Level 1 and 2 Quotes - Comparison

Level 1 and 2 Quotes:

How Important are Each of these Quote Types to the Extraordinary Investor?

Level 1 and 2 Quotes are both real time quote access for NASDAQ, OTC and Pink Sheets.

Level 1 Quotes shows Bid/Offer/Volume information just like any real-time quotes you see free on Yahoo finance and Google finance, etc.

Level 2 Quotes shows the current bid and offers of individual market makers, identifies who the market makers are for each stock, when each market maker trades shares, which lots of shares by each market maker are trading the lowest and highest at any given time, how many shares per lot are being traded by each market maker.

On this site, you have been familiarized with the differences between Level 1 and 2 Quotes.

Both are available by your broker, but while level 1 is commonly provided for free by your broker and other financial websites, you will likely have to pay extra for level 2 access as a small trader.

For extraordinary penny stock trades, it is my firm belief from experience in successfully trading penny stocks that you will not need to be concerned about obtaining the best prices from market makers if you have a solid brokerage firm fill your orders.

Broker and Best Price

A good brokerage firm will automatically obtain the best price, or near best price, for you usually through market makers and sometimes on an ECN or regional exchange.

The difference is usually so very small - usually under 1% - that it really doesn't pay in time, effort or expense to follow or trade stocks using Level 2 Quotes and Trading Desk.

On this site, you have information before you that will instruct you how to invest in future major moves in shares of a target stock that last an hour, but usually longer, and up to 3 months for profits of 3% to well over 30% per trade.

Level 1 and 2 Quotes - which do you need to make successful trades?

When you avoid Level 2 Quotes, and trade stocks using only Level 1 Quotes or Real-Time Quotes, you will thankfully avoid all the intense second by second technical trading white noise, or the white waters of the trader piranhas.

Trader Piranhas

The trader piranhas are the day-traders, trading firms, and broker-dealers. These types of traders use complicated technical algorithmic formulas and level 2 software and expertise in an attempt to gain a fraction of a percent profit per trade off of other technical investors using their own technical formulas and expertise.

Let the day traders, swing traders, market makers and other technical and novice traders wage their technical wars and trickery in these feverishly heated feeding frenzies while you peacefully trade as an extraordinary investor for far higher returns with far less time, pressure, anxiety, risk, trading and broker fees.

You have now completed this topic:

Level 1 and 2 Quotes - Comparison

under the section called:

Real-Time Quotes - Explained

You are now beginning a New and Exciting Section of study called Technology Stocks.

In this new section, I give my personal reasons why certain stock exchanges or markets are better choices for extraordinary trades or very successful trading. This all mainly has to do with technology stocks - the importance of which is KEY to Extraordinary Investing.

When you are ready then, please continue on to: Technology Stocks - Solid Future for Successful Investing

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.