Becoming a pit trader

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

  1. Most of you are correct, many left the floor to trade equities on computer because there was money. Well, that game is over and many are coming back to the floor.

    Huge influx of Member applications, flow has picked up and there is money being made. Now, not 9 zeros but good money. I believe the floor, at least futures, is the future. Not to say you cant scalp off the floor, paying 5 dollars round trip, paying 600 to 700 for TT or 500 for Globx.

    Do the math, the seat cost 3500 to lease, with nearly no commissions. 5 dollars round trip and you bang 1000 trades aday or more, plus ur other fees...hummm who is the idiot'
    #11     May 22, 2002
  2. im in good hands, im with one of the bigger locals in the back months, besides in know many from Hammer, Spike, etc. Im not going down there as some country kid.
    #12     May 22, 2002
  3. im also going to clerk as a Arb clerk this rollover, starting Tuesday. To learn the ropes to get familuer with the change of computers to the floor.

    Im not going down there throwing size and starting to trade.. I know what im doing....

    I hope most of you dont hold on to the idea of "electronic trading" is the only way to trade. I fell into that trap...and the casinos want you to believe it as do your brokers and so on.
    #13     May 22, 2002
  4. Cesko


    Prognostication: "Most of you are correct, many left the floor to trade equities on computer because there was money. Well, that game is over and many are coming back to the floor."

    Have you ever seen S@P 500 pit 6 years ago so you can compare it to the present ???

    :D :D :D :D
    #14     May 22, 2002
  5. I know, i saw it, many left the S&Ps to go over to the Naz pit. When the Naz pit was only 20 traders. I have been around my man, i know many heavy hitters in the S&Ps.

    you are correct, the S&P pit is smaller now, when 99/00 came, many left both pits. Naz is still bigger than the S&P pit.

    If your down there now, you see whats going, if not, i suggest you take a quick trip back down. Many have come back, many are comming back. I have not been over to the S&P pit, but i know of a few who were upstairs and returned. SPIKE is pretty much the main guys on the S&P pit.

    It will take time, many are traped on the computer, many did not make 7/8/9 figuers during the bull or many just came on the computer.
    They are waiting it out...thats fine,to each his own.

    I see something, just like when i trade, i see something and i go for it....i take risk. either i will be situated be for all the sheep return to the floor, i will be infront of the crowd or I will just make small amounts trading in the pit. Either way, im set......I have no worries....I just love the game, I like to trade.....$$$$ is just a product of the game....However, I tend to be a leader and not a It feel good for most of you to laugh at me, I know im on the right track. If you all agreed, i might be a little nervous.
    #15     May 22, 2002
  6. Pabst


    I'm one of those guys who left and who won't be coming back. I was making and losing six figures a week before you ever heard of the place. If the big S&P traded GLX during RTH it would be history in a month. The screen is now trading more notional value then then either index pit. I will further state that the success of the screen is if anything helping the big contract temporarily survive as Globex traders of 5 or more lots will go to the pit to save commissions. As far as memberships, yea there has been an influx at the CME lately. Mostly ex bond guys and CBOE traders who have already lost their franchise and are grasping at straws.

    What ultimately makes a market venue sustainable is the participation of the public. As Eurex showed the world, the advantageous pricing structure of an electronic platform coupled with the lack of locals picking the cherries equals market dominance.
    #16     May 22, 2002
  7. ~~~~~~~~If the big S&P traded GLX during RTH it would be history in a month. ~~~~~~~

    That seems like a logical assumption, but can you explain why electronic RTH bond trading didn't dry up the CBOT bond pit?
    #17     May 22, 2002
  8. Pabst


    #18     May 22, 2002
  9. def

    def Sponsor

    some figures you may find of interest:

    CBOT Electronic Trading System
    Volume reached 7,694,106 contracts in April 2002, up 119.3% from April 2001, and up 129.6% YTD at 29,895,142
    April average daily volume was 349,732, up 99.3% from April 2001, and up 129.6% YTD at 364,575
    U.S. Treasury Bond futures totaled 2,323,771 contracts for April 2002
    Ten-Year Treasury Note futures totaled 3,392,504 for April 2002
    Five-Year Treasury Note futures totaled 1,738,876 for April 2002
    #19     May 22, 2002
  10. def

    def Sponsor

    I should add this which is total exchange volume:

    Financial Futures and Options Highlights
    Ten-Year Treasury Note futures were up 27.1% from April 2001 at 5,463,308, and up 30.4% year-to-date (YTD) at 23,930,785
    Ten-Year Treasury Note options were up 61.4% from April 2001 and up 20.2% from March 2002 at 2,759,128, and up 66.4% YTD at 9,294,595
    Five-Year Treasury Note futures were up 49.9% from April 2001 at 3,092,394 and up 45.7% YTD at 13,634,522
    Five-Year Treasury Note options were up 83.5% from April 2001 and up 40.8% from March 2002 at 809,119, and up 62.7% YTD at 2,571,257
    Two-Year Treasury Note futures were up 20.2% from April 2001 at 159,242, and up 27.4% YTD at 977,540
    Thirty-Day Fed Fund futures were up 43.1% from April 2001 at 428,346, and up 80.6% YTD at 2,035,314
    #20     May 22, 2002