Lessons from Wall Street’s Champion Day Trader

Jan 2, 2010
Prem Anand

The book shows how the author Schwartz, a professional day-trader, had developed his acumen for trading in stocks, futures, and options. He narrates how he mastered the trading techniques, developed a systematic methodology, combined information, intellect, and intuition to become successful in his trading career.

Breathing, Walking, and Living as a Day-Trader

Trading in the modern era has become advanced with computer models becoming more intelligent and taking over the trading with less human interaction. Schwartz did the charts, calculations, and predictions himself in the 70s and 80s and started getting assistance from computers in 90s.

After his graduation from Columbia Business School, the author started his career as an analyst analyzing companies and stocks. He begins with sharing his experience in the trading floor of the American Stock Exchange. He works for several investment management companies where he had to travel to interview company executives and analyze the companies’ in all possible angles and provide an analyst opinion. He got tired of this job and devises a plan to become a champion trader.

Every Stock He Places His Bet Upon Turns Into Gold

Wisely executing his personalized trading strategies he churns out millions of dollars, like in a fairy tale. He then participates in a trading competitions conducted by Financial Traders Association several times to achieve stardom in the world of trading. With all the expertise he gained, he decides to manage other people’s money and starts his own investment management company. At a time when he was performing like a star, he becomes seriously sick and that was the beginning of the demise of the company he started. After he recovers, he downsizes the clients and relocates south to Florida to spend time with his family and other things in life that he missed. But he never stops being a trader.

A Must-Read for All Day-Traders

Throughout the book, the author shares some valuable points every day-trader should ponder upon like:

Exclude ego out of the trading equation

Always stop the losses by exiting a loosing trade quickly

Change tables after a winning streak

Preparation pays. It’s essential to know more than the other players in the game

Have reserves in gold in a locker

At the end of the book, there are some good tips to be a successful day-trader. He explains the methodology and tools he uses, how to analyze the market, how to interpret the movements and trends in charts. By no means is this comprehensive guide. But it is a good start. This book is an inspiration for those who wants to be a day trader but does not delve into more detailed technical analysis. The book could have used less narration and more information.

Pit Bull – Lessons from Wall Street’s Champion Day Trader by Martin “Buzzy” Schwartz (HarperCollins, 1998)