|
PureBytes Links
Trading Reference Links
|
1) where exactly did that story originate...a book, an article, an interview
?
2) does anyone know what Borsellino makes annually ?
> -----Original Message-----
> From: KIMBOLEGSA@xxxxxxx [mailto:KIMBOLEGSA@xxxxxxx]
> Sent: Thursday, October 26, 2000 8:55 PM
> To: gm@xxxxxxxxxxxxx
> Cc: Omega-list
> Subject: Re: Limit Down Bounce
>
>
> In a message dated 10/26/2000 11:02:44 AM Central Daylight Time,
> gm@xxxxxxxxxxxxx writes:
>
> << Now, having written that, I'm ready for anyone's war story
> that proves me
> wrong - how a trader made a million $ in a couple of minutes in a limit
> market.
> >>
>
> Gerald,
>
> There were no limits in 1987 but I believe Lewis Borsellino did
> achieve the
> feat you describe in less than 1 minute. The words that follow
> are his - not
> mine:
>
> "I've told this story dozens of time, but the memory has never
> ceased to have
> an impact on me. I was out of the country on Black Monday of the Crash of
> 1987. In fact, I wasn't able to get back to the trading pit until Tuesday
> afternoon (even though I flew standby on the Concorde). I made six-figure
> profits on Tuesday afternoon and Wednesday. But that all paled in
> comparison
> to what happened on Thursday.
>
> Before trading began, the pit was tense. The brokers, I noticed, were
> especially nervous. Having been a broker in my early days, I
> could read their
> body language clearly. They were acting as if they had a large
> order to fill.
> Just before the bell rings, brokers start to make their offers. A broker
> offered to sell S&Ps 4.00 points lower. (In the pit we'd think of
> that as 400
> points lower.) Then another broker, this time from Shearson, said he was
> 10.00 lower. (Remember this was 1987, and we didn't have any
> limits to act as
> brakes on a sharply falling market.) This was unbelievable, I
> thought! Within
> seconds we were already 10.00 points down. As a local, I wondered
> just how
> far down this market would go.
>
> "I'm 20.00 lower," I yelled out.
>
> A Shearson broker was lower still - 30.00 points lower. I said I
> was 40.00
> points lower. The Shearson broker shot back that he was 50.00 lower.
>
> S&Ps opened 56.00 points lower. In the midst of this freefall, I
> knew it had
> to be the bottom. I turned buyer. I bought 150 contracts from a
> broker behind
> me and sold them two seconds later for 20.00 points higher. I
> walked out of
> the pit with a $1.3 million profit made in less than a minute. I
> went into
> the bathroom and threw up. As much as I had made on that one
> trade, I could
> have lost if the market had turned against me."
>
> Rgds,
>
> Kim
>
>
|