Super Traders
Enviado: 3/5/2003 11:25Super Traders
By Art Colins
It’s August, 2002, and I’m at the Money Show in San Francisco. An array of investment-related items is being presented to throngs of would-be market mavens excitedly jamming the aisles.
I’m standing behind the display table of my publishing company, Traders Press, www.traderspress.com, having the very surrealistic experience of watching people browse my book. They‘re unaware of my identity and I don‘t know them, but suddenly we’re linked in a kind of weird psychic dance Will they or won’t they? Some do; I introduce myself and sign their copies. Others leisurely move on to the next stack. (And I emphasize "leisurely." You’ll never know how slow a browse is until you watch someone peruse your book).
For the duration of the scrutiny, I keep the telepathic flow unbroken..."come on, buy it, buy it, you’ll like it, come on....you need it!" A little presumptuous, granted. I’ve never met these people and I know nothing about them, save that they’re browsing investor books.
In my mind, that’s enough of a Case Closed. They may be well beyond Investing 101, they may be great speculators in their own right, but there’s just so much in trading that has to be reiterated and re-stated and thought and rethought some more. There are universal truths and the 35 people who granted interviews for my book pretty much nailed them.
Back to the table dance. Lots of people are picking up the book-- investor-types tend to browse everything on hand. But also, if I may venture, the cover is a magnet. It’s a comic strip parody of a super villain holding up a glowing green bolder while men and women in trader jackets crumple to the ground around him. It perfectly reflects the content within.
When Supertraders Meet Kryptonite is a book about crumpling to the ground when circumstances get out of control, about firing your last photon torpedo when the invading hoards overwhelm you. Death stars, lasers...name your analogy. The desolation of space. Fear of the unknown. Anyone who has ever experienced significant losses has been there--anyone who has traded long enough has endured significant losses.
While not being the first (nor certainly the last) author to feel this way; I regard When Supertraders Meet Kryptonite as not just informative and entertaining, but also....important. Maybe not to the world at large, (although so many trading realities are analogous to life in general). Maybe not to my circle of non-investing friends who received free copies and maybe read all or part of it out of loyalty.
But if you’re a trading enthusiast, you‘ll almost certainly connect with much of what the enclosed 35 prominent interview subjects are offering. I confess a great admiration for Jack Schwager’s Market Wizard books. Kryptonite is similar in spirit. Schwager did a fantastic job presenting the totality of trading. My focus was narrower--a side that is glossed over more often than it should be considering its universality and significance. The loss aspect, sure, but more than that. In an amazingly forthright fashion, these subjects--many already famous and celebrated with plenty to lose over their candor-- recounted the human side of trading. The debacles, with all their psychological implications. The re-tooling, re-routing, endless self-examination. and then the recoveries. Kryptonite is a book about losses--as experienced by winners.
Who are they? People from all strata of the trading world, from every part of the country. Several are locals at the Chicago Board of Trade where I’ve held a membership for 14 years. Sometimes you think you know people until you write a book. I’d had no idea my friend Jack Kotz had run up two million dollars in the 1988 soybean drought market, only to give it all back in one rain-soaked day. Tim York always seemed a reserved, soft-spoken guy with a southern drawl, and our prior conversations had mainly centered on my latest trading systems. He turned out a to be a motorcycling party animal with equity swings that matched his huge appetites.
I interviewed Pat Arbor, perhaps the most famous and colorful ex-chairman in the Board’s history. He pulled no punches discussing his own trials (including being forced to leave the business early in his career), nor did he flinch in his critical appraisals of his successor and the Board‘s insistence on defending its floor population rather than preparing for the inevitability of online trading.
Through him and others I made several Chicago Mercantile Exchange contacts. Howard Malman and Don Slider, now both heads of commercial trading enterprises, are also floor legends, having once swung hundreds of S&P contracts at a time. Not surprisingly, they had horror stories commensurate with their position size.
I interviewed celebrities I had admired for years. Linda Bradford Raschke and Mark Cook, both profiled in Market Wizard books, were each caught in the City Services threatened takeover bid in 1982. (A third subject, options arbitrager Lawrence G. McMillan, lost money in the same debacle when the transaction failed to occur).
Options guru Tony Saliba was in Europe while an employee lost him an unauthorized 1.25 million dollars. It all came to a head (literally) when the two met back home--Tony with baseball bat in hand, ready to crush the underling’s skull. Howard Malman lost an instant bundle being short S&P futures during a surprise fed interest rate cut. He wasn’t initially aware of his misfortune; when it hit, he was having a tuxedo fitted for his brother-in-law’s wedding. Cycle expert Walter Bressert was such a large presence that he single-handedly took the pork belly market limit up and limit down several times in a day. (Much to his frustration, he was buying the highs and selling the lows).
The insights ranged from the very familiar (don’t chase losses, don’t play with scared money) to the unexpected, (buy yourself something after a setback. You don’t want to reinforce the idea that you’re only worth something after gains).
