Where can l learn basic L2 reading and...

Discussion in 'Trading' started by Daal, Oct 9, 2002.

  1. Daal


    Does someone know a website l can learn some basic L2 reading and how to operate trading softwares?


    PS: I can't books in amazon, some problems here.
  2. You should try a Level 2 simulator. There are a few sites that offer a free simulator. I highly recommend trying one and doing some paper trading BEFORE you start risking your own capital. ]

    Send me a Private Message and I'll tell you where you can find one. ( I'd tell you here, but I don't want to hear 10 idiots tell me I'm spamming).

    Good Luck
  3. loveshek


    THe best way to learn how to read L2 is that, i belive, you read any kind of books such as "financial freedom through E D T" or "What works In Online trading" (just to know the basic i read the second one in "boarders" and did not buy it)

    and watch L2 in real time everyday try to apply what youve read.
    unless you experience you wont learn anything
    but do not use real money (do paper trading)


    i started trying to find who the axs were watching only one stock
    everyday and slowly expand your experience. :>
    i think watching L2 may improve slightly the accuracy of paper trading when you can buy or sell (especially when entering short)

    from a newbie
  4. loveshek


    im sorry i didnt read your post (just read the title)

    I dont know a website teaching L2 :<
  5. directions for reading L2,

    1) wake up and pour yourslef a long scotch
    2) pour yourself another
    3) turn on your quote system
    4) knock yourself in the head about 50 times with a frying pan
    5) proceed to reading L2
    6) methodically consume bottle of scotch througout day
    i found this helps best

    does anyone still make money trading/reading off L2?

    oh, for the scotch i reccomend:
    oban, blue label but no less than gold, mccallans
    feel free to sub bourbon: blantons, basil haydens, maybe bakers
  6. Threei


    There is nothing really to teach about level 2. It's just a window that shows all the bids and offers posted by market participants. They can be true or false. They can sit there until get hit or they can be posted only to make certain impression and cancelled as soon as real threat to get hit appears. Size can be real or it can have reserve when you see just 100 shares while in fact there are thousands behind it. The rest is "watch for a while and get a feel" for all those distictions.

    Long gone are times when one could trade solely on level 2 reading using it as directional tool. Novadays it's good maybe for several cents read, and even that is often questionable. The only real use I see for it is risk evaluation. You can measure up slippage risk by looking at sizes posted, spread and gap between levels. To see what I mean look at two polar examples: CSCO as safe stock and QXLC or GNTA as dangerous one (safe and dangerous slippage wise, not particular trade direction wise).

    There, it was Level 2 Reading 101 :)

  7. loveshek


    but the way it moves looks like (bigger) players are still making money from it :>

    anyway, I dont use it as my main signal entering trades
    i use it as exiting at/near profit targets or entering at/near my points according to my signal.

    thanks for reminding me what i forgot to say.