squawk box?

[Tasuki]

After following the squawk for just a short while, here are my initial thoughts:
1) The big boys (Merrill, Goldman, Deutsche Bank, etc.) can be wrong, or they may be doing some sort of fakeout that you're not privy to--conclusion: don't ever trade based on what the squawk caller says the big boys are doing.
2) Sometimes the caller says something really valuable, such as "the locals are going to whack the eminis" and then you probably can trade on that--this happened last friday, and the caller was dead on the money.
3) If you get a good caller, there is alot of information they transmit if you know what to listen for---e.g. Ben Lichtenstein's Q&A session has been invaluable in this regard.
4) There is a certain sophistication to the noise levels in the squawk. Here's one valuable tip: if price is coming up to strong resistance, and then pierces through with a SUDDEN burst of noise in the pit, then you're best bet is to fade the move. If, however, the noise builds slowly, then the probably favors a true breakout.
Taz

[Minetoo]

The Prop shop I used to work at had squawk but I found it a noisy nuisance. I can recall numerous times the announcer would shout "paper coming to buy" and the market would tank or head fake everyone. Combine that noise with 100 screaming/talking traders/CNBC/ telephones/and the people next to you yakking about their new boat and it was a miracle I made any $. Pit noise is of limited utility and this business requires laser-like focus to succeed.

[MC]

	Quote:	Tasuki
	After following the squawk for just a short while, here are my initial thoughts: 1) The big boys (Merrill, Goldman, Deutsche Bank, etc.) can be wrong, or they may be doing some sort of fakeout that you're not privy to--conclusion: don't ever trade based on what the squawk caller says the big boys are doing. 2) Sometimes the caller says something really valuable, such as "the locals are going to whack the eminis" and then you probably can trade on that--this happened last friday, and the caller was dead on the money. 3) If you get a good caller, there is alot of information they transmit if you know what to listen for---e.g. Ben Lichtenstein's Q&A session has been invaluable in this regard. 4) There is a certain sophistication to the noise levels in the squawk. Here's one valuable tip: if price is coming up to strong resistance, and then pierces through with a SUDDEN burst of noise in the pit, then you're best bet is to fade the move. If, however, the noise builds slowly, then the probably favors a true breakout. Taz

Thanks, great tips. I was looking at using traders audio when I'm ready to benefit from it. Glad to hear some good remarks on them.

I want the pit noise more so than the caller I think. For the exact reason you said, to fade emotions on key level breaks. Just like I'll watch the tape and see if the big blocks step in or if its all noob emotional buyers.

And would you say on continuations you want the noise to blast and the pullbacks to be soft volume?

[brownsfan019]

	Quote:	mcichocki_
	Thanks, great tips. I was looking at using traders audio when I'm ready to benefit from it. Glad to hear some good remarks on them. I want the pit noise more so than the caller I think. For the exact reason you said, to fade emotions on key level breaks. Just like I'll watch the tape and see if the big blocks step in or if its all noob emotional buyers. And would you say on continuations you want the noise to blast and the pullbacks to be soft volume?

mc - It sounds like you are new to trading if I recall from your posts. I am going to suggest this - forget the pit noise. You do not need it, esp in the beginning. I think you are going to waste a lot of time and money trying to hear what the pit might be telling you through an internet connection. As others have pointed out, those that do trade for a living, this noise is just that - noise. And part of your trading plan will be to filter the useless noise out. Creating additional, unnecessary noise for yourself is just adding another hurdle.

If you really want to feel the pit, you need to be there.

[MC]

	Quote:	brownsfan019
	mc - It sounds like you are new to trading if I recall from your posts. I am going to suggest this - forget the pit noise. You do not need it, esp in the beginning. I think you are going to waste a lot of time and money trying to hear what the pit might be telling you through an internet connection. As others have pointed out, those that do trade for a living, this noise is just that - noise. And part of your trading plan will be to filter the useless noise out. Creating additional, unnecessary noise for yourself is just adding another hurdle. If you really want to feel the pit, you need to be there.

Thanks for the input, I'm still a long ways away from bothering with pit noise.
I'm actually about a few weeks away from going live on the YM. I've been pretty consistant on profitable paper trades with Ninja and OEC demo accounts. I'm not lookin to run before I walk, that you can be sure of.

I trade from work so the noise isn't an option even if I wanted it to be. When (not if, but when) I trade from home for a living then I may add things like noise.

Thanks again for the insight, especially your candle threads.

[Tasuki]

The funny thing is, the first time I took a free trial on a squawk service, I found it to be incredibly distracting. This second time, however, I understand my own signals well enough that I'm more relaxed, and I like to study the tug of war at support/resistance areas. To do this well, you really need to stay glued to the charts, and the squawk gives you another dimension to the action. It's actually pretty much fun, but you have to enjoy the battle.

[Reaver]

Almost like an audio version of tape reading?

[feb2865]

	Quote:	torero
	I think being on the floor is better than half-ass noise only and no visual cues which are the most important from what they say. Like poker I reckon, hearing what your opponent is just not as good as seeing how his hands or eyes twitching when a certain hand comes up.

I agree 100% with no visual aid it becomes a distraction

There's a lot of body language in the pit.