What do the pit traders know that we on the electronic screens don't? For pit traders, (e-mini's, etc.) about how many trades would they typically do in a day? For the successful ones, they obviously don't have tech indicators so their decisions must be based more on volume than anything else. Any ideas on how to use this approach for screen traders?
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Pit traders
- Thread starter facultus
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Quote from facultus:
What do the pit traders know that we on the electronic screens don't? For pit traders, (e-mini's, etc.) about how many trades would they typically do in a day? For the successful ones, they obviously don't have tech indicators so their decisions must be based more on volume than anything else. Any ideas on how to use this approach for screen traders?
Pit traders get to experience the 'flow' of orders and can tell where demand/supply is coming from. They make hundreds or thousands of trade, something like 75% are just scratches; they take full advantage of almost no coms. They make their trades based on how the others in the pit are acting, basic market principles. It's much easier to gauge the emotional/financial status of anywhere from a handfull to several hundred pit members compared to hundreds of thousands (or millions) of faceless market participants that you have no interaction with.
Really cool piece of software. Thanks for the link.
I found this in the archives of ET:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=31519&perpage=6&pagenumber=1
http://www.elitetrader.com/vb/showthread.php?s=&threadid=31519&perpage=6&pagenumber=1