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Using Level Two

 
 


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MTrader Class (C) copyright MTrader 

August 19, 2003
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by Scott Whaley aka Whale


[09:33] <KenWolff>  We are priveleged to have mr whale doing class again today..
[09:33] <KenWolff>  welcome all.... thank you mr whale
[09:33] <calyx> clap clap clap
[09:33] <whale> ok...stop applauding....sit down please
[09:33] <KenWolff>  you may start when everyone finds their seat
[09:34] <spar> ok
[09:34] <whale> ouch...i think i just got hit by a spit ball
[09:34] <KenWolff>  it was catman again... sheesh
[09:34] <whale> ok..lets guys and gals..lets get started
[09:34] <counselor> I got an apple
[09:34] <whale> Im gonna do a little follow-up to Matts class on Friday
[09:35] <whale> Matt covered the basics (and very well i might add) level 2....
[09:35] <whale> who the players are, how trades are routed...
[09:36] <whale> what kinda food you can and cant order off level 2 menu
[09:36] <whale> what im gonna (attempt) to do...is expand on that
[09:36] <hockey1> hows the golfswing
[09:36] <whale> to show how i use level 2 in my trading
[09:36] <hockey1> oh wrong class
[09:37] <hockey1> ha ha
[09:37] <whale> I am not gonna lecture you guys on how level 2 should be used....as everyone has an opinion as to te usefulnes of level 2
[09:38] <whale> But rather try to show you a way that it can help improve your odds of sucess
[09:38] <whale> everyone here?
[09:38] <whale> uh oh
[09:38] <chris> here
[09:38] <_gunsmoke> yep
[09:38] <jcal> yup
[09:38] <whale> K...
[09:38] <monteng> yep
[09:38] <whale> First, i think...
[09:38] <Eubac> no
[09:39] <whale> its probably important to realize what level 2 is NOT
[09:39] <whale> imo
[09:39] <whale> level 2 was born to confuse, rattle and shake you out
[09:40] <whale> It can not....imo opinion ..be used as anymore than a very useful tool in your tool box
[09:40] <whale> I think
[09:40] <whale> if you try to glean TOO much from level two....you will end up hypnotized....paralyzed and lured into the rocks by our trading Sirens
[09:41] <whale> THere are lotsa solid uses for level 2....but i admit ...it can be tricky...with i would guess 90% of it noise
[09:41] <whale> However
[09:41] <whale> i have found
[09:43] <whale> that recognizing this fact...and eventually learning what is noise and what is not...gives you a huge advantage over the high percentage of emotional traders that are whipsawed by level 2
[09:43] <whale> i think the key is
[09:44] <whale> that Level 2 is a great tool....when used along side other short term analysis tecniques....can make your decision making much stronger
[09:44] <MarkH> on the edge of my seat here ... type faster
[09:44] <whale> But...i think relyiin solely on level 2....would probably be disasterous for almost anyone
[09:44] <whale> lol
[09:44] <whale> i cant
[09:45] <whale> I think its this little truism that leads many traders to deem level 2 useless
[09:45] <whale> cant think anyfaster
[09:45] <phi1l> if he typed faster I would have to translate  ;)
[09:45] <monteng> :)
[09:46] <whale> Folks ..that i know ...that have tried to use it have failed ..not because...its not useful....bit because they relied on it
[09:46] <whale> No doubt they were whipsawed in to an utter state of confusion
[09:46] <whale> I dont think howerver theres anyway to deny that its a power tool
[09:47] <whale> I think what you have to ask yourself is..."how can i use level 2 to improve the odds"
[09:48] <whale> so ill tellya a few ways that i have learned to use it...over the years.......then give some examples....and then take questions.....ok
[09:48] <whale> ok?
[09:48] <whale> O?
[09:48] <whale> buehler
[09:48] <whale> buehler
[09:48] <_dan> ok
[09:48] <Gregory> lol
[09:48] <_gunsmoke> beautimus
[09:49] <whale> ok..there are 3 basics things that come to mind....and i know there are alot more...so you can ask questions afterwards
[09:49] <whale> first off
[09:49] <whale> Level 2 can ALMOST always insure that you dont have blown stops
[09:49] <whale> what i mean is...
