Best Thread US day traders thread.

[dvdh]

Hey dvdh your not on commission are you :cheesy:
This discussion on L2 is really great (all credit to Pitbull, yet again, for kicking it off), I must admit I am having a job getting my head round it at the moment.
I have got the set-up suggested by BCT working so I can watch the moves again and again and.........
this thread is getting hot

Hi Samtron.
Unfortunately I'm not on commission. I just recommend Mr. Charts because I did his Level II Specialist Micro Analysis course and It's the best thing I ever did. That's just my experience though. And because It really works for me, the only thing I can tell people is to go see him if they want to know the ins and outs of Level II. But again that's just my opinion.
Naz's course might be just as good, I don't know, so I can't give you my opinion on that.
No offence, Naz!

-Dave.

 

[PitBull]

Again, from my own observations and I think I alluded to it on my AAPL post, but beware of MM's stacking up and posting big size, unusually big size, at key price levels, i.e. a breakout. If they are sitting on the offer @ 67 say for example and we're about to breakout, newbies will see greater supply and will start selling. However, this is one of the tricks MM's play. They are in fact buying through an ECN and will pull their offers when we breakout.

I must re-iterate that this is my own opinion and through what I have observed watching many hours of level 2 using Camtasia. Credit to BlueChip. He introduced me to this software a while back .

 

[dvdh]

Again, from my own observations and I think I alluded to it on my AAPL post, but beware of MM's stacking up and posting big size, unusually big size, at key price levels, i.e. a breakout. If they are sitting on the offer @ 67 say for example and we're about to breakout, newbies will see greater supply and will start selling. However, this is one of the tricks MM's play. They are in fact buying through an ECN and will pull their offers when we breakout.

I must re-iterate that this is my own opinion and through what I have observed watching many hours of level 2 using Camtasia. Credit to BlueChip. He introduced me to this software a while back .

Just remember it's common sense for marketmakers to make sure they fool you.
Put yourself in a MM's position. Do you want everyone to know in what kinda position you are. Of course not, cuz that would kill your play!

-Dave.

 

[timaru69]

Just remember it's common sense for marketmakers to make sure they fool you.
Put yourself in a MM's position. Do you want everyone to know in what kinda position you are. Of course not, cuz that would kill your play!

-Dave.

Hi all

I guess I have no idea as to when they (MM's) are playing tricks or not, I have seen the trick pulled while I was watching the Level II the other night, but I only knew after the fact, If I had tried to trade short I would have been stopped out and burned, but in saying that I have seen lots of times where the MM's are loaded on the offer and the price does indeed drop.

I guess I'll have to be a reactionary trader

Cheers

 

[dvdh]

Hi all

I guess I have no idea as to when they (MM's) are playing tricks or not, I have seen the trick pulled while I was watching the Level II the other night, but I only knew after the fact, If I had tried to trade short I would have been stopped out and burned, but in saying that I have seen lots of times where the MM's are loaded on the offer and the price does indeed drop.

I guess I'll have to be a reactionary trader

Cheers

It is always possible to see what kind of trick the market maker is playing in a way. Level II always tells you that.
But you need a trained eye though and some screentime to see what they're doing consistently.
I'm sorry that I can't go into detail. But you know the reasons!

-Dave.

 

[samtron]

Hi Samtron.
Unfortunately I'm not on commission. I just recommend Mr. Charts because I did his Level II Specialist Micro Analysis course and It's the best thing I ever did. That's just my experience though. And because It really works for me, the only thing I can tell people is to go see him if they want to know the ins and outs of Level II. But again that's just my opinion.
Naz's course might be just as good, I don't know, so I can't give you my opinion on that.
No offence, Naz!

-Dave.

I have studied L2 using Naz's L2 CD course, but I think what one really needs aswell is lots and lots of screen time eyeballing the moves, and thanks to BlueChipTrader I am now in a position to do just that.
BCT I owe you a Trade two!

 

[dvdh]

I have studied L2 using Naz's L2 CD course, but I think what one really needs aswell is lots and lots of screen time eyeballing the moves, and thanks to BlueChipTrader I am now in a position to do just that.
BCT I owe you a Trade two!

Good on ya.

-Dave

 

[TheBramble]

samtron - that's the crux of the matter for LII (and probably everything else for that matter!).

Eyeballing. Time in front of the screens. Experience.

There's a bunch of LII related threads onthe site and its even got its own forum:-

http://www.trade2win.com/boards/forumdisplay.php?f=68

but hasn't had the traffic/viewings/interest you might have imagined it might.

