Pit traders have an edge?

[candymr2]

Do pit traders have an edge compared to that of electronic traders? I am talking about all markets not just futures/currency. I would believe that they do becuase they can see who is interested in buying or selling get information alot faster etc.

Anyone have any experience with this? Any former pit traders here?

[weissdawg]

I have never been a pit-trader but by Tom Baldwin's estimate something like 80% of pit-traders do not succeed.

***Tom Baldwin was/is an extremely succcessful pit-trader of bonds. He was interviewed in Market Wizards by Jack D. Schwager.

[mmont]

I read something years back about a succesful trader who thougt that all those outside the pit where " losers ".
I think you definitly have an edge in the pits in terms of commissions speed feeling the momentum.
Not to mention scalping if you have clients.
That being said if your a gambler you'll probably lose just like the bookie that doesn't lay off his action.

[slyone]

Hi

Pit traders to my knowledge start off with 1 pip advantage per trade (the spread). So as long as they buy sell quickly do not risk a large percentage per trade over the long term they are guaranteed to make money.

Most pit traders lose because they try to speculate the market direction rather than exploit the advantage they already have.

[JR97]

All of the research I've done concludes that pit traders kick ass in ranging markets can lose their asses in trending markets.

[SoundFX]

Lewis Borsellino in his book claims that the percentage of losing pit traders is just the same as of those outside the pit. Its just like any business. Most fail. Those with the right traits succeed.

[JR97]

Originally Posted by SoundFX

Lewis Borsellino in his book claims that the percentage of losing pit traders is just the same as of those outside the pit. Its just like any business. Most fail. Those with the right traits succeed.

Plus physical traits... bigger taller louder...

[SoundFX]

That's true. Timidity doesn't fly in the pits.