jaison said:The UK Level 2 screen shows the observer everything that is taking place with a stock in real-time.
It offers you the chance to have all the tools of the market maker. A real level playing field.
With direct access you can place your orders at 7:50 before the market opens. Your order will then be traded first. You can also enter the closing auction. Placing a bid allows you to buy or sell at a discount on the closing price. The bids are then processed at 4:35 as a unitary trade at the lowest selling price.
You can see if the market makers are buying or selling on their own account or simply offsetting the stock back in to the market.
You also get to directly trade with another seller or buyer at the same price with no spread involved.
Basically you can be as clued up as any market maker and, assuming you are as good, can make bags of money. If you trade professionally you will win more often that you lose.
One posting above shows that many have missed the point to Level12 and don't even want to understand. They fail to grasp the value and potential awaiting them.
Realise one thing though, when reading postings on this BB.
The successful trader will tell you the basics, just as I have in this post. But they WON'T tell you how they do it and therefore there is no easy way to riches.
If you are serious about making trading work for you, you need to study.
A market maker is sitting in front of his screen most of the day. So do I. He will know the stock he trades intimately. So do I. He will know the potential for movement and profit. So do I.
I could go on, but the bottom line is that you need to specialise.
Get your account open. Watch, learn and then try a few trades.
I trade one stock, day in day out. I don't leap about looking for that "pot of gold". It's right there in front of me on the screen already. I place my orders and wait for them to be traded. Sometime it takes minutes, other times it takes nearly all day. But when they move they usually do so quickly and you need to be there to press the button with a new order. Some days ten or even twenty large trades are possible.
Direct Access and Level 2 is for the professional. To use it properly you need to be as disciplined as a professional. At your desk by 7:30 working out the opening orders, and still at your desk at 4:30 ready to tidy up for the closing auction, ideally with all positions ending up closed.
The members of this BB that make money don't say much. Anyone that does disclose how and what they trade probably doesn't. I don't need to tell everyone. I have it in my bank account. I know, and that's good enough for me.
Therefore there is no easy way to learn how to make money by trading. You need to put time and diligence in to learning, by watching. Don't think that someone is going to post a "how to make money in 5 minutes" on this board that really works.
Don't open a Direct Access account and try and win with Level 2 unless you are prepared to be professionally minded with a firm commitment to winning.
If you don't take anything else away from this post, remember this:
I now know where the money went that I lost in the past, buying and selling shares. The CFD traders with Direct Access and Level 2 took it! Why pay the market maker his commission when you can keep it yourself?
Be the new kid on the block using the latest technology. The old fogey that want's to trade the old fashioned way will actually pay you to have you buy and sell his stock first as a trader.
Racer said:7:30 to 16:30 jaison?
That's a bit late to start work and early to finish?
Agree with getting to know the stock and the book for it...
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