The trader is like a high-strung racehorse, more sensitive to outside stimuli than the average person. In charting his success, you have to consider his domestic situation, (supportive spouse or impending divorce?), his health, (mental and physical), his routines, (taking enough breaks? Getting enough sleep?), his outlook. Some of the subjects were blessed with an ability to continue with "business-as-usual" even while the world was spinning out of control around them. They could then capitalize on the same volatility that had smacked them, and in many cases, they recovered their losses within weeks or even days.
Others sank into profound funks. (Neuro-linguistic expert Adrienne Laris Toghraie referred to it as "the cesspool.") Some were forced to disconnect for a while. They spent their hiatuses re-evaluating themselves and their trading approaches. Renowned advisor Joe DiNapoli’s stress response was more physical--a terrifying, debilitating episode resembling a heart attack.
When Supertraders Meet Kryptonite is my second published book. My first was Market Rap: The Odyssey Of A Still-Struggling Commodity Trader, which was more or less autobiographical. Maybe not so coincidentally, both deal largely with the downside of trading; the latter because my own trek was so arduous.
It’s kind of bucking the trend in an industry that can’t seem to get enough of trader grandeur. That’s not surprising; we all dream of becoming Warren Buffet after all.
Still, it’s adversity that leads to true growth. If we want to join the exalted ranks, we have be aware of the landmines. The times of effortless cruising will take care of themselves.
There are so many people to whom I would (and do) direct these insights. The novice entering the business--perhaps a little too self-assured that he‘d be able to sidestep the usual learning curve. The person flying high, believing for the moment that he is indestructible, which of course, no trader ever is.
I’ve suggested passages to two of my friends who are leaving the business. (Sadly, not an uncommon occurrence in this industry). For years we alleviated each other’s isolation--comparing thoughts via multi-daily phone calls on where these maddening S&P futures were going next. Their final battle throes were painful--as their money dwindled and their options closed in on them, they’d lament this or that. Comfort was hard to offer. You do need money to play the game.
But nobody’s trading situation is totally unique, as the 35 participants have illustrated My friends might find permanent new and satisfying careers, and if that‘s the case, I wish them Godspeed. On the other hand, maybe they’ll attempt a comeback as so many in this seductive industry are inclined to do. I want to share the good news with them--if they do return, there are roadmaps, trails blazed by giants who went onto greater heights. There are ways to change your approach, your outlook....yourself. There is inspiration in many quarters.
Quite frankly, I’d like to shout the good news of this book from the mountaintops.
The author’s book "When Super Traders Meet Kryptonite" is available in the catalog of this magazine or at www.tradersworld.com or by phone at 800-288-4266.
By Art Colins
It’s August, 2002, and I’m at the Money Show in San Francisco. An array of investment-related items is being presented to throngs of would-be market mavens excitedly jamming the aisles.
I’m standing behind the display table of my publishing company, Traders Press, www.traderspress.com, having the very surrealistic experience of watching people browse my book. They‘re unaware of my identity and I don‘t know them, but suddenly we’re linked in a kind of weird psychic dance Will they or won’t they? Some do; I introduce myself and sign their copies. Others leisurely move on to the next stack. (And I emphasize "leisurely." You’ll never know how slow a browse is until you watch someone peruse your book).
For the duration of the scrutiny, I keep the telepathic flow unbroken..."come on, buy it, buy it, you’ll like it, come on....you need it!" A little presumptuous, granted. I’ve never met these people and I know nothing about them, save that they’re browsing investor books.
In my mind, that’s enough of a Case Closed. They may be well beyond Investing 101, they may be great speculators in their own right, but there’s just so much in trading that has to be reiterated and re-stated and thought and rethought some more. There are universal truths and the 35 people who granted interviews for my book pretty much nailed them.
Back to the table dance. Lots of people are picking up the book-- investor-types tend to browse everything on hand. But also, if I may venture, the cover is a magnet. It’s a comic strip parody of a super villain holding up a glowing green bolder while men and women in trader jackets crumple to the ground around him. It perfectly reflects the content within.
When Supertraders Meet Kryptonite is a book about crumpling to the ground when circumstances get out of control, about firing your last photon torpedo when the invading hoards overwhelm you. Death stars, lasers...name your analogy. The desolation of space. Fear of the unknown. Anyone who has ever experienced significant losses has been there--anyone who has traded long enough has endured significant losses.
While not being the first (nor certainly the last) author to feel this way; I regard When Supertraders Meet Kryptonite as not just informative and entertaining, but also....important. Maybe not to the world at large, (although so many trading realities are analogous to life in general). Maybe not to my circle of non-investing friends who received free copies and maybe read all or part of it out of loyalty.
But if you’re a trading enthusiast, you‘ll almost certainly connect with much of what the enclosed 35 prominent interview subjects are offering. I confess a great admiration for Jack Schwager’s Market Wizard books. Kryptonite is similar in spirit. Schwager did a fantastic job presenting the totality of trading. My focus was narrower--a side that is glossed over more often than it should be considering its universality and significance. The loss aspect, sure, but more than that. In an amazingly forthright fashion, these subjects--many already famous and celebrated with plenty to lose over their candor-- recounted the human side of trading. The debacles, with all their psychological implications. The re-tooling, re-routing, endless self-examination. and then the recoveries. Kryptonite is a book about losses--as experienced by winners.
