I have in the past few days been to see Naz for a one day session and in reply to your question it was just incredible.
In the past I have used Updata real time plus Sharescope and Metastock for charting end of day but I have always wanted to know about level2 as I sensed that I was probably missing out on a final tool in the armoury but did'nt really know where to go for some real "hands on" experience of it.
It was for me mindblowing and Naz really knows his stuff so I learnt a lot.
I can only liken it to an iceberg with level2 enabling me to see and understand for the first time what is actually going on beneath the surface before you see the outcomes/moves on the charts
It was my turn today to invest in a little one to one training with NAZ
All I can say is 'OH MY GOD'
Words cannot explain fully the impact this day has had to my trading strategy. We hardly looked at a chart all day except after each trade we had made (we was paper trading to allow NAZ to show exactly his approaches and how L2 Nasdaq works).
A previous post had written ' it was like the iceberg analogy' which in my opinion does not emphasise the advantages L2 Nasdaq has over TA.
I am sorry chaps, but I have practised TA for 4 years and have been on many (expensive ) courses and all I can say is that in the one day I have had with NAZ it has been the most worthwhile out of them all. I cannot believe there is anyone who would not walk out of this one day still preaching the advantages of TA over this approach.
I am already making plans for a second session.
Thank You Naz for a very interesting day.
btw if anyone is interested in finding out who NAZ is then check out CNBC at 14.00 - 14.20 tomorrow. He will not be explaining L2 in any detail but you can see the man himself if you haven't already met him.
You have all confirmed what I suspected by reading all Naz postings, he really does know his stuff.
I would like to understand Naq L2 more but would like to know if it is possible to make money trading Naq L2 with less than $25,000?
Any comments please.
This is new,but my understanding is that one brokerage corporation is in the process of opening an account themselves and letting their customers deal within their account,therefore getting around the $25k rule.This is all very new,i believe one corporation have done it and if it works i guess others will follow.
A little more info on opening a US Level II account below, and TradeStation will allow UK accounts. Go to http://www.tradestation.com and request a free demo CD – they were so keen to get me on board that they actually sent me three CD’s!! The first one arrived by express mail from Plantation, Florida just 2 days after I requested it – very helpful. Also some great demos on the website.
From the info below you can start an account with $10,000 but trading is restricted to 3 trades in 4 days but they will allow margin up to x2. Do 4 trades in 5 days and you become a ‘Pattern Day Trader’ and need $30,000 to get started.
1.What’s the minimum deposit required to open a TradeStation Securities account?
The minimum deposit required to open an equity trading account with us is $30,000 for Pattern Day Trading Accounts and $10,000 for Non-Day Trading Accounts. To determine which type of account applies to you, maintenance requirements for each account are listed below:
Pattern Day Trading Accounts: Based on NASD and NYSE day trading rules, any account that places 4 day-trades in a 5 trading day period is permanently deemed to be a “Pattern Day Trading” account. Pattern Day Trading Accounts must maintain a minimum daily equity balance of US $25,000. If the account balance falls below $25,000, trading is restricted to closing transactions only until the account balance is increased to $25,000.
Non-Day Trading Accounts: Non-Day Trading Accounts (an account that has never placed 4 day-trades in a 5 trading day period) must maintain a minimum daily equity balance of at least $5,000. Non-Day Trading Accounts with balances less than $25,000 are restricted to 3 opening transactions per day, less the number of day trades made in the preceding 4 trading days. For example, if you have made 2 day-trades in the preceding 4 trading days, you will be permitted to place 1 new opening transaction (Buy or Sell Short) on the current day. You will still be able to place as many closing transactions (Sell, Cover) as you would like on the current day. Based on NASD and NYSE day trading rules, an account who places 4 day-trades in any 5-day period will be deemed to be a “Pattern Day Trading” account permanently. See “Pattern Day Trading Account” requirements above.
I contacted Naz back in November and yesterday finally went to see him for the one day lesson combining TA with level2.
Firstly I would like to thank him publicly for his enthusiasm and a terrific lunch by the river!
My experience seems similar to Cameronman and for somebody who has abandoned 'indicators' and only trades off support/resistance and fib levels I too wanted to see if I could gain more of an edge if I understood level 2.
Well it's true guys, although just paper trading, we quickly found the stocks to watch in pre-market trading, homed in on one (Costco) that was going to gap big, checked out who the ax was and watched his moves when the market opened.
The software enables you to highlight the ax (major marketmaker)and it was easy to see what he was doing. The expected fall to close the gap didn't happen and we watched him holding levels on the Bid and then raising his bid price (buying) and when he switched to the Ask (selling) we knew the move was over. As soon as he pushed his Ask lower we followed him with a short trade and closed out when he simply disappeared off the screen.
Now I know Naz was lightning quick and obviously a real pro but we made $1375 on paper in 20 mins (1000 shares) just by following the major market maker's moves! We did have a chart next to us but we didn't use it. He was shouting and leaping about. It was a real buzz and you can see it must be addictive.
In truth if I had been trading the gap (to close) using TA it just didn't happen and I would probably still be staring at the screen hours later worrying about abandoning a trade going nowhere.
Meantime the Naz's of this world walked away after 20 mins to make another cup of tea.
In all my experience of reading books and attending seminars I came to the conclusion that to be taught one to one by an expert must be the only way to learn. The only traders I've ever met personally who are, or have made a serious living are Nasdaq level 2 traders so I just had to meet the man.
I can't afford to open an account and start buying software just now but I can practise for when that day dawns. Books and the net just can't get the message over, it is a real traders game and ideally, as Alan did, I think you need to watch a successful trader and learn from him or her.
So if I can't really afford it that must speak volumes for my belief that it was value for money. Yes, those of us without $25000 are going to find it hard to start but things change and it's another weapon in one's armoury. It all takes time to understand something new and longer to become good at it but as traders aren't we all looking to learn more and more every day.
My only fear is that it looked too simple. Once you can see what is happening it looks easy (and stops are so close you're looking at something like 7:1 win/loss ratio!!). How can you argue with that. If they changed the $25000 rule I'd start tomorrow!!
No doubt it's not easy until you really know how but that looks like easy money to me. Trade for a living? Certainly looks possible now. Well done Naz, I'll be back for another lesson and for your help and advice.
Thanks again and when my head stops spinning I'll read the notes.