The first time I visited the CME (Chicago Mercantile Exchange) was very intimidating. I was reminded of the Guns N Roses song, “Welcome to the Jungle.”
Here were masses of people and everyone was moving at blitz speed like they had just downed a gallon of Starbucks’ finest.
Traders would crowd into the elevators like cattle. When the elevator was full, a few more people would push their way in until I experienced a feeling beyond claustrophobia.
When we stopped at a floor, someone (usually from the very back) would yell out “Me!”
Then they’d aggressively wiggle their way through their competitors and exit the elevator.
My first day there, after my first morning of trading, a bunch of us decided to break for lunch. So we, along with half of the planet, headed for the elevators. Again, our elevator was full, people pushing their way in miraculously finding space where no space existed.
At each floor, someone yelled, “Me!” And made their way out, aggressively pushing others aside in the process.
Next floor: “Me!”
Next floor: “Me!”
After lunch we corralled back into the infamous elevators once more and I got squished into intimate contact with at least 4 strangers.
I was waiting for the first “Me!” to be sounded, when the elevator came to a HALT!
Oh no!
Stuck!
The ultimate “STOP!”
It seemed strange to me that everyone remained calm and no one said a word.
I wanted to yell, “Hey, we’re stuck and I’m squished and claustrophobic and I’m going to panic big time if someone doesn’t get me out of here pronto!”
But instead I waited to see if anyone was going to say or do anything.
Silence.
I started to think about the whole experience of my first day. The trading floor was a jungle.
Dog eat dog.
Survival of the fittest.
Everyone was out for themselves, FIGHTING to make money for “Me.”
The floor was crowded and chaotic, people literally pushing others out of the way to make money.
Being there changed my trading forever. Being a screen trader, I had been focused on lines and colors and dots and curves and pretty stuff on a monitor. You almost start to think that’s the market.
But when you get on the trading floor, you “see” the market. It’s people. And those people are FIGHTING for their money. These people are serious. Dead Serious.
It’s you against me. And I’m only concerned about me.
Nice guys finish last.
Welcome to the jungle.
This is not “compassionate capitalism!”
It was a lot like the elevator.
I tried to distract myself with my thoughts as long as I could, but then my attention came back to where I was and the feeling of panic started to rise again.
Finally I blurted out, “Does anyone know how to get us out of here?”
Someone responded, “This happens all the time.”
I replied, “How long does it usually last?”
He said, “10 to 15 minutes.”
And sure enough, the elevator started again.
Yes, it changed my trading forever because though I remained a screen trader, I realized that trading is a “competitive sport,” and the competition is fierce. I knew I had to be as tough and as smart and as aggressive as these warriors, or I was doomed.
There was no room for the wall flower, and there was no allowance for laziness.
You had to always look out for the tigers because they are always there, hiding, waiting to pounce. And they feel no remorse in attacking you … in fact they enjoy it because you’re their dinner!
At the end of my first trading day, my sponsor asked me if I had any questions. I said, yeah, I have only one:
“Where’s the stairs?”
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— Please leave your comments/reactions below —
Absolutely the best in the series. It explains a lot and is very instructive, especially for really laid back me.
Thank you
Barry….after seeing the video and reading your story I believe you. WOW that is the real world of trading and I for one have to toughen up , not be so easy going and start to view trading more professionally. One can easily be eaten up if not aware of the dangers. I always find your information and manner very agreeable. Thank you for opening my eyes. Regards, Mario. PS. I have been focusing on rubber band trades as you encouraged me too a while back, and I must say I Love those set ups too. There’s usually is a good push in the trade direction and best of all, it’s relatively low stress because your going with the main trend. Once again Thank You.
WOW!
I keep looking for that 5th video on floor traders. Finally I realized what you meant. This was the 5th post in a series. Not all posts were videos.
Except “ME” was more than a video. It was “live”.
I felt like I was there. I could see and smell and taste and hear the emotion of the experience.
Incredible writing Barry. That article is firmly etched in my memory too now. It is as if I was there myself.
And your elevator story has another point; there is a time to be aggressive and a time to be patient, waiting for the right time to yell “ME”.
Thakyou for taking the time and making the effort tom put the floor traders series together.At first I wonder what possible use this could be but after the third video and especially the last article it became clearer how it all works.
Once again thanks.
Thank you Barry for sharing. I now have much greater appreciation on what Bill Gates has done for us, turning a ugly market jungle, into a beautiful window. Now that we can make money with ease, using Top-dog material, and in the comfort of our homes, we should be more willing to share our profits and make the world a better place.
U,THE TROJAAN OF PROFIT…Cheers!
Very good look inside, Barry. Most traders don’t understand the true nature of this business. The smartest people in the class didn’t become become engineers because that’s where the real money is. Please keep up the good work.
Hi Dr. Burns ,
Great post. Thank you for sharing your knowledge and experience with us. I agree with Mario from his previous post about your ” Rubberband Trade Set-up.” It works ! I recently found a trading methodology that was created by a former floor trader that wins about 90% of the time. It has a couple of extra indicators/twists to the set-up , but after looking at a few of his chart set-ups , I discovered that it was basically a ” rubberband trade “(with a twist of lime )LOL.
Best in life,
John
It’s hard to find knowledgeable people on this topic, but you sound like you know what you’re talking about!
Thanks