Not everyone can be LeBron James, Serena Williams, Michael Phelps, Simone Biles, or Stephen Nedoroscik—the top 1% who define excellence in their professions. I learned this truth around age 15, and now, in my mid-30s, I admire those who embrace a different path: the contributor, the 6th man, the backup singer, and in this situation, the scribe of the experts. Contributors don’t seek the spotlight as “the main player” but instead work to amplify the magic of genuinely world-class performers.

Jack D. Schwager is one of those contributors. He realized his strength wasn’t in being a top-tier trader but in telling the stories of the best traders and distilling their wisdom for the rest of us. His work has made the seemingly untouchable brilliance of the world’s top investors accessible and inspiring to anyone willing to learn.

“The markets are always changing, and they are always the same…

There are a million ways to make money in markets.

The irony is that they are all very difficult to find.”

- Jack D Schwager

Without Jack creating the Market Wizards Interviews with Top Traders series, the world and I would be at a massive loss in knowledge shared with the global population.

This blog post pays tribute to Jack's incredible gift to the world and highlights the top ten lessons from Jack's last ~40 years of interviewing the world’s best trades traders.

Before we dive into the Top 10 Tips and the full list, let’s first set the stage with Jack’s beliefs on investing, how global markets work, and how success works with day traders and active trading. Below is the preface to his second book, The New Market Wizards:

Here is what I believe:

• The markets are not random.

  • I don’t care if the number of academicians who have argued the efficient market hypothesis would stretch to the moon and back if laid end to end; they are simply wrong.

• The markets are not random, because they are based on human behavior, and human behavior, especially mass behavior, is not random.* It never has been, and it probably never will be.*

• There is no holy grail or grand secret to the markets, but there are many patterns that can lead to profits.

• There are a million ways to make money in markets. The irony is that they are all very difficult to find.

• The markets are always changing, and they are always the same.

• The secret to success in the markets lies not in discovering some incredible indicator or elaborate theory; rather, it lies within each individual.

• *To excel in trading requires a combination of talent and extremely hard work—(surprise!) the same combination required for excellence in any field. *

  • Those seeking success by buying the latest $300 or even $3,000 system, or by following the latest hot tip, will never find the answer because they haven’t yet understood the question.

• Success in trading is a worthy goal, but it will be worthless if it is not accompanied by success in your life (and I use the word success here without monetary connotation).

  • I became absolutely convinced that winning in the markets is a matter of skill and discipline, not luck.* *

• The magnitude and consistency of the winning track records compiled by many of those I interviewed simply defy chance.

  • I believe the Market Wizards provide role models for what it takes to win in the markets*. *

• Those seeking quick fortunes should be discouraged at the onset. - Jack D. Schwager

Now to the Blueberry Wizard’s Top Ten Trading Tips and Tricks list from Jack Schwager’s compiled list of forty suggestions from the top traders in the first Market Wizards: Interviews with Top Traders book.

Top Ten Lessons for Success in Trading - With References 😅

1. Have a Trading Plan. Know your entry, exit, and risk parameters before making a trade.

   1. Do I really look like a guy with a plan?

2. Cut Losses, Let Profits Run, and Minimize your losses quickly, but give your winners the time to grow.

   1. Let it Ride…

3. Don’t Overtrade. Trading too often or with excessive size increases your risk of failure.

   1. Self-sabotage…

4. Trade with the Trend The trend is your friend. Don’t fight the dominant direction of the market.

   1. Follow the Trend…

5. Practice Patience and Discipline are The two most essential traits for long-term success in trading.

   1. Compound Interest in Life…

6. Keep Your Emotions in Check Avoid trading based on fear, greed, or hope. Stick to your plan.

   1. How I Escaped the Matrix…

7. Understand Your Edge: Test and then prove why your strategy works. Avoid the Herd Mentality, aka following others blindly. Often, the best opportunities are contrarian; follow your intuition.

   1. Unbroken…

8. Don’t Risk More Than You Can Afford to Lose. Only trade with money you can afford to lose without significant personal impact.

