Market Wizards

Ah, yes...it's a classic and we all reference it as being one of the best trading books of all-time. Well, I recently began reading the book for the 2nd time, after reading Market Wizards, The New Market Wizards and Stock Market Wizards. This series of books is excellent and I would encourage anyone who is interested in trading or even an investor, to buy all of the books and read them.

Tonight, I was reading the classic "Ed Seykota" chapter and I was struck by his answer to what his views of fundamental analysis were as to his trading approach. Here is his answer (emphasis is mine):

"I am primarily a trend trader with touches of hunches based on about twenty years of experience. In order of importance to me are: (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell. Those are the three primary components of my trading. Way down in very distant fourth place are my fundamental ideas and, quite likely, on balance, they have cost me money."

If you aren't familiar with Mr. Seykota, you need to be. Check out his website, it's filled with wonderful information.

Good luck out there.

TLT