Celebrating 40-Years of Trading!

by WaveTrack International| December 19, 2017 | 4 Comments

Celebrating 40-Years of Trading!

This day, December 19th 1977 was my first day of trading in the markets. I joined Billiton-Enthoven Metals as a junior trader/analyst at their City of London operations, Colonial House, Mincing Lane, EC3. The company was a ‘floor’ member of the London Metals Exchange. It was a time when the commodity markets dominated exchanges in London A period when the stock markets were just emerging from an 8-year bear market and the bond market was practically non-existent. Actually, bond futures began trading in May 1982! Investment Banks were clients to the privately-owned exchange members. And it wasn’t until deregulation occurred in 1985, known as ‘Big Bang’, did banks break into the closely-held membership of market-makers and exchange membership.

fig #1 – view of trading ‘ring’ – London Metals Exchange – circa 1978/79 (I’m standing a 1 O’clock positon – third box from left)

fig #2 – Entrance to London Metals Exchange, Leadenhall Market (right) – circa 1971 – courtesy of the London Metals Exchange

fig #3 – Entrance to London Metals Exchange, Leadenhall Market (right) – circa 2012 – courtesy Peter Goodburn

fig #5 – PG’s Trading Employment contract – Billiton-Enthoven Metals – circa November 19th 1977

fig #4 – PG’s Employment contract – Billiton-Enthoven Metals – circa November 19th 1977

Trading or a Baptism of Fire

The first couple of years was a baptism of fire! Commodity markets were booming following President Nixon’s announcement of his New Economic Policy, a programme ‘to create a new prosperity without war’. This became known as the ‘Nixon shock’. Mainly, because it effectively dissolved the Bretton Woods system of fixed exchange rates established at the end of World War II. Instead ushering in a free-floating system – inflationary pressures soon emerged with soaring commodity prices.

Beginning in the early 1970s, Bunker Hunt and his brother William Herbert began accumulating large amounts of silver. Both physical bullion and by buying into the futures market. By 1979, they had nearly cornered the global market. I remember being given the silver ‘book’ to trade in the office at Billiton-Enthoven Metals as prices were continually being marked higher. That meant making bids-and-offers simultaneously several times a minute to the eager clients that were ‘phoning into the sales team sitting opposite me. Was I glad to see the senior market-maker return after his lunch break!

There were many fond memories of that time. Leaving the office at 11:30am to walk the half-mile to the London Metal Exchange at Leadenhall Market which began trading the first of two 2 ½ hour price-fixing sessions of each day. And the 10 minute break which allowed us floor traders to take a quick ‘pint’ of beer in the cellar of the Lamb pub which was opposite the entrance to the exchange.

Elliott Wave Journey

My introduction to Elliott Wave analysis came through listening to daily updates of financial commentary by Bob Beckman on LBC radio (London Broadcasting Company) around the early eighties. And the intimate journey that followed is so far, mostly untold. Forty years may seem a long time to you, but for me, it’s a flashing moment. I guess we all experience a life journey like that? This one is far from over, or at least I believe it to be. And for the time that remains, I sincerely hope to be able to transfer as much as I know about the art of ‘price-forecasting’ to you and everyone out there!

Happy anniversary!

Category: Elliott Wave, Elliott Wave Principle, trading

Comments

About WTI

WaveTrack International is a financial price forecasting company dedicated to the Elliott Wave principle and work of the R.N. Elliott. Clients include Investment Banks, Pension Funds, Total/Absolute-Return/Hedge Funds, Sovereign Wealth Funds, Corporate and Market-Making/Trading institutions and informed individuals -- & just about anyone who is affected by directional price change.

WaveTrack International

Elliott Wave Financial Price Forecasting

Celebrating 40-Years of Trading!