Level 2

Trader333

Moderator
8,655 981
No problem then, you can open another Level II screen and just click on "Site" and select Island Level II Streaming then open another Level II screen and select Arhipelago Snapshot and set the refresh time to 1second.

You will then have 3 level II screens which is what I have.


Paul
 

Trader333

Moderator
8,655 981
Tony,

I should have said that what I used to do when entering a stock was as I have said in my 27-Jan post and that was to look for support (if Long) down the bid so that I know I can get out at a particular price. As I now trade stocks that have a daily volume of 1.5M or more then the frequency of stocks with poor depth on Level II is less than it used to be for me.

So I tend to pay less attention to that and focus much more on the volume of stocks at particular price levels which is much easier to see if you have the Arca and Island books available. I also look to see what happens (for a Long trade again) when the price moves down to the entry price I have determined.

This is only part of what I do before entering a trade but is the final part of a trade setup.

I hope this explains why my views may appear to change over time. At the end of the day I am as open to new learning as anyone else and if I learn something that I find to be better than I was previously using then I incorporate it into my trading plan. There is every possibility that I will change again in the future as my knowledge and experience increase and I apologise if this creates confusion for others as it is not my intention.


Paul
 

Dow Dog

Well-known member
409 0
Thanks Paul. I will get the Level 2 screens up like you have suggested.

Otherwise, do my comments re basic use of Level II make sense ?
 

Dow Dog

Well-known member
409 0
Damned Level 2 screen is confusing the hell out of me. Been on a free trial for a week now. I declined a short trade yesterday, even though I got a good strong sell signal - because Level 2 was showing about a US$ 2 range on the ask over approx the top 20 to 25 MMs and ECNs. There were some very large gaps on the ask size as I looked down the list and this frightened me off.
The stock price headed south beautifully and I missed an easy dollar + run.
I must be reading Level 2 wrongly. Maybe I should bin it and just rely on the chart formations and indicators that I use ???
 

Trader333

Moderator
8,655 981
I believe that DD may already have taken some trading tuition including Level II but is still having some difficulty with it ?


Paul
 

TheBramble

Legendary member
8,394 1,170
Dow Dog said:
I must be reading Level 2 wrongly. Maybe I should bin it and just rely on the chart formations and indicators that I use ???

DD - bit drastic! LII is a powerful additional trading tool in your arsenal. You just need to learn to use it as you did TA in the beginning.

Unfortunately, there aren't too many current LII books around (like there are for TA).

So, maybe (a) ask specifics about LII setups here on t2w LII forum (I'll be surprised if our more knowledgeable LII traders don't respond to your example of yesterday) and (b) think about getting some 1-2-1 training on it.

As Mr. Charts is booked until late April you could try Naz or indeed anyone else that t2w LII forum members care to mention.

Here's a Thought :- There seems to be a REAL need/desire for LII education from a number of t2w-ers at the moment (myself included) - how about the more experienced LII traders who do not currently coach, laying aside a day, just as a one-off, to coach a bunch of us willing and eager LII tyros - I'm sure we could all make it worth your while for missing a day's trading to educate ourselves...

Just a thought...
 

Trader333

Moderator
8,655 981
Tony,

I think your suggestion would be difficult to get a consensus on. The reason being that I know Naz uses Level II differently to myself and again Mr Charts uses it differently from both Naz and myself and I would guess that other users of Level II would do it differently again.

There are some similarities but there are also differences so what would you teach ? This also presupposes that Naz and Mr Charts would want to do it in the first place although you could take a course on an individual basis.


Paul
 

Dow Dog

Well-known member
409 0
Yes Paul, I have had some LII tuition but it was just one day, several months ago with Naz. After that day I did not actually use LII and I have only now decided to get to grips with it. Needless to say, I have forgotten most of what was taught during my tuition day. I often feel that one day of personal tuition is just not enough anyway but to go for more than one day would be prohibitively expensive.
 

TheBramble

Legendary member
8,394 1,170
Paul, I wasn't suggesting that Richard and Alan do a joint course for numbers, or even individually (which I know they both do).

I guess I just meant that ANY experienced LII trader who could tutor a few bods for a day and who was willing to do so.

But you're probably right - the logistics etc. could prove a real burden. I was thinking even just a PalTalk session, but again, different strokes and all that.

I appreciate there are wide differences in the way you guys use LII, but there has to be a basic grounding available other than the snippets we get here on t2w etc. which us beginners could work with?
 

Dow Dog

Well-known member
409 0
I appreciate there are wide differences in the way you guys use LII, but there has to be a basic grounding available other than the snippets we get here on t2w etc. which us beginners could work with?


I totally agree with this Tony. It would be good to find a way to get an initial grounding which would at least provide a basis to build on. My day of LII tuition last year was too much for me at the time as I was still trying to get to grips with basic trading techniques. I somehow feel that I should have been politely informed of this and advised to come back for LII at a later date.

If you find a way to learn LII, along the lines you have described, please let me know.
 
Last edited:

Trader333

Moderator
8,655 981
Tony and DD,

Where there is demand for something then supply will usually be found. I guess Naz hasnt seen this yet as I am sure he will respond.

With regards to Paltalk, I dont think it would work because I have made calls in Paltalk for price entries on Level II explaining why and this didnt help. The main reason being that you cannot see what I am talking about which is what is needed for a useful session.

In my view, if this is to happen it would need to be on a live market where attendees can see exactly why the trade was called at the price stated. It would also make sense to record the live screenshots (which is not too difficult), and then make a CD for those present to refresh what they are being taught.


Paul
 

keano

Well-known member
327 30
I think your copying me Mr.C ;) I've traded SNDK twice today aswell. See my posts on your thread on TTrader.
 

Dow Dog

Well-known member
409 0
You need someone experienced to teach you, first to learn and really understand level 2 and then to demonstrate it live.

I have already done that Mr C.

It obviously didn't seem to serve any useful purpose.
 
 
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