[09:50] <whale> that you should be chosing individual players....and orders...as your exit points....before you even enter
[09:50] <whale> by doing this you can define your downside to the penny 90% of the time
[09:51] <whale> what i like to dos is this
[09:52] <whale> find a player on level 2 that has for some reason nestled himself in....right below support (on a stop los)..or right above resistace (on a buy stop)
[09:52] <whale> i think thats right
[09:52] <whale> if you focus on this...and do it religeoulsy.....you will soon stop having any losses that can ruin your day...your week
[09:52] <whale> or your year
[09:53] <whale> we will talk about examples afterward
[09:53] <whale> I guess the next thing would be..."well...where the hell to i look for these points"
[09:53] <whale> Heres how i PREDEFINE these points...and it is painfully simple
[09:54] <whale> the levels are almost always defined ...for me....by the last lows or highs
[09:54] <whale> i am constantly maneuvering...trying to find a high percentage trade....with a stop point like that
[09:54] <whale> its almost reverse trading at times...as i look quickly for the stop point...FIRST
[09:55] <whale> kinda assbackwards
[09:55] <whale> that make any sense?
[09:55] <monteng> yep
[09:55] <jcal> yes
[09:55] <whale> of course the closer i can find an op....to that stop point....the lower my risk....and the better the risk /reward profile
[09:56] <_gunsmoke> i guess - let me know when its time for q's
[09:56] <whale> and it snowballs....b/c the better the entry...the less i need on the bounce to make it worth while
[09:56] <whale> lol
[09:56] <whale> 1 min gun
[09:57] <whale> i have found on days...when im trading this strategy well...
[09:57] <whale> i can be wrong 4 out of 5 trades..and still end up break even
[09:57] <whale> and i take great satisfaction in that...im broke and happy :)
[09:57] <monteng> wow
[09:57] <whale> or down a very little
[09:57] <whale> you get the point
[09:58] <whale> so you have this basic strategy....of knowing our exact out....and entering
[09:58] <whale> so you know your exit
[09:58] <whale> whats the entry
[09:58] <whale> well the first thing you have to do...is have a REASONABLE expectation ....as to how far the stock can go
[09:59] <whale> and thats one of the strongest attributes of this room i think....there are many traders in here that can give you that info
[09:59] <whale> Ken is prob the best ive seen at doing that
[09:59] <whale> whats the potential...sure you've got the bottom....but its gonna bounce a dime
[10:00] <whale> so you need the right potential....and for me...ive said it before
[10:00] <whale> gotta be 3 to 1
[10:00] <chris> does level II help in determining potential?
[10:00] <whale> if the stop is 15 cents lower...i need a high prob of a 45 cent bounce....
[10:00] <whale> well no
[10:01] <whale> it gets back ...to using all the tools in our box analagy
[10:01] <whale> level 2 has....determined your exit beforehand
[10:01] <whale> So you need level 2 ..imo ....to quantify the risk
[10:02] <whale> if for no other reason than to give you the courage to stay in the trade
[10:02] <chris> do you use a stop order
[10:02] <whale> no...i preload the exit...to the EXACT player...who is at a logical stop point for me
[10:02] <whale> see?
[10:02] <_gunsmoke> 2 part q when you can whaler
[10:02] <chris> yes
[10:02] <whale> let me give an example
[10:02] <whale> one sec gun
[10:03] <_gunsmoke> sorry :(
[10:03] <whale> if i were to entered MSFT ....the only way ...that you could have today...to make money
[10:03] <whale> i thought...and correctly that MSFT was one of the strong plays
[10:04] <whale> what i could have done is this
[10:04] <whale> i think it sold off after the mich number
[10:04] <whale> and we were talking about the market bottoming
[10:04] <whale> little after 10 i gues
[10:05] <whale> i could have waited for the bottom.....
