In
returning to the blog from paternity leave, now is an appropriate time
to list what I consider to be the "best of" various categories in
regards to trading pit history. Of course it is all just one man's
opinion, but I've sought, read, watched, listened and been exposed to
almost every resource concerning this topic and combining that with the
experience from being on various trading floors, believe these
selections are the greatest depiction of each category.
Book - Nonfiction
Lessons from the Pit
There are a lot of books written about open outcry trading but very few have been authored by a successful, competitive and highly ethical local trader as Lessons From The Pit by Joe Leininger. The unique perspective of the author gives a candid view of his experiences trading in the Eurodollar options pit at the CME from the mid 1980s to late 1990s, most notably including the mental thought processes of consistently succeeding in that environment and living a balanced life outside of the trading floor. The honest straightforwardness of Lessons from the Pit properly gives a confident, yet humble, voice to what it was like being an independent local trader and managing risk, like no other book in the 150 year history of the trading pit. On occasion, the book occasionally strays into broader business lessons to widen it's audience (likely at the publisher's behest) but by a wide margin it remains the best pick on what it was like to trade in the pit as a local. Lessons From the Pit doesn't represent the average experience of the majority of locals but it does illustrates the highest calling that it was possible to aspire to.
Lessons from the Pit
There are a lot of books written about open outcry trading but very few have been authored by a successful, competitive and highly ethical local trader as Lessons From The Pit by Joe Leininger. The unique perspective of the author gives a candid view of his experiences trading in the Eurodollar options pit at the CME from the mid 1980s to late 1990s, most notably including the mental thought processes of consistently succeeding in that environment and living a balanced life outside of the trading floor. The honest straightforwardness of Lessons from the Pit properly gives a confident, yet humble, voice to what it was like being an independent local trader and managing risk, like no other book in the 150 year history of the trading pit. On occasion, the book occasionally strays into broader business lessons to widen it's audience (likely at the publisher's behest) but by a wide margin it remains the best pick on what it was like to trade in the pit as a local. Lessons From the Pit doesn't represent the average experience of the majority of locals but it does illustrates the highest calling that it was possible to aspire to.
Book - Fiction
The Pit
The Pit is properly subtitled A Story of Chicago because the book is as much about the city as it is about the trading scene at the CBOT since the city and exchanges have always relied on the reflexive strength of each other to succeed. Early trading at the CBOT was frequently manipulated with attempts to corner a market and the plot of The Pit revolves around such an attempt in the wheat market that was loosely based upon a true story. The characters and psychology of those involved in trading have changed little in the over 110 years since The Pit's publication so the lessons and narrative remain compelling.
Film -
Open Outcry
Short of getting into a time machine, watching Open Outcry is as close as you'll ever get again to standing on a busy trading floor. The entire film is long pan shots and raw audio so it gives the perspective of simply being placed on the floor of the CME in 1999 and observing trading on a typical day across different pits. The occasional voice over commentary by traders and brokers adds a direct perspective but ultimately leaves way more unsaid than what was included.
Non-Film video -
Charlie D.
Charlie D. was one of the (many say THE) dominant independent local pit traders in the 30 year Treasury bond contract at the CBOT during the 1980s and spoke at this informal seminar put on by a clearing firm in 1989 about how to trade in the pit. To see a bona fide expert speak in an unstructured and altruistic format to aspiring colleagues is rare for any field, particularly in something as competitive as trading. This video captures not just how the mechanics of a large pit operated but also the relatively open culture amongst many locals at the Chicago exchanges.
Art-
Smug Trader
I previously discussed Smug Trader and believe that if Gursky's exchange photos can fetch obscene valuations then Smug Trader, as a far superior piece of art, ought to be in a vault at Singapore Freeport and not on my condo wall. In looking at this piece of art as well, it brings to mind that perhaps it's time to resurrect the Ancient Order of Froth Blowers?
The Pit
The Pit is properly subtitled A Story of Chicago because the book is as much about the city as it is about the trading scene at the CBOT since the city and exchanges have always relied on the reflexive strength of each other to succeed. Early trading at the CBOT was frequently manipulated with attempts to corner a market and the plot of The Pit revolves around such an attempt in the wheat market that was loosely based upon a true story. The characters and psychology of those involved in trading have changed little in the over 110 years since The Pit's publication so the lessons and narrative remain compelling.
Film -
Open Outcry
Short of getting into a time machine, watching Open Outcry is as close as you'll ever get again to standing on a busy trading floor. The entire film is long pan shots and raw audio so it gives the perspective of simply being placed on the floor of the CME in 1999 and observing trading on a typical day across different pits. The occasional voice over commentary by traders and brokers adds a direct perspective but ultimately leaves way more unsaid than what was included.
Non-Film video -
Charlie D.
Charlie D. was one of the (many say THE) dominant independent local pit traders in the 30 year Treasury bond contract at the CBOT during the 1980s and spoke at this informal seminar put on by a clearing firm in 1989 about how to trade in the pit. To see a bona fide expert speak in an unstructured and altruistic format to aspiring colleagues is rare for any field, particularly in something as competitive as trading. This video captures not just how the mechanics of a large pit operated but also the relatively open culture amongst many locals at the Chicago exchanges.
Smug Trader
I previously discussed Smug Trader and believe that if Gursky's exchange photos can fetch obscene valuations then Smug Trader, as a far superior piece of art, ought to be in a vault at Singapore Freeport and not on my condo wall. In looking at this piece of art as well, it brings to mind that perhaps it's time to resurrect the Ancient Order of Froth Blowers?