andrew aziz session 3

39 Pages·2017·2.83 MB·English

Orders, Level 2,
Price Action
ANDREW AZIZ
SESSION 3
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COPYRIGHTED MATERIAL: ANDREW AZIZ (C) WWW.BEARBULLTRADERS.COM 2
Class Overview
Class 1: Before Start Trading
◦ Trading Platform
Class 2: Before Market Opens
◦ Finding the Stocks in Play
◦ Finding Trading Levels
Class 3: Technical
◦ Orders: Market, Limit, Marketable limit
◦ Understanding Level 2
◦ Price Action
◦ Trade Management
Class 4: Trading Strategies
◦ Strategies
◦ Risk Management
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Understanding Montage and Level 2
Level 1
Level 2
Market depth
(Liquidity)
Hotkeys
Order entry
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Market Orders
“Buy me at any price! Now!”
“Sell me at any price! Now!”
You remove liquidity
Limit Orders: add liquidity
“Buy me at this price (or better) only! Not higher!”
“Sell me at this price (or better) only! Not lower!”
You add liquidity
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Market Orders are like blank check, you
may get some nasty surprises…
These sudden downward spikes
are probably “market orders”
Previous day close 18 April 2017
getting filled almost 100%
lower than market price.
COPYRIGHTED MATERIAL: ANDREW AZIZ (C) WWW.BEARBULLTRADERS.COM 6
Marketable Limit Orders
“Buy me now, but up to this price! Not higher!”
“Sell me now, but down to this price! Not lower!”
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Level 2 Depth:
Bid-Ask Spread: Market Makers Territories
Bid-Ask Spread: 1 cent Bid-Ask Spread: 11 cents
0.02% slippage = 1cent/$34.76 %1.7 slippage = 11 cents/$6.42
COPYRIGHTED MATERIAL: ANDREW AZIZ (C) WWW.BEARBULLTRADERS.COM 8
Stop loss order will be placed in the market book.
That is why I do not use “hard” stops, it can get manipulated!
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