Who are they? People from all strata of the trading world, from every part of the country. Several are locals at the Chicago Board of Trade where I’ve held a membership for 14 years. Sometimes you think you know people until you write a book. I’d had no idea my friend Jack Kotz had run up two million dollars in the 1988 soybean drought market, only to give it all back in one rain-soaked day. Tim York always seemed a reserved, soft-spoken guy with a southern drawl, and our prior conversations had mainly centered on my latest trading systems. He turned out a to be a motorcycling party animal with equity swings that matched his huge appetites.
I interviewed Pat Arbor, perhaps the most famous and colorful ex-chairman in the Board’s history. He pulled no punches discussing his own trials (including being forced to leave the business early in his career), nor did he flinch in his critical appraisals of his successor and the Board‘s insistence on defending its floor population rather than preparing for the inevitability of online trading.
Through him and others I made several Chicago Mercantile Exchange contacts. Howard Malman and Don Slider, now both heads of commercial trading enterprises, are also floor legends, having once swung hundreds of S&P contracts at a time. Not surprisingly, they had horror stories commensurate with their position size.
I interviewed celebrities I had admired for years. Linda Bradford Raschke and Mark Cook, both profiled in Market Wizard books, were each caught in the City Services threatened takeover bid in 1982. (A third subject, options arbitrager Lawrence G. McMillan, lost money in the same debacle when the transaction failed to occur).
Options guru Tony Saliba was in Europe while an employee lost him an unauthorized 1.25 million dollars. It all came to a head (literally) when the two met back home--Tony with baseball bat in hand, ready to crush the underling’s skull. Howard Malman lost an instant bundle being short S&P futures during a surprise fed interest rate cut. He wasn’t initially aware of his misfortune; when it hit, he was having a tuxedo fitted for his brother-in-law’s wedding. Cycle expert Walter Bressert was such a large presence that he single-handedly took the pork belly market limit up and limit down several times in a day. (Much to his frustration, he was buying the highs and selling the lows).
The insights ranged from the very familiar (don’t chase losses, don’t play with scared money) to the unexpected, (buy yourself something after a setback. You don’t want to reinforce the idea that you’re only worth something after gains).
The trader is like a high-strung racehorse, more sensitive to outside stimuli than the average person. In charting his success, you have to consider his domestic situation, (supportive spouse or impending divorce?), his health, (mental and physical), his routines, (taking enough breaks? Getting enough sleep?), his outlook. Some of the subjects were blessed with an ability to continue with "business-as-usual" even while the world was spinning out of control around them. They could then capitalize on the same volatility that had smacked them, and in many cases, they recovered their losses within weeks or even days.
Others sank into profound funks. (Neuro-linguistic expert Adrienne Laris Toghraie referred to it as "the cesspool.") Some were forced to disconnect for a while. They spent their hiatuses re-evaluating themselves and their trading approaches. Renowned advisor Joe DiNapoli’s stress response was more physical--a terrifying, debilitating episode resembling a heart attack.
When Supertraders Meet Kryptonite is my second published book. My first was Market Rap: The Odyssey Of A Still-Struggling Commodity Trader, which was more or less autobiographical. Maybe not so coincidentally, both deal largely with the downside of trading; the latter because my own trek was so arduous.
It’s kind of bucking the trend in an industry that can’t seem to get enough of trader grandeur. That’s not surprising; we all dream of becoming Warren Buffet after all.
Still, it’s adversity that leads to true growth. If we want to join the exalted ranks, we have be aware of the landmines. The times of effortless cruising will take care of themselves.
There are so many people to whom I would (and do) direct these insights. The novice entering the business--perhaps a little too self-assured that he‘d be able to sidestep the usual learning curve. The person flying high, believing for the moment that he is indestructible, which of course, no trader ever is.
I’ve suggested passages to two of my friends who are leaving the business. (Sadly, not an uncommon occurrence in this industry). For years we alleviated each other’s isolation--comparing thoughts via multi-daily phone calls on where these maddening S&P futures were going next. Their final battle throes were painful--as their money dwindled and their options closed in on them, they’d lament this or that. Comfort was hard to offer. You do need money to play the game.
But nobody’s trading situation is totally unique, as the 35 participants have illustrated My friends might find permanent new and satisfying careers, and if that‘s the case, I wish them Godspeed. On the other hand, maybe they’ll attempt a comeback as so many in this seductive industry are inclined to do. I want to share the good news with them--if they do return, there are roadmaps, trails blazed by giants who went onto greater heights. There are ways to change your approach, your outlook....yourself. There is inspiration in many quarters.
Quite frankly, I’d like to shout the good news of this book from the mountaintops.
The author’s book "When Super Traders Meet Kryptonite" is available in the catalog of this magazine or at www.tradersworld.com or by phone at 800-288-4266.