Learn How to Read Level 2 : Trading Terminology & Definitions

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// Trading Strategies
Learning risk management, proper stock selection, and chart patterns is important, but those alone don’t create a trading strategy. A trading strategy requires details on the time of day you take these trades, what type of stocks you like to trade, what percentage to success you expect. All our students are required to papertrade and prove to me that they can trade on a percentage of success that is high enough to justify real trading. If you can’t make money in a demo account, you have no business trading a real account. We have saved students hundreds of thousands of dollars by encouraging paper trading while they are learning. The market will be here for a long time to come. The important thing for you right now is to build up the skills to trade the market successfully. You will learn that once you possess the skills to consistently make $20.00/day all it takes to make $200 is larger share size. Then all it takes to make $2000 is again, larger share size. The hardest part is being consistently green just $20/day. So that is our initial target for all of our students. Profitable trading 4/5 days per week for at least 3 months.

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2 vinny says:

this is just unmatched content. Thank you soooo much.

Financial Freedom says:

Thanks for posting this highly informative video. I started learning to trade in January 2017, and already trade a live account using Forex, Stock Indices and Commodities financial instruments. However, soon plan to evolve onto stock trading, so found your insight into Market Depth, Level 2 and Order Flow very helpful. I can now say with confidence that I won’t be trading Stocks until I learn more about Tape Reading. I’ve invested in Sang Lucci’s Tape Reading course, however wondered if you guys, at Warrior Trading, offer a similar educational programme. I think I could really benefit from your knowledge and experience. I really enjoyed the part in your video where you evaluated the large order of 84,000 shares and used that as an indication to enter the trade. Also, how you discussed selling into strength is a concept I have heard about in other educational literature, so wondered if you also cover this type of concept in your training programme? Having performance insight is critical to trading success, so I also enjoyed the part where you mentioned that learning traders use your demo platform to enable post analysis; and the fact that you would have saved $30,000 in your first 18 months of trading if you had access to this type of technology. Did you employ an effective risk management model, perhaps risking between 0