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Tom wrote:
> What if-----you could only trade by connecting, and if by voice, still
> electronically?
> What if----- there were no open outcry and no "pits" to exchange orders?
> ELECTRONIC trading is the predecessor to this as reality.
Let's see. I get a signal to buy something, so I (a) reach for the phone (b)
dial my broker (c) wait for the call to connect (d) wait for it to ring in (c)
if I get through to him, I give him my order (d) he repeats it back to me (e) I
confirm it (f) he calls it into the floor (e) it eventually gets to some guy
dressed like a cheap night-club act, who's waving his arms frantically and
shouting in a sea of chaos, who eventually may get me filled. As well,
eventually I'll get a confirmation of my fill.
We must strive to preserve this archaic and ludicrously inefficient method of
placing trades in markets <g>. It boggles my mind to think this is actually
still done. Even placing orders through online brokers is a giant leap from
this method, even though this is no picnic either.
As for which type of system lends itself to "pulling the trigger" more easily,
it is probably true that speed is an advantage, mostly because there is less
intervening time between when the decision to act is make and it is performed.
Even so, the finality of placing orders in an instant can be intimidating in
itself, and if one is not sufficiently skilled, this speed can hasten one's
demise.
BTW, I really enjoyed your post as well, Chris. Excellent.
Regards,
A.J.
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