   1. Don’t Risk Your House… “F… You”

9. Focus on the Process, Not the Outcome Good processes lead to good results over time, even if individual trades lose.

   1. Good… That’s what you always say.

10. The Market is Never Wrong If the market moves against you, reassess your position.

The Full List of Top 40 Tips and Tricks of Market Wizards

Here’s the complete list of the 40 trading tips and tricks from the conclusion of Jack D. Schwager's "Market Wizards: Interviews with Top Traders." These encapsulate the wisdom shared by the traders featured in the book:

1. Always Use a Stop-Loss Protect your capital. Define your exit point before entering a trade to limit losses.

2. Keep Your Risk Manageable: Never risk more than 1-2% of your capital on a single trade. Protect yourself from catastrophic losses.

3. Cut Losses, Let Profits Run, and Minimize your losses quickly, but give your winners the time to grow.

4. Don’t Overtrade. Trading too often or with excessive size increases your risk of failure.

5. Never Average Down Adding to a losing position can amplify losses and erode confidence.

6. Be Patient. Wait for high-probability setups, and don’t chase the market.

7. Have a Trading Plan. Know your entry, exit, and risk parameters before making a trade.

8. Adapt to Market Conditions Markets are dynamic. Your strategy should evolve to fit changing conditions.

9. Trade with the Trend The trend is your friend. Don’t fight the dominant direction of the market.

10. Stay Humble. Success can lead to overconfidence. Always respect the market.

11. Know When to Take a Break If you're on a losing streak or feeling emotionally unstable, step away and reset.

12. Learn from Your Mistakes Review every trade, win or lose, and identify what you could improve.

13. Focus on Risk-Reward Ratios Only take trades where the potential reward significantly outweighs the risk.

14. Don’t Trade for Excitement Trading should be methodical and systematic, not emotional or thrilling.

15. Be Decisive. Hesitation can cause you to miss opportunities or worsen losses.

16. Keep Your Emotions in Check Avoid trading based on fear, greed, or hope. Stick to your plan.

17. Diversify: Spread your risk across different markets or instruments.

18. Don’t Let a Winning Streak Cloud Your Judgment.t Overconfidence after success can lead to reckless trading.

19. Use Leverage Wisely Leverage magnifies both gains and losses. Don’t overuse it.

20. Understand Your Edge: Know why your strategy works and stick to it.

21. Avoid Tips and Rumors Trade based on your own analysis and strategy, not others' opinions.

22. The Market is Never Wrong If the market moves against you, reassess your position.

23. Don’t Try to Predict Tops and Bottoms. Focus on catching the middle of the trend rather than timing the extremes.

24. Stay Disciplined. Follow your plan consistently, even when it's tempting to deviate.

25. Don’t risk more than you can afford to lose. Only trade with money you can afford to lose without significant personal impact.

26. Be Willing to Be Wrong Accept losses as part of the process, and don’t let them shake your confidence.

27. Size Your Positions Properly Position sizing is critical to managing risk and avoiding excessive losses.

28. Focus on the Process, Not the Outcome Good processes lead to good results over time, even if individual trades lose.

29. Stay Educated Constantly improve your knowledge of the markets and refine your strategies.

30. Avoid the Herd Mentality. Don’t follow the crowd blindly. Often, the best opportunities are contrarian.

31. The Best Trades Often Feel the Hardest When everyone is bearish, look for bullish opportunities (and vice versa).

32. Keep Records of Your Trades Maintain a journal to track your decisions, emotions, and outcomes.

33. Use Multiple Timeframes: Analyze markets from multiple time perspectives to enhance your decision-making.

34. Never Stop Learning Even seasoned traders continuously refine their craft.

35. Stay Objective Detach your ego from trading decisions. The market doesn’t care about your opinion.

36. Avoid Revenge Trading Don’t chase losses with impulsive trades.

37. Know Your Market: Understand the nuances of the instruments and markets you trade.

38. Practice Patience and Discipline are The two most essential traits for long-term success in trading.

39. Respect the Power of Compounding Small, consistent gains can build significant wealth over time.

40. Have Fun, but Be Serious. Trading can be rewarding, but treat it as a business, not a game.

This full list is a lot to digest, so don’t worry if you can’t process or even care to take in all of the suggestions. The goal is that one thing sticks with you from reading this article, and you can improve your trading strategy and skills ahead to become a champion GMX Blueberry Club trader and a consistently profitable trader with unlimited freedom.

Best of luck from the Blueberry Wizard community within the GBC and the wisdom from the scribe of the Wizards, Jack D. Schwager.