|
|
|
|
|
|
|
tions during my short stay. And though I learned a great deal about options early, for my first ten years I rarely ever used the knowledge. Only staying with Pru-Bach for about nine months, I confidently decided it was time to trade for myself. I bought a Mid-Am seat for $9000, and the next three years was an enormous learning experience for me. |
|
|
|
|
|
|
|
|
Neal: Do you prefer trading on the floor or off the floor? |
|
|
|
|
|
|
|
|
Mark: Well, it's really apples and oranges. First of all, the pit is a difficult place to understand. The way I think of it is exciting, no-holds-barred, in-your-face, Chicago-style trading. When you are trading in the pit, you stand next to the same guys and trade with the same people day in and day out. You find yourself in a very rich pool of information. The pit is a crowded arena of yelling, screaming, gesturing, and shoving, all for what are basically a few ticks of action. For the most part, 50% of the time you are standing around just waiting for something to happen, and when it does, you had better be ready for the ride. It's an emotionally and physically draining experience, especially for the younger traders. |
|
|
|
|
|
|
|
|
On the other hand, off-the-floor trading is a much calmer experience, externally. There are no other traders jockeying for a position, no other traders wanting to sell to the same trader you are trying to sell to. Most of the day is made up looking over charts and determining trading opportunities. And you go home a lot less bruised. |
|
|
|
|
|
|
|
|
Neal: Okay, Mark, ten grinding years on the floor and what did you really learn about trading Chicago style? |
|
|
|
|
|
|
|
|
Mark: Simple. Every trader was a failure early. There is a story about Charlie D., who made tens of millions of dollars trading. In his first few months, he lost half of his trading equity in a single day. For the next two months, he sat on the sidelines watching the interrelationships of the markets, and |
|
|
|
|
|