The world’s top 10 traders (1) — — Marty Schwartz

Marty Schwartz has been called champion trader. He has won nine of the ten trading competitions in the national investment competition, and has earned an average return on investment of 210%. He has made almost as much money as the other contestants combined.

After graduating from Amherst College in 1967, Marty was working as a securities analyst for fundamental analysis for 7 years, but he finally got rich through the technological analysis. During the first ten years of trading, he often lost money and was on the verge of bankruptcy for a long time. After 1979, he became a top trader.

Since Marty Schwartz became a professional trader in 1979, the average annual return on investment has been incredibly high, and the average monthly loss has never exceeded 3 per cent of the value of his assets. Although Shwarz was trained as an analyst, his ultimate success depended on technical analysis, so he was a firm supporter of technical analysis. This is different from o ‘neil, Ryan and steinhardt, who are a hybrid of technical analysis and fundamental analysis, and steinhardt is a total recluse of technical analysis.

Schwartz spoke about Terry Laundry’s “magic T” prediction method. The central theory of this approach is that the rise and fall of the stock market are actually the same time, but the rise and fall are different. Before the stock market falls, there is always a period of resistance, before the rise, there is always a period of cohesion momentum. When calculating the time, start from this period, not wait until the stock price reached high or low to start the calculation.

Marty think he has to be better prepared than my competitors, and the way to do that is to work hard every day. He believes that people learn more from adversity.

‘I only started to be a stock market winner when I could separate my self-esteem from whether or not I made money. That is, from the moment I can accept mistakes. Until then, admitting defeat was worse than losing money, and I had always thought it was impossible for me to make a mistake. When I’m a winner, I tell myself, if I’m wrong, I need to get out, because the saying is, as long as the green hills last, there’s always wood to burn. In this view, I always put making money before maintaining my self-esteem, so that I won’t feel too bad about losing money,’ said by Marty Schwartz.

In Marty’s viewpoint, when a person suffers a loss, he seldom has the determination and courage to make a prompt decision and accept compensation. Engaged in trading, the hands of the holdings suffered losses but still refused to give up, can be said to be suicidal. Although I have lost a lot of blood, I still adhere to the principle of risk control. You have to save strength and come back.

I’m sick and tired of trading computer programs. In the past, stock market fluctuations have a certain context to follow, but the computer program trading has destroyed this context. Companies that trade in computer programs use human power to change the normal course of the stock market.

Whenever you suffer a setback, it’s hard. Most traders, when they suffer a big loss, want to snap it back, so they build on it and try to reverse it. However, once you do this, you are doomed to failure. It is impossible to engage in trading without making mistakes, and immediately reduce the volume of business after a setback is not to make how much money to make up for the loss, but to regain their confidence in trading.

The most fascinating aspect of market trading is that there is always room for improvement. People in other industries may be able to make up for their mistakes in other ways, but as a trader you have to face your mistakes head on, because Numbers don’t lie. I’ve always been quick to settle losses, which may have been one of the keys to my success.

My trading philosophy is to make a profit every month, even every day. My trading principles are:

1. Before holding positions, always check the moving average price to see if the price is higher than the moving average price. I don’t want to go against the trend of the moving average.

2. Look for stocks that can stand firm at the bottom and above when the stock market is setting a new low. Such stocks must be healthier than the general trend.

3. Before I decide to buy or sell, I also think to myself, do I really want to hold this position?

4. Reward yourself with a day off after a profitable trade. Anyone who trades has had a good period of sustained profit, so whenever I have had a good period of sustained profit, I have scaled back, and the reason for the losses is usually to take profits and not to stop.

5. Before holding positions, you should also decide in advance how much you are willing to bear losses. Set up stop loss points and be sure to follow them.

Perhaps the most important principle is: try, try, try again.

The other important principles are money management, money management, and finally money management.

Maybe the day I die, I’ll still be looking for a better deal.

Why do most traders always end up losing money? Because they would rather lose money than admit their mistakes. Most traders react to losses by saying, ‘I’ll go as long as I don’t lose money.’ Why must wait until not compensate just appear? It’s just a matter of face. I became a successful trader because I was finally able to put face aside. ‘It’s about pride and face. It’s about making money.’

If anyone wants to be a trader, my advice to him is: learn how to take a loss. Also, don’t expand your holdings unless you triple or triple your capital. As soon as most people start making money, they start expanding their positions. This is a serious mistake.

Remarks made after the author’s visit:

There is no ‘go with the flow’ principle in schultz’s operation. He thinks the market is an arena and that other traders are his sworn enemies. Mr Schwartz’s experience is a considerable boost for traders who often struggle to break through losses. During the first 10 years of his trading career, Mr. Schwartz was constantly frustrated and often on the verge of bankruptcy.

His success came from two things. The first is that he has to find his own way of trading, and every trader has to find his own way of trading. The second element was a change in Mr Schwartz’s attitude, when he put the issue of face behind the pursuit of results, and his deal went well.

Risk control was also a key factor in Schwartz’s success. One of his trading principles is to determine how much risk he can take in a trade before taking a position. After suffering major losses, it is necessary to reduce the volume of operations, and more importantly, after trading profits, it is necessary to adopt the strategy of reducing the volume of operations. Losses, he explains, tend to follow successful trades, because success leads to complacency, whereas complacency leads to complacency and carelessness.