basic questions and comment.

[jonboy123]

hi

With Level2 can you tell which stocks may rise when the market opens?

Can you see buy and sell orders before the market opens?

Because im noticing some day traders, they seem to be buying just in time, before that particular stock acutally rises in the day.

ive also heard that using Level 2 keeps you one step ahead of the other when trading. More info, helpful for more profitable trades. Correct?

In basic terms, how can Level2 make you a better trader?
Level2 only for day traders right?

cheers.

 

[fantastic]

hi

With Level2 can you tell which stocks may rise when the market opens?

Can you see buy and sell orders before the market opens?

Because im noticing some day traders, they seem to be buying just in time, before that particular stock acutally rises in the day.

ive also heard that using Level 2 keeps you one step ahead of the other when trading. More info, helpful for more profitable trades. Correct?

In basic terms, how can Level2 make you a better trader?
Level2 only for day traders right?

cheers.

Very few traders know how to use Level2 in their trading.
The most vocal/critical against it are by pecking orders:
failed electronic traders, failed traders, lazy traders.
If you find a very good person willing to educate you in how to use
it properly, i.e. is not a charlatan, please let me know, as me and others
would be very interested.

 

[tomorton]

Hi jonboy123 - L2 gives you more information about the market. For the vendors and service providers, that is enough justification. But whether its useful information for the purposes of making more profit and how you could actually do this are two important additional questions.

L2 lets you see how many other players are round the poker table and how much they have in their pots. But you can't see who they are, and you still can't know whether they are bluffing. It might allow you to single out another player who doesn't bluff well and take advantage of that, but just as you're hunting them, don't forget someone else could be hunting you.

If you're just looking for optimum price levels to enter / exit longer-term positions during a session, you don't need L2. For most of us I would only recommend L2 as a free trial or if bundled free with an account or other service you really must have.

 

[jonboy123]

thanks...also is level2 essential for day trading?

With Level2 can you tell which stocks may rise when the market opens?

Can you see buy and sell orders before the market opens?

 

[tomorton]

No. And daytrading isn't the only means of profitable trading anyway.

No. The previous day's L2 interest and TA might suggest which are more or less likely to rise, but its still just probability.

No. And even if you could, they're just orders. Price pays, not orders or volume or news or anything else.

You can get free Level 2 from various places on trial basis. Its worth a look, as a way to better understand the ways of the market, but its not necessary to have L2 to make a profit.

 

[fantastic]

L2 lets you see how many other players are round the poker table and how much they have in their pots. But you can't see who they are, and you still can't know whether they are bluffing. It might allow you to single out another player who doesn't bluff well and take advantage of that, but just as you're hunting them, don't forget someone else could be hunting you.

Does it mean, L2 can be used to identify big limit orders, and how likely these to be maintained or not ?
In what other ways is L2 used ?

 

[jonboy123]

thanks guys. Im gonna wait, all the intro books etc say for beginners, stay away from Live pricing. Its dangerous, and youll end up losing money.
Im gonna use end of day figures for now.

 

[fantastic]

thanks guys. Im gonna wait, all the intro books etc say for beginners, stay away from Live pricing. Its dangerous, and youll end up losing money.
Im gonna use end of day figures for now.

You are right, this is not for you.