washed up floor traders?
- Thread starter hoodooman
- Start date
Hi guys, Kind of a funny topic. I am an ex floor trader. I was able to transition into electronic trading and did well for a number of years.
What's different about trading between now and then is that before 2006 there were certain advantages given to traders. In the pits we made markets. There was not really anywhere else to go with the order so we made money just providing a bid/ask and sometimes taking positions and sometimes hedging them off.
I remember one unemployment day our position lost $750,000. We were able to scratch the day due to our day trade profits. All we did was work the bid/ask and hedge things off. This was EDGE.
Stock traders were also given an advantage in the market before all of the ecn's took over. Stock traders were given "Price improvement". When large blocks came into the market we would throw out an order 50 cents away from the last and we all got filled at the same good price. The gap may have been 2$ and we got the print. This was also EDGE.
Currently in the market there are no real edges. You just have to be right and be very disciplined when you are wrong. Pro traders never really had to be right. We just played the games available to us.
It is what it is.. Those were great days that have gone by and everybody has had to reinvent themselves.
Best of luck in your trading..
What's different about trading between now and then is that before 2006 there were certain advantages given to traders. In the pits we made markets. There was not really anywhere else to go with the order so we made money just providing a bid/ask and sometimes taking positions and sometimes hedging them off.
I remember one unemployment day our position lost $750,000. We were able to scratch the day due to our day trade profits. All we did was work the bid/ask and hedge things off. This was EDGE.
Stock traders were also given an advantage in the market before all of the ecn's took over. Stock traders were given "Price improvement". When large blocks came into the market we would throw out an order 50 cents away from the last and we all got filled at the same good price. The gap may have been 2$ and we got the print. This was also EDGE.
Currently in the market there are no real edges. You just have to be right and be very disciplined when you are wrong. Pro traders never really had to be right. We just played the games available to us.
It is what it is.. Those were great days that have gone by and everybody has had to reinvent themselves.
Best of luck in your trading..
an interesting post and it confirms what other ex floor traders have told me. The edges on the floor have gone, no more knowing who is filling the big orders and legally front running it, no more fills for your mates
edges are still there but you need to look harder and there is no more low hanging fruit. any edges are tightly held and people are less willing to talk about them.
edges are still there but you need to look harder and there is no more low hanging fruit. any edges are tightly held and people are less willing to talk about them.
Insightful post sfast. It took me a while to come to terms that a profitable floor trader which I was, does not make for a successful screen trader. Ate a lot of humble pie and resolved that if I ever want to be a "real" trader I have to work harder at coding, testing, and as important- to come to terms with my psyche. A lot of "emptying my cup" my martial arts sensei used to say.
Everyone had this. I traded listed stocks at a prop firm in NY between 2000 and 2002 and the specialist had to fill you on block prints no matter who you were. I never thought of this as an edge. You just had to know how to trade. There was a little nuance in when you had to send your market order.
very interesting thread.
I came across quiet a few ex-floor traders.
One question that I always had was :
" if he was such a good trader at the time,
why can't he be a good trader with electronic
trading".
Now I am starting to understand.
I came across quiet a few ex-floor traders.
One question that I always had was :
" if he was such a good trader at the time,
why can't he be a good trader with electronic
trading".
Now I am starting to understand.
