Pit Bull is up there with Jack Schwager’s, Market Wizards (Amazon). It should be listed everywhere as a must read trading book. Like he says, Schwartz may never be one of the big ones that manage OPM (Other People’s Money) – but who cares about other people’s money, really. From nothing, he has created a multi-million dollar lifestyle business trading for himself. Sounds good to me.
Two of my favorite quotes:
Taking a loss is hard to do because it’s an admission that you’ve been wrong. But in the market, being wrong some of the time is part of the game. On each trade, you have to establish your “uncle point,” the point where you’ll get out of a losing position, and you have to have the mental discipline to pull the trigger at that point.
Trading is a psychological game. Most people think that they’re playing against the market, but the market doesn’t care. You’re really playing against yourself. You have to stop trying to will things to happen in order to prove that you’re right. Listen only to what the market is telling you now. Forget what you thought it was telling you five minutes ago. The sole objective of trading is not to prove you’re right, but to hear the cash register ring.