I think this is in large part due to the need to put the hours in. It's all pretty empty and lifeless without.

I've also had Naz's LII CD set and found it useful and I'm sure spending time with either Richard or Alan, or anyone else experienced in its use is well worth it.

But again, no substitute for the personal effort required to master it.

 

[samtron]

thanks guys,
anyway hold onto to your hats:

Today's market action will be all about Bernanke's testimony. He speaks to Congress on monetary policy beginning at 10:00 ET.

good luck!

 

[dvdh]

thanks guys,
anyway hold onto to your hats:

Today's market action will be all about Bernanke's testimony. He speaks to Congress on monetary policy beginning at 10:00 ET.

good luck!

Yeah,

it seems like today's gonna be big in futures. Focus is on the following rate hikes. Might be a little choppy in the heavy weights stocks when he speaks, because of futures, so watch out guys. We might get a rally or a sell-off . I guess we will see something! LOL :cheesy:

-Dave

 

[Gadgetman]

As I spoke about on Friday and today, when everything lines up, it makes effortless trading. A picture speaks a thousand words so I have attached a picture of one of my screens.

Really like your screen layout too. Imitation is the sincerest form of flattery? Consider yourself flattered

 

[PitBull]

Link on previous level 2 discussions:

http://www.trade2win.com/boards/showthread.php?t=8765

 

[Gadgetman]

Bernanke

Well at least there was some movement, even if it was short-lived.....

 

[compoundup]

If you like ideas for trading screen layouts here's mine - if you're not on broadband don't look - it's full size 3072 x 768

http://uk.geocities.com/compoundup/ScreenLayout0602.jpg

I have scanners and newsfeeds on 2 other screens

Edward

P.S. Trades on the bid show bright red on the T&S, Green on the offer, pale blue in the spread and most significant of all, if a highlighted MM moves his best price (on Montage, sic.) you get a print with his highlighted colour on the T&S - which usually catches the eye.

Note also the close grouping of the 1 min., the order ticket and the L2 is no accident

Everything is linked - change stock anywhere and the whole lot change

 

[TheBramble]

Sounded good compoundup - but your site's down.

 

[compoundup]

LOL

That's what you get for trying to use a free web-hosting service

try this link in stead

(link deleted for security - if you can't get the picure on the geocities site from above then pm me please)

Edward

 

[jimmy1jag]

LOL

That's what you get for trying to use a free web-hosting service

Edward

Interesting

Had to drag it across 2 screens to see it lol

How do you get the MMs to appear in the T&S with the trades or is that the quotes? I can'tseem to get it to work on my esignal.

 

[lwebb]

Superb discussion on Level II. It brings up a particular question which which I'd like some help in understanding: why would a MM reveal his intention to buy/sell a stock?

Given that MMs transact large numbers of shares for clients, they have to slice & dice their market activity into smaller chunks, otherwise the price moves away from them. If they show themselves (the story) it's counterproductive. Contrarywise, it makes more sense for them to show themselves when moving the price to a desired entry buy/sell level. But again, if they do that consistently it gives the game away.

So, is apparant MM activity about misdirection, or are there situations where being seen to act helps them.

 

[samtron]

If you like ideas for trading screen layouts here's mine - if you're not on broadband don't look - it's full size 3072 x 768

http://uk.geocities.com/compoundup/ScreenLayout0602.jpg

I have scanners and newsfeeds on 2 other screens

Edward

P.S. Trades on the bid show bright red on the T&S, Green on the offer, pale blue in the spread and most significant of all, if a highlighted MM moves his best price (on Montage, sic.) you get a print with his highlighted colour on the T&S - which usually catches the eye.

Note also the close grouping of the 1 min., the order ticket and the L2 is no accident

Everything is linked - change stock anywhere and the whole lot change

great post compoundup
whats size is your screen and is it a tft?

 

[compoundup]

I'm using 3 15" tfts at 1024 x 768 driven off a Parhelia 128MB card (Matrox)

In eSignal to highlight MMs, right click over the level 2 screen and select "Market Makers..." you can then change highlighted colours. This directly affects the associated T&S display. I like it in a light colour with the quote changes barely visible so that they don't distract from actual trades going through.

Notice the associations:
Goldmans - Green
Lehman - Lavender
Merrill - Yellow (mellow?)
MorganS - Brown - can't remember why
Nite - Black !
Citigroup - Cyan
UBS - Red - the first one I ever highlighted, though for all that they are frequently the Ax they must do most of their trading through ECNs because IMHO they aren't often seen at the top of the order book.

Edward