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Sledge

If You Had the Chance to Speak to a CME Seat Holder..

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I have a wonderful opportunity that has been presented to me. I have a great friend of mine who went to college with a buddy of his that holds a seat on the CME. My friend spoke with him and his connection is expecting a call from me to chat. The problem.. I'm not sure what to ask. I'm not sure how to approach this opportunity.

 

This is about the same as if someone got to meet a rock legend or their favortie artist. What would you say to someone who you feel has such skill and talent? Someone who is wildy successful in a field that you hope to attain the same level of skill and talent one day. I know my way around the market, but I'm not some trading god, by any strech. I still have things to learn, I still have things to understand.You wouldn't want to act like a tool- asking stupid questions, acting like a silly star-struck school girl.

 

So my question to the masses here is this- how would you approach it? How would you utilize the opportunity to the fullest?

 

It is a good problem to have. But I feel I have been presented with a wonderful opportunity and I don't want to blow it.

 

Aaron

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Depends on how probing you want to be. If you are not bashful, I'd flat out ask how he trades and see what he says. And if you want to take it to the next level (and you are able to) I would ask what it would take to work with him in some capacity.

 

And if that's too straight forward for you, I would ask what he'd recommend to someone that is newer to trading and how to get in the game. Are there any specific books or websites me might recommend?

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  Sledge said:
wonderful opportunity and I don't want to blow it.

Aaron

You won't be blowing it. CME seat holders are just like any other traders, except they could deal with size. They blow up accounts just like every other trader, sometimes more spectacularly so.

I would ask him/her how often do seat holders fail and how often they have to go and throw up in the bath room :)

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Guest forsearch

Well, he's a seat holder, but does he still trade on the floor? What advantage does he feel he may have trading in the pit versus on the screen? If he's still on the floor, ask him if you can take a tour and shadow him for a day.

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All wonderful ideas gents. If he is friends with my buddy, I think the conversation will go pretty smooth. I'm just a bit nervous to ask him something that may be out of line or inappropriate. Between him and I, our experience is vast. Not to say I'm any slouch- but this is big time.

 

I have already toyed with the idea of talking with him about heading to Chicago for just one day to "experience it live" Especially, since currencies are traded there and their is no "pit feed" for it available.

 

Bf: Well I got the balls to ask no doubt (born and raised New Yorker) so that isn't an issue.

 

Keep em coming. I think the most logical approach is to write down some questions and ask them. Who knows, I may pull all of them together and he may be very forthcoming with how he trades, what he trades etc. I will not be surprised at all if this was the way he was as my buddy said he is pretty laid back and not arrogant about what he does and the success he has gained.

Aaron

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I'm a CME seat holder what is it that you want to know??

 

thrunner is for the most part correct. cme seat holders are like anyone else except they have lower much lower commisions than you and can use their seat as margin (thus they can throw around larger size). There are the good, the bad and the ugly, like in any other business.

 

Just try to get accross that you have a deep passion for this business and you will do whatever it takes to be successful. You appreciate his time as it is very valuable and any advice that he can give in your pursuit is greatly appreciated etc.... then listen.

 

Absolutely no reason to be nervous...

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  johawk said:
I'm a CME seat holder what is it that you want to know??

 

thrunner is for the most part correct. cme seat holders are like anyone else except they have lower much lower commisions than you and can use their seat as margin (thus they can throw around larger size). There are the good, the bad and the ugly, like in any other business.

 

Just try to get accross that you have a deep passion for this business and you will do whatever it takes to be successful. You appreciate his time as it is very valuable and any advice that he can give in your pursuit is greatly appreciated etc.... then listen.

 

Absolutely no reason to be nervous...

 

johawk-

I appreciate the insight. That helps calm my nerves a bit. I'm sure most people can understand why someone would be nervous. It is a big thing. I don't want to ask questions that may seem as if I'm trying to get the keys to unlock the market (as I know their aren't any) or act as if I am probing to "copy his work" in order to do the same. That would never be my intent.

