Monday, October 23, 2006

Book Review "Pit Bull"

Pit Bull: Lessons from Wall Street's Champion Day Trader

What Is It About?

This book is about trading. Pit Bull is written by and is about Martin Schwartz, a successful trader first profiled in Jack Schwager’s Market Wizards: Interviews with Top Traders. The book is part biography and part how-to manual as the author uses the lessons he has learned both in life and in the market to explain his trading success.

What Did I Get Out Of It As A New Investor?

This book is not about investing. The author is an unabashed trader who buys stocks, commodities, options, and futures, and often sells them hours after purchase. However, the central lesson of this book is important whether you are an investor or a trader. Success in the market can only come where the investor/trader has an edge (a means of seeing a mis-pricing that others cannot or do not see) and is able to recognize and exploit that edge. This concept is one that every new investor and trader must grasp in order to be successful.

The Good News

This well-written book is an enjoyable read. Even those who do not view themselves as traders will enjoy the story told. Moreover, if you are a new trader this is a great book. Not only does it provide an insight into a successful trader’s process, the author provides a concise and well thought out chapter at the end of the book outlining his trading process.

The Bad News

As stated, this book will not teach the tenets of value investing. If you are looking for a tome on value investing, look elsewhere.

The Bottom Line

If you are someone who desires to be a trader then this book may be a worthwhile purchase. For those who are investors rather than traders, but still enjoy reading a good story about Wall Street, this book is definitely worth checking out from your local library.

Other Books About Traders


Anonymous said...

I've been re-reading both of the Market Wizards books. I think knowledge is cumulative. When I first read the books, many of the comments and stories didn't really register. But now with more experience, I can relate to the texts much better.

Steven said...

I agree. I often go back and re-read portions of books I read before but did not "get" as well as I thought I should.

Marlyn Trades said...

Pit Bull is one of my very favorite reads and I often re-read it. I've referenced it on my site several times - Marty is the one who convinced me that the EMA is a better way to go.


Outstanding take on a great book.