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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: surfinSteve who wrote (736)	7/5/1998 9:08:00 PM
From: Street Walker	Read Replies (3) \| Respond to of 1729

You Need Level II to daytrade ! Its one of the many tools one should use. When a handyman shows up to do a job, he brings all his tools. He never knows when he'll use each one, but when he needs it, its there. Level II is important to follow the actions of specific market makers. The 'axe' or 'ball' as some like to call it are the one or two mm's that control the stock. When they are on the bid, the price will go up. When they are on the ask, the price will drop - all because the other mm's follow their lead. The axe or ball is doing the deals for the major mutual funds and institutional investors. Other mm's follow what the current professional research is saying to do as demonstrated by the axe - buy/sell/hold. What Level II looks like: castleonline.com Example: gsco - goldman sachs When PAIR was going up, gsco was pushing the bid higher. Whenever he went to the ask, the stock hit a cliff and instantly fell to where he was posting his bid. No chart can tell you this, only Level II. gsco is the most powerful market maker. mont is evil. You have to get into the mind's of your enemies to know what they are up to. A good Level II will give you a portion. Level II also helps one determine how much support and resistance there is at a given price. If I bring up a screen on a stock and see 1 market maker at the bid and 15 at the ask, that tells me there is a lot of resistance and little support. Market Makers are lined up to sell. Its a usefull and needed tool. There are several Level II providers. One that I personally like is offered by Castle - the Kill Key. Go to their web site and download the trial version. The Kill Key offers execution built into the level II screen for killer speed. castleonline.com Cost is only $150/month. Very streamlined system. Get Level II and become acquainted with the mm's in the stocks you like to trade. Regards, Street Walker