Saturday, 5 December 2009

New Beginnings

So here I was on the 5.51am train out of Surrey heading towards Waterloo for my first day at "Flatcap" inter-dealer brokers. Dressed in a crisp white shirt, freshly ironed Moschino suit, silk Hermes Tie and parade ground polished Cesare Paciotti shoes. There was a sharp tinge in my mouth and I could feel tight knots forming in the pit of my stomach, I was nervous. It had been 5 months since that fateful day when all hell broke loose on our 2nd floor trading desk at Peterborough court. Certain structures were mis-priced and the accompanying I-rate hedges were invalid. Not to mention the fact that certain un-named person(s) were trading way beyond their authority. It felt like it couldn't get any worse but then it did, all those years of studying and obtaining the right qualifications while others partied and got "high" at university, just to reach the rarefied world of this hallowed bank's trading desk, shattered within a matter of hours. Never mind my 5 month sojourn had resulted in re-charged batteries and a far leaner and muscular physique thanks to the local gym. But I digress, as I walked up to reception and notice the stunning receptionist, I inform her Hxxxxx Xxxx is here, it's my first day, she gives me a warm friendly smile and tells me "Charlie" will be down in 5 mins to come get you. Having never met "Charlie" I wonder what he would be like but I didn't have long to wait. I see this squattish man hurriedly walking down the escalator heading in my direction, wearing what seem like horn rimmed Oliver Peoples spectacles. He comes upto me gives me a firm handshake, which I reciprocate and asks me to follow him, my mind automatically ticks into gear I find myself thinking to myself "Welcome to the Jungle" and wonder what I have let myself in for.
Charlie walks at a brisk pace, the kind of pace all young money hungry traders on every trading floor in the city move at. It wouldn't matter if they were making or losing money, the un-written rule is to walk at a brisk pace and look as if you are teetering on the edge of the abyss. We walk into a room where a meeting has already started and seems to be led by the man who hired me. I take a seat and it's the usual morning meeting, we discuss what happened overnight in Asia, the desk strategist throws in his two cents worth of where he see's today's European trading day going, a few people throw some ideas into the mix, which a few others roundly criticise and laugh out. The meeting slowly peters out once the leader of this wolf pack goes out to make a phone call and some of the traders start discussing last night drinking antics. One trader then starts discussing his latest sexual conquest which he quite happily informed everyone was in the back seat of his shiny new BMW M5, I notice a female broker and she seems to sneer at the graphic details of this only for the brokers in the room to pick up on this and to turn their venom and attention towards her. At the moment I feel like I am a guest an imposter in their midst as they haven't acknowledged me or my presence. I keep my ears tuned and eyes wide open trying to pick up any imperceptible clue of Hierachy. In every group of individuals there are people you can shit on and others who shit on you, it's best to identify who is who early so you don't shit on the wrong person and find a P45 heading your way. To quote the great film rounders "If you can't spot the sucker in the first half hour at the table, then you ARE the sucker"
The meeting ends and everyone slowly files out G'ing themselves up for what will no doubt be a gruelling day of wheeling dealing. As I follow "Charlie" out of the room "Adam" (the man who hired me a.k.a the Silverback gorilla, the alpha male on this trading floor ) intercepts me and tells me how great it is that I joined today and all my logons and passwords and databases should be set-up, this is a patent lie as he hasn't bothered setting me up on anything, it's upto me to chase and get this done but I politely nod and thank him giving him my standard spiel of not being able to wait to start contributing P+L wise, he nods and says "yeah you better". I get to my desk and all the nerves and sickly feelings disappear as the warm intermittent glow of my dealerboard and 4 screens shine onto me.....oh yeah I'm back in the cut-throat world of trading, the dream is still alive.

Wednesday, 25 November 2009

Tuesday, 24 November 2009

Work

Haven't posted on here for a while for 2 reasons 1) Started a new role and don't really have the time at the moment to as busy from sunrise to sunset. 2) The name of this blog is misleading as I am no longer a day trader anymore and have nothing else to confess. I will be starting a new more relevant blog to provide a peek into the world of an IDB trading desk and the extra-curricular shenanigans that take place, so to all my readers ( including the lurkers who check my blog to leave critical remarks elsewhere) watch this space...

Monday, 9 November 2009

Cricket

What an amazing game of cricket b/ween Pakistan Vs New Zealand. Pakistan were down and out at 101/9 only for the last pair to put on 103 runs and only to fall agonisingly short ( 7 runs) of claiming an amazing victory...

Saturday, 7 November 2009

Weekend

Am meeting up with my buddies this weekend for a night of debauchery in Holborn, then heading to Sketch in Mayfair to hobknob with the beautiful people and to consume of plenty of Grey Goose and Belvedere...ciao!!

Thursday, 5 November 2009

Intermission

Been a while since I posted, as I have been studying for my ACA exams. Didn't realise how much work it entailed, anyway the first one is out of the way and I can go back to trading and speculating on the price of Oil and Gold again. I kept my Long Crude Oil trade initiated at 76.2 a while back and that seems to have whipsawed within a tight range, but at last count is well in the money ( approx 80.4) and at 10 pounds a point should reap a risk/reward ratio of 0.5. I regret selling out of my Long Gold position initiated at 1029 too early as I never anticipated a jump to 1090+ so soon in the cycle. Was really expecting 1100-1200 to be tested early to mid 2010.

Thursday, 22 October 2009

GS going against the commodity bulls?

Good story over at Metal miner about GS cutting it's trading exposure to commodities. They seem to have done this by cutting their VAR to $27 million and reduced hiring in their commodity department. Think the most interesting thing about this recent run up in commodity prices is the failure of Copper to join in. A weakening USD has failed to re-ignite the rally in copper and many leading commentators believe Copper to be a good indicator of where the commodity prices could be in Q4 i.e stagnant or falling?! Either way My Long Crude oil trade is still paying dividends and I am targeting a exit price of $83 from an entry of $76.2