INSIGHTS INTO THE MINDSET OF SUPER TRADERS – Part 14
“Most traders will quit and stay away from trading after
blowing up a few trading accounts. But those with grit will constantly reflect
upon their actions and seek to better themselves, which separates the winners
from the losers.” – Rayner Teo
Name: Martin Schwartz
Year of birth: 1945
Nationality: American
Hobbies: Professional trading and professional horse racing
Career
In 1967, Martin attended Amherst College. He also earned an
MBA from Columbia University in 1970. He served in the U.S. Marine Corps
Reserves from the year 1968 to the year 1973.
He also worked as a financial analyst at E. F. Hutton.
He saved about one $100,000 USD and went into full-time
trading, buying a seat on the American Stock Exchange. That year, he made a
profit of $600, 000 USD and in the following year, he made a profit of $1.2
million USD. But we need to know that prior to that time, he was a consistent
loser in the markets.
In 1984, Martin became famous when he won the U.S. Investing
Championship. He’s made great wealth from the markets. He authored a book
titled “Pit Bull: Lessons from Wall
Street's Champion Day Trader.” He loves to go for short-term market
fluctuations, and being successful at doing that, he began managing money for
other people.
From the year 2002 till now, Martin Schwartz has been
winning in professional horse racing.
Insights
- Contrary to some
people’s opinion, it’s possible to become a successful trader using
technical analysis. When Martin was trading based on fundamentals, he was
losing. When he became a technical analyst he earned a fortune. However,
there are also successful fundamental analysts. The lesson is that, you
shouldn’t say something can’t work for others just because it isn’t
working for you.
- You need to
approach the markets as a serious business; those who comply with this
fact get paid from those who don’t comply.
- You need to work
hard before you can become a profitable trader. There’s nothing worth
having which comes easily. Hard work is part of your probability of
attaining success as a trader.
- We want to make
money, without being necessarily right. We need to master our ego and realize
that making money is more important than being right. We make money by
cutting our losses, and we lose money by letting them run. Martin Schwartz
says that by preserving your capital through the use of stops, you make it
possible to wait patiently for a high-probability trade with a low-risk
entry-point. One of the great tools
of trading is the stop, the point at which you divorce yourself from your
emotions and ego and admit that you´re wrong.
- Prepare for each
trading day, for it matters much. No trades, no profits. You need to pull
the trigger before you can hope to make any profits.
Conclusion: There
are traders who’ve spent many years in the markets without being profitable.
Isn’t it so frustrating when we keep on losing money in spite of the vast
knowledge we’ve in the markets? We’ll be tempted from time to time to conclude
that it’s impossible to make money trading Forex, yet we won’t give up because
there is a kind of inner hope that would keep on pushing us to success. We
definitely need to be courageous. We shouldn’t make things difficult for
ourselves when trading. Majority of traders don’t want to agree that using
difficult trading methods don’t increase profitability.
This article is ended with a quote from Martin:
“Trading is a psychological game. Most people think they
are playing against the market, but the market doesn´t care. You’re really
playing against yourself.”
Source: www.tallinex.com
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