[10:05] <whale> trying to look at a chart to get exact numbers
[10:06] <whale> yeah...i could have waited for the bottom....waited out the first bounce....then used that low as my stop point
[10:06] <whale> loaded the sell stop....maybe 2 cents below.....whatever that low was.....25.78 or so....then entered...on the second bounce
[10:06] <whale> get that?
[10:07] <chris> but you pick who you going to sell to?
[10:07] <whale> so it bounces...and i use the old low as the stop.....and load the stop.....and ready to execute ut
[10:07] <whale> the exact party
[10:07] <whale> thats what i do
[10:07] <whale> that makes my risk much less
[10:07] <chris> does he go away often
[10:07] <whale> i know exactly what it is when im in
[10:07] <chris> change his order
[10:07] <whale> and my finger is on the trigger
[10:08] <whale> occasionally
[10:08] <whale> but you have to adjust
[10:08] <whale> usually you can nail him
[10:08] <whale> when i took my stop...it was ...set at a break of the last low....at 25.81
[10:08] <whale> i hit 25.80
[10:08] <whale> makes it very very easy.
[10:08] <whale> when your stop is defined....no heart racing
[10:09] <whale> omg..will i get out? can i do it....will i blow the stop
[10:09] <whale> also i should add i step
[10:09] <whale> again another tool that helps add to the probabilty of success
[10:10] <whale> once you have the idea for a trade....and your expectation swirling in your head...you should always
[10:10] <whale> quickly...from habit pull up a one minute chart
[10:10] <whale> you have to make sure your not late to the situation
[10:10] <whale> a good percentage of losing trades can be attributed to poor entry
[10:11] <whale> the dreaded "good idead.....just chased it syndrome"
[10:11] <whale> ok
[10:11] <whale> the only Level 2 info on that....example....is loading your exit point....but it shows how level 2 ..when combine with other tools.....expectations and charts...makes the percentages higher
[10:12] <whale> questions on that?
[10:12] <whale> gun?
[10:12] <whale> :)
[10:12] <_gunsmoke> ok for example - long play - we set our stop before we order our shares?...and
[10:12] <_gunsmoke> oull up a minute chart to see which bounce we are about to enter on
[10:12] <_gunsmoke> pull
[10:13] <whale> exactly...in fact you get SO used to identify your exit first....that it almost seems you are looking for trades with good stop points :)
[10:13] <whale> not the case of course
[10:13] <whale> but it feels that way after awhile
[10:13] <whale> right on the charts
[10:13] <whale> a quick precautionary move
[10:14] <whale> make sure your arent buying too late
[10:14] <whale> or shorting
[10:14] <whale> you can buy after a 50 cent move up at 11 am in teh morning
[10:14] <_gunsmoke> ok and just be watchful to see if your customer pulls his buy?
[10:14] <whale> it will never work
[10:14] <whale> if he moves....line up another...i usually have my finger on teh pulse of the bidders
[10:14] <whale> 2 or 3 backups is wise
[10:15] <whale> ideally you want a nice line of bidders at support
[10:15] <whale> a ton
[10:15] <whale> then a few guys...rigth below them
[10:15] <whale> those are the ones you wanta hit
[10:15] <_gunsmoke> so a stop is just labeled "STOP" under the transaction type in your trading software
[10:15] <whale> so when support is getting decimated...our jumping rigth over...and nailing the idiot below
[10:16] <whale> no..in this software its just a buy
[10:16] <whale> just a buy to flaten you out
[10:16] <whale> ok?
[10:16] <whale> move on?
[10:17] <_gunsmoke> to set a stop order I mean
[10:17] <_gunsmoke> sorry
[10:17] <whale> if you are long....its just a sell order
[10:17] <whale> i guess in tradestation the buttons are labeled "sell stop" etc
[10:17] <whale> so it depends
[10:17] <_gunsmoke> ok then it's a mental thing - not a preset order in your trading sw
[10:17] <monteng> then u use a manual stop right
[10:17] <whale> you can do that....
[10:17] <Eubac> mental stops, gun, not broker stops
[10:18] <_gunsmoke> difference?
