How do people trade in the pits?

Well maybe a couple seconds ago...............but no way 1 or 2 minutes ago.

These boxes are not that slow. :cool:

I had squawk box with Ben about 6 or so years ago and it was ok to get some noise in a lonely day traders room. It was not really any type of advantage though for making money. When Ben got excited i could see the action on the screen. Anticipation will always rule on the screen. But i did enjoy Ben. :)
 
Quote from Surprise:

Thanks John , i know all this and i understand what he is talking about i can follow him easily but i meant in my question : is it really possible for him to keep up whith what it is happening in the floor ?
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You guys that are asking if he can 'keep up' w/ everything going on on the floor probably are just not used to that style of trading...i.e. true higher volume scalping and market making. You're probably able to understand what he's saying but not getting a picture of what it means, why its significant.

A floor trader can keep up as well as anybody on the screen...just probably looking at and taking note of different cues than the average retail guy reading charts. Same for locals on the screen.

They're watching for (and the box is describing) the most important information.....whats the inside market...whats trading on the inside market and why (paper? ...or locals...locals initiating, just making a market, or hung or flattening out)....who's making the markets? (example at the beginning of one of audios....he's telling you there's a 4.5 bid that's 'paper' ..a bank, or institutional order a broker is working....and there are locals on the 5 offer....so a scalper/local in that situation is trying to get a feel....is that paper bid all thats in the market? Will the floor fall out if it trades....do more locals have to sell than who's offering now....he mentions there was a paper seller on the open...your just trying to get a feel at that point for where there's more paper supply or demand...who's going to come back in first and which way are locals leaning....he's mentioning there was paper selling alerting you there was a legit seller....he probably has more to sell, but could be holding off till locals get nervous and start to bid or some other paper bid comes in to sell into)
 
I still dont see how this is a faster form of trading...theres just no way. In about 5 seconds or less i can be long the market, but someone in the pits has to first:

1. yell and scream, and throw out hand signals so someone hopefully will hear/see his intention to make a trade.

2. Get together with the trader and write the order on a ticket
( if they have those tablet pc's what are the runners for then?)

3. Get a runner to take it somewhere, where the trade is executed.

4. Have the runner get back to the trader to confirm the trade was made.

Not just that, but I have streaming charts, cnbc, other news services, time and sales....

I have many more tools at my disposal. Ya ok, so thats WHERE execution takes place, but only an experienced trader would know how to take advantage of that.

And the noise and chaos of the pit, I dont really see why someone wanting to trade would want the pit over a screen other than the pure excitement. They say pit traders dont last long anyway.
 
Quote from cashmoney69:

I still dont see how this is a faster form of trading...theres just no way. In about 5 seconds or less i can be long the market, but someone in the pits has to first:

1. yell and scream, and throw out hand signals so someone hopefully will hear/see his intention to make a trade.

2. Get together with the trader and write the order on a ticket
( if they have those tablet pc's what are the runners for then?)

3. Get a runner to take it somewhere, where the trade is executed.

4. Have the runner get back to the trader to confirm the trade was made.

Not just that, but I have streaming charts, cnbc, other news services, time and sales....

I have many more tools at my disposal. Ya ok, so thats WHERE execution takes place, but only an experienced trader would know how to take advantage of that.

And the noise and chaos of the pit, I dont really see why someone wanting to trade would want the pit over a screen other than the pure excitement. They say pit traders dont last long anyway.
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Unless you've been down there yourself, or have done a lot of floor excecutions with close friends who are down there, I don't think you'll ever understand. You are not looking at it with the correct "set of eyes" so to speak.

Given I just trade the ag markets, but to this day I rely on my pit guys for a lot of very pertinent information, not just for daytrading, but for positioning as well.

There's a lot more to successfully daytrading, or trading at all, than being able to "be long in 5 seconds" or having CNBC. Its the same with making markets on the screen, success is a lot more dependent on "feel" and finesse, and literally being a part of a single market or group of markets (example the cattle complex) than having a chart or 15 different indicators. When you specialize like this, I guarantee you you will not even need a chart, as you'll know the levels and how the market is behaving that day etc.

Like I said, until you are involved with it, you likely will not understand, but thats ok...if everyone understood it, it wouldn't have any value.
 
Quote from traderTX:

Unless you've been down there yourself, or have done a lot of floor excecutions with close friends who are down there, I don't think you'll ever understand. You are not looking at it with the correct "set of eyes" so to speak.

Given I just trade the ag markets, but to this day I rely on my pit guys for a lot of very pertinent information, not just for daytrading, but for positioning as well.

There's a lot more to successfully daytrading, or trading at all, than being able to "be long in 5 seconds" or having CNBC. Its the same with making markets on the screen, success is a lot more dependent on "feel" and finesse, and literally being a part of a single market or group of markets (example the cattle complex) than having a chart or 15 different indicators. When you specialize like this, I guarantee you you will not even need a chart, as you'll know the levels and how the market is behaving that day etc.

Like I said, until you are involved with it, you likely will not understand, but thats ok...if everyone understood it, it wouldn't have any value.
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Yep exactly. Granted there's less volume in the pits these days, which naturally means less opportunity....but in a busy pit locals can kill it. The business is just moving away from the pits. But in a busy pit, a good local can make ridiculous money.

But regardless, alot of guys are still making a boatload trading the same style as pit traders...using the same cues...except they get them from the screen rather than the pit. I'm one of them and know a lot of others. Guys that think indicators and the screen are all there is to trading....just havent' been exposed to that style so naturally are dismissive of it....its something that you really probably couldn't learn unless your shown the ropes by someone else that does.

I trade w/ 2 esignal charts, spoos and 10yr...5 min bars...don't look at them a great deal. Watch the tape of the markets I trade, no chart patterns, thats all. I could do the same thing in the pits if thats where the volume was.
 
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