» pit-traded http://traderpsyches.com Trading Psychology, the Thinking Man's Market Psychology Wed, 09 Nov 2011 16:04:41 +0000 en hourly 1 http://wordpress.org/?v= Human Market Makers http://traderpsyches.com/human-market-makers http://traderpsyches.com/human-market-makers#comments Fri, 10 Oct 2008 01:24:27 +0000 DKS http://traderpsyches.com/blog/?p=73 After Sept. 11th when the markets were closed for a week I pointed out to a WSJ reporter I know that this makes it clear that we should never have all electronic markets – the risk is too great. People have to be able to meet and make trades.

This market sell-off is bolstering that viewpoint. I can’t say I thought of it myself this time as I heard it from Dennis Gartman on FAST MONEY (CNBC) but he is right – and it made me think of Sept. 11. When there is no human to make a bid, the markets go south.

btw… this isn’t far from the argument I made a few weeks ago about how if the mortgage-related products (CDO’s and CDS’) had been exchange traded – even pit traded – then we would never be in this kind of mess to begin with. (- did you notice that the CME and Citadel are setting out to do just exactly that!)

Markets are made up of humans – and human methods of interacting. Markets are nothing more than beliefs and feelings about the future. Computers don’t have beliefs and feelings. They just do what the humans tell them – and if they do exactly what we tell them, which they do, just like in a pseudo-Matrix like event, they can take over.

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