[10:18] <whale> but no way ....you should trust a broker stop.....less its a stock like INTC....and you are having surgery or something
[10:18] <_gunsmoke> lol
[10:18] <whale> broker stops can be missed...executed to quickly
[10:18] <whale> etc
[10:18] <whale> just learn to do it yourself.....over time
[10:19] <whale> especially on news stocks
[10:19] <whale> lets talk about how level 2 helps define tops and bottoms
[10:19] <whale> should we?
[10:19] <_gunsmoke> but 10 other guys might have your buyer in mind - that's the reason for backups?
[10:19] <_gunsmoke> sorry again
[10:19] <monteng> gophurit
[10:19] <whale> right
[10:19] <whale> and not too many folks do this gun
[10:19] <_gunsmoke> ok I'm good thanks whale
[10:20] <whale> what i do...here...is again
[10:20] <whale> you have expectations....a stock is freefallin
[10:20] <whale> lost 3 points in 3 minutes
[10:20] <whale> so you start to prepare for the bottem
[10:21] <whale> Ken will say something like..."wow....this should bottom soon"....which means we are on lookout for indicatations of a bottom
[10:21] <whale> as far as expectations go..its usually around a whole number.....
[10:21] <whale> 25
[10:21] <whale> 25.50
[10:21] <whale> or simply how much its fallen...in a short period of time
[10:22] <whale> so you are expecting a bottom
[10:22] <whale> and you are watching level 2.
[10:22] <whale> and you pull up a chart...and see it rigth at the lower of my beloved bollinger bands
[10:22] <whale> so your gettin excite
[10:22] <whale> d
[10:22] <whale> all you need now is the low....
[10:23] <whale> a good point ...at which you can use as a stop
[10:23] <whale> and take very little pian
[10:23] <whale> pain
[10:23] <whale> so the stock drops from 28 ....to say...25.50
[10:23] <whale> Ken is saying it should bottom in here....its at support on the chart
[10:24] <_gunsmoke> support?
[10:24] <whale> all you need to do is use level 2...to finish
[10:24] <whale> the bollinger bands...on a chart is what i use gun
[10:24] <whale> so im now....watching level 2...for the last peice of the puzzle
[10:24] <_gunsmoke> gotcha - just when its hitting the lowere bb
[10:24] <whale> yeah
[10:25] <whale> and i see the pace increase....which from experience ...i know is...getting closer to the bottom
[10:25] <whale> and then its at support...25
[10:25] <whale> big line of buyers
[10:25] <whale> do we line up with them?
[10:26] <whale> whatday think?
[10:26] <_hcbull> nope
[10:26] <whale> right
[10:26] <_gunsmoke> maybe a tad above them?
[10:26] <whale> we let it rip through...which it often does
[10:26] <whale> thats usually the climax
[10:26] <_gunsmoke> ahhh
[10:26] <whale> and what you will see is a pause at say 24.90....and then back up over 25
[10:26] <whale> our job...
[10:27] <whale> is to let the line reform at 25....and buy the uptick...to say 25.08....and then load the low as a stop
[10:27] <whale> hopefully not more than a dime
[10:28] <whale> so you care using the pace....the whole numbers...and watching the bidders asert themselves
[10:28] <whale> you see that pattern you are in good shape.....plus you have your predefined stop loaded
[10:28] <whale> questions on that
[10:28] <_gunsmoke> so you want to obbserve some upward momentum past the 25 mark b4 getting in?
[10:29] <whale> i do yes
[10:29] <_dan> understand the downside.....
[10:29] <whale> i need a low to stop beneath
[10:29] <_gunsmoke> just to make sure iots not a headfake?
[10:29] <_gunsmoke> its
[10:29] <_dan> at this point do you know your exit on the high side??
[10:29] <whale> i need that pattern..of climatic selling....and i need the bigger players on level 2 ..to reemerge
[10:29] <whale> yes dab
[10:29] <whale> dan
[10:29] <whale> sorry
[10:29] <_dan> called worse
[10:29] <whale> your expectations...again
[10:29] <whale> the other big tool;
[10:30] <KenWolff>  LOL
[10:30] <whale> lol
[10:30] <whale> i mean....
