In part two of the JLN Open Outcry Traders History Project interview with Belvedere Trading Founder Tom Hutchinson, he tells the stories of his best trading days and his worst trading days.
Hutchinson said he uses probability to look at potential situations and he spoke about the worst situations where his company was at risk, though he has never blown out.
Hutchinson spoke honestly about what he was good at on the trading floor and what he was not. He said he was generally a bull on the stock market, but he was not generally invested in the stock market.
Hutchinson said he learned to trade options from his first job in Chicago and a couple of traders. He also learned from other traders in the pit about how they think about risk.
He spoke about openings and specifically the reopening after September 11.
Hutchinson spoke about having trades on the close he did not want. He told the story of losing a lot of money on a trade with differing expirations and a news announcement concerning a large trader, or whale, who had to sell a large amount of stock.
Hutchinson said he remembers when things were slow on the trading floor some people told jokes and sang songs.. But he would spend his time asking people questions. Slow times allowed him to get to know people better.