t/a and level 2

[Naz]

People keep on about level 2 Nasdaq being just for scalpers.This is just not so anymore.Level 2 gives you such good entries/exits and management of your trade its brilliant for longer plays.Remember you dont need large $25k accounts for these types of plays on the Nasdaq,i believe you can do this with as little as $5000.

Nasdaq stocks move and with level 2 and t/a you're on a winner.This week i've taken a Dollar run in my second account out of ATVI.Chart atttched,the red arrow was my level 2 entry.

 

[Naz]

Entries and exits are important and level 2 will show them to you.Direct access will let you trade them profitably.Surely if you can see the major players as sellers you can be a seller as well and if that ties in with your t/a readings of the situation its another confirmation.Then never mind about a sb company widening the spread,bang your in right at the best point with a realy small risk.Then manage it as you go.2/3 days even on these small stocks and you're in profit.

I'm teaching today so here was my exit near the close.

 

[tradesmart]

Great trade example above Naz - is there any particular US broker you can recommend for TradeStation?

Are there any comparative 'roadtests' of US Level II software available that you know of; it seems hard to determine which is the best/most suitable version for general (not specifically scalping/day) trading

Regards, TradeSmart

 

[Naz]

I believe that tradestation also offer trading accounts as well as their charting package.www.tradestation.com.

Picking a broker is difficult but i use www.exptrader.com.Some brokers give dummy accounts but nothing beats the real thing.Remember level 2 Nasdaq is for swing traders as well.Trading 4 to 5 times a week brings in good profits as shown above which means you dont need those $25k accounts people keep on about.

Its also a good way to start learning.As it stops you over trading which is a big fault of many new daytraders.

 

[Pollux]

Naz

I've just opened an account with IB (having gone through fair number of hoops in cluding birth certificate copies etc e3tc). Any views re their L2 offering? I guess you will say that it is not a patch on exptrader or the otehrs?! SO you can open an account with exptraders from the uk? I saw an earlier post where you mentioned firms where you are unable to open from the UK.

Thanks for any thoughts...

D

 

[Trader333]

IB Level II

I also have the same question as Pollux with regard to IB and their Level II option which is $79 per month so any reply would be greatly appreciated.

All The Best

 

[Naz]

Hi Guys,

If you go to www.daytradingstocks.com look underneath brokers you will see web links to a massive amount of level 2 direct access brokers.It is impossible to know how they all are.

I never go by cost.I always use the one i feel the most comfortable with.The one where i know the software backwards.One where the telephone back up is instant,where i speak to a small group of people who know what they're doing and give me answers and action immediately.

I like to concentrate on my trading nothing else.I only pay per trade,no payments per month.I hope this helps.

Naz

 

[Naz]

When you practice with small amounts i can understand the importance of small commissions.But when you trade with larger size commissions are un important.You just want the very best.Money is not an issue.I want the best telephone back up there is from people who know what they're doing and can act fast.

I'm afraid being put in a queue for 10 mins when your daytrading is a joke.I left trading in the UK because i felt i was behind the curve and i would not accept that type of service now. So i don't mind paying to make sure i get it.

If a stock runs against me from some news event and my trading system locks up or an order gets stuck in the Nasdaq system leaving me unable to trade.If i cant hedge, i want to belong to a smaller broker who i know will pick up the phone immediately and be able to get me out.Daytrading needs instant responses,that means instant back up if things go wrong.

 

[JonnyT]

One could argue (and I do) that you can factor in such occurances into the equation.

Thereby you accept you may have two or three unplanned losses due to system crashes or lack of phone support a year, but the commissions you save may mean more to the bottom line.

I once compiled some sums with regard to using easytrade or IB for trading futures. You could have something like 10 major losses per year due to such events before easytrade got anywhere near for the system I was working the sums out for. Thats also assuming the crashes etc happened and the trade went against you.

There are also other alternatives: A backup broker, you can always hedge your position, A backup link to the Internet. In my instance ADSL, A cable modem and dial up accounts. Also Laptops in case of power failures. Other than the exchange crashing you are pretty much covered and should maximise any profits.

JonnyT

 

[Naz]

JonnyT

A nice post, with some interesting things to think about re how much you save per year against how much you can loose when disaster happens.

I use ADSL and have a 56k modem as back up.Three other accounts to hedge with.A mobile configured to the US incase my BT line goes down.They have all been used at one time or another when disaster has happened.

