[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]

Originally Posted by 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.