Here’s an old scan from a newspaper article twenty years ago. I’m the guy on the right in the picture looking at my spread collapse. That wasn’t panic in my face, but an intense focus on what to do to dig myself out. I think during that snap shot of time, I was down about $40K after the first 15 minutes of trading. I remember actually making a couple of bucks profit by the end of the day. Those pits can be slippery slopes.
Jeff
Jeff
Man, I’d love to go into the pits just once. All the other things that I’ve wished for career-wise seem to have come to pass - I was even an astronomer for a day observing all night and sleeping over on top of Kitt Peak in Arizona - but I think this one’s a goner. The days are numbered for the pits with the accelerating transition to electronic markets. THERE’s a piece of wonderful history that’s winding down fast.
What the hell are they going to do when the power goes out?
Cheers,
George
Comment by allocator — December 27, 2007 @ 5:59 am
Frankly, I wouldn’t write the obit for the pits just yet. The electronic markets lack the liquidity that the human element (locals) provide. When the electricity goes out, they’ll have to go back to open outcry if they want the market to stay open.
Trading in the pits is more nerve wracking than any job on the planet, and I’m including test pilots and air traffic controllers. In fact, I knew a couple of air traffic contrlooers that only lasted a couple of weeks in the pit due to the stress. People in the pits are wired differently.
Jeff
Comment by masteroftheuniverse — December 28, 2007 @ 2:26 am
How do you keep the orders straight in all the bedlam, and when is a deal a deal?
Comment by allocator — December 28, 2007 @ 3:10 am
Now, many floor traders use electronic hand held devices to record their trades, but back in the day, we used trading cards to write down the trades. The cards had two sides, one for buys, the other for sales. You’d write down the size, price, time, type, and the other party’s badge number and clearing firm initials. You’d turn in the cards every 30 minutes to the exchange. I’d always Xerox my cards so I could tally my trades at the end of the session. A deal is a deal when the other party says, “Sold, or Take it.” You can’t back out on a trade, or you’re toast. All of those hand signals and gestures have meaning also.
Jeff
Comment by masteroftheuniverse — December 29, 2007 @ 2:39 am
Thanks for stopping by my blog. Nice blog you have. Didn’t know you have been trading for so long. You can probably teach me many good lessons. I’ll be following your blog.
Comment by obat — December 30, 2007 @ 5:03 am