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 Jeanette Schwarz Young, CFP, CMT, MS, is the author of the Option Queen Letter, a weekly news letter issued and published every Sunday and the OPTIONS DOCTOR, published by John Wiley & Son in 2007. She is the Director of the CMT program for the Market Technicians Association, past President of the American Association of Professional Technical Analysts and continues to serve on the Board of Directors. Her career includes portfolio management, syndication, option strategist, hedger, operations principle, bond principal, pit trader and general market trader.

Past, Present and an Eye to the Future

Posted: 12 October, 2012 Subjects: Trading _Strategies Markets&Behaviours
Source: C2012 IFTA Available to: Members

I came from a world where trades were done both electronically (over the dot system), by market makers and specialists. That was a world that did not include Google, Yahoo, or any search engines. You were lucky to have timely quotes and the availability of a quote machine at your desk. We had no charting packages and plotted our bars, candlesticks and point and figure by hand. Moving averages were all done by hand. We had a news machine in the front of the board room which rang when an important piece of news was issued. We had at least 20 minutes between the news item and the reaction of the market. I traded in the ring at the New York Board of Trade, which was purchased by the Intercontinental Exchange, and continue to enjoy membership and trading privileges on the COMEX division of the CME. As a ring trader, or floor broker, I traded for my own account, was an options market maker and executed customer orders. I also managed discretionary portfolios in both the stock and bond markets. Here, news was instantaneous and reactions equally as instantaneous. We made money finding inequities in the markets. I lived through the 1987 crash, the ’90s mess, the tech bubble, and the most recent housing bubble and look forward to the next FED inspired bubble. We now live in an environment of instant moves, high frequency trading (HFT), algorithms, and other neural networks designed to find the inequities that we used to trade for profit. We can still scalp but our days are numbered. So what is the future to bring? The future will usher in a return to Technical Analysis for those who want to make money and trade efficiently.