In any simple method of trading at some stage we need to enter, exit and manage the trade,no matter what time frame we are looking at.
We hear many complaints about spread betting companies on this board and their bias, giving traders uncertainty about what is realy happening.You never hear any complaints from Nasdaq level 2 traders on these points do you?
NL2 is so good that no wonder it is a scalpers dream,BUT to many people think thats all it can be used for.Not so.
It enables the trader to cut down their risk every time they enter a trade.ie the Nasdaq trader might have an initial stop of 10c,the spread better 20c/25c because of his uncertainty of what is going on and the need therefore more initial wiggle room.If we run the stock for a dollar profit the spread better would possibly be happy and get out with 1/3 risk reward.At the same point the NL2 trader would have up to 1/9 risk reward.
But the NL2 trader if he had been managing his trade during this time should have seen the story that unfolded infront of his eyes and understood if we were going higher.He would have found and felt the true personality of the stock from the players on the screen.This would give him the advantage of trying for the longer move.This is where selling part of the position and running with the other part realy make large profits.When sentiment changes once again he will see it and feel it and with direct access be out in a blink.NL2 is the best indicator t/a players and spread betters never had and that daytraders cannot be without.
NL2 information can help traders make more informed decisions in any time frame.Denial is something that hurts traders profits.
Once again this is a personal opinion and any trading decision can result in loosing all or some of an individuals account.
