Scott Shellady, known as the "Cow Guy," discussed his journey from playing football at the University of Colorado to becoming a successful trader and market commentator with John Lothian News in an Open Outcry Trader History Project Interview. He encountered a roadblock in his initial attempt to pursue a degree in finance, so he started out studying art. He was later able to switch to finance as he experienced success in football. He was reluctant at first to follow in his father's footsteps to the Chicago Board of Trade, but eventually he decided to explore his father's world of trading at the CBOT.
Shellady has been known as "The Cow Guy" since he first put on a Holstein cow print trading jacket, a design first worn by his father.
He received an opportunity from the Options Group (now known as Prime International Trading) and began his career with a meager salary.
Initially, Shellady intended to give trading a try to get it out of his system. However, he found himself excelling in the field and decided to continue. After making partner a year later, he moved to London for the Options Group.
Throughout his career, Shellady experienced ups and downs in trading, including substantial losses on certain days. However, these losses taught him valuable lessons about risk management and discipline. He also discussed the impact of his trading career on his family life, emphasizing the importance of balancing work and family commitments.
Shellady's career took an unexpected turn when he ventured into market commentary. His journey into broadcasting began when he was approached by Successful Farming magazine to provide market commentary. Later, he seized an opportunity to appear on Bloomberg TV, where he spoke confidently about lumber markets, despite limited knowledge of the subject.
This opportunity opened doors for Shellady, leading him to establish himself as a market commentator in the financial media landscape. He eventually transitioned from trading to full-time broadcasting, hosting his own television show on RFD TV.
Shellady, known as the "Cow Guy," shared his favorite trading memory, which was related to the British pound's crisis in 1992. He recalled the intense volatility in the markets during that period and the lasting impression it left on him.
He vividly described an incident when he was just 23 years old and inexperienced in trading options on the corn pit. The market was limit-up on a Friday, and he was supposed to clean out his position before his wedding. However, things took a turn for the worse, with Shellady losing $25,000 in a single day. He recalled the overwhelming feeling of devastation, highlighting how it was a harsh but valuable lesson that shaped his career.
Another noteworthy experience Shellady shared was from his time trading short sterling in London. He was working for Prime International and responsible for setting up a satellite office. The market was uncertain about rate cuts, and he had to navigate the challenging environment, ultimately facing a significant loss. However, a twist of fate revealed that an error in the trading program had magnified his losses, and he had actually lost less than he initially thought. This rollercoaster of emotions and events left Shellady both relieved and humbled.
When discussing his trading style, Shellady revealed his preference for being a momentum trader and leaning towards long positions. He attributed this inclination to the influence of his father, who also favored being long in the market. Shellady shared that he enjoyed trading momentum and keeping his positions net long in options, as he found it more comfortable than being short and exposed to open-ended risks.
Reflecting on his trading career, Shellady acknowledged that the economic opportunities were substantial in the early days, particularly in options trading. With fewer competitors and a developing market, traders like...