Becoming a pit trader

Discussion in 'Trading' started by ertrader, May 21, 2002.

  1. I have made my next move after schonfeld. I will be going to the Naz pit at the CME in chicag. I will let you guys know how it goes and what crazy things happen.

    I will a arb clerk for this rollover, starting tuesday, for the biggest local in the back months. I will do this to learn the hand signals, to meet the players, to learn a little floor rules, etc.

    I will break off on my own in August. I will trade the futures, scalping and arbing. I will work with this individual through the summer. So, i am not taking the summer off....damn.
  2. Cesko



    With all your prognostication genius you want to become a floor trader at one of the most notorious financial institution of this country. Go on and tell us how to take all that crap seriously. You certainly do.
    LOL :confused:
  3. Cesko


    Previous post reflecting on ertrader's ranting in "It is all smoke and mirror" thread
  4. Fohat



    Futures pit volume is evaporating, how are you going to make money there? The order flow is moving outside the pits. What will you do "without order flow" in the pit? Scalp each other?
  5. Ertrader,

    Judging by your previous posts,when you say, "becoming a pit trader", do you mean like deep in a bunker somewhere??:p

  6. def

    def Interactive Brokers

    As a career move, perhaps you'll learn a few things. However, at the rate things are going, the pit may not exist by the time you're done clerking.

    On a serious note, I'd be interested in if you find the futures pit leads the electronic minis or if it is the other way around.
  7. chisox

    chisox Guest

    let me get this straight, you are going to go to the cme and think you will walk in and throw around futures with the group thats in there right now??? without having experience in floor trading???

    I strongly encourage you to think hard about this decision, you cannot minimize how good these people are at what they do, and more importantly, how hard it will be for you to liquidate a loser when you are stuck along with everyone else there???

    You may be used to going up a few levels to get out of a loser,
    If you think it will be this easy, your in for a rude awakening........
  8. bone

    bone ET Sponsor

    As a former pit trader-turned electronic markets trader, I really can't think of a worse place to be than in the Chicago pits right now. The only exception I can think of is the Eurodollar pit at the Merc, because that particular market trades high volume and does not have electronic access during the day session.

    When you're standing in the pit, you trade order flow. You are the last to know about many other things that you can see when you're off the floor. Because you're fresh meat, you are going to be constantly picked-off by other locals. Don't trade with them if you can help it. If you're going to "give up the edge", always give the trade to a broker. That way, you plant a seed for future reciprocity. If you can't stand near several brokers, or don't seem to be able to get trades from them, then give up on that pit.

    Good luck... you'll need it.

    Been there, done that.
  9. saxon


    Good points.

    As a former pit trader myself, that advice to develop "reciprocity" with the brokers is really important. But try to pick your opportunuties carefully at first, assuming you are going to be starting small. If a broker is bidding for 100 lots, don't hit him with 1. But when they are trying to fill a smaller order and have no takers, then you can be a gentleman.

    Never be a gentleman to the other locals! :) I mean, never give up the edge to them unless you absolutely have to. It's a thankless (and profitless) thing to do on a regular basis.

    Maybe you'll find your home in the pits. But if you don't, there will always be room "upstairs".

  10. First, there are people making money in the pits. Second, even though i stated Smoke and mirrors, i did not say you cant make money when they take this baby back down.

    Second, how are you making money with the commissions you pay off the floor for all you pit traders gone computer. LOL, I hope your not paying 5 to 6 or even 3 half in a round trip, if you where, your not making money.

    Many are returning to the pit, so for you how spouted off that you left the CME, i think you might want to talk to your buddies that stayed. Sure, the Minis are moving on TT or GLOBX, and like i said, i will not only have the pit, but a globx in front of me.

    SO, your telling me, that standing on the floor, in the Naz futures pit, next to the brokers, next to the big locals, next to a Arb clerk with the acces to hit anything on globx or the floor, that im crazy.

    I sounds like you guys left the pit for a reason and it wasn't because the order flow has dried up, because it has not, in fact it is picking up< on both the floor and on the computuers, 40% since last year.

    Sure stay on the computer and call me crazy as I pick off your trades....utilizing my hand signals or Globx
    #10     May 22, 2002