Unknown Market Wizards: The best traders you've never heard of

All my profits come from 10%–15% of my trades; all the other…

Some highlights have been hidden or truncated due to export limits.

The fundamental

If I have any message to the world—and it is the reason I agreed to do this interview—it is to convey the importance of participation. Everyone understands that the market is a discounting mechanism. What they don’t realize is that the discounting mechanism is not price; it’s participation. It’s not that the price has gone from 50 to 100, and there

But you said he was a mentor. So what did you learn from him? Risk management. While he was buying into weakness, he wouldn’t just put on a full position and hold it. He would probe the market for a low. He would get out of any trade that had a loss at the end of the week and then try again the next time he thought the timing was right. He kept pro

trade that shows an open loss as of the Friday close.

charts will give you the idea of the path of least resistance, but charts do not forecast. There is a danger when people start thinking of charts in terms of forecasting. Charts are wonderful in finding specific spots for asymmetric risk/reward trades. That’s it. I am focused on the probability of being able to get out of the trade at breakeven or

The most powerful word in the markets is “despite.” If you hear or see a comment like, “Despite the increase in oil inventories being much higher than expected, oil prices closed higher,” that is the tape telling you what is going to happen. Everyone saw inventories were much higher than expected. Why did the market close up? The tape knows more th

When you get to within 30% of your target, how do you decide where to raise the stop to? Once it gets to that point, I will use a mechanical three-day stop rule. Exactly what is that rule? Assuming a long position, the first day would be the high day of the

You have to find your own way.