DislikedHi Peter, are you interested in having the ability to post in the Trading Room?
I'm sure you would have little trouble in aswaying any doubts any member may have.
As an incentive {to you} I have already offered my vouch because I feel anyone who says they "Traded the DM." has been around a while.
I see BWR beat me to it but that's OK. 2 more to go Unless you say NO.
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Ohhh, wouldn't it be nice to see an Unclutered thread named...
"Experiences of a Pit Trader."
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I'm sorry I haven't replied to any posts as the past week has been a gusher. Plenty of risk, that's true; but enough movement to make a poor trader with a simple moving average system (with stops) some money.
Thanks everyone for the vouches for 1KT status.
I probably have taken more than 70,000 individual trades. Not hard to do when you have a unique vantage point with limited risk. I don't trade as frequently anymore, but actually make more. By trading less for bigger profits per trade.
I miss the pit sometimes, but change is the constant, not the exception.
News Trading - Not what you might think!
All traders in the pit followed the news. The pit is/was surrounded by every possible news service that exists. When news comes out, positive or negative for something, the pit traders have first advantage to position themselves correctly for the avalanche of orders that typically come pouring in after JQ Public hears it on the radio. Tough to lose with that advantage.
The big players in the pit don't use the news coming out the way the small players do. They operate a couple of steps ahead of the pit and the public. You, the off-floor forex trader, can operate like them.
The big players take note of the time that the "news" comes out, the price of the tradeable-- and trade the breakouts of the price area of the trades within 10 minutes after the news is out. Huge profits are possible from these trades.
I love the polarizing effect of news on a market. The recent Bear-Stearns fiasco/bailout is an example of news that forces all players to take their stand in a short period of time. In all related markets. It makes it easy for forex traders to trade the "new' movements after the news is all out and there are no more shoes to drop.
After everybody has voted with their money, they are either right or wrong.
If they are right, they will push their position. If they are wrong, they will bail out because they don't understand any more what is going on and they will have to re-evaluate or reverse position if they have assets to preserve.
Either way, the forex trader gets a fantastic opportunity whenever you get major news. News that is unique enough that it can't ever happen again and be unique.
News like the Intel chip years ago that had math computation problems and the stock dived. Also, "Mad Cow" for cattle traders..., the list could go on for hours.
Now we have the Bear Stearns move, because the Fed showed it really would intervene any time there might be a threat of problems.
Back to trading. Have a good day.
PeterCrowns
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