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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (8322)	5/6/2000 2:18:00 PM
From: Cormac	Respond to of 18137

IMHO Level II is still a useful tool...a tool whose functionality is in part determined by style of trading I use it (with T&S) to assist in determining best route/method of trade...if a trader buys on buying and sells on buying Level II can be useful to help determine the efficiency of entry and exit Personally I use SNet a good deal for entering a position...I have always believed that entering/exiting at best/bid/offer have been highly overrated...has always been interesting to me how often people berate Level II as a tool but are glued to (and IMHO limited) watching the best bid/ask...it might be too simplistic but each price was somewhere else before it arrived at best bid/ask Regards, Cormac

To: Jon Tara who wrote (8322)	5/6/2000 2:36:00 PM
From: Brandon	Respond to of 18137

Personelly I wouldnt trade with out level two because it helps me to determine a few things. Namely who to send my order to, and it helps me see when a lot of arca and isld comes in. If I dont see some other activity its usually safe to conclude that this will be a short term move and most of the arca and isld guys will get slapped. That said I know traders who are better than I am, daytraders, swingtraders and position traders, that have no use what so ever for level two and never use it. Brandon

To: Jon Tara who wrote (8322)	5/6/2000 3:01:00 PM
From: OZ	Read Replies (1) \| Respond to of 18137

SNet will then be used only to buy above the offer or sell below the best bid. That is how I originally saw it. But now I think SNET is ONLY good for negotiating with a MM for size larger than he his posting (with zero liability). Of course you can still pref. an ecn as you described above "buy above the offer or sell below the best bid" if your platform does not have direct links. This should make it a bit harder to get out of a falling knife since you can only "trade below" to an ecn now (unless some nice MM will is willing to graciously accept buying an oversize order on a tanking stock). Presently, I can split my exit among the multiple liabilities (soes, snet,) and ecn's. Soon I will only be able to split it among only ecn's and SOES (with a larger que). Remember, this rule was changed to appease the market makers and there present dual liability situation. Now they have everyone standing neatly in line trying to get out of the same door (except for ecn's). The question I have is this. If an ecn decides to become SOESable, do they give up the right to be executed against directly and intentionally as they are now and thus become ONLY SOESable? If the NASD allows them to have both options simultaneously, that puts them in a serious competitive disadvantage to the ecn's and I find it hard to believe that they would shoot themselves in the foot like this. I will probably call Market Reg. on Monday to find out the answer to this. regards, OZ

To: Jon Tara who wrote (8322)	5/6/2000 9:21:00 PM
From: Eric P	Respond to of 18137

When SuperSOES rolls-out, will we still be able to do direct routing to ECNs for marketable orders? First of all, after SuperSOES implementation you will still use SNET to preference market makers and ECN's in the after hours trading. During normal trading hours, however, SNET access to ECN's will likely depend on whether the specific ECN has agreed to be included in the SuperSOES system. If they are a participating ECN, then you will use SuperSOES, not SNET to trade against them. If this ECN has chosen not to participate in the new SuperSOES system, then you will continue to use the SNET system to access them through Nasdaq. Please note, however, that if you broker has a direct connection to the ECN then you will be able to continue trading with the ECN as you do now without going through SNET. For example, virtually all direct access brokers have a direct connection to the ISLD ECN. Therefore, your marketable limit orders to ISLD do not currently go through the SNET system and will not need to go through the SuperSOES system in the future. The order is simply matched on the order book of the ECN without the involvement of Nasdaq, SNET or SOES. -Eric