[10:30] <whale> ill say
[10:30] <whale> wow..down 3 bucks....can prob bounce 1/2 at least...maybe more
[10:31] <whale> so that will help define how far i can chase.....
[10:31] <whale> back to the 3 to 1 thinge
[10:31] <whale> but the level 2 point here....is how to spot a bottom
[10:31] <_dan> k
[10:32] <whale> it almost always comes with good volume....and a test of a strong level.....but it could be anylevel
[10:32] <whale> you can almost sense the seachange...all sellers....getting nailed.....pace quickening
[10:32] <whale> a pause.....buyers come in....
[10:32] <whale> but you have to have your stop defined
[10:32] <whale> cause you could be wrong
[10:33] <whale> sounds complicated ....but its really simple
[10:33] <whale> just a few steps...to drastically improve the percentages
[10:34] <whale> let me give an example of how level two can keep you out of a .....hmm.....low potential trade
[10:34] <whale> the SEBL trade this morning.....was logical.....great news....China plays been on fire
[10:34] <whale> very low risk..couldnt lose more than a dime really
[10:35] <whale> really couldnt lose more than a few pennies
[10:35] <whale> but when i loaded it...i saw right away.....that there were more and more shares..lining up for sale above
[10:35] <whale> as it tried to climb
[10:35] <whale> i even saw ARCA and INCA reloading....and the buyers were nailing them
[10:35] <whale> heres the problem with that
[10:36] <whale> pre and post market
[10:36] <whale> all those buyer...and there can be alot.....suddenly become sellers...once they realize whats going on
[10:37] <whale> so watching the action on level 2....really showed what that trade was gonna do
[10:37] <whale> it was still a worthwhile trade...because the market was strong...the risk low....
[10:38] <whale> but level 2 wasnt acting right...
[10:38] <whale> and by getting good at this...again..you can avoid trades...some potentially costly
[10:39] <whale> why dont guys ask some questions on level 2?
[10:39] <whale> hard for me to know what you are strugglin with
[10:39] <chris> can you see support levels within the level II
[10:40] <KenWolff>  whats level 2??
[10:40] <_dan> gonna re-read class tonght. promise questions tommorrow whale
[10:40] <chris> if so....can you give a realtime example
[10:40] <whale> yes....you should look for proof that your chart support levels....are in tact...there should be a whole line of buyers
[10:40] <whale> there
[10:40] <whale> hmmm.....not sure Ken
[10:41] <whale> yeah...sure
[10:41] <whale> my Yahoo trade this am
[10:41] <chris> i understand the concept, but I can't see it :(
[10:41] <monteng> I,m sitting here looking like a calf who just saw anew gate, this is great
[10:41] <whale> i got long on the close...for the gapper
[10:41] <whale> long at 31.35 i think
[10:41] <_hcbull> it seems complicated, how many positions can you handle at once with only mental stops
[10:41] <whale> it moved to like 31.65
[10:41] <_gunsmoke> thata "gappa"
[10:42] <chris> msft for example,,,there should be a support at the lO
[10:42] <chris> IO= LOD
[10:42] <whale> its not complicated hc...its painfully boring
[10:42] <_gunsmoke> low of the day?
[10:42] <whale> generally yaeh gun
[10:43] <whale> ok ...so yahoo took off....went to i think 31.75
[10:43] <whale> pulled back to 31.60
[10:43] <whale> bounced to 31.65
[10:43] <whale> follow?
[10:43] <whale> i pull up my chart
[10:44] <whale> ?
