Lessons from the “Market Wizards” by Jack D. Schwager – Marty Schwartz

Marty Schwartz, also known as “Pit Bull,” is a renowned trader who gained fame for his success in the futures market during the 1980s.

While his career has spanned several decades, his notable achievements and trading prowess primarily occurred during that era.

Schwartz began his trading career in the late 1970s, initially working as an analyst for E.F. Hutton. However, he soon transitioned to become a trader himself and joined Commodities Corporation (now part of Goldman Sachs),
a prestigious firm known for its success in trading futures contracts.

During his time at Commodities Corporation, Schwartz honed his trading skills and developed his unique approach to the markets. He became known for his aggressive trading style and his ability to generate significant profits.
Schwartz primarily traded in the futures market, particularly focusing on currency and commodity futures.

One of his notable achievements came in 1984 when he won the U.S. Investing Championships, turning an initial $250,000 trading account into over $1 million in profits within a year.
This impressive performance gained him widespread recognition as a skilled trader.

Schwartz’s trading style was characterized by his use of technical analysis and his ability to identify short-term trading opportunities. He employed various indicators, chart patterns, and trend analysis to make informed trading decisions.
Moreover, he emphasized the importance of risk management and discipline in his trading approach.

After leaving Commodities Corporation, Schwartz established his own trading firm called Stellarton Trading, where he continued to trade and manage funds. While his career has had its ups and downs,
he has consistently maintained a reputation as a highly successful trader.

Schwartz’s experiences and insights were featured in Jack D. Schwager’s book “Market Wizards,” which interviewed a selection of top traders. His contributions to the book provided valuable lessons and perspectives for aspiring traders.

Overall, Marty Schwartz is known for his exceptional trading skills, his ability to adapt to changing market conditions, and his disciplined approach to risk management.
His career serves as an inspiration for traders seeking to achieve consistent profitability in the financial markets.


This is a summary of key insights and lessons that can be gleaned from his experiences and strategies as discussed in the book.

  1. Develop a strong trading methodology: Schwartz emphasizes the importance of having a well-defined and tested trading approach. He recommends developing a systematic method that aligns with your personality, risk tolerance, and trading goals.
  2. Master risk management: Schwartz places great emphasis on managing risk effectively. He suggests using stop-loss orders and not risking more than a predetermined percentage of your trading capital on any single trade.
  3. Be patient and wait for the right opportunity: According to Schwartz, successful trading requires patience. It’s crucial to wait for high-probability trading setups and avoid trading out of boredom or impatience.
  4. Adapt to changing market conditions: Markets are dynamic, and Schwartz emphasizes the need to adapt to changing conditions. He suggests being flexible in your approach and adjusting your trading strategies to suit different market environments.
  5. Maintain discipline and control emotions: Emotional discipline is crucial for successful trading. Schwartz advises traders to stay focused, stick to their trading plans, and avoid making impulsive decisions driven by fear or greed.
  6. Learn from mistakes and analyze performance: Schwartz advocates for learning from your trading mistakes. Analyzing your performance, identifying areas of improvement, and making necessary adjustments can lead to long-term success.
  7. Use technical analysis effectively: Schwartz employs technical analysis to identify entry and exit points. He stresses the importance of understanding chart patterns, indicators, and trends to make informed trading decisions.
  8. Practice proper position sizing: Position sizing refers to determining the appropriate amount of capital to allocate to each trade based on risk. Schwartz suggests using position sizing techniques to manage risk effectively and prevent excessive losses.
  9. Cultivate a positive mindset: Schwartz emphasizes the significance of maintaining a positive mindset and staying motivated during both winning and losing periods. He suggests surrounding yourself with supportive individuals and avoiding negative influences.
  10. Continuous learning and self-improvement: According to Schwartz, trading is a constant learning process. He recommends continually expanding your knowledge, staying updated with market developments, and seeking out mentors or experienced traders who can provide guidance.
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