund world.
HN Books Rankings

Hacker News Stories and Comments

All the comments and stories posted to Hacker News that reference this book.
Related, Trading and Exchanges: Market Microstructure for Practitioners by Larry Harris is also excellent.

These aren't really textbooks, but regardless, the Market Wizards series by Jack Schwagger is highly recommended:

Are you a trader?
I second Trading and Exchanges, a phenomenal overview for folks who want to learn how brokerages and market making work.
I might suggest you pick up copies of the books in the Market Wizards series. A good library should have them (or could get them). It's a series of interviews with some of the best in the field, across all kinds of different types of finance. They're enjoyable reads, filled with insight, and give a good broad perspective from which you can dive deeper into areas that you think might be especially interesting to you.

[1] Market Wizards -

[2] The New Market Wizards -

[3] Hedge Fund Market Wizards -

I wish as a kid I had access to the following:

"More Money Than God: Hedge Funds and the Making of a New Elite"

Market Wizards, Updated: Interviews With Top Traders

The New Market Wizards: Conversations with America's Top Traders

Hedge Fund Market Wizards: How Winning Traders Win

One more comes to mind:

Pit Bull: Lessons from Wall Street's Champion Day Trader

I'd also add "Reminescences of a Stock Operator", which is older but very good.
Yes, absolutely, I just read it earlier :-)
Similar to this,
Thank you Sir, I constantly read, so will add it to the queue
I've noticed (as a non american) that every single book I see in american airport book shops (at least the sort of business/self-help ones which seem to constitute 95% of american airport book shops) follow this exact title style: $PITHY_PHRASE: $MEANDERING_SUBTITLE_THAT_IS_A_BIT_TOO_LONG

It's very unimaginative.

must be some sort of publisher's fad, but a great observation indeed :-)
An interesting bit of computer history trivia is that Claude Shannon co-invented the first wearable computer with Ed Thorp to beat roulette in Vegas in 1961. It used a button in the shoe as an input device for the user to record the speed and location of the ball which was used to infer the likely ending location using orbital decay algorithms. An auditory signal was then sent by wire to an earpiece to let the user know where to place bets (it wasn't pinpoint accurate - the user would bet on 8 numbers which still gave him a positive expected value).

The story around that is really fun, recounted in this paper:

Versions of the same device from this century use lasers to get a more accurate read on the ball's location, with one group using the system to net £1m from London's Casinos:

Thorp was also involved in developing the Blackjack system that was showcased in the film 21 and later ran a hedge fund, details on which were recounted in his interview for this book Very interesting guy.

This sounds similar to efforts that came later as documented in The Eudaemonic Pie:

Although as I recall the EP version used a shoe with toe switches for input and buzzers for haptic feedback, it also used a 6502 so it must have been a later effort either invented in parallel or reinventing Mr. Shannon's work.

Ed Thorp is a very interesting guy indeed. His Memoirs are coming out in the beginning of next year but there's a foreword written by Nassim Taleb that gives a good taste of Thorp:
FWIW this would be my list of books every investor should read, which is different from what you should read to work in finance but anyway ...

Capital Ideas: The Improbable Origins of Modern Wall Street by Peter L. Bernstein. A lively introduction to the theoretical foundations of modern finance and their history, Markowitz, Sharpe, etc.

The Essays of Warren Buffett : Lessons for Corporate America by Warren E. Buffett. In his own can also find many if not all online, on Berkshire website

Buffett: The Making of an American Capitalist by Roger Lowenstein. Insightful biography...The Snowball was written more recently with Buffett's approval, but would read this one first

Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher. It's not widely appreciated, but Warren Buffett's method is 50% Ben Graham and 50% Phil Fisher. If you can find value stocks that are also great franchises, and hold onto them for dear life, you will be rich... if you also bet big, operate companies well, don't screw up, live in a bull market era and survive long enough, maybe as rich as Buffett.

The Intelligent Investor: A Book of Practical Counsel by Benjamin Graham. Classic introduction to value investing

Unconventional Success: A Fundamental Approach to Personal Investment by David F. Swensen. Asset allocation, and the perils of mutual funds...leading endowment investor of our time (Yale) gives his advice for individuals

The Most Important Thing: Uncommon Sense for the Thoughtful Investor by Howard Marks. Lessons in investing... at any time, any one of them can be 'the most important thing' and so they all are jointly and severally 'the most important thing'.

The Investor's Anthology: Original Ideas from the Industry's Greatest Minds (Vols 1 and 2) by Charles D. Ellis (Editor), James R. Vertin (Editor). Essays from a broad selection of writers

The Money Masters; The New Money Masters; Money Masters of Our Time, by John Train. Methodologies of all-time great money managers, in their own words

Market Wizards; The New Market Wizards; Hedge Fund Market Wizards, by Jack D. Schwager. Interviews of successful traders

Manias, Panics, and Crashes: A History of Financial Crises by Charles P. Kindleberger. Why good markets go bad

Reminiscences of a Stock Operator by Edwin Lefevre. Fictionalized biography of a famed early-20th century trader

A Random Walk Down Wall Street: The Best and Latest Investment Advice Money Can Buy by Burton G. Malkiel. Reality check from an efficient market theorist

This is a rollicking good read on links between Shannon, Kelly, Thorpe, who wrote 'Beat the Dealer' and was maybe the first hedge fund legend

And maybe something on technical analysis, but not really sure what to recommend...a lot of people view it kind as mumbo jumbo, but I kind of think fundamentals are like playing your poker hand, technicals are like playing the opponents' tells...the chart gives you an idea of who owns it at what price, what levels might make people rethink positions. Maybe this one as an easy intro, dumb title notwithstanding

HN Books is an independent project and is not operated by Y Combinator or
~ [email protected]
;laksdfhjdhksalkfj more things ~ Privacy Policy ~
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.