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Robert,
I trade Level II with the Executioner. Yes, like you, I was excited
about all the bids and asks, but like what Ron Augustine said, what good is it
if it's nothing but a bunch of lies, head fakes, illusions, etc. They have
many ways to hide from you. If a MMs have a 100k shares to unload, do you
think he would show it to you ??? More likely he will throw a few hundred shs
buys first or signal the "head dealer MM" what they are going to do. With the
exception of the highly liquid stks, the game are mostly rigged, as Linda
Rashke observed in the NASDAQ, and highly manipulated by the specialist and
big money on the NYSE.
If you think you could play that spread and win consistantly, you might
want to think again. Many years ago, when I had Bid Ask and size, I thought I
was in heaven, until I realize that "they" were using it as some kind of magic
show to create an illusion to fool me. Since then I have gotten smarter and
wiser so I usually fade their moves and have been quite successful at
it. Personally, with few exceptions, I have absolutely no use for Level II
quotes, but the executional capabilities of Level II are imperative for
daytrading.
The down side of Level 2 for me is the higher commission of $20 vs $10
per trade I could get elsewhere. In addition you will have about $350/ mth
quote and software fees, but you get that free if you do 50 or more trades/mth
with THE EXECUTIONER. I get it for "free", but it's not really free to me
'cos I feel I am paying $500 or more in higher commissions than if I do it
elsewhere. Another bad thing about Level 2 trading for me is that it force me
to adjust my trading forcasting down to 1 day and I am more comfortable in the
1 to 5 week range. Linda Rashke burst my bubble when she said "you can't get
rich short-term trading". I am still trying to prove her wrong.
Good luck. hope this help.
PS:
Does anybody on this list know if it's possible to feed this realtime
quote feed I get thru the Internet with THE EXECUTIONER to TS 4.0 ??? It
uses the SP Comstock data feed thru Townsend Analytical, i think.
>Date: Thu, 29 Oct 1998 18:24:02 -0600
>From: Robert W Cummings <robertwc@xxxxxxxxxxxxxxxxxx>
>To: Omega-list@xxxxxxxxxx
>Subject: Trading Level 2
>Message-Id: <3.0.5.32.19981029182402.007dd3f0@xxxxxxxxxxxxxxxxxx>
>Content-Type: text/plain; charset="us-ascii"
>Trading level 2 is the advantage trading within the spread offered by the
>MM? Is it the fact that you can see all the representative bids and offers
>from the MM and from that you can get an idea of the inter strength of a
>stock for the short term. Trying to draw some conclusions on why this could
>would be easier than trading commodities. One big advantage is the 2 to 7
>second fills. This subject has been here before but for those who are
>actually doing it can you post some advantages and disadvantages in
>relation to trading futures. Seems like there are a lot of people willing
>to give you an education on this subject for a fee. So much hype trying to
>get through all the BS is a project of its own. I need a computer e mail
>device that can detect a lie when its written to me. Maybe a picture of a
>nose that would grow has the script continued. Any help would appreciated
>thanks, I'm closer than I was about a decision regarding this.
>Robert
Robert,
I trade Level II with the Executioner. Yes, like you, I was excited
about all the bids and asks, but like what Ron Augustine said, what good is it
if it's nothing but a bunch of lies, head fakes, illusions, etc. They have
many ways to hide from you. If a MMs have a 100k shares to unload, do you
think he would show it to you ??? More likely he will throw a few 100 shs buys
first or signal the "head dealer MM" what they are going to do. With the
exception of the highly liquid stks, the game are mostly rigged, as Linda
Rashke observed in the NASDAQ, and highly manipulated by the specialist and
big money on the NYSE.
If you think you could play that spread and win consistantly, you might
want to think again. Many years ago, when I had Bid Ask and size, I thought I
was in heaven, until I realize that "they" were using it as some kind of magic
show to create an illusion to fool me. Since then I have gotten smarter and
wiser so I usually fade their moves and have been quite successful at
it. Personally, with few exceptions, I have absolutely no use for Level II
quotes, but the executional capabilities of Level II are imperative for
daytrading.
The down side of Level 2 for me is the higher commission of $20 vs $10
per trade I could get elsewhere. In addition you will have about $350/ mth
quote and software fees, but you get that free if you do 50 or more trades/mth
with THE EXECUTIONER. I get it for "free", but it's not really free to me
'cos I feel I am paying $500 or more in higher commissions than if I do it
elsewhere. Another bad thing about Level 2 trading for me is that it force me
to adjust my trading forcasting down to 1 day and I am more comfortable in the
1 to 5 week range. Linda Rashke burst my bubble when she said "you can't get
rich short-term trading". I am still trying to prove her wrong.
Good luck. hope this help.
PS:
Does anybody on this list know if it's possible to feed this realtime
quote feed I get thru the Internet with THE EXECUTIONER to TS 4.0 ??? It
uses the SP Comstock data feed thru Townsend Analytical, i think.
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