TRADING BOOK REVIEW: “PIT BULL”, by Martin “Buzzy” Schwartz, 1998 Harper's Business Press [Originally posted June 1999]
If you are looking for an entertaining and useful “fun read” this summer on trading, this book is a good candidate. Marty Schwartz describes how he self-made himself into one of the all-time heavies in trading the S&P Futures, so on one level this book is his success story. However, he doesn't sugar-coat it – much of the dirty laundry (well, his version of it) is put on display right from the start, which makes it a lot of fun to read. And let me be the first to point out that Marty is no saint! So be warned, if you are studying for the Priesthood, this is probably not a book you are going to enjoy… it's targeted at a bit scrappier audience ;)
Martin starts his story at the beginning, as a U.S. Marine Corps trainee, then a mild-mannered securities analyst, and quickly begins relating the tale, almost trade-by-trade, of exactly how he became one of the biggest, brashest, most wildly successful off-floor traders of S&P Futures in the country (and, he is quick to remind you, one of the most successful!!). And, he tells you how he ruined his health in the process. Throughout the tale, his wife, appearing to be a cross between an angel and a trading coach with the wisdom of Solomon, supports his intuitions and eccentricities in all sorts of crazy-like-a-fox situations ("if it feels right, Buzzy then do it" as he short hundreds of S&P's right before the Gulf War peace talks collapse).
The tale Marty tells is not always very flattering, and it's easy to see that his version of things are most probably distorted in his favor many times (like, when he's talking about the happenings surrounding his failed foray into trading a hedge fund). However, if you don't find this guy totally reprehensible, then you may find yourself really enjoying his tale. [i've since talked to several traders who have known Marty over the years; each described him a warm, very funny and charismatic sort of fellow. The book reviewers weren't so kind, but then again they don't know the guy]
At one point in his trading evolution, Marty finds himself stuck day after day, riding a huge underwater position in the S&P's. One day, to his own surprise during a slow moment he spontaneously finds himself donning a paper bag over his head, punching out eyeholes and jumping onto a desk in the brokerage room filled with institutional traders, and commanding the attention of everyone within 300 yards with a wild dance, yelling “I'M LONG, I'M WRONG, I'M TOO F_____G LONG!!”. This is classic Marty Schwartz, enjoying a light moment of stress relief. In another amusing situation, he visits the CME pits in Chicago, just to make sure they know who they're dealing with. The locals in the S&P pit persuade him to trade against them live in the pit, and send him packing minus around $100,000 in short order. Then there is the "Gold Bars" thing (he keeps them in a vault) he has going... but I'll have to leave most of the tales for you to discover for yourself.
Marty is often a paradox; he describes himself convincingly as a very disciplined and serious trader – and he imparts much in the 'useful trading wisdom' department. But at the same, he can sometimes appear to be a seat-of-the-pants, insider-rumor-trading, gamble-it-all-on-a-trade, wild-maniac of kenetic energy kinda guy. He portrays himself as a sensitive and caring person, weaving his relationships into every page of the book; and at the same time he frequently behaves as a self-absorbed, self-described complete jerk. He is many contradictions, and without doubt he is a “great read”. Well done, Marty! My hat's off to him.
This one is destined to become a time-tested favorite. Maybe not in the same league as the true classics of trading, but great entertainment, with many nuggets and insights into the world of trading in it's most intense, pressure-packed form (hint: don't try it at home!!).
Good trading, -Steve |
