Don,
Data and information are to distinct but related entities. Data is something which is collected, sorted, stored, Graphed, evaluated, analyzed,... in order to produce information.
My professional background is in engineering. Investing is something I do as a hobby and provide for my retirement. So excuse me if I jump into the engineering example to make my point.
Statistical process control (SPC) is often used by manufacturing processes to improve yields. This involves a complex sampling technique and evaluation of the data to determine optimum settings for the equipment in process. When initially instituting an SPC program, huge quantities of data are collected.
As the processes under evaluation are further refined in characterized, the sampling rate can be substantially decreased and some sampling points illuminated completely.
Elimination is possible for combination of reasons. First: some of the data will be found to be completely useless. Therefore the decision to eliminate is straightforward. Second: some process steps will achieve 100 percent yield. Sampling at this point will yield infrequently useful results. Third: information can be reliably detected further downstream.
The sampling rate can be decreased because you're no longer collecting data to improve the process, only to monitor it in determine deviations from nominal. When deviations are noted, full sampling may be resumed to determine the cause.
Real-time quotes, level 2,charting, and other techniques used by traders are all necessary during the early years in order to gain the experience to develop the intuitive "feel" for the markets, just as expensive data collection is required in the early phases of manufacturing process. This experience cannot be gained without careful analysis of all available information, particularly on the bad trades.
Re: What do I need Level II for..? If you understand the market?
Because the market changes, that's why.
Enjoy the ride.
Ira |
