There is a widely used indicator called the ‘Tick’ that measures the number of NYSE stocks whose last trade was an uptick minus the number whose last trade was a downtick. He attributes his turn around in success to the development of what he calls the ‘Cumulative Tick Indicator’. Not one to give up, after five years Mark had totally recovered from the losses but vowed never to sell another naked option. His account dropped from $165,000 to a deficit of $350,000 in a matter of days a total loss of $815,000 when taking into account for the money that he lost in his family’s accounts. In 1982 he sold naked calls on Cities Service that expired deep in the money. Lost all his capital several times while learning to trade including one occasion when he lost more than his entire net worth.

They (traders) would rather lose money than admit they’re wrong… I became a winning trader when I was able to say, “To hell with my ego, making money is more important” – Marty Schwartz A big advocate of moving averages, Schwartz identifies healthy stocks by looking for positive divergences in price action over the broad market. When asked if Technical Analysis works he replied “I used fundamentals for nine years and got rich as a technician”. He ran his account up from $40,000 to $20 Million and also won the U.S. Schwartz found success when he shifted to technical analysis and focused on mathematical probabilities. He developed and combined several technical indicators in an effort to determine lower risk entry points for his trades. Originally a stock analyst but got sick of having to write bullish investment advice on overpriced companies. Here is a list of the traders I found particularly noteworthy: To my delight I discovered many successful traders and investors who had the track record to prove that Technical Analysis does work. I decided that if there wasn’t a long list of very rich Technical Analysts out there then I had lost enough money using TA and was ready to quit. But Fundamental Analysis really doesn’t suit my personality so what were the other options?Įverywhere you go online there is another guru selling the latest TA system accompanied with confusing looking charts.

There was plenty of evidence to suggest Fundamental Analysis worked (Warren Buffett has Billions of evidence).

My first brush with Technical Analysis was not a good one and I was left asking the question “Does Technical Analysis work?”.

Marty schwartz stock trader