Further, if people spent more time in analyzing the markets and trading, they wouldn't have to blame there lousy trading on conspiracy theories. Everyone on ET wants to bitch about unfairness, high exchange fees, and anything else they can think about. Why don't you focus that energy on being a better trader and less about whining. Take some responisibility for your actions. It's called maturity.
Yep, every trader wants to buy just before the next guy. That IS what trading is. Unfortunately, that's not what "front-running" is. Front-running is illegal. They hand out jail sentences for it. You might want to acquaint yourself with the definition. [/QUOTE]Those who "assumed" that it was going to be a short glitch, consciously took the risk that it wasn't going to be a short glitch, and lost. Plain and simple. [/QUOTE] The communication led people to believe that the system would be back up soon, then later, then that day, then unknown. In other words, the communication changed throughout the day....so while we all know we take risks, it's rarely as "plain and simple" as you evidently believe. OldTrader
I don't know WHO came up with this "theory". I didn't. And neither did any of the great leaders/thinkers throughout history. Let me just say, I'm 57, been trading stocks, futures, real estate and businesses all of my adult life. Every day of my life I would like to think I'm compassionate where appropriate. And take my word for it, most of those who know me would not find me to be a "sucker", or even "easy". Take a break my friend. Get in touch with some of the important qualities of life. It might even help your trading. OldTrader
It's a pleasure to read a post from someone that really has some life experience as well trading experience. Some of the posters here need to reevaluate their priorities and realise how much they really DON'T KNOW. Well written and appreciated. Risk Less (Fairly Old Trader)
While it was clearly appropriate that the pit remained open, afterall half the notional volume each day is still open out-cry, I do have my suspicions about the nature of such a dramatic "out of profile" rally. Clearly there was an over abundance of weak shorts in ES. Presumably many of these shorts had working orders on Globex to cover either as bids below the market or on stops higher. As programmers were clearing the book did word filter out that there was a "imbalance" of buying pressure via stops? Certainly clearing firms knew very well what their positions on Globex were. Throughout history the principals of firms have "front run" their customers in futures based on margin call information. i.e. My firm is net short 1000 Cattle contracts, the market is rising, margin calls have been placed and forced liquidation will soon commence. Good time to buy Cattle! So although it'll never happen, I'd love to see where some of this buying in the pit originated from. Did Timber Hill or Refco or Man have one of their biggest days of the year? LOL. Personally I got very lucky. I was 904.25 bid when IB lost their connection and was filled during that twenty minutes or so that Globex still traded after IB was booted off. Of course I didn't get my fill for 7 hours!, but that only enhanced my giddiness.
Its funny, the exchange business is the only business I know of where if they screw up - not only is it not their fault - its your fault, its the customers fault! "Why didn't you have a contingency plan knowing that we, the exchange would screw up. So its your fault, you are a loser, you are a bad businessman." Now let me ask you, in any other business, think of the business you are currently in or were in - how far would this attitude go? Would this dog hunt in the real world of business? I don't think so.
Those who "assumed" that it was going to be a short glitch, consciously took the risk that it wasn't going to be a short glitch, and lost. Plain and simple. [/QUOTE] The communication led people to believe that the system would be back up soon, then later, then that day, then unknown. In other words, the communication changed throughout the day....so while we all know we take risks, it's rarely as "plain and simple" as you evidently believe. OldTrader [/QUOTE] Ever wonder why I put "front running" in quotes? It's because half the people on ET don't know what they're talking about. So rather than try to correct all the previous conspiracy theorists on this board, I chose to go along with the phrasing what they were using. The other half are anal people who don't respond to the argument but they way it's presented, like yourself. Nope. It was plain and simple. You've been in this business for how long and you trusted the exchange? You assumed and you lost.
Well .... There are other exchanges available. Although the Merc has a monopoly on the issues they trade there are other good markets that are tradable. Although I do hedge on some of these failures if I have a large postion on , I dont see why I should be expected to incurr these costs as part of trading merc issues. I worked for the merc for nearly ten years and they couldnt get their systems engineered to the degree of redundency that I engineer in other mission critical systems. I didn't have the pull to dictate at the merc: elsewhere I did. My systems have never failed. The mercs still do. When I was there the issue was always one of management and not technical ability. They need to get their act straight: there are other alternatives.