[10:44] <whale> now 31.60 is the low
[10:44] <whale> the last low
[10:44] <whale> and as usual ..there are a ton of buyers at that level
[10:44] <whale> everyone wants the perfect entry
[10:44] <whale> when the mich numbers came ....out....it weakened
[10:45] <whale> i loaded 31.58 on the stop
[10:45] <whale> right below the big line
[10:45] <whale> that affords me ..time to execute.....and a logiacl stop point....a breach of the last low
[10:45] <_gunsmoke> ok how did you "load" 31.80
[10:45] <whale> 31.58
[10:45] <_gunsmoke> as an order I mean'
[10:46] <_gunsmoke> sorry 31.58
[10:46] <whale> you need to have the software to see it gun
[10:46] <whale> its just software
[10:46] <whale> you can click on the buyer...you can type it in
[10:46] <_gunsmoke> I have L2 but I don't know how to
[10:46] <_gunsmoke> click on a buyer in L2
[10:46] <_gunsmoke> ??
[10:47] <whale> i dont know how your software works gun....i can possible teach you how to use some software ive never seen
[10:47] <_gunsmoke> I know that - I was jsut asking about...
[10:47] <whale> with Redi you click on teh level 2 party....and it loads all the specs into an order entry area....so you can save time
[10:48] <_gunsmoke> a feature that may exist that I have not seen
[10:48] <_dan> it will try to buy from that exact line you click on?? or just the best price?
[10:49] <_gunsmoke> in this case its "sell to" right whale?
[10:49] <whale> no just loads the price for you ..you can select the method...i almost always use arca or sigma
[10:50] <counselor> use an example Whale with a stock right now
[10:50] <_dan> gotcha  (that is a futureclass- arca, island ect....
[10:50] <whale> anything moving fast?
[10:50] <counselor> no
[10:50] <_dan> qqq
[10:50] <whale> use SOHU
[10:50] <counselor> ok
[10:50] <whale> do you have charts with bolinger bands ?
[10:50] <_gunsmoke> y
[10:51] <whale> i wouldnt ever trade this time of day...unless something was reacting to news
[10:51] <whale> but we can look
[10:51] <whale> SOHU just spike down....to the lower band now
[10:51] <_glennk> i saw support  at 30.79 and 30.44 at the beginning of the day
[10:51] <monteng> k
[10:51] <whale> i would start to look for support here....normally
[10:52] <kflaig> what settings you using for the BBands?
[10:52] <whale> 30.52 was the low
[10:52] <whale> i would wait for the next indication of buyers lineing up
[10:52] <whale> load a stio to that isld guy.....at 30.50
[10:52] <whale> see him?
[10:52] <whale> see the bounce?
[10:53] <whale> so i have 1K loaded to ISLD at 30.50
[10:53] <whale> now the time of day...we have no idea..and the pace stinks
[10:53] <whale> but you see how 30.50 was reasonable support...
[10:53] <whale> i saw the lower band hit.....
[10:53] <whale> thats 2
[10:54] <whale> and then i wait for the bounce to start...and a line of buyers....to assure i can get out
[10:54] <whale> anyone see that example or no?
[10:54] <kflaig> y
[10:54] <monteng> yes
[10:54] <whale> if you had the bands up...you would see what im talkin about
[10:55] <_gunsmoke> I didn't see the island guy- only MLCO at 30.50
[10:55] <whale> i wouldnt make this trade..because i would have a potential problem
[10:55] <_gunsmoke> saw he bands
[10:55] <_gunsmoke> the
[10:55] <whale> you dont have the isld book gun
[10:55] <whale> shows ALL the bids and offers
[10:55] <whale> not just the best
[10:55] <whale> so at 30.55...my risk is a nicke
[10:56] <whale> and i had some time to see support building
[10:56] <whale> more questions?
[10:57] <whale> easier for me to field questions than to try to guess what you guys wanta know
[10:57] <kflaig> what settings you using for the BBands?
[10:57] <_gunsmoke> to recap?
[10:57] <_dan> good q kflaig
[10:57] <whale> say 20 K...then 2...-2
[10:57] <kflaig> tks
[10:57] <whale> 2 deviations i think
[10:57] <_gunsmoke> what is the 20 k about
[10:58] <whale> to recap gun....level 2 is full of noise.....but its an essential tool....when added to other analysis stuff
[10:58] <whale> most cant get throught the noise
[10:58] <_dan> whale my bands say o 2.0 p: 5  is that right?
