SystemTrader
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[font="Verdana, sans-serif"]Market Wizards: Interviews with Top Traders and The New Market Wizards by Jack Schwager.[/font]
[font="Verdana, sans-serif"]Though most of the "interviewees" trade futures instead of mutual funds/stocks, these interviewscontainincredible insights intoinvesting psychology, timing/entry/exit, the necessity of having an "edge" in the market, the importance of risk & money management, etc., from some truly elite traders.[/font]
[font="Verdana, sans-serif"]I'm not sure what buy & hold,random-walking, efficient market types would say, but they can hardlydispute that these folks have made significant double and occasional triple-digit returns year over year, with low risk and drawdownsto boot. One of the wizards, William Eckhardt, was working on a doctorate in Mathematical Logic at the University of Chicago (a bastion of efficient market theory) before he started trading on the exchange floor. Despite his academic background and intellect (he dabbles in quantum mechanics on the side), hecompletely shunsmodern portfolio theory andefficient markets in his interview.[/font]
[font="Verdana, sans-serif"]One interesting trader, Blair Hull, developed a fund timing system for Fidelity Funds that peformed spectacularly for years. It was largely responsible for Fidelity's move to "once a month" only fund switching. Unfortunately, Hull doesn't give the specifics of his system.From what I understand, his method works best for a large group of sector funds and is a play on the business cycle (moving among energy, materials, health care, etc.). It may not work for broad-based TSP-style index funds, but it's fascinating nonetheless.[/font]
[font="Verdana, sans-serif"]Note: Eckhardt and Hull are featured in The New Market Wizards, though most people consider the first book to be better.[/font]
[font="Verdana, sans-serif"]Market Wizards: Interviews with Top Traders and The New Market Wizards by Jack Schwager.[/font]
[font="Verdana, sans-serif"]Though most of the "interviewees" trade futures instead of mutual funds/stocks, these interviewscontainincredible insights intoinvesting psychology, timing/entry/exit, the necessity of having an "edge" in the market, the importance of risk & money management, etc., from some truly elite traders.[/font]
[font="Verdana, sans-serif"]I'm not sure what buy & hold,random-walking, efficient market types would say, but they can hardlydispute that these folks have made significant double and occasional triple-digit returns year over year, with low risk and drawdownsto boot. One of the wizards, William Eckhardt, was working on a doctorate in Mathematical Logic at the University of Chicago (a bastion of efficient market theory) before he started trading on the exchange floor. Despite his academic background and intellect (he dabbles in quantum mechanics on the side), hecompletely shunsmodern portfolio theory andefficient markets in his interview.[/font]
[font="Verdana, sans-serif"]One interesting trader, Blair Hull, developed a fund timing system for Fidelity Funds that peformed spectacularly for years. It was largely responsible for Fidelity's move to "once a month" only fund switching. Unfortunately, Hull doesn't give the specifics of his system.From what I understand, his method works best for a large group of sector funds and is a play on the business cycle (moving among energy, materials, health care, etc.). It may not work for broad-based TSP-style index funds, but it's fascinating nonetheless.[/font]
[font="Verdana, sans-serif"]Note: Eckhardt and Hull are featured in The New Market Wizards, though most people consider the first book to be better.[/font]
