What was your position at the October 1987 low in bonds? I was long.
When did you start getting long? Five points higher.
Five full points! You mean 81? Yes. The day it broke below 77,1 was long thousands of contracts. Other traders were also heavily long.
That was the day we gapped sharply lower. Who was selling? The commercials just kept selling.
Did you have second thoughts? Yes.
Did you think if the market went down to 76, maybe it could go to 70? No. At that point, you had to say it was all over and done.
Why? Technical analysis and experience.
Was that an example of your being patient in picking your spot to get out, even when the initial trade was wrong? Right.
Do you ever use any trading systems for anything? No. They wouldn't be there if they weren't wrong.
Do you think trading systems are a losing game? Sure. Why do they exist? You tell me. Because people aren't confident in their own ability. If you had a really good trading system, you
could make millions. Why would you sell it for $29.95?
Does luck have anything to do with trading? Trading is like any other job. You work hard, put in the time and effort, and make your own luck. I was lucky
that the first 100-lot I sold was a winner. But why was I lucky? Because I stood there all day for over six months,
developing and honing market feeling. When the opportunity occurred, I didn't hesitate.
You have to pay your dues to get the luck. Right.
Are there people on the floor who are not good traders, but are way ahead because they just happened to do a couple of big trades on the right side of the market? Can anybody really get by just on luck? No, not for long. The rule of thumb is if you have lasted a year, you will make it, but it is hard.
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