Rick, As you may know, I have not been trading for a long time and this is still a learning experience for me.
The L2 is one area of focus which I have NOT mastered yet. Your comment, "You just can't take it at face value and you must take all the other factors into account," is right on target. I seem better at knowing which way the trading will go by watching the T&S than watching the L2, but feel I'm missing out on valuable information by not understanding how to read the L2 well. I'll keep watching.
I can see that much of this has to become subliminal and almost instinctive for me to become a strong trader. I am getting much better at it, but still like to have an objective understanding of the things I'm beginning to sense.
There have been days when I'm long a stock, see a HUGE lineup on the ASK, and just chuckle because I "KNOW" that all of those on the ASK will sell at higher and higher prices. How I know, I'm not quite sure yet; I obviously see something which signals the moves, but I haven't articulated it to bring it to the stage of a "rule". I guess this is what they call "experience," something hard to do without. All of this reminds me that this is not a simplistic game and to give it the respect it deserves!
Thanks very much for helping by sharing your thoughts and experience. |
