Michel Pireu Columnist

One of my favourite one-liners on the markets is Jack Schwager’s, “There are a million ways to make money in the markets. The irony is that they are all very difficult to find.” Schwager, probably best known as the author of the Market Wizards series of books, started out trading on fundamentals before he transitioned to being a technical trader. In an interview with Nithin Kamath, the co-founder of Zerodha, he was asked if this was because the technical traders he has interviewed for his books have tended to do better than those taking a fundamental approach. “I've seen traders who have done tremendously well with fundamentals so I am not going to knock fundamentals,” replied Schwager, “but the problem I’ve always had with fundamentals has to do with risk management. Inherently, the more wrong you are the more sense it makes to add to a position. If you think something is underpriced at say $6 and it goes to $5.50 and nothing has changed then logically it’s an even better deal and ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.