Market chat

[dsmodi]

Neil - thanks for that link - v.interesting reading for someone like me who wants to find out about L2.

fwiw - I didn't get the impression Naz was putting anyone down, but the points he has subsequently made do go on to draw attention to the very valid points that the facts behind trading L2 are a lot more rigourous to understand than any simplistic introductory article..... Hence, both posts are very useful...

Naz, how long can it take to get to grips with L2? How many lessons (or hours of teaching)? Typically how long before a successful trade is executed (days/weeks/months).... I suppose the first answer that comes to your mind may be "How long is a piece of string?" - but perhaps you have some idea from students and L2 traders you have contact with?

 

[Naz]

Neil,

The one problem in writing on the internet is the feeling with which one writes.It can so often be taken the wrong way.I was REALY pleased you found the link and posted it.
But i then i didnt want to slap anyone down,just add a wealth warning.like this.

Great,you've just found something that will give you an edge and its been nicely put over.BUT to take it further you take it in steps.It is a story that unfolds and that means watching it and understand what your looking for.That can take a number of weeks.Then there is the undersatnding of the orders and how best to use them for which ever situation you're in.Then comes the the practice of using the orders live.Then put both together with small size and work up to larger size slowly.Any hick ups go back one level.

The trouble is that you'll get to one level and find it difficult to move on to the next.Most info that is printed is only of basic use to get someone interested in it.So the lenghth of time to learn it is governed by how much time you want to spend on it and,how deep you want to learn it.How deep you want to get into it is a problem because the only decent info i've ever found is in a scalpers head.

I get guys e mailing me who are realy a long way down the road and they'll ask realy searching questions on a stock and i'll check it out and give them an opinion.But i'll think to myself wow! you're very good,you've come a long way realy quickly and i see you've taken that particular route,good luck you realy will do well with it.I've talked to guys that have learnt it and used it for different stratergies and thought that is brilliant.

You see it can be all things for all people.However just like t/a there is a little learning route to go down first and that route is governed by each individuals personality.

 

[neil]

Learning

Thanks for the replies fellas. I obviously misread Naz who is right to point out that you do not learn Level Two or TA from a book alone. One has to practice, maybe with small amounts, to get a feel for trading.

Quite possibly one needs a mentor for things like Level 2 (I would), especially lessons from someone who trades successfully from level Two or TA. What you avoid are the unknown vendors of trading systems for earning "£400 per day spreadbetting. "

A lot of info. is free on this site, some members here offer courses.
Whether you eventually choose a course or mentor to broaden your knowledge , is a personal choice.However, you have to practice and study the market intently.

And don't worry, many trading methods do not need a degree in rocket science. Some are very simple, but the main ingredient for success is your mental reactions when engaged in trading the market.

Off on a tangent here but, "Dont trade with scared money."
I read a thread on another board whereby the writer said that he is desperate, down to his last few thousand pounds, has debts etc, and feels that he must trade the markets to cure his financial ills ( He never traded before and wouldn't recognise an option if it bit him on the ankle).

Maybe it was a wind up posting but it drew a lot of "Don't be stupid" replies. If the post was serious then the man is in trouble. No need to spell out why if you sit back and think of the trading outcomes where someone trades, with little knowledge, and cannot take losses as part of business expenses.

Someone once said that God could give someone a method for trading the market but the person, due to his mental set, would still screw up whilst trading it.


Take care.

 

[Naz]

Neil

That last paragraph is so true.

Tell a group of people to trade a probable move and it will end up with all of them trading it differently with mixed results.Everyone's mental make up is different and this reflects in their trading.IMHO this is accentuated in daytrading.

Its peoples trading personalities that need to be laid bare at some stage to help them address their natural tendancies and see if these are holding them back.

Denial in trading is one heck of a problem i've seen it surface time and time again with people.The more successful someone is in their life the worse it can be in trading.

Its very hard to sit there and be honest with yourself and deny certain things that are possibly affecting your trading.But getting to grip with hidden problems can realy sort your trading out.

 

[Naz]

Thoughts from years ago.

From a traders point of view i always felt that i was at some kind of disadvantage on the UK markets.I thought if only i didn't feel i was being shafted every time i took a trade i would feel more comfortable.

