Martin Schwartz: Trading Discipline and the Control of Risk
Originally published 2025-05-18. Translation and editorial review: 14 October 2026. Market figures refer to the original reporting period.
Being a good investor Not measured at “How accurate is it?” or “How sharp is the technique?” “How well do you control risk?” — Martin Schwartz
🔰 A starting point where nothing guarantees success.
Martin Schwartz, one of the legends of the US trading world. People who changed their lives from ordinary salaried employees Becoming a millionaire from speculating in the future market without having any background that is superior to the average person at all.
after graduating from Columbia University He started his career in United States Marine Corps (US Marine Corps) before shifting his career to work as a securities analyst at a brokerage. This is considered the starting point of entering the investment world.
But his path was not strewn with rose petals, as in his first 10 years of trading, he experienced repeated failures. It nearly went bankrupt in the 1970s.
💡 Turning point: Discovering the "right system"
Schwartz discovered that the strategy that worked for him was Speculating with technical analysis (Technical Trading)
He decided to quit his job. With $110,000 in savings, almost all of which was used to buy a “seat” on the American Stock Exchange (AMEX), that leaves just $20,000 to invest and an additional $50,000 in borrowing to reach a starting capital of $70,000.
“I lost money the first two days of trading Options, but after that Everything changed. In just 4 months, I made $100,000. The first year I ended up making $600,000, and the next year I was making $1.2 million.”
soon after He decided to move from Options to the larger Futures market. and has more opportunities for growth
“I took my portfolio from $40,000 to $20 million without ever having a drawdown of more than 3% — and that's what I'm most proud of.”
📌 Schwartz's Trading Principles
He doesn't try to make a profit every day because he knows that "no one wins every day."
His goal is “Make the month positive”
from his stats He makes a profit on 90% of the trading days each month.
“If you want to survive in this market. You have to know when to surrender your ego. Most people would rather lose money than admit they were wrong — but that's not me.”
Schwartz always emphasizes that controlling risk is more important than making the right guess.
💬 Advice from legends to beginners.
“I want every beginner to believe that you can do it — that you may achieve more than you ever dreamed.”
He said that the important things that beginners need to understand are:
Learn to accept losses.
Don't let losses "escalate"
Don't increase trading volume until you can. Can actually double the port
Most people lose because they're impatient. Hurry and add a heavy stick when you're just starting to make a small profit.
“I never spend money to protect my ego. And I would never allow that.”
🎯 Summary: Knowing how to use Risk & Reward is the heart of investors' survival.
Martin Schwartz doesn't win the market because he makes the most accurate trades, but because he Know when to take risks And when should we back down? He always emphasized that To be a trader that can survive in the long term is not just a matter of technique, but of "risk management" with discipline.
✅ Every time you trade, you must know how much to risk.✅ Set a clear profit target✅ Don't risk 1 for just 1 — but rather risk 1 for 2 or more.
Knowing how to use Risk & Reward (RR) systematically is the foundation of a trader who can truly stand the test of time — not just get rich quickly, but "live long."
✨ Summary from Schwartz:
“Being a good trader is not a matter of luck. or techniques that are more advanced than anyone else, but it is a matter of 'discipline' and 'survival' in a field full of uncertainty."
If you are on the path to becoming a trader… Perhaps Schwartz's lesson isn't just about the millionaires, but about the mindset that allows you to survive and grow sustainably.
—
Comments