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It is a very rough and demanding game. The advantage is largely hype. To
survive you need to be very fast, very disciplined, and work hard. It is
also a young man's game. I have managed both up-stairs traders and floor
traders and have done both myself. I actually the upstairs traders have the
advantage.
Lawrence Price
robert.cummings@xxxxxxxxxxxxxxxx wrote:
> From my view point floor traders appear to have legal stealing benefits
> from their site advantage.
> I don't know if this is the case as some leave from there busted. Anybody
> out there that can tell us how it really is to be a floor trader?
>
> Robert
>
> At 10:41 AM 5/22/01 -0600, Gary Fritz wrote:
> > > However, one common "complaint" was that the
> > > opportunity for making big bucks trading in the pits is
> > > coming to an end. Profits were being squeezed out by
> > > computerized trades, and ever decreasing spreads.
> >
> >That wasn't my experience in the ND pit. Spreads INcreased from 2-3
> >pts in 1999 to 5-10pts in mid-late 2000. That's $500-$1000 per
> >contract, folks, equivalent to 2-4 handles in the big SP. You could
> >make a nice living flipping those a few times a day.
> >
> >I finally got sick of it and moved my trading to minis. Now my fills
> >are near-instant, the spreads are usually a point or less, I know
> >almost exactly where the market is, I can move stops at will without
> >worrying about my floor broker throwing a hissy fit, and I don't have
> >to deal with the aggravation of getting raped by the thieves in the
> >ND pit. (And no, this isn't the whining of somebody who doesn't know
> >how the pit is "supposed" to work. My *broker* regularly chewed out
> >the floor guys for screwing me so badly.)
> >
> >I'd happily pay 5x the commission for that service. But I don't have
> >to, because electronic execution has driven the price down. I pay
> >maybe 2-3x what I'd pay for big-ND execution at my old broker, and I
> >come out WAY ahead.
> >
> >I'm with Mr. "--". The pit boys brought this on themselves. They
> >bled their customers dry, and the customers decided to go elsewhere.
> >May the pit die a rapid and painful death.
> >
> >Gary
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