BY: Todd Horwitz, Host & Senior Contributing Analyst
PUBLISHED: June 22, 2015
Chris comments on how he got interested in trading and investing. He talks about how he starting studying ht business when he was a teenager, followed many of the legendary floor traders and how he knew as soon as he got on the trading floor that it was what he wanted to do. He maintains that his floor experience and the stress of managing a position helped him greatly to help agriculture producers.
Bubba asks Chris how he would set up a hedge for a typical grain producer. He reiterates that producers are really long speculators; they borrow money from a bank to produce their crops and if the crop fails they can lose their homes. Chris teaches them how to use financial products that can set a floor to their risk, but not a ceiling on a possible price gain. He feels that it is huge mistake to limit potential gain.
Bubba talks to Chris about market psychology. How did he deal with the day to day position? He maintains the most important thing in being successful in the markets is the ability to understand and handle the risk inherent in the business. He believes that all successful traders have one thing in common; they are always looking for ways to guard against unlimited risk. You have to be able to deal with the ups and downs.