Market Wizards Quotes
by Jack D. Schwager
Looking for the best quotes from Market Wizards by Jack D. Schwager? Below are the lines that stand out most across the book.
The quotes are organized by chapter, each with a short note on where it appears and why it stands out.
Top Quotes from Market Wizards
“I went “all in” on every trade. I didn't know any better. I didn't know anything about position sizing or risk management.”
Kullamägi describes his early trading mistakes when he had no method.
This captures the raw honesty of a novice trader's reckless behavior and underscores the fundamental importance of risk management.
“Jesse Livermore famously said that it was the sitting that made him the money. Everyone thinks he meant that once you get in a profitable position, let it run. And certainly, that is part of the intended meaning. But he also meant sitting in the sense of waiting for the right setup.”
Kullamägi reflects on a key lesson about patience, both in holding winners and in waiting for proper trade setups.
It deepens the reader's understanding of a classic trading adage by revealing its overlooked meaning, emphasizing patience in preparation as much as in execution.
“The methodology you use not only has to have an edge, but it also has to fit your personality and beliefs.”
Kullamägi explains why traders must find an approach that aligns with their own temperament.
This distills a central truth of trading success: even a profitable system fails if it clashes with your psychological makeup.
“The winning percentage is a meaningless measure. What matters is the expected gain per trade—the percentage of wins times the average win minus the percentage of losses times the average loss—not the percentage of wins.”
The author comments on Kullamägi's low win rate to correct a common misconception.
It powerfully reframes how traders should evaluate performance, shifting focus from vanity metrics to true profitability.
“The nice part about a low salary is that it leaves you with no money to get yourself in trouble and enough hunger so that all you do during the week, and even on the weekend, is work.”
Lance Breitstein explains why he preferred a low salary early in his trading career at Trillium.
This line captures how financial constraints can fuel relentless focus and work ethic, resonating with anyone who has used scarcity as a motivator.
“You need a level of intellect to understand the concepts. You need a passion for the job. You need a powerful why.”
Breitstein lists the key factors he believes contributed to his success in trading.
The concise, three-part formula distills the essential ingredients for high achievement, making it easy to remember and apply.
Quotes by Chapter
2. Lance Breitstein
“Here is the irony: You are trading one-hundredth as often and making three times as much.”
Breitstein contrasts his current low-frequency, high-profit trading with his former hyperactive style.
This counterintuitive insight challenges the common belief that more activity equals more success, highlighting the value of patience and selectivity.
“I had the mindset that if some trader was doing it, I could do it too.”
Breitstein advises against having limiting beliefs in trading.
This simple, empowering statement inspires readers to shed self-imposed limitations and adopt a belief in their own potential.
3. Simon Russo
“Relying on willpower in trading is like a recovering alcoholic keeping a bottle of whiskey on the kitchen counter to test his discipline. Relying on willpower and discipline is not noble; it's stupid.”
Simon Russo, after experiencing his largest drawdown, reflects on risk management and the folly of relying on willpower.
This analogy vividly illustrates a key trading lesson: discipline alone is insufficient; traders must create structural safeguards to prevent impulsive decisions.
“I refuse to live a life with failure as the leading factor in my decision-making. I will live a life with SUCCESS as the leading factor.”
In a letter to his parents explaining his decision to drop out of school to trade, Russo expresses his determination to prioritize success over fear of failure.
This quote encapsulates a resilient, success-driven mindset that is inspiring yet cautionary, highlighting the willingness to accept failure as part of the journey.
“The smart solution is not to fight temptation, but rather to design systems to eliminate it.”
Russo explains the principle of eliminating temptation through system design rather than relying on willpower.
This practical insight provides actionable wisdom for traders: build processes that make it easier to do the right thing, rather than fighting internal battles.
4. Lukas Fröhlich
“I could always see a sort of light at the end of the tunnel. That light sometimes seemed very far away, but it was there.”
Lukas Fröhlich describes why he kept trading after multiple account blowups.
This line captures the relentless optimism and perseverance required to succeed in trading, resonating with anyone who has faced repeated setbacks.
“You have to want it so much that even if all the evidence you have and everyone tells you it’s not a good idea to keep going, you keep going anyway.”
Fröhlich responds to the interviewer's question about advice for struggling traders.
It distills the extreme determination needed to overcome obstacles, making it a rallying cry for aspiring traders who face doubt.