[10:58] <whale> mine says 20, -2, 2
[10:58] <whale> it think its prob the default at tradestation
[10:58] <_gunsmoke> identifying a bottom - the last low - and then put a stop right below?
[10:59] <whale> SOHU came right off that level
[10:59] <_dan> same here with etrade
[10:59] <whale> pretty much gun
[10:59] <_glennk> would you typically set a stop loss as tight as a nickel on a stock like SOHU?
[10:59] <whale> but you need to see it on level 2
[10:59] <_gunsmoke> only if you see good buying around that low tho
[10:59] <whale> you cannot blindly fire an order out on level 2.....and hope someone is there
[11:00] <whale> welll.....good support building
[11:00] <whale> 30.52 was the low...then it moved up to 30.55
[11:00] <whale> then pulled back to 30.52...but there was whole line of buyers this time....so you wait for indications...that more buyers aare coming
[11:00] <whale> and you jump in....and load the stop
[11:01] <whale> all in one breath
[11:01] <whale> there is no hoping...wondering
[11:01] <_glennk> good point
[11:01] <whale> if it breaks...stops you....and then goes up 10.....then fine
[11:01] <whale> all you can do is use level 2...to help improve our odds
[11:01] <whale> it really is an odds game
[11:02] <whale> can you put the odds in your favor ..with every trade?
[11:02] <_gunsmoke> yes
[11:02] <whale> or will you panic..and trade on emotion
[11:02] <whale> level 2 ..will rip you apart if you let it
[11:03] <whale> you cannot truly understand it...but you can glean little bits of stuff....things you have seen before...toss them together...with our other ingrdeiants
[11:03] <whale> and bamm...you have a 70% trade...with a defined 10 cent stop
[11:03] <whale> cripes...you do that well...you can be rigth 1 outta 5....and stay afloat
[11:03] <whale> but can you maintain the discipline?
[11:03] <_dan> whale, do you ave 70 plus trades?
[11:04] <whale> can you rebound...when you do blow a stop
[11:04] <_dan> %
[11:04] <whale> no...not right now dan
[11:04] <whale> prob just over 50% right now
[11:04] <whale> july was around 65%
[11:04] <whale> early aug was very high
[11:04] <_dan> why do you think such a difference whale?
[11:05] <whale> thats a whole nuther clas though.....knowing when to press...when things are going wel
[11:05] <whale> its the market dan
[11:05] <whale> and my abilty to figure it out
[11:05] <_dan> gotcha
[11:05] <whale> patterns can be strong....or nonexistant
[11:06] <whale> plenty of money around when the patterns are there...its how much you lose...when its not working....that defines a great trader
[11:07] <whale> nothin makes me happier...when i look back...say 3 weeks...and see ....week 1....great week...say you made 10K....next week..market dries up
[11:07] <whale> had to struggle to make anything
[11:07] <whale> week 3....dried up altogether...made 4 trades....-$200
[11:07] <whale> thats great trading
[11:08] <whale> you are losing nil....when you are at a loss
[11:08] <whale> better to focus on makin 2x as much..when you are on top of the patterns.....
[11:08] <whale> then to press when you cant figure it out
[11:09] <whale> SOHU really came off that low well ...sheesh
[11:09] <whale> questions?
[11:09] <_dan> not now
[11:09] <_gunsmoke> thanks whale - very informative
[11:09] <_glennk> thanks whale
[11:09] <jcal> ty whale
[11:09] <KenWolff>  thanks whale.. good class
[11:10] <counselor> ty
[11:10] <_dan> whale. thumbs up!!!!
[11:10] <spar> thx whale...
[11:10] <kflaig> tks whale!
[11:10] <whale> not so sure ...i hit all the points i wanted too....but hopefuly you got the point
[11:10] <lizard> great info, thks Whale
[11:10] <spar> ya can always come back, whale... ;)
[11:10] <mks> thanks whale
[11:11] <_hcbull> thanks whale
[11:11] <Eubac> thank you
[11:11] <whale> sure guys
[11:12] <jerry> thank you
[11:12] <whale> sho

   

       

     

 

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