Did day trading exist before electronic exchanges?

#1
Hello Friends,

Did day trading exist before electronic exchanges (before 1980-90)? I mean how did people at that time carry out the trades? Must have been tedious isnt it?
 
#2
Hello Friends,

Did day trading exist before electronic exchanges (before 1980-90)? I mean how did people at that time carry out the trades? Must have been tedious isnt it?
Dear,

The day trading exist before electronic exchanges,but it is like a blind man shooting into a target.

HUSEC03
 

Linus

Active Member
#3
Dear,

The day trading exist before electronic exchanges,but it is like a blind man shooting into a target.

HUSEC03
Wrong. There were expert tape readers who were successful in day trading.

Remember Jesse Livermore, and Richard Wyckcoff?

ss :)
 
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#7
I have some vague memories of day trading during the year 1990 - 94. In fact, I was visiting trading hall of a stock exchange (well almost every day) to watch trades during that period. It was just fascinating. As I did not know how to do day trading, I was just watching the trading. It was basically an outcry system. Much confusion, noise etc. There were handsigns, which had its own meaning. Facial expressions, eye blinkers etc. told many things to a watchful eye. Unfortunately, I did not know anything about Tecnical Analysis at that time. May be that is why I could not figure out how the things are done at that time. I did not even know that there are softwares for stock charting or for that matter even stock charting itself. Usually, there used to be "experts" about particular counters. Their opinions mattered much in setting price trends. Of couse, news played very important role. Rumors played havoc. As some one posted here earlier, for many it was a blind shot. Most of day traders at that time would automatically become an investor when they failed to dispose off the shares purchased by them. :D
 
#8
Continued portion of my earlier post.

At that time, once a trader got the trade wrong (I am speaking of majority retail traders), invariably delivery of share certificates would be taken. Then comes the real agony. Along with the transfer deed, you send it to the company. If all goes smoothly, shares will be transferred in your name and you will get back share certificate endorsed in your name and this would have taken anywhere from 25 days to four months. Usually South Indian based companies transferred shares quickly and they used to send back certificate very quickly. North Indian based companies were very slow. Companies based in Delhi and Culcutta and eastern India were notorious for the delay. Please do not misunderstand me. No offence meant to anyone. I am telling my experience. If one's luck is bad, transfer deed and share certificate will be returned stating some reasons and usual reason is difference in the signature of transferer. You run from pillar to post to get the things done. It was a total agony. In the mean time, if any rights and bonus is anounced and record date is reaching fast, you can imagine the agony for getting the share transferred in one's name. Those being the days of CCI (Controller of Capital Issues), rights issues and IPO were at vastly discounted price. Usually share price jumped drastically after anouncement of rights or bonus. To add fuel to the fire, the share registrars/trnsfer agents used to go slow (very deliberately) in transferring the shares and dispatching certificates after announcement of record date for rights/bonus. That would diminish supply of stock further.

I must tell you how brokers made ugly sum of money during that period. If one did not place the order (either for buy or for sale) within the trading hall, then he will be robbed by the broker. Because, there is no way to know at what price the trade is executed. That invariably meant, if one brought any share, contract note will be issued for the highest price of the day for that stock and if one sold any share, contract note would be issued for the lowest price of the day. Imagine, what will be the situation if such a method is adopted especially keeping in mind about the fact that there were no circuit filters during those days and many shares used to flucuate wildly.
 
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