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Howard,
That was really great, although I have never been to the CME I have talked
to a number of traders that have given me some great insight as to what
actually happens on the floor. Also this is great for some of the newer
traders to hear, as we all know how the market can play havoc with our
brains when trying to run trades. I think this is good for all of us to
hear, just as a reminder to what is actually going on down there.
On a side note, for the last couple of years I have used formerly known as
FTG, now known as RCGPSD.... to run my trades. This company uses Rosenthal
to run their trades. I have found them to be somewhat better than average
when running trades. Once there was a situation where I got a fill in the
J. Yen that I thought was pretty reasonable. Later that day one of the
people down at the trading desk tells me that when my fill came back it
looked off, so they actually got them to give me a better fill price. In
my 8 years of trading in the financial markets I have never had that
happen.
Troy
wallst@xxxxxxxx
----- Original Message -----
From: Howard Hopkins <hehohop@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Monday, July 17, 2000 7:58 PM
Subject: [RT] My 1 1/2 days at the CME
> RT,s;
>
> I've been daytrading the S&P's for almost three years now. I had never
been
> to the Merc or even to Chicago until last week.
>
> A little history first so you can understand impact of my visit to the
pit.
>
> I started trading with Jack Carl Futures (3 months) and then went to
> Rosenthal Collins (for one year). I had an account over $100k so they
give
> you access to their floor desks for orders "near the market". Otherwise
you
> need to place orders away from the market through a desk off the floor.
>
> I can't tell you how bad my experience was with these two companies. I
would
> not be trading today if I hadn't found my current broker. It would take
15
> to twenty minutes or more (you weren't allowed to call them for fills) to
> get fills back, you were treated like a number instead of a customer and
> they were rude and very intimidating when you called to place orders. The
> bottom line is that they did everything wrong in terms of customer service
> because the guys working the desks had no vested interest in your success.
>
> The broker I've been using now for almost two years is a CME member. He
is
> at the trading desk everyday. Your desire and willingness to trade
directly
> affect his bottom line and he is on your side fighting for better fills
and
> excited when you make a good trade. They answer the phone within two
rings
> quoting the bid/offer in the pit. They memorize your account number after
a
> few days so you just have to say, "this is Howard, buy five at the market"
> and boom you order is arbed in to the pit.
>
> Why am I going on and on about my broker? Because he let me stand down
with
> him at his desk in the pit for a day and 1/2. He introduced me to the
> clerks and traders that fill my orders. Everyone was extremely nice and
> friendly. One of the trader's let me stand next to him at the rim of the
> pit and explained everything going on (Borsellino was just three guys away
> from me).
>
> It turned out that my former desk at Rosenthall Collins was right next to
my
> current broker. The asshole clerk Andy that had caused me so much stress
> was still there. Andy was reading the paper, constantly horseplaying with
a
> guy from the Smith Barney desk, and answering the phone "S&P's" with no
idea
> where the market was because he wasn't even paying attention to the pit.
On
> Thursday morning the other clerk at Rosenthal Collins was asleep on the
desk
> for 2 1/2 hours... seriously, he slept from right after the open until
> lunch!!!!!!! These were the guys that were placing my orders in the
> volatile S&P!!!???
>
> Conclusion: If all the guys/gals at your trading desk (there is more
> females on the floor than I thought) are wearing gold jackets (clerks and
> runner colors) than the people working your trades and orders probably
have
> no vested interest in your success or satisfaction with their service.
>
> Other observations: Time/sales sequence is partially random. One guy
> sitting up on a platform at the front of the pit keys in the trade prices
> that are signaled to him from the traders. The pit has 300-400 people
when
> full. If he is looking to one side of the pit and someone signals a trade
> he may have missed a trade a few seconds earlier from the other side of
the
> pit. At one point on the morning of 7/12, the price board showed the last
> trade at 1509.00 while 1507.00 was actually trading. In other words, even
> the board in the pit is delayed and that is why I always have a squawkbox
on
> and watch the emini's. Then you have a more accurate picture of where the
> market "really" is.
>
> Another thing I hear a lot of traders complain about is how locals have a
> license to steal with the type of bid/ask spread we are seeing these days.
> They do have an edge due to their ability to get in and out quickly and to
> see order flow into the pit, but the truth is they have no more idea where
> the market is going than you and I sitting at home watching our screens.
An
> example of this is Thursday before last (7/6) when the market began this
> recent advance. My broker has a friend who's a great trader and an "A"
> local. The market was near the lows and Merrill bid on 100 lot. The
local
> hit him. Then Merrill bid on another 100 and the local hit him again.
Then
> all the institutions started buying and drove the market up over 15
handles
> in 45 minutes on what my guy estimated was 4000-6000 contracts. This
local
> got absolutely killed that day. He didn't 'know' what the market was
doing
> but placed a bet and lost...big.
>
> Hope my field trip was as informative and entertaining for you as it was
for
> me. :)
>
> Howard
>
>
> ________________________________________________________________________
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>
>
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