|
PureBytes Links
Trading Reference Links
|
I want to see a chart. I need to see where prices have been EOD and
intraday. That's what I need and that's all anybody should need. If buying
does clear the 3/8 area, does that make me a buyer? Or so I buy in
anticipation of cleaing 3/8? Or do I scalp a teenie? Dang, that's just
too much work! By then it's too late because guess what an even bigger sell
order suddenly appears at 44. The MM info is just as volatile as a chart
yet it's much shorter term and less reliable due to sluggish reporting. So
what's the benefit of Level II?
-----Original Message-----
From: Sigstroker@xxxxxxx [mailto:Sigstroker@xxxxxxx]
Sent: Wednesday, November 04, 1998 10:10 PM
To: omega-list@xxxxxxxxxx
Subject: Re: Level II
Nothing can take away the need to be a good trader, much less Level II.
Here's a hypothetical situation: your tried-and-true TS system fires off a
buy
signal on a stock that's quoted 43 1/4 x 5/16. There are 500 shares offered
at
5/16. Level II shows 1 market maker at 5/16 offering the 500, and 2 mm's
bidding 1500 shares total at 1/4. There are 10 mm's offering 25000 shares at
3/8, a fact that's invisible to Level I quotes. Do you buy at 5/16 according
to your system, or wait to see if the buying will clear the shares at 3/8?
Your answer will probably tell you if you'd benefit from Level II quotes.
In a message dated 11/4/98 6:20:43 PM, robertwc@xxxxxxxxxxxxxxxxxx writes:
> I'm incline to initially agree with Brian here but I still do not know
> enough to disagree with Shawn.
> The obvious negative would be the cost of level 2 verses level 1.
> Commissions are ruffly twice for level 2 and the quote system fees not
> depending on locking yourself in to x amount of trades to get the free
> services is more than twice that of level 1. So you start out with a
higher
> fix overhead which demands more trades which presents more opportunity
for
> loss. The thinking of the public and what is advertised is the advantage
of
> level 2 because of seeing the inside MM. I would agree if this takes away
> the need to be a good trader and depend only on your advantage like a pit
> broker can in the futures pits. If trading ability is required then I
would
> say level 1 is the better way to go. Any comments from those you have
done
> both might put some more input on this discussion.
>
> Robert
|