squawk box?

[Tasuki]

Just curious if anyone uses a squawk box service---if so, how useful have you found it? Does it work only for scalping, or can you judge with any reasonable accuracy where pivot tops and bottoms will be put in, and if so, what do you listen for?

[torero]

It takes time to determine if it's useful. I heard Hanz mentioned it take getting used to to learn the noise level and cues to pick up to bring benefit to trading at least 6 months. I've never used it so I have no direct comment on it.

[brownsfan019]

I never cared for it. Tried it and found it to be a distraction.

[Reaver]

I think it would drive me up the wall. Seriously.

[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.

[Reaver]

I agree, I think it would be like getting only half the story....

[brownsfan019]

The one thing I found is that you can get caught up in the excitement of the action from the announcer's voice and that's not good. You want to feel like you are in the pits, since it sounds like you are, and if the announcer is yelling that Merrill is buying heavy, you want to buy with Merrill! Well, as you can imagine, that type of trading is a quick way to blow your account out. I remember one day about the squawk - I was talking with a trader friend thru instant messenger and he had just gotten the squawk thinking it was a needed tool. I was doing my trading and he IM's me saying buy es! Big buyer! Merrill Lynch!

About 30 seconds later price dropped hard.

I asked how that long went.

Well, you know what his reply was.

So we all know trading is hard enough, but here's how that quick 60 seconds or so played out with the squawk:














Point being that I found the squawk to mess with your emotions way too easily, esp in the beginning. It's a new toy and when you hear the guy yelling that Merrill and UBS are buying, you want in! The problem is that you have no idea what they are buying, when they are buying and if they even got filled to begin with.

[Reaver]

	Quote:	brownsfan019
	The one thing I found is that you can get caught up in the excitement of the action from the announcer's voice and that's not good. You want to feel like you are in the pits, since it sounds like you are, and if the announcer is yelling that Merrill is buying heavy, you want to buy with Merrill! Well, as you can imagine, that type of trading is a quick way to blow your account out. I remember one day about the squawk - I was talking with a trader friend thru instant messenger and he had just gotten the squawk thinking it was a needed tool. I was doing my trading and he IM's me saying buy es! Big buyer! Merrill Lynch! About 30 seconds later price dropped hard. I asked how that long went. Well, you know what his reply was. So we all know trading is hard enough, but here's how that quick 60 seconds or so played out with the squawk: Point being that I found the squawk to mess with your emotions way too easily, esp in the beginning. It's a new toy and when you hear the guy yelling that Merrill and UBS are buying, you want in! The problem is that you have no idea what they are buying, when they are buying and if they even got filled to begin with.

Nice demonstration brownsfan

But very valid point....in many of the older trading books, they speak of the danger of sitting around the broker's office listening to the gossip....it can really make you second guess yourself and get caught up in the excitement. Kind of like the same way people get wrapped up in bright blinking lights at a slot machine...rationality goes right out the window.

[stanlyd]

I know some folks who have used and it seems to help so that's great, but for me I think it is distracting. Especially if you are trading a system you developed and backtest and have put into live action. If you "start taking positions" or "not taking positions" or based on the audio, then you are not sticking to your setups and sort of flyng by the seat of your pants IMO. After all your backtesting did not consider the audio. I mean maybe I should try hooking the audio output up to an audio meter and start testing to see at what decibel levels price starts to react and I could come up with a setup from it hahaha.

[mcichocki_]

	Quote:	stanlyd
	I know some folks who have used and it seems to help so that's great, but for me I think it is distracting. Especially if you are trading a system you developed and backtest and have put into live action. If you "start taking positions" or "not taking positions" or based on the audio, then you are not sticking to your setups and sort of flyng by the seat of your pants IMO. After all your backtesting did not consider the audio. I mean maybe I should try hooking the audio output up to an audio meter and start testing to see at what decibel levels price starts to react and I could come up with a setup from it hahaha.

I intend to try and use it when I get to trade full time. I can't run squawk at work and expect to get a check there. LOL

I don't intend to really use squawk to get in a trade though it could be used for confirmation of the pressure of the direction/reversal I suppose. I think I would use it more for knowing when a pullback might be turning into a rollover and when to exit. And also at key levels I would try and note the volume level from the action much like the tape is used.

This all in theory as I haven't applied it yet so anything could happen, but I will give it a try. I think it's like any other market tool, you just have to learn how to filter it but the noise levels are showing raw emotions IMO.

If it's not useful I'll be glad to save that $75 per month anyhow.