Let me sink or swim by my own trading decisions,give me a tool that lets me trade directly into the market and lets me view what the big boys are doing.Let me have a tool that allows me to be so quick and nimble that i can play versions of those market maker tricks myself.Let me understand how moves start,how fakes are engineered,so i don't feel like i'm being shafted, i feel like i'm ahead of the crowd.

Then let me get excited about all this and realise that there is a whole new market with lots of exciting things to learn.A market that moves so much compared to others that it gives me such big opportunities both long and short.

Am i dreaming?______No i've just discovered how to trade the Nasdaq with level 2 direct access!

 

[Bouds]

Hi all

Nice thread. I would particularly recommend the comments made earlier about trading on a price divergence - shorting on a higher high in price with a corresponding lower high in your momentum indicator - personally I find the True Strength Index to be particularly useful in identifying momentum divergence.

The other comment I would make is that there are almost infinite ways in which a person can trade depending on your timeframes, risk profile, commitment etc. I have found that it is very important to do a little introspection, work out what sort of trading profile fits best with your personality and comfort levels and what method/style of trading makes logical sense to you. After that, it really is a case of blood, sweat and tears to work out what trading system and indicators work best for you. It took me around nine months before I felt comfortable with what was right and made money for me.

Hope that helps

 

[Naz]

For me now is the time to watch MSFT.62%fib retracement and whole number resistance.Where do you watch the action? on your Nasdaq level 2 screens for the answer and the next movement of the Nasdaq.If i was trading UK techs i think i would be rather interested.

 

[Naz]

Kachingo!

Market chat readers had the oppertunity to make a killing shorting the market today after reading the above post.I know i did.

Naz

 

[Naz]

I see people daytrading big UK names and doing realy well.But how about considering MSFT.I find that you can use the same skills that traders use to trade the US indices and ADD level 2 direct access.You can trade large size with it, its t/a movements are a lot clearer and if you're good on the level 2 screen you're on a winner.It also gives you a better feel for the market in general and most times that will spill over to the UK and help you with your trends here.

 

[kinglatfan]

Can anyone explain why about 10.30 a.m today MSFT dropped suddenly to $55 and then rose back pretty quick?

 

[Naz]

Sorry i wasnt watching.But i'll just show the pullback to the 38%fib level.

 

[Thestockoperator]

Level2

I have spent a while reading all these posts about Nasdaq Level 2 and it sounds like it is a great trading tool,realistically how long does it take to learn,as I am very interested in learning the skill and using it with Technical Analysis.

 

[Naz]

It is something that can be different things to different people.Some use it to scalp,others to swing,some just use the direct access part to get in and out of trades.It just depends how you want to use it to how much effort you want to put into learning it.

Using it with t/a takes no time at all.

 

[Naz]

Ask yourself this.

If MSFT gaps down today and you just want to have a go and partialy fill the gap.I would want to trade it and see the action on a level 2 direct access screen,where i can see whats happening and transact in a blink of an eye with as much size as i want.

All i would be doing is a t/a play.But i have the tools to realy be in control.Understanding how they work and be good at using them quickly i believe gives me an edge in managing my trade.

My stops can be tighter and my exits can be better.I can see whats happening and therefore i feel more confident with my trading set up and i dont dither as much when going to pull the trigger.Of course once again this is only a personal opinion,and any trading can result in losses.

 

[Thestockoperator]

Level2

I am very intererested in learning how to trade with Level 2.I am an old T.A Guy and have been lead to believe that Level 2 is for young Traders with ultra fast reactions.

 

[Mr. Charts]

No way, I'm 55 and must have level 2 - can't live without it; same as the three letter word that only comes up as asterisks.....

 

[neil]

That Word ??

"same as the three letter word that only comes up as asterisks..."


I know, I know....GIN ?

 

[Naz]

Hey i'm 50.

For me Level 2 Nasdaq is a must.No matter what your age and your trading style how can you seriously trade the Nasdaq without it?

I was waiting for another trader to come and see me today and so i was just mucking around pre market and made $115 profit,after costs, just capturing spreads.Not trading moves just mucking about.No charts just ducking and diving on island with direct access.

Which i hope goes to show that if you get your level 2 skills up to scratch you can eek extra profits out of every trade.

 

[Trader333]

I Am Convinced

Naz,

I am convinced and will be attending one of your seminars within the next 3 weeks where I look forward to meeting you.

All The Best

 

[Naz]

trader333.

I look forward to meeting you.

Naz