Book Review: “The New Market Wizards”, My Top 3 Traders and What They Taught Me
I recently revisited Jack Schwager’s The New Market Wizards, and while every interview had something to offer, three traders in particular stuck with me. Their…
I recently revisited Jack Schwager’s The New Market Wizards, and while every interview had something to offer, three traders in particular stuck with me. Their approaches are completely different, but together they paint a clear picture of what it really takes to succeed in the markets.
Monroe Trout — The Power of Consistency
Monroe Trout was all about systems, statistics, and strict rules. He wasn’t trying to out-guess the market or chase headlines — he relied on probabilities and repeated his edge over and over.
What I took away from his story is that consistency is the closest thing we get to a “superpower” in trading. He wasn’t trying to hit home runs every time. Instead, he sized positions sensibly, trusted the math, and played the long game.
For prop traders, there’s a huge lesson here: it’s not about one lucky trade. It’s about stacking disciplined trades over time and letting compounding do its job.
Bill Lipschutz — Trading Is a Mental Game
Bill Lipschutz, known as the “Sultan of Currencies,” showed me how much of trading is psychological. He managed enormous FX positions — the kind most of us can’t even imagine — yet his main focus was always risk and mindset.
He admitted you can’t control the market, but you can control yourself: your size, your stops, and your reactions when things go wrong. He stayed objective when others panicked.
That’s what separates pros from amateurs. It’s not about predicting every move; it’s about staying calm, keeping perspective, and protecting capital no matter what.
Linda Bradford Raschke — Discipline and Timing
Linda Bradford Raschke is one of the traders I connected with most. She specialised in technical setups and tape reading, but what stood out was her discipline. She didn’t overcomplicate things — she trusted her charts, her rules, and executed with precision.
Her focus on timing also struck me. Sometimes, it’s not about what you trade but when you trade it. Linda’s approach reminded me that even the best setup means nothing if you’re not patient enough to wait for the right moment.
10 Lessons I Took From the Book
- Discipline beats intelligence — follow your rules, not your emotions.
- Risk management is everything — small losses are fine, big ones kill.
- Psychology is the real battle — fear and greed ruin more traders than bad signals.
- Play a game that fits you — find a style that matches your personality.
- Be flexible, not rigid — markets evolve, and so should you.
- Losing is part of winning — treat losses as lessons, not disasters.
- Patience pays — sometimes the best trade is no trade.
- Keep position sizes under control — oversizing destroys accounts.
- Think long game — survival beats quick wins.
- Simplicity wins — clear, simple systems last longer.
Final Thoughts
The New Market Wizards is proof that there’s no single path to success in trading. Trout, Lipschutz, and Raschke all had totally different methods — but the underlying lessons were the same: discipline, risk control, and patience – and I haven’t even mentioned the dozens of other traders that feature throughout.
For me, this book wasn’t about copying strategies. It was about understanding the mindset and habits that keep traders in the game long enough to win.
I’d really recommend reading this book — it’s a goody!
