The Story of Cyril Barr The Battle of 87 Stock Market Crash
read:2023/2/26 10:46:15
cashback forex forextradingaccountsregistergforagoodliving.com">forex trading accounts am told that you had a brilliant record during the one week of the world stock forextradingaccountstype crash in October 1987, can you tell us a little bit about it? A: At that time, I expected a major change in the market trend, but I did not know whether to break out upwards or downwards, so I bought options in the same way as I did in the Telestral campaign Q: The actual strategy may be very complicated, can you explain the basic reasoning A: Simply put, I bought both long and short positions in options, mainly buying forward and unpriced options Q: How can I tell that there will be a big change in the market? A: In September 87, the futures market trend fell sharply, giving people the feeling that it was the precursor of a change in the landscape Q: Did you expect the market to fall sharply at that time? A: In fact, I think the stock market has a better chance of going up, or at least climbing back to the previous high price Q: Until what time, then change attention? A: It was the Wednesday before the market drop, the stock market began to fall sharply, Thursday, the market rebounded if Friday continued to rise, the situation will be chaotic, Friday the stock market collapse, so I was confident that the catastrophic decline is near Q: Fridays market trend is representative? A: Yes, Fridays sharp decline at least Monday morning section will continue to fall Q: How to arrange the battle strategy A: I estimate that the trend Monday will continue to open sharply lower and then rebound, back to the level before the close of Friday, so on Friday, I enough to enter the good position of the unpriced options just in case Q: estimates of the trend down when buying good position options is not contradictory A: belong to the insurance bets. This is my usual style, speculation in the midst of stability Q: April 1988 success magazine cover article, said that you did not go to the stock exchange on the day of the crash to buy and sell, instead in the office remote trading to avoid being influenced by the opinions of others to prove that you are convinced that the stock market is bound to fall sharply that day, is it true? A: It is a common tactic in the communication industry to say that you are not surprised, in fact, I was still trading directly in the market on the day of the crash Q: Was there any ups and downs in the short selling victory? A: The main concern is the settlement problem, one of the clients has a large number of good positions, must be handled carefully in order to settle properly Q: I heard that you even sold the exchange membership together, you think the stock market collapse of confidence above all A: before the market opened did sell a license, even if I do not sell the only one buyer also than become the other buyers of the fierce fight, in fact I still own six licenses Q: Yes Your first experience of buying and selling Exchange membership? A: The first time I completed the buying and selling process in one day, I sold it for $452,000 and then bought it in the afternoon for $275,000, which was clean and clean, other than that, the buying and selling process was rather dull and not worth mentioning Q: Before the crash you held a large number of short options that were not priced, how much did you still hold at the close of the market on Black Monday? A: Ninety-five percent, unchanged Q: In other words, most of the continued to hold, as usual, Monday profits have been extremely substantial, for the paper wealth you are completely unmoved? A: The opportunity is rare, there is a wind must make all the sails Q: On the day of the crash, you keep most of the short options, in addition to other actions A: I expect the stock market will still fall sharply on the next day, but before the close of business on Monday to buy a number of outstanding long options, at the same time, will sell short of the long options to close the position Q: In fact, you expect the market volatility will continue to increase at a high level, is not it? A: Correct, in fact Mondays strategy was the most appropriate action after the market opened on the second day, market participants simply did not know what to do half of them were frantically buying short options, while others were chasing long options, basically it was a chaotic scene Q: But everyone was betting that the volatility would increase A: The actual situation was as you analyzed, and I was one step ahead of the market and became the only seller who had the goods to sell. sellers, so naturally, I got the benefit