Episode 117 ... Larry Alintoff (72:00)

Lives in Florida
Sounds like a New Yorker
Trading for 30 years
University of Michigan grad
Sophomore year of college, watching FNN on day of 1987 crash -- hooked him on markets
Born in 1967
Started plotting prices on graph paper in his dorm room
Read as many books about trading as he could
Discovered "pressure points"
Ascending triangle, or sideways action [he discovered coiling, power of ever narrowing range]
High frequency traders sniff out order flow and run ahead
Worked at RefCo, forex broker, odd hours from 2 PM to midnight
Worked for Paul Tudor Jones
Reminiscences of a Stock Operator (favorite book)
"Yuge"
"... if that makes sense." Ends a lot of sentences with this phrase
Paul Tudor Jones staked him and a group of people a bit of money
Traded from a little office at RefCo
"Yuman psychology"
No guidance from Jones or his people
Jones kept close tabs on positions of all the people he staked, created "sentiment indicator"
All people who trade for a long time evolve
Friend trading stock options on the American Stock Exchange, he joined him
Profits just handed to you there, no need to think or understand what you were doing
American Stock Exchange had no competition, everyone must see specialist on floor
Other exchanges started to make markets in options, spreads narrowed with competition
Pacific Coast, Boston, CBOE broke up American Stock Exchange monopoly
Went to New York Board of Trade, worked in frozen concentrated orange juice pit
Good traders can separate signal (good information) from noise
What should happen versus what did happen? Pay attention to that
People who grow oranges know the orange juice market better than guys on the floor
Have a point where you know you're wrong, and get out
He takes profits too quickly
Make sure no one trade really hurts you
When Trump won and the market should have gone down and didn't, that was valuable information
Turns over his portfolio every five days
Holds 80 - 100 longs and 80 - 100 shorts
Computing power today so great, he can filter thousands of stocks for his criteria in a minute
Larry has yellow pads, he's not a programmer, gives his ideas to the young programmers
Knew the floor was coming to an end, everything going electronic
Had to figure out how to do what he did on the floor once he was off the floor
Hated weekends, couldn't trade then, deeply depressed every Friday afternoon
Obsessed with markets for 30 years
He's not a quitter, not lazy ... a workaholic about the markets
"Yuman nature" will never change ... fear and greed still exactly the same, elation and despair
Keeps a low profile
Twitter: @AlintoffLarry