Wall Street Traders Are About To Be In A World Of Pain Read more: http://www.busines

[trader99]

I read the article, and your commentary about machines replacing discretion ( while certainly true on a micro market structure level) is not what I read in that article. My take was that there is a real aversion to risk.

You are correct. The article does not state that. And low volatility will begets higher volatility later down the road.

But electronic trading replacing human traders have been going on for decades. And now it has reached the institutional level on a large scale.

There will always be human traders left for OTC products. But for exchange traded products, ibanks are replacing market makers with algobots. And the trend will continue...

 

[AbbotAle]

Sorry, but there's ALWAYS plenty of action in the markets, you just have to go looking for it.

As for robots and the like, they might be a factor if you're dicking around for ticks here and there, but not if you trade say the 60m chart and upwards.

Look at some of the big time stocks this year, AAPL, AMZN, most of the Dow 30, looks like pretty good moves to get your teeth into.

Many of the FX crosses have had good moves, and if some of the crosses haven't then drop down to the 60m, good moves to be had and if you're big, size can be moved.

Same with commodities, plenty of nice moves across the board.

As for robots taking over the game, not a chance because HUMANS and their EMOTIONS are the drivingforce behind price moves and I don't think we're going to become extinct anytime soon. Robots might take over the world however if you like watching crappy Hollywood movies.

Recession in price movement, don't make me laugh. There's NEVER a recession of movement in the markets if you open your eyes.

PS. Want guaranteed movement, use a stock analyser to tell you every stock (over say $1billion in cap or whatever) that's making either new yearly highs or lows, then focus there, something's is up with those stocks so they won't stay at those prices for long. Or, if you want guaranteed movement look at the mining shares, they are ALWAYS moving and often bigtim, 20%-50% up/down in a month is almost a given.

 

[hedron]

As for robots taking over the game, not a chance because HUMANS and their EMOTIONS are the drivingforce behind price moves and I don't think we're going to become extinct anytime soon. Robots might take over the world however if you like watching crappy Hollywood movies.

These robots are programmed by humans. Artificial intelligence is a misnomer of sorts. It can't be done. Programs can only spit back what a human programmed it to do. At the heart of these programs is human emotion and opinion.

 

[Hix80]

The article linked doesn't warrant the thesis of electronics supplanting human traders.
Trading will never, ever, be fully automated because the art of screwing people requires a human touch.

ras72 dixit.

I agree that the article firectly doesn't look ahead to this, but nonetheless I don't think that eventuality is outside the realm of possibility.

 

[AbbotAle]

Trading will never, ever, be fully automated because the art of screwing people requires a human touch.

ras72 dixit.

EXACTLY!

For example, think about all the hedging that needs to be done. Many of these traders will be given some leeway of when to hedge, they're not going to be using computers. Once you have that human element you've got fear and greed and once you have that the markets offer OPPORTUNITY.

Computers are great for ticks and arbing, but not for longer term trading, that will always be down to the human element, at least in our lifetimes.

Plus, look at how pathetic much of the tech industry has been over the last 20-30 years. They can't even teach a robot properly to cut carrots or make a bed. Iif they can't do that, they're not going to break the markets unless under 1 second, and anyway that's more about speed than anything else.

 

[TraDaToR]

http://www.cnbc.com/id/101763867

 

[Hix80]

'A reprieve from the boredom, at least, might come this week, when traders will watch World Cup games on the floor—playing particular attention to the American and Italian teams (given that many traders happen to be ethnically Italian).'

Yup. Dreading the end of this in a month ...

 

[athlonmank8]

total bs make plenty of money everyday, enough said check out the spread vol traders they seem to be doing alright.............actually i am glad this shook out out the incompetent rif raff, my biggest problem is deciding which market offers me the best profit versus risk profile, i.e., where to best allocate capital.....but again i paid my dues, and learned how to on a very small scale, once you have money on a big scale...........things become a lot easier if you have the chops

Exactly.

It's all Risk/Reward .

Smaller vola will potentially mean smaller risk as well. Different T/Fs will be a must vs cost of doing business.

With that said, my brother is an EE with plenty of time programming FPGA. If I blow out, i'll just crash at his place after he eats my lunch .

 

[burn8]

Business Insider is one of the least insightful sites I have ever read for market and trading information. BI is sometimes a place to burn a few brain cells during the mid trading session lull, but it truly caters to the lowest common denominator.

-burn8

 

[Busta21]

I'm shaking and scared to death. Nothing was moving today. INTC, HPQ YELP, TRLA, WDC, JMEI, ANET, NKTR are just a few which just sat there and did nothing all morning. Absolutely no opportunity anywhere.

We're all screwed.

Not all of us.