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Microcap & Penny Stocks : Trading 101

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To: Ga Bard who wrote (152)	5/3/1998 9:15:00 PM
From: LouieD	Read Replies (1) of 406

my 2 cents.....a lesson on Level II For Newbies...a quick study of Level II ...... I'm sure you hear allot of people mention and talk about Level II quotes.If your not sure what it is then here's a quick explanation.Most times when you retrieve quotes all you see is the best bid and the best ask.Well we all know that the Bid is the price,we the general public,can sell the stock at and the Ask<sometimes called "Offer">is the price we generally buy at. This best bid and best ask is called Level I<one>.Level II<two> is the next level of prices that stock could fall to.Here is a link with a picture of a Level II screen: pcquote.com Notice how you see all the MM's lined up on the bid and only one MM on the ask.This tells you two things: 1)since there's so many MM's on the bid they want the stock and because of this it is going to take the bid that much longer to drop. 2)since there's only MM on the ask,chances are that an uptick will be coming. Once he moves from the top position "level II" becomes "level 1" and an uptick occurs. All the time this Level II screen is constantly updating itself.It really gives you that edge you need when trading.......... ESPECIALLY day trading. Hopes this helps some of you. LouieD

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