V.14:6(271-278: Jim Bianco Of Arbor Trading by Thom Hartle

There is no shortage of market analysts in this world, but as Jim Bianco, the director of research for Arbor Trading, can tell you, if you want to make a difference you have to look at things with a different vantage point. Bianco's career in the markets began in equity research, but eventually, he changed his focus to the fixed-income arena. Stocks & Commodities talked with Bianco on why his interest shifted from stocks to bonds, why bonds are out of fashion at the moment, and how he tracks the players that he thinks make the real difference on where interest rates are headed. By Thom Hartle

So how did you get started in the business?

Well, I'm from Chicago, and because it's home to the big futures exchanges, just about everyone is interested in the futures markets, especially when you're in school. The ultimate summer job, at least when I was a kid, was definitely to be a runner down on the floor of the exchange.

And were you a runner?

Yes, back in 1976, and from there I started watching the markets. During college I traded my own futures account, and I had a very educational experience.

Tell me about it.

I played the grain rally of 1983 and I pyramidedY´ $2,500 into about $35,000 - and then pyramided that right into a deficit of about $1,500. I made just about every classic mistake I could. In fact, on the way up, I was so smug, I thought I was smarter than everybody else, I was thinking about what color Porsche I should get - you know.

That feeling of invincibility?

You know! On the way down, of course, I panicked and sold out at the very bottom. I'll never forget having to go to my parents and explaining to them that I had a $1,500 deficit in my account.