Need Help!!! Level 2 And Inst. Firms

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sit4brainz

I'm fairly new to daytrading and am looking for good information on how to understand, if that's possible, how to interpret the Level 2 screens I watch. Seems to be a lot of "games" that go on there. If there is a good book or reliable source that can help with this issue please let me know............. Also, is there a good source to find info on what the large buyers are doing...... I.E. Large buy or sell orders over 10k shares. Thank you in advance for your input.............. Good trading to you..... This site is very informative and I thank you all for your input
 
You can quickly find info via using EliteTraders search menu at the upper right corner of this website.

However, in case your in a hurry or didn't know you could do searches...

here's some info on Level II Information...

http://www.elitetrader.com/vb/showthread.php?s=&threadid=13651&perpage=5&pagenumber=1

http://www.elitetrader.com/vb/searc...d=172907&sortby=lastpost&sortorder=descending

Next...private message any trader that saids they use it and ask for some helpful tips...

especially those that say they use it successfully.

NihabaAshi
 
just a newbie as well. I am not an expert, so don't take my reply as written in stone: However, i will try to help.

I have read several books and find "Electronic Daytrading Made Easy", written by Misha T Sarkovich. to be my favorite.

The greatest resource has been actually watching the lvl 2/ montage in real time with slow moving, low volume stocks, and finding the Axe.

In regards to large buyers, combine time and sales with the lvl2, this will give a hint as to orders going through that were not displayed.

Also, i have not checked it out yet; but esignal has two new tools to go along with their montage. They are called total view and quote view. They do cost additional, but supposedly reveal hidden orders. Esignal does offer these tools on a 30 day demo.

I hope some of this helps, have a wonderful day.
 
IMO, dont waste your time trying to "read" or "analyze", etc.. level 2 quotes, esp not in the manner any book esp books from the 90's teach you... however reading the tape by watching t&s and level 1 is worthwhile, however this is easier to do in
nyse stocks... nasdaq is too chaotic, tougher to "read"
 
all you need is time & sales, young grasshopper. don't try to play games with wiser traders on level II. i typically like to watch my charts for the setup, then switch to time and sales to confirm a certain price being taken out. when i'm about to enter the trade i'll quickly look to see if there are orders behind me for a quick exit if needed (i.e. if i'm going long i want to see deep bids behind me, if i'm going short then deep ask). level II info helps me to enter a trade efficiently. if there is a weak inside bid but a stronger bid below that i won't immediately take out the offer. many times the bid will get taken out and lower the ask first...then i'm in. but after that, drop the level II for godsakes.

honestly, if you can read the time & sales, you will be a step ahead of everyone else. forget the level II screen for now. think about who you want to compete with, and what timeframe this corresponds to. you are much better off competing with traders using a 5-min chart than you are competing with traders using a 1-min chart. and if you want to compete with the level II traders then you are not thinking right.

use the t&s to confirm entries and exits, AFTER your charts indicate so.
 
Quote from sit4brainz:

I'm fairly new to daytrading and am looking for good information on how to understand, if that's possible, how to interpret the Level 2 screens I watch. Seems to be a lot of "games" that go on there. If there is a good book or reliable source that can help with this issue please let me know............. Also, is there a good source to find info on what the large buyers are doing...... I.E. Large buy or sell orders over 10k shares. Thank you in advance for your input.............. Good trading to you..... This site is very informative and I thank you all for your input
More...

Your not going to get too much of an edge by "reading" level two. It can be more of a distraction then anything else. It is useful for routing your orders, but not much else IMHO.

Brandon
 
I really appreciate it......... Young grasshopper???? LOL 4 got the show that used to be on but it was a good one...... THanks again for your advise.........
 
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