 

As I have learned in this business- one man's edge is another man's mystery. Depends on how the trader is wired, risk tolerance, confidence and to be blunt- balls!

 

I do have an extreme passion for the business, I'm sure that he will hear it come across in my excitement and conversation. I'm sure my buddy has filled him in as well (my trading story that is) He'll already be aware of where I started, stories of my trials and tribulations, and my gumption to fight through the learning process to get to where I have landed to this point.

 

But such a simple paragraph- helps a lot.

 

The 3rd grade lesson of "Shut up and Listen" will hopefully serve me well.

Thanks,

Aaron

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Great opportunity Aaron. Is it out of line for me to ask you to report back on your impressions etc.? Could be a great help to us all. And you could change your username to Jack Schwager!

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Hi Aaron,

 

If I met him, I'd be interested in how he sees his job changing with the increase in electronic trading. Also what does he think is a pit traders edge is in this changing market structure?

 

Have a great time in Chicago!

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I spoke with him last night via phone. It was a very nice intro conversation. He spent the majority of the conversation asking ME questions. i.e. How do I trade, what timeframes, how is my mental discipline etc.

 

We spoke about trading hours and how I tend to approach these markets, what currency pairs I favor. I balanced that with the part of the conversation that I am a retail trader and don't have to accumulate massive lots of position as he does, which I feel gives me an edge of my own. Granted the payout for him is much greater- but I don't have the capital behind me to aquire 500 lots of said instrument.

 

To answer a question from above. He was a pit trader but has now moved to his home office to trade. I hope to speak with him again about how he transitioned.. although I think that IMO- if he has been a pit trader, their has to be a subconscious part of him that when he sees price action transpire either by bars or ECN "ladder" I'm sure that he can actually "hear" the pit roaring in his mind and can almost transcend back to the pit mentally-- something folks like us that have never been pit traders will not have the benefit of.

 

He praised my ability to have a plan, sticking to the plan and also my statement of "I take what the market gives me" He noted that "I found personally that when I had an "opinion" of where price was to head next- I lost far more money, than just trading what is in front of me" Thus, this is a confirmation of the statement "Trade what you see- not what you think!"

 

Overall, for me personally it was an outstanding hour spent. I didn't dig deep into his trading strategies, or get to the real nitty gritty of things. I hoped to accomplish in the conversation that what I have laid out as a trading base- is indeed a viable and suitable approach. He saw no holes in my approach to the market- which was a good feeling.

 

He took my cell number and I'm sure he and I will be in touch again. He said that anytime I had questions- to give him a call. So this post may end with

To be continued........

Aaron

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  Sledge said:

To answer a question from above. He was a pit trader but has now moved to his home office to trade. I hope to speak with him again about how he transitioned.. although I think that IMO- if he has been a pit trader, their has to be a subconscious part of him that when he sees price action transpire either by bars or ECN "ladder" I'm sure that he can actually "hear" the pit roaring in his mind and can almost transcend back to the pit mentally-- something folks like us that have never been pit traders will not have the benefit of.

 

Yeah, that's what I was getting to with my "question from above"...:\

 

Really couldn't see him trading currencies on the floor still in this day and age, when it's so much easier doing it remotely. Next question would be whether his trading is still limited to currency futures at the CME, or does he also trade spot FX with institutional/bank desks, given his size?

 

-fs

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  forsearch said:
Yeah, that's what I was getting to with my "question from above"...:\

 

Really couldn't see him trading currencies on the floor still in this day and age, when it's so much easier doing it remotely. Next question would be whether his trading is still limited to currency futures at the CME, or does he also trade spot FX with institutional/bank desks, given his size?

 

-fs

 

fs-

If I get the chance to ask, I'll weave it in there- because I think it would benefit not only your mind but mine and others here as well. I didn't want to scare him off by having a laundry list of questions to pelt him with on our first call. I can only hope that this will pan out to be a nice, casual, working relationship- instead of a one-shot-deal "interview" type relationship.

Aaron

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