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

To: SpongeBrain who wrote (968)	3/20/1999 11:09:00 PM
From: kaz	Read Replies (2) \| Respond to of 1086

SpongeBrain, What a name. Okay, basically everybody is in the same boat with regard to your questions. It's very difficult to tell someone what to do, but you'll learn fast once you do it (just don't start with too many shares. 200 is decent). Having said that, I'll try and offer some relevant experiences. ISLD is always the best way in and out in any market. Problem is, ISLD isn't always available or sometimes only a few shares are available. This does you no good if you've got 1000 shares and the bottom just dropped out of the market. The next best route in a fast market, in my experience, is preferencing a specific market maker via SNET. You've got a 50/50 chance here. Either they're going to fill you or they're going to change their bid (or ask). But at least you are forcing them to do something (keep in mind that you can't preference ECNs. If TNTO or REDI is the only "MM" available, you're out of luck). If this doesn't work, and no ISLD shares have shown up, you should probably wait until there are a few MMs taking the opposite side. Then you can SOES them or SNET preference them. Rather than doing this, however, you will most often be better off letting the stock drop, then getting out during the almost inevitable retracement. You'll burn a hole in your stomach doing this, but you'll lose less money than chasing the stock up or down. Most of the time you'll end up buying at the top or selling at the bottom of the short term move. Hope this helps. Paul Kaz