Martin Schwartz: The technical trader who conquered the stock market

Man on his NEPSE stock trading desk. He uses technical analysis.

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Martin S. Schwartz (nicknamed Buzzy) is a Wall Street trader who made his fortune successfully trading stocks, futures and options. He was originally a Wall Street stock analyst who later turned up to be an independent futures and options day trader and technical analyst.

Marty Schwartz is a big advocate of the moving averages. Schwartz says he used fundamental analysis for 9 years and got rich as a technical analyst. Schwartz is also the author of Pit Bull: Lessons from Wall Street’s Champion Day Trader.

Most people think that they’re playing against the market, but the market doesn’t care. You’re really playing against yourself. You have to stop trying to will things to happen in order to prove that you’re right. Listen only to what the market is telling you now. Forget what you thought it was telling you five minutes ago. The sole objective of trading is not to prove you’re right, but to hear the cash register ring.

Marty Schwartz

Marty Schwartz traded stocks and made his $40,000 portfolio to $20 million. He has a documented record of making 1000% a year, for seven straight years. Schwartz is also quoted as revealing that he used to make about $70,000 per day trading and once netting several million dollars in a single day. He only trades infrequently at the present.

Schwartz is also the winner of several trading Championships. He received national attention when he won the U.S. Investing Championship in 1984. Martin Schwartz participated in the U.S. Trading Championship that was organized by Stanford University. The Championship consisted of nine matches. In the championship, he made a spectacular showing and beat out the other participants by earning more money than his competitors’ gains put together.

Mr.Schwartz used to trade all day, every day. He studied at night, drawing channels, support/resistance levels, and analyzing for the next day.

Traders would rather lose money than admit they are wrong. I became a winning trader when I was able to say, “To hell with my ego, making money is more important!

Marty Schwartz

While analyzing stocks, Schwartz draws all his charts by hand. He uses physical paper for his charting. He says that it helps him “connect” with his instruments better. Although this requires more time, the benefits are huge.

Most traders randomly flip through hundreds of instruments, arbitrarily add some horizontal lines, play around with indicators until they accidentally find something that looks like an entry signal. However, a better approach would be to use a checklist and a trading plan.

I review my checklist. It’s a handwritten sheet laminated in plastic and taped to the right-hand corner of my desk where I can’t overlook it. If you have a game plan prepared ahead of time, it can help you find courage in the heat of the battle.

Marty Schwartz

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