 

[Pollux]

A quick post to say what an excellent day 20 or so of us had at yesterday's session with Naz. The course was very good value for money & although just a sampler of what can be done using L2 and direct access trading, it is very useful to see the whole operation live and for real on a big screen. There were several t2w guys there which was good to see. I'll post a fuller note in due course but if you have any specific questions re the day send me a note by all means.

Pollux.

ps: watch 'pool bounce back today off their 200 day MA with a big win!!

 

[Trader333]

Friday with Naz

I completely agree with Pollux in that Friday's L2 seminar with Alan was a great day from my standpoint. I think Alan very much enjoys mixing with and meeting other traders. I enjoyed every aspect of the day which was broken up into technical analysis and L2.

Alan made a point of asking each person what their level of trading experience was so as to pitch the seminar at the appropriate level. During the break I had chance to meet and discuss a number of trading issues with other traders all of which was very interesting. The participants varied from full time professional traders to part timers and markets traded by those attending varied from forex, futures and stocks. There were even guys who publish trading books on the course so a varied mix of individuals.

Alan prefers a very "interactive" approach and with a live trading screen with charts and L2 we were encouraged to decide on taking a trade and how we should manage it. The event was organised by George Hallmey from Clickevents and he was also very accommodating to all who attended.

I was surprised by one thing and that was just how naive many of the professional traders were about a number of aspects of trading. I have always thought that these guys must be superhuman whizzkids but this was not the case and actually made me feel very good about things. My thoughts were that if these guys can make a living out of this (many of them were very wealthy) then so can I.

I would recommend this to anyone who may be interested in trading L2.


Paul

 

[Naz]

Hi Guys,

Yes i enjoyed giving the seminar on Friday.To others, this was a one off that i was asked to do.No others are booked so for now its only 1-2-1 coaching that i'm doing.

It was great meeting everyone and listening to who they were and what they traded.I was also pleased to see one or two old students and very interested to hear how they were also getting on.

Trading the open on the Nasdaq can reap very quick large rewards but to my mind you can only do it with a NL2 screen.Up to 4% profits in half an hour can be found very often, taking a slower view looking for t/a patterns developing during the day can also reap very good profits.

Many part time traders do very well coming in from work and looking for these patterns to trade in the evening.

Take the example i found in BGEN at the seminar,when it broke its support at 6'oclock it fell nearly3% before it bounced back 2%.

The point is that there are some decent moves to be traded in Nasdaq stocks all the time.Using t/a with a level 2 direct access screen means that you have all the tools to do the job.How you manage the trade is up to the individual.

 

[davelong]

Friday With Naz.

I also enjoyed Alan's seminar on Friday, it was extremely informative, it helps a lot to see the market moves that underly the chart. I am a very recent beginner, and will be unlikely to obtain direct access trading, but I certainly intend to further my understanding of L2.
Very impressed with the entire day, great location, well organised, and a very entertaining and skilful presentation from Alan.
Thanks again

David

 

[Lawman]

Friday

Hi all

I concur. Friday was brilliant. Naz really knows his stuff! You can really see his excitement in showing off what you can do with Level II.
I realised just how much I had to learn. TONS!

I am sure the seminar will be on a CD somewhere at some point in time.

It was also great meeting some other traders around... all at different levels, as Paul says.

I am sure a one-to-one with Alan will be awesome... will get round to that sometime I hope.
All a bit daunting... but the learning has to start somwhere.

Thanks,

Shaun

 

[Naz]

Hi Guys

Have any of you been following BGEN our set up from Fridays seminar?

 

[Naz]

From those that i'm talking to privately.I'm still in there.

 

[Lawman]

WOW, look at that!!!

I would have been out ages ago, and kicking myself.

What has kept you in, Naz??

Shaun

 

[Pollux]

He's been busy teaching!!



Pollux

 

[Naz]

Hi Guys,

These Nasdaq set ups can be very good.I was on the level 2 screens first thing on Monday because of the pullback.Risk reward was worth taking.I've done this before with BGEN so i know what potential can be there.Then its a question of Managing the trade.Sometimes an autostop in the level 2 software is a good way to manage things to stop you getting freeked out.

What kept me in?Think of everything we covered on Friday.If you need to brush up anytime come on a 1-2-1.

Naz