* * * From Pit trading to Electronic trading* * *

I used to be a local on one of the NY commodity exchange floors.
After fifteen years away from the markets I am a screen trader now, mainly scalping CL and ER2 and and I am good at it and I like it..

There were three kinds of traders on the floor:

The broker and his crew - having an order book and sense of the flow- most of those people supplemented their brokering and made easy money with tricks that if they were not illegal they were certainly unethical. Because the money was easy some of these people did not need discipline and they were big gamblers. This kind of person would have difficulty adapting to the screen.

The second type is hooked into the brokers (perhaps a former teammate or employee or partner)- benefiting from information and even recipient of some winning trades resulting from the broker buddy having fun with the order book in chaotic conditions. This type of person would have difficulty on screen without his lifeline. I would include in this group beginners mimicking the big guys .

The third type (the smallest group) of person is truly independent and they are making their money honestly with their own wits, respected, adaptable. Not that they are not friendly with everyone but they stand on their own. This kind of person figured out how the particular market works and very likely they could bring that skill to the screen.

Trading from the screen one can participate in several markets simultaneously which was not feasible while working in the pit.

Regards,

GC
 
I agree with this:

Quote from HoustonMark:

Someone else mentioned indicators....and the fact that they don't tell you much...too true....I would ignore them if I were you. All you will develop a feel for is your reaction to an ever decreasing account balance. Some use them successfully but I think they are actually a hindrance to most.

The market moves in cycles....really not difficult if you use the right charts and intervals. Not talking Gann, Elliot, the Moon, etc. etc. ... Some people do use each of these and say they are successful but that isn't what I am talking about....

I would concentrate on trend trading and finding higher lows and lower highs....they work as well as anything and better than most other methods...that and a little homework each night to decide where major support and resistance levels might be encountered the next day should work out for you....there is a learning curve....but at least you are concentrating on something that can be traded profitably.....

There are two threads (there may be more) that immediately come to mind here on ET....

http://www.elitetrader.com/vb/showthread.php?s=&threadid=80582

AND

http://www.elitetrader.com/vb/showthread.php?s=&threadid=46620

Pay particular attention to the posts by Proflogic and ignore the naysayers....ET is full of people who exist to bash methods (I am not sure any of them actually trade)...

Best Wishes,

HM
More...
 
there are many ways to make money as a pit trader... some make money just by fading those who lose consistently and some would front run big orders... others simply can trade...

Those who really can trade should have no problem moving to screens...
 
Quote from I Trade 4 Money:

How does one go about developing this feel?
More...

I recommend trading small or paper trading. Take the trades that feel right to you...they are probably wrong, and you'll get clipped.

Over time, you factor out the common demonators in your losing trades, learn to avoid them, and in turn gain a feel for the market and learn what works.

At least in futures, your $$$ is going into SOMEBODY'S pocket. Figure out how they're constantly getting the vacuum cleaner into your wallet and you'll be on your way to success.
 
because most pit traders detected order flow coming into the pits if not picking off orders flashed in and front running
 
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