O'Reilly logo

The Little Book of Market Wizards: Lessons from the Greatest Traders by Jack D. Schwager

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter Nine

image

Discipline

When I asked the Market Wizards what differentiated them from the majority of traders, the most common reply I got was “discipline.” Now, the need for discipline is one of those items of trading advice that you have probably heard so often before that if I just mention it here again, you’ll ignore it. Rules are boring and are quickly forgotten, while stories have the potential to capture interest and be remembered. So instead of just repeating the rule about the need for discipline in trading, let me instead tell you a story about discipline, which I hope you will remember the next time you are at the brink of letting your discipline in the markets lapse. My favorite story about discipline in the interviews I’ve conducted concerns Randy McKay, a very successful discretionary trader who began his trading career with the birth of currency futures trading.

McKay’s Lapse of Discipline

McKay’s career path got off to a very inauspicious start. He flunked out of college in 1968—six Fs due to lack of attendance did the trick. The year 1968 was near the height of the Vietnam War, and soon after losing his college deferment, McKay was drafted by the Marines. (Although the Marines don’t normally draft recruits, there were two months in 1968 when they were allotted a small portion of draftees.) When McKay returned from Vietnam in 1970, his brother, who was a broker ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required