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Strategies & Market Trends : Level II Trading -- Ignore unavailable to you. Want to Upgrade?

To: ExCane who wrote (138)	2/9/1998 8:50:00 PM
From: Jay Morrison	Respond to of 1086

That is a key mistake that I think most people on this thread are making. If a daytrader is trading stocks that Market Makers can manipulate, then the daytrader is trading the wrong stocks. Trade stocks that are liquid and have institutional action and alot of retail trading. Trade stocks that are moving on news (upcoming earnings, pre-announcements, new contracts, mergers, etc) Then you are not competing with the market makers. That is the advantage that a level II system gives you. You can see this happening and can move with the trend. You can also see it slowing down and bail out. Market makers are making money by playing the bid and offer all day long. You cannot beat them at this game. Don't even try. They can make moeny on 1/64. (by the way, when you see 1/64 trading, it is market makers spliting the difference on a trade) Market makers are losing money when they have inventory and a stock is moving against them. That is why earnings are always bad for Saloman Brothers when the stock market has a bad quarter. Their in-house trading got crushed because their inventory value is down. Jay

To: ExCane who wrote (138)	2/9/1998 9:18:00 PM
From: DRRISK	Read Replies (2) \| Respond to of 1086

Alex, I am an investor who feels compelled to master the next level of market information to improve my profits and skills in investing. I do not consider ("I just assume Drrisk is a soes trader, not sure.") myself a SOES trader but am capable of that type of activity if necessary. To be fully divulgent I feel that the market for me is a life experience that is to be assimilated. I know that information is power and that is my reason for assimilating the Cyberbroker experience. I fortunately have the resources to venture out into this area and will devote myself, hopefully with the threads input, to mastery of the incredible information that these systems provide. I am not an expert and certainly do not want to be seen that way. I am, however, always looking for competition that permits me to express my own need to succeed and master new frontiers. The market is changing and the future of this type of trading will forever give the individual investor greater control of their money and greater leverage for their money. I am not niave to the greater risks but I would rather take the risk then be led by the nose by other people who say they have my best interests at heart. My approach is not better or worse then anyone elses here, just my approach. This technology can only make you smarter and maybe richer or maybe poorer. We will see. Traded Cisco today and watched the market turn, was not in sync and held shares overnight to retry my rhythm tomorrow. This is clearly not a daytraders approach. BTRD was hammering the ask all day with large blocks. The resistence at 63 1/2 was impressive and clearly lined up all the MM's I failed to follow closely enough this pattern and purchased at higher levels it tested this level several times and bounced. DrRisk hanging tough and appreciative of the strategy talk