INTERVIEW


Using Pivot Points To Trade

John Person

by Jayanthi Gopalakrishnan


John Person is a 25-year veteran of the futures and options trading industry. Person started on the floor of the Chicago Mercantile Exchange back in 1979. He then had the privilege of working with George Lane, the innovator of stochastics. Person worked his way throughout the industry as a trader, broker, analyst, and branch manager for one of Chicago's largest discount/full-service firms under the direct supervision of a former chairman of the Chicago Board of Trade.

John Person is the former owner and president of First National Futures Group and is continuing his work as a registered Commodity Trading Advisor. Technical Analysis of STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with John Person on December 6, 2006, via phone interview.


You can't take life too seriously. In this business you see it all. There are good guys and bad guys too.


John, how did you get interested in trading?

I started on the floor of the Chicago Mercantile Exchange back in 1977 for a summer job as a runner. I think the excitement, the thrill, the lights, the hustle and the bustle, the people, and the lifestyle were what interested me. One of my first jobs was for a big cattle trader. One day he pulled out a wad of hundred-dollar bills -- he probably had about $5,000 or $10,000 -- and peeled off a hundred and said, "Go downstairs and see the bartender -- his name is Red -- and tell him that Bruce and Ronnie want two specials."

What were those?

They were basically Bloody Marys that had no bloody in the Mary. It was pure vodka in these 16-ounce Styrofoam tumblers. It was about 9:30 am. I came back with exact change, and he said, "Did you tip Red?" I said no. He said, "Here's $20, keep it for yourself, and here's $20, go run it down to [Red]." That was my first job as a runner.

Now let's back up. How did you get there?

I grew up in a suburb of Chicago and around there, a lot of people got jobs as runners on the floor of the exchange for the summer. I was at Loyola University studying economics, and one day I was taking the train and sat down next to George Lane. He lived in Skokie at the time and was in the train going north toward the high-rent district. We called it the "Brooks Brothers Express" because most of the passengers were accountants and lawyers. There was an empty seat next to him, and he stood out like a sore thumb -- he was wearing cowboy boots, a gold and turquoise watch, and a cowboy hat on his lap -- but it was an empty seat, so I sat down and started studying for a test.

He kept looking over my shoulder and asking me what I was studying. I really wanted to tell him to be quiet because I had to study, but he went on to say he was looking for a bright kid to help him out. He gave me his business card and asked me to come see him. About a week later I gave him a call.

I worked for George Lane doing his numbers and helped him put together the newsletter he did. After discovering trading and seeing what was out there, though, I went off on my own. I started trading the bond market. There was this new way of trading bonds I wanted to try.

Which was what?

Using options. I discovered that instead of putting down $1,000 or $1,200 for the margin on a bond, I could buy an option for $80 or $90. Bonds were in a bull market in 1986. The market was going nuts, but traders didn't know what to do with options. They were writing them and trying to collect premiums. It was like free money because no one anticipated a bull market like bonds. I was bullish and on the right side. I made a lot of money.

  ...Continued in the February 2007 issue of Technical Analysis of STOCKS & COMMODITIES


Excerpted from an article originally published in the February 2007 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2007, Technical Analysis, Inc.



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