Trading wisdom recap: Steve Clark, founder of Omni Partners, was featured in Jack Schwager's 2012 book, Hedge Fund Market Wizards.
Clark's interview with Schwager provided us with some valuable trading insights; "Lessons from Hedge Fund Market Wizards: Steve Clark" was one of our most popular posts ever.
If I had to pick my favorite sections from Clark's chapter, it would be boiled down to these two concepts: "Do more of what works (and less of what doesn't work)" and "Manage your equity curve".
Here's his full quote on the supreme importance of growing your equity curve:
"Your job as a trader is to make the line of your equity curve go from bottom left to top right. That's it. Don't get hung up on other supposed "mandates". Protect your capital and the direction of that equity line."
I will leave you with one last series of quotes from Steve Clark's interview with Jack Schwager. When asked about the characteristics of traders who succeed, Clark replied:
"They all work hard... Nearly all the successful traders I have known are one-trick ponies. They do one thing and they do it very well. When they stray from that single focus, it often ends in disaster."
"Really good traders are also capable of changing their minds in an instant. They can be dogmatic in their opinion and then immediately change it. If you can't do that, you will be caught in a position and be wiped out."
If you'd like to read more, just click on the Amazon links in our Hedge Fund Market Wizards post series and buy the book!
1. Your Job as a Trader: Manage Your Equity Curve
2. Maximize Your Trading Gains, Not Wins: William Eckhardt Interview
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Market Wizard, Steve Clark on Trading: Grow Your Equity Curve
October 15, 2017 at 21:38 PM EDT