Last Updated on 3 November, 2022 by Samuelsson
Martin Schwartz is the author of Pit Bull: Lessons from Wall Street’s Champion Trader. He’s a trader on Wall Street who made his fortune from trading stocks, options, and futures. He rose to fame when he won the United States Investing Championship in 1984.
He acquired his degree from Amherst College in 1967 and earned an MBA from Columbia University in 1970.
He has served in the U.S. Marine Corps Reserve from 1968 to 1973, completing his service with the rank of captain. Marty worked several years as a financial analyst at E. F. Hutton. He saved up to $100,000 and resigned from the firm. He used the money he saved to buy a seat in the American Stock Exchange, kick-starting his career trading stocks, futures, and options.
And in 1985, he began his own fund where he managed other people’s funds and his own. His professional life is the basis of his book Pit Bull: Lessons from Wall Street’s Champion Day Trader.
He earned the name “Buzzy” while trading stocks. Marty is a dauntless day trader, a typical demi-god that all aspiring stock traders look up to. In his first year as an independent stock trader, he took home a profit of $600,000 and made twice as much the year after.
Marty said he makes about $70,000 per day trading and made millions in one day. He was so sunk in trading that it took a toll on his health and also took his time; he had a rethink and slowed things down; Marty went on self-imposed semi-retirement, trading only from the comfort of his home in Florida.
He uses a 10-period EMA to differentiate between bullish and bearish markets and to filter out the noise. Whenever the price is above the 10-period EMA, he looks for buying opportunity, and if the price is below it, he looks for a selling option. This is a helpful approach because it helps to filter out the noise and give a clear view of where the market is headed. This indicator can be used on either the daily or weekly timeframe to determine the trend.
Confident about his trading ability, he participated in the United States Trading Championship organized by Stanford University, which consisted of nine phases. It took place in 1984, the beginning of the day trading frenzy.
Marty put up a fantastic performance defeating the other participants by making more profits than all the other traders put together. The end of the tournament marked the beginning of the day trading model: independent traders and do-it-yourself dabblers at home around the world adopted this model. As traders around the world began noticing Marty and the rate at which he traded, getting in and out of positions, holding on to trades not longer than a day, he was nicknamed “day trader.”
In 1998, in an interview featuring Marty Schwartz, he suggested that the market had reached a long-term high, had exhausted all its potential, and was ready for a correction. Interestingly, some months later, the dot-com bubble burst.
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