No Free Lunch

[GlassOnion 12]

Nothing to do with PA, FA or TA,,,

This is about understanding the human Element .

 

Pit Traders are people too.They have to eat, they have to pee and they have to get a grip on the Market direction. After all, this is not their first venture into the Market.

Evoloution told them to pee at the same time as other traders because that's when they get their ass whipped.

Eating is optional. Market direction is in their hands.

So...

As an Outsider,

{never had an inclination to stand in, or trade from, a Pit. All posts from the pit are exposed .

I have observed the following.

8:00 AM Open to 10:00 AM = Rape, Pillage OR Stalk

11:30 AM Spike = Goin' to lunch and need some profit to Close.

1:30 PM Correction = OK, We're back and we're gonna move it as much as we can. {wtf were you guys thinkin'}

3:00 PM slowdown is caused by Daytraders getting out Early and Swings/Carry doubting their Trade will now Mature.

 

If the above is a revelation to you, YOU still don't know the Market.

To the others.... Correct my times if you feel the need.

[SIUYA 11]

When the ASX floor Equity option Pit (much quieter than futures) used to be open......

10am-12.15 - trade away.

12.15 - quiet day go to lunch, wonder about coming back or getting drunk, on the busy day, watch and wait for the floor to open again at 2pm.

 

on busy days - continue trading as per morning. Frantic fantastic fun.

on quiet days -

if at lunch maybe rush back square up or get set for the next day at 3.50pm for 4pm close

or play backgammon, cards, BS or fall asleep.

 

Curse the exchanges for extending trading through lunch.

then it became a sit and stop and watch and wait and wait and wait - busy or quiet. Now its all just electronic, and the computer pees for you.

(Often in the ASX equity market the stocks gap open and then have small ranges throughout the day - hence IMHO not the best for intraday trading unless you loooove to scalp. --- which is why i use FX, and dont care about worrying about pits anymore)

Edited October 4, 2012 by SIUYA

[TheNegotiator 13]

The pits are slowly dying and unless they adapt and provide a unique service they will eventually completely disappear. I'm not saying I think they will or they won't. But what they do is remind us of the human element to trading and to not get hypnotic tunnel vision as the numbers flash by. Yes there are lots of algos, but also there are lots of humans too who are trying to figure out their next moves and ambush the market. Be wise to this and you'll likely be much better off in the markets.

 

Incidentally, I've never been to a trading pit before and must do so at some point. Would love to go to the cme one day