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I don't want to beat a dead [and I am sure painful]horse, but sometimes the
fault is also on your own shoulders as a trader. Sure, your order got screwed
up--IF you understand why they couldn't execute your order. But that's what
happens in markets that are moving ****10*** big figures in 30 seconds. Trading
in this stuff means you have decided you are ready for the hard knocks that come
with markets that are literally out of control. How would you like to be a S&P
local today?? They all got the hell beaten out of them physically and
emotionally, winner or loser. AND they HAVE to be worried about having an
outrade that *might* cost them $50K? $100K? $200? And the guys that want to
trade every day can't just make the wise decision to just not trade today. The
law of the pits says that if you want the nice fills when the markets are easy,
you have to stand in and go at it and take the trades when it SUCKS in the pits.
At least we, as off-floor traders can look and say: No thanks. Not today. Too
crazy.
And again, it is no coincidence that your large loss came with you trying to
pick a bottom in a market that was out of control to the downside. There just
*weren't* any buyers, period, for much of today. It was a vacuum.
So, my advice, for what it's worth, is to take some personal responsibility for
making the decisions you made today: You chose to trade in 'the market from
hell,' you traded against the trend and against the volatilty, and your backups
were not adequate. I don't mean to say the electronic junk executing your orders
didn't make things much worse[If I were you, I'd reconsider electronic trading
until it gets better in the US]. Or that your brokerage firm did it's best to
help you--they didn't[but then, they probably had 200 people your size yelling
for better fills, faster fills...and 200 people trading 3's and 5's of the
regular SP in this slop..so that unfortunately made you low on the rung]. But
don't forget to evaluate your own part in this: Did you do your job today?
Best,
Tim Morge
The Funkhousers wrote:
>
> Suggest, first, that you directly inquire of your broker why he didn't inform you
> on a timely basis as to the fact that your order was "rejected" (your term).
>
> Secondly, if there is noone willing to take the opposite side of your order
> (whether buy or sell) and there are a large number of others ahead of you or the
> market is already limit down or up you can only sit tight (screaming sometimes
> helps the psyche) and wait till the logjam disappears. Sometimes you are able to
> hedge some or all of your position in another market or with another instrument,
> AND even though it rarely happens you should already have decided upon a plan of
> action for when it does, INCLUDING backups when the first choice doesn't work.
>
> Welcome to the real world of the trader.
>
> Richard Funkhouser
>
> Nchrisc@xxxxxxx wrote:
>
> > I wonder if anyone else experienced anything like this today:
> >
> > 1. Electronically, place a market order to buy the emini, get filled.
> >
> > 30 seconds later...
> >
> > 2. Oops, missed, sell emini at market, waiting...waiting...waiting...no
> > fill...call broker...CME rejected order, don't know why, need to re-enter
> > order.
> >
> > 3. Re-enter order...same as above... the market is now 10 S&P points lower
> > than when the original order was placed. Broker still has not heard from CME
> > why it is rejecting orders...Figure out that that only limit orders are
> > accepted, (despite no help form CME)
> > 4. Finally enter limit order that is accepted -- about 1 point from the low
> > and 15 S&P points below where original order placed
> >
> > Now I am not a litigious sort of fellow, (and the $$ I lost due this was very
> > small) but at some point the CME has got to take responsibility for this thing
> > that they have created. From what I saw, it appeared as though the computer
> > (or someone ?) pullled the plug on the stop/market subroutine when the market
> > was in climax selling mode -- I am sure customers lost millions, if not 10s of
> > millions due to this.
> >
> > I wonder if anyone else had a similar experience?
> >
> > NCC
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