“If you don't have the willpower to fight through the pain, you shouldn't be a trader.”
Fröhlich gives blunt advice to those who have blown up accounts.
Its stark honesty forces readers to confront the harsh realities of trading, emphasizing that resilience is non-negotiable.
“I personally had two primary motivators that carried me through the hard times: a fear of not amounting to much and a fear of having someone over my head that would dictate my life.”
Fröhlich explains the deep-seated drives behind his trading career.
This introspective line reveals powerful emotional fuel that many can relate to, showing how fear can be redirected into productive ambition.
6. Kelvin Chiu
“I don't have any patience as a trader. I was looking for big moves that would happen immediately, and if that didn't happen, I would be on to the next stock.”
The trader describes his early trading mistakes.
This line captures the common beginner's impatience and the destructive habit of chasing instant results, a lesson many traders learn the hard way.
“It is an addiction that has helped me have a successful career. But it is also a negative in that my mind doesn’t turn off.”
The trader elaborates on his relationship with trading when asked about the term 'addiction'.
It honestly portrays the double-edged nature of trading obsession—fueling success while also making it hard to disconnect.
“I've found that high expectations tend to lead to low resilience, and I had very low resilience at that time as a consequence of my academic success.”
The trader explains why his perfect academic record hurt his early trading performance.
This counterintuitive insight highlights that prior success can weaken one's ability to handle failure, a crucial trait for trading.
“No two situations are exactly alike, but markets rhyme, and framing the current fundamentals in the context of history can provide an advantage in trading.”
The trader shares a lesson learned while at Goldman Sachs about viewing markets through a historical lens.
It elegantly expresses the idea that while history never repeats exactly, patterns recur—a foundational concept for many successful traders.
7. Jason Berry
“Nothing that I traded at the beginning of my career is relevant today.”
Jason Berry explains how trading edges constantly erode.
It powerfully illustrates the necessity of continuous adaptation and innovation in trading.
“I don’t know why the trade stopped working, but that edge disappeared. No strategy lasts forever.”
Berry describes a profitable VIX trade that vanished after the Ukraine war started.
Succinctly captures the fleeting nature of trading edges and the humility required to accept it.
“I also question my abilities and career longevity after a few losing days. It’s a fleeting but lurking thought.”
Berry admits to self-doubt despite an exceptional track record.
Reveals the human vulnerability behind success, making the trader relatable and the lesson about managing doubt more resonant.
“Traders need to maintain a training mindset, one of curiosity, to some degree to ensure they can replace lost edge with new edge.”
Berry emphasizes the importance of continuous learning even for senior traders.
Highlights that perpetual curiosity and effort are essential for long-term trading survival.
8. Kenny Sharkness
“I view my ability to adjust my approach to the timeframe as one of my main sources of edge.”
Kenny Sharkness explaining his edge in trading multiple timeframes.
Highlights the importance of adaptability as a source of edge, a lesson many traders can apply.
“Being overeager and getting into a trade too early or getting out of good positions too quickly.”
Sharkness describing his demon of impatience, as identified by his mentor Dr. Steenbarger.
Many traders struggle with impatience; this candid admission resonates and reminds them to work on it.
“You are going to suck in the beginning; embrace it.”
Sharkness advising new traders to approach trading with a realistic attitude.
Honest and encouraging for beginners; normalizes struggle and promotes resilience.
“If you're not consistently making money within a year, or at least making progress toward profitability, you may want to reevaluate your situation.”
Sharkness on how long it takes to determine if someone has potential as a trader.
Provides a realistic benchmark for aspiring traders; encourages honest self-assessment.
9. Rick Bandazian Jr.
“Even if I worked twice as hard as the next guy, my bonus didn’t reflect that; it was not meritocratic.”
Bandazian explains why he left investment banking.
This line resonates with anyone who has felt undervalued in a system that doesn't reward hard work proportionally.
“There is pretty much always a way to make money.”
Bandazian on trading during the slow merger arb market in 2008.
It succinctly captures the opportunistic, resourceful mindset that defines successful traders.
“I can count on two hands the number of times I used the whole line, including intraday leverage.”
Bandazian describing his risk aversion and trading style.
This highlights that effective trading often involves restraint, not aggression, challenging the notion that bigger positions equal bigger profits.