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Futures Trading

Futures Trading

Chapter 66 in the exclusive series for Dynamic Commodities- becoming a commodities trader

Henry and Marty decided to try an experiment to bolster earnings at the company. The managed futures business was growing around the world and they hired Ken Orr, a seasoned futures trade who used a technical system to run a group within the firm.

Managed futures had very little to do with the traditional Philipp Brothers physical commodities business. Orr traded tends, when the price of a commodity traded on the futures exchange was moving higher, he and his staff would hop on board the trend with a long position. When the price was trending lower they would go short. They looked at chart patterns using Elliot Wave Theory, Fibonacci retracements and other technical tools.

Ken hired a blast from my past to assist him in addition to some of the green trainees that the company was now hiring each year from business schools around the country. The days of the lehrling were long gone and now it was the world of MBAs, the world of Salomon Brothers. I thought to myself at that time, I would never get my foot in the door with my English and Political Science degree. I was lucky to already be there and in a good position.

Ben Strauss, the son of the head of the traffic department, was transferred and appointed Ken Orr’s assistant. Ben’s dad Norbert gone at that point; a victim of the layoffs that claimed any highly paid executives without direct profit-related jobs. Ben had something significant going for him though. He was the President of the company’s best friend. Ben was the best man at Henry Schachar’s wedding.

The sandwich munching noisy eater who drove me crazy in my first days at the antimony ores and concentrates traffic desk was now a manager in the futures business. Ken and Ben spent lots of time in the precious metals area chatting with Chris and the rest of the traders. Our department was wary of the two who came in to suck our brains for ideas. The traders played it close to the vest with the Orr team after all, why give them an idea that we could make money from ourselves?

Ken Orr arrived on the scene with lots of hoopla and he was a particularly aggressive and sometime obnoxious guy. Profitable traders can afford to be obnoxious and aggressive but he had not yet proven himself. He never would at Philipp Brothers.

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Post Series: Origin Of A Commodities Trader

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