Pit trader looking to move off the floor
- Thread starter fpuppet
- Start date
I guess those days are soon to be gone.The front month in the s&p (big contract) is still traded in the pit. The volume is actually not that bad but it is a dying pit. Still some size that trades in there but I would stay away. I like the idea posted previously. Trade 1 lots like crazy till you get the feel and become profitable. Good luck. jim
when you are no longer in the pit trading you will quickly see how they go together. Unless you are very fast with paper and pencil how will you test anything? Do you really think you will be looking at prices on the screen and somehow predict the future just by eyeballing it? Or looking at charts?
You would be surprised how much you can do and what possibilities exist if you know how to program. Maybe for fun you could automate an entire industry.
I personally think you'll be in for some tough times. I personally never traded on the floor, but I knew a few people who have and then tried screen based trading.
A couple of mistakes to be weary of. Thinking trading in the pit is similar to trading on the screen, it's not. Trading on the screen is whole different game and that is why the transistion is often so hard. Your advantage is you probably understand the market better than most. But, you need to begin again and put the hard work in. An ex colleague, who was on the floor for 10 or so years then moved upstairs, lost a lot of money initially because he was trading a similar size as on the floor. Whatever you do, trade only 1 lot until you prove yourself on the screen. Sometimes ex Pit traders start too big due to ego issues of what they used to do in the pit.
I lost my job as a screen based trader and I think losing any trading job is really hard. For one it is the best job in the world when you enjoy it. And for another, it is hard to get another job afterwards (or that was my experience at least). Nevertheless, you have some great experience and skills and I am sure in the end it will turn out alright. Other ex pit traders have made a successful transistion so there is no reason why you cannot do the same.
Good luck.
what about moving into the CBOT pits? Or are those pits starting to dry up with the eCBOT now? Regardless, I'm sure you'll find something, your trading knowledge must be pretty high if you've been doing it for 10 years. Also, cant you take computer programing courses from local tech schools for only a few hundered dollars a course? Or are firms looking for past work experience in computer programing?
The biggest mistake you can make is to think your experience in the floor is relevant to upstairs.
You should think about relearning how to trade.
Once you've remade yourself (profitable in a prop. situation), then you can start merging the two experiences together.
An advice from a Chicagoan.
You should think about relearning how to trade.
Once you've remade yourself (profitable in a prop. situation), then you can start merging the two experiences together.
An advice from a Chicagoan.
Effective risk management is the hardest part of trading, and you should certainly be proficient in that area at this point. I'm sure you also have a thorough understanding of the big-picture characteristics of the markets. That foundation should go a long way toward shortening your learning time for screen trading.
What is your current style of trading?
What is your current style of trading?
Pit traders are rapidly going the way of the dinosaurs for a whole host of reasons, mainly due to advents in technology, and being helped along by good'ol competition as well as the less obvious factors. Getting out early would have been optimal, but leaving the sinking ship now is going to be crucial to your fiscal well being.
Unless I missed it, you haven't really gone into your current financial situation, whether you have a family or not etc., etc. These are all factors that will affect your decision making process.
If you don't want to go back to school to learn new technologies which may be applicable to your previous position, trying off-screen trading is certainly worth the effort, but like it has already been mentioned, there's going to be a learning curve involved with taking that path.
Good luck whatever you decide.
Regards,
JJ
Just a couple of thoughts
1) Be careful which comments you take notice of from these forums. Many people here are not successful traders. A few are. If you have been trading successfully for a few years, you are ahead off 95% of posters on this site.
2) Don't be too apprehensive about screen trading - I know the move can be made as I personally trade with a couple of ex-floor traders who are still very successful.
3) Programming may, or may not, be useful to you. It depends on the direction you take your trading. I use programming a lot to deveop my algorithmic systems. Others in my office cannot programme at all and still make good money (discretionary trading - scalping). Unless you want to change direction completely (and go for systems trading) programming is not as key as some suggest.
I guess your best bet is to go to one of the customer flow trading desks at an IB. That is my background and I can assure you that programming is far from essential. It's all about making markets, just like I guess you are used to.
Good luck whichever way you go. You will need to adjust but it can definitely be done.