My trading really did not take off until I visited the CME in the summer of 2014. I have a friend with a Gold badge on the CME floor, and he took me to the floor. He went down to the floor once or twice a week just to get out of trading from home. That was the time my trading really changed.
As I write this at the end of May, the pits are due to close by July. I
WHAT I LEARNED
I have always been a screen trader. I have beent o the floor, but I have never traded on the floor. I always thought that those guys had some sort of super human abiliy to trade down in the pits. When I went, I saw guys sleeping in pits, pits that were compltely empty and the stalls around the floor mainly empty. The option pits were full, but the outrights pits were just dead. I walked acoss a completly empty ZS ( Soybeans ) pit with just a monitor showwing the Globex price, where I traded.
What I had imagined was traders shouting constantly trading back and forth between each other. What I saw was traders just doing nothing until orders came into the pits. These guys ( and girls ) were not being active, but they were reacting to the market. Letting the market come to them and that was the piece that really sunk in.
I changed my trading. I moved from a tick chart to a 15 min chart. I think the tick chart is more accurate, but that is not the poitn. I needed to be patient like the traders I saw and I could do that with a 15 min chart. Not staring at the market all day, just when something is going on.
The second change was to just look at price and an economic calendar. I reducend the number of setups I use to about 6 somple of them. The guys in the pit were trading .
MORE ABOUT PIT TRADING
Open outcry trading, depicted in such movies as “Trading Places” and “Ferris Bueller’s Day Off,” is a thing going away. There are some websites that are trying to preserve the history of the pit. There is a movie Pit Trading 101, at http://www.pittrading101.com/ . A really interesting blog & website at Trading Pit History https://tradingpithistory.com/ and http://www.tradingpitblog.com/