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Non-Tech : MB TRADING -- Ignore unavailable to you. Want to Upgrade?

To: Jay Lyons who wrote (1804)	11/7/1998 1:18:00 PM
From: Poet	Read Replies (2) \| Respond to of 7382

Great point, Jay. I've been using MB for about six weeks and have found myself overtrading like mad. It's just so damned easy. Before I turn myself over to the local branch of Overtraders Anonymous, I'm going to try to institute a maximum number of trades per day. Something under 100. <g> Poet

To: Jay Lyons who wrote (1804)	11/7/1998 1:40:00 PM
From: Rick Faurot	Read Replies (1) \| Respond to of 7382

Jay, You make a good point for those new to level 2 regarding interpreting level 2 information. One tip I would offer is that if you have a L2 window open on a stock you are watching closely and want to trade, you can highlight the ax on the stock by pressing shift and then double clicking on the MM. I find this extremely useful as I can instantly spot the axe's location in the bid/ask columns. Interpreting what the ax is actually up to at any given moment is a whole different matter. They will use "head fakes" and all kinds of other tricky maneuvers to entrap, entice and fleece the unwitting trader of his money. For a good read on this subject I recommend The Underground Level 2 Daytraders Handbook. I don't agree with everything in this book but it is the best primer I have seen on MM trickery. You need to be able to spot head fakes, shakes and other such moves. At the most basic, your strategy on ax maneuvers should be this: don't fight the ax. If GSCO or MLCO is riding herd on the stock you are playing, you have to be very careful about buying from them or selling to them. I like to buy just above them and sell just below them. This way I avoid the risk of getting crushed by their pressure tactics. The only time the ax isn't running the game is during big momentum moves. If GSCO is sitting on the ask trying to hold back a run and I am sure he is going to get blown out, I might take advantage of his determination to hold the price down by buying from him via SOES. If he is determined to keep on selling, my SOES order is going to hit him and get filled. Of course, he may win the game and hold back the run. If that happens, the price will fall and I'll have to stop out. If you like games strategy, you'll love Level 2! Rick

To: Jay Lyons who wrote (1804)	11/7/1998 2:14:00 PM
From: TraderAlan	Respond to of 7382

Jay, Real wise comments considering your experience level. You're on the way to beating this game. Level II and direct order entry systems work much better as servants than as masters. If you're reacting to the same give-take, give-take as all the other traders, you have no edge and the "house" will eventually take your money. A well-defined trading plan, however flawed, is much better than piling through the door with the same crowd each day. I'd also suggest you add a dose of solid technical analysis to your decision-making. It will keep the video game from sucking you in. Alan