I was 8n school in Dec 1979 for Ag Econ. One of my classes involved paper trading. We had some type of terminal that everyone would gather around for quotes. Trades were submitted to the prof on paper. I went home for Christmas long wheat. The USSR invaded Afghanistan over Xmas break. My long position told me I would never make it as a trader. Managing a co+op later and making decisions about when to buy fuel confirmed that I was no market timer.
I've got a funny story. Even though Bonds and a year long losing foray in the Euros were the only pits I traded in, my lineage so to speak was in the grains. So, I traded a lot of Corn and Beans on Globex from 2006 to 2010, (even this year i traded some corn) but not once in my life had I ever traded so much as a single Wheat contract. In Feb/2008, Wheat had a HUGE bull run with limit up days and as a consequence, greatly expanded price limits. Being a wiseguy, I told myself that if Wheat opened up the limit during this particular night session, I would sell a couple of contracts and perhaps cash in if it came off in a big way. Sure enough, wheat briefly traded limit and was immediately offered a nickel lower, so i got short. For the next hour the market was ridiculously thin and fluctuating wildly in a 10 cent or so range. I was on pins and needles because I feared if it locked limit I could lose $5k like nothing before it would trade again. Finally, I threw in the towel and I think I banked $800. The next morning, I woke up and saw that Wheat had absolutely collapsed. My 2 lot would've been worth like, $10k in profit. I was extremely pissed at my lack of balls. But then, the RTH session in Chicago began, and suddenly Wheat was limit up! I went from sad to glad pretty darn quick. It was then that a friend on the floor called me and said that a MF Global account exec in Memphis had gone rogue. The guy sold tens of thousands of contracts in the middle of the night and was discovered during the two hour or so period between when Globex grains closed and Chicago opened. Rather than work their way out of the position, MF Global's risk managers (who a year or two later would allow Jon Corzine to go wild) panicked and covered the Memphis trade "at the market." This must be the day that Jeff is talking about because I heard that some guys who sold the first part of the order blew out, other guys who sold late or who cannon balled their shorts, cleaned up. Me? I've never even considered trading Wheat again.
Spreaders got crushed that year. Nothing worked like it should have. I won't ruin Scott's book but he illustrates what was a big reason why. Hint: In microeconomics, they call it a price ceiling.
You have written about your recent surgery at Rush. When your PT is over, you might want to look into stretching the affected muscles at one of the stretching franchises I see around. I have an old surgical wound, and find the stretching helps loosen scar tissue for much relief. Hope your recovery is going well.
Thanks. so far so good. I have done Iyengar Yoga for years now (yogawithtodd.com) and will do that as soon as I can again. During this rehab though, I am able to do some very limited yoga moves that help!
I love these stories.
Thanks for the reading recommendation and the X follow.
I was 8n school in Dec 1979 for Ag Econ. One of my classes involved paper trading. We had some type of terminal that everyone would gather around for quotes. Trades were submitted to the prof on paper. I went home for Christmas long wheat. The USSR invaded Afghanistan over Xmas break. My long position told me I would never make it as a trader. Managing a co+op later and making decisions about when to buy fuel confirmed that I was no market timer.
I love these stories, too.
I've got a funny story. Even though Bonds and a year long losing foray in the Euros were the only pits I traded in, my lineage so to speak was in the grains. So, I traded a lot of Corn and Beans on Globex from 2006 to 2010, (even this year i traded some corn) but not once in my life had I ever traded so much as a single Wheat contract. In Feb/2008, Wheat had a HUGE bull run with limit up days and as a consequence, greatly expanded price limits. Being a wiseguy, I told myself that if Wheat opened up the limit during this particular night session, I would sell a couple of contracts and perhaps cash in if it came off in a big way. Sure enough, wheat briefly traded limit and was immediately offered a nickel lower, so i got short. For the next hour the market was ridiculously thin and fluctuating wildly in a 10 cent or so range. I was on pins and needles because I feared if it locked limit I could lose $5k like nothing before it would trade again. Finally, I threw in the towel and I think I banked $800. The next morning, I woke up and saw that Wheat had absolutely collapsed. My 2 lot would've been worth like, $10k in profit. I was extremely pissed at my lack of balls. But then, the RTH session in Chicago began, and suddenly Wheat was limit up! I went from sad to glad pretty darn quick. It was then that a friend on the floor called me and said that a MF Global account exec in Memphis had gone rogue. The guy sold tens of thousands of contracts in the middle of the night and was discovered during the two hour or so period between when Globex grains closed and Chicago opened. Rather than work their way out of the position, MF Global's risk managers (who a year or two later would allow Jon Corzine to go wild) panicked and covered the Memphis trade "at the market." This must be the day that Jeff is talking about because I heard that some guys who sold the first part of the order blew out, other guys who sold late or who cannon balled their shorts, cleaned up. Me? I've never even considered trading Wheat again.
Spreaders got crushed that year. Nothing worked like it should have. I won't ruin Scott's book but he illustrates what was a big reason why. Hint: In microeconomics, they call it a price ceiling.
You have written about your recent surgery at Rush. When your PT is over, you might want to look into stretching the affected muscles at one of the stretching franchises I see around. I have an old surgical wound, and find the stretching helps loosen scar tissue for much relief. Hope your recovery is going well.
Thanks. so far so good. I have done Iyengar Yoga for years now (yogawithtodd.com) and will do that as soon as I can again. During this rehab though, I am able to do some very limited yoga moves that help!