Learning NASDAQ level 2

Discussion in 'Order Execution' started by Gamer, Apr 4, 2006.

  1. Gamer


    Can anybody suggest any good, up-to-date training material on level 2? In particular, any recommendation on professional day traders who uses NASDAQ L2 who also coach and mentor?

    I have rudimentary knowledge of L2 and would like to learn from a pro. I understand the basics but there are many unanswered questions.

    For example:

    1. Why would a market maker ever use their own name to post an order? Why can't they place all their orders with the ECNs?

    2. Are large orders on ECNs always fake? Can you tell which one is a fake?

    3. If the axe is on the best bid and the stock is slowly going up, how can you tell the axe is also not selling through an ECN?

    And so on and so forth...
  2. fhl


    Look to see if the "intentions" of the mm(level 2), lines up with what has been happening on t&s.
  3. i think the book is called "underground trader" by jay yu. its a little different these days, but the concepts are still useful.
  4. Gamer


    I have ordered the underground trader DVD. I know it's outdated now, but I might be pick up a few nuggets of useful information here and there.

    But surely there are pro traders out there who offer up-to-date cutting edge training on level 2 (either in seminars or through video)?
  5. Gamer


    Not many replies, sadly. I thought this was an important topic.

    Come on gurus, tell a learner how to go about it...
  6. What you are asking for doesnt exist for mass distribution. What you basically want is to to get inside the brain of a great nasdaq trader and see what he sees. Unfortunately, thats not possible. The game is constantly changing each and every day, the only way to stay on top is to have gained a solid foundation and evolve as the market does.

    You'll need to put in the 1000's of hours of market experience yourself in order to learn what you need to be successful. There are no shortcuts, at least not for longevity in this game.

  7. GAZ


    Take a look tymorapro platform, it gives a very complete information and more deep level than a classic L2 Market depth screen.

    use this link


  8. Yea i traded new york stocks i gave nasdaq a try but couldnt figure out how to see buyers and sellers in level 2 its important you sit next to a profitable nasdaq trader since there seems to be none on elite but i know one trader at another firm who a great nasdaq trader and is going to start teaching nasdaq i might check him out
  9. theres a thread on New York tape reading could someone start a thread on nasdaq tape reading
  10. Hamlet


    New York tape reading is pretty much dead now, and I thought level 2 reading was dead for a long while. Do you know anyone still making very good money with level 2??
    #10     Apr 23, 2006