Memorable Market Moments - Aussie Stock Forums

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  1. #1

    Join Date
    Nov 2005
    Noosa Heads

    Default Memorable Market Moments

    We’re seeing some very special price moves at present, ones that we’ll look back on in a few years time and say, wow!. What have been past incidents that you have witnessed that you now look back on? Here are a few of mine:

    1987: I was lucky enough to be on the trading floor at the SFE on the day of the big crash. We waited patiently for the SPI to open. As soon as it did security guards were ushered in and physically removed some of the traders. These guys had been selling volatility, namely put options, and had been bankrupted overnight. They’d lost so much that they only had one choice – trade out of it. Losing more didn’t matter. They were removed to protect the clearing houses from default.

    1987: Again that frightful day. The SPI usually trades 1-point per move. On that day the unofficial bid/offer spread was 50-points! Whilst that in itself is amazing, the two other facts were that the index was trading at 2000 back then, so that was a 2.5% price gap on each and every trade made. Secondly back then the SPI was $100 per point, not the $25 of today. Therefore the bid/offer spread was $5,000!

    1995: When I worked for HSBC in London, the dealing room had 1000 people trading away across every product under the sun. The foreign exchange department was just outside my door with about 250 people. This was the days at the height of Soros and on this day he hit the market selling $2 billion worth of currency. It was the job of HSBC to make Soros a price then distribute it onto other institutions in the quickest and quietest way possible. A large count down board lit up above the desk with $2,000,000,000 on it. Then a single trader stood and accepted all the orders from nearly 200 sales staff. They yelled out their orders and he took them whilst the big board counted it down. It took about 4-mins to clear the $2-billion.

  2. #2

    Default Re: Memorable Market Moments

    Great to get an insider's experience of what is going on when those big moments occur.

    Is your sharing of this at this time, code for "watch out - we might be coming up to another"?

  3. #3

    Default Re: Memorable Market Moments

    wow Nick your job sounds like adrenalin plus,
    or do you get used to all the excitment after a while?

  4. #4
    Pigs In Space GreatPig's Avatar
    Join Date
    Jul 2004

    Default Re: Memorable Market Moments

    I don't have any incidents from public trading here, but through my work I had some employee shares in our company a few years ago. At that time our company was owned by a UK company that floated on the London stock exchange.

    It floated at 120p and over the next 6-12 months worked its way fairly quickly up to around 430p (at a time when my shares were still unable to be sold). Then, with the combination of the tech wreck and one or two profit warnings, it dropped even quicker back to around the 40p to 50p range, at one point getting down to about 35p. Exciting times - not! Subsequently it worked its way over the next few years back up to hover in the 110p to 130p range.

    A couple of years ago, while its shares were around the 120p area, it received a takeover offer from another large company for 175p. That company was keen and rushed the takeover process through, paying out cash for all the shares just days before, so I'm told, the company (our UK owner) would have had to make another profit warning, which they reckoned might have seen the share price back in the 40p to 50p range.

    Very fortunate timing for us - although I reckon the new owner still got a good deal

    Still, 430p would have been even nicer...


  5. #5

    Join Date
    Nov 2005
    Noosa Heads

    Default Re: Memorable Market Moments

    No, not at all

    Yes there were some amazing times - punctuated by long spells of boredom, but alas, that's trading.

  6. #6

    Default Re: Memorable Market Moments

    My first trade; I was 15 and had heard a rumour that there was a to be a take-over bid by mayne on australian hospital care. My whole life savings of $2000 went into aussie hospital care the next day. 18 months later I was sitting on over triple my money. Never buy on rumours you all say? Oh well, now I know better even though I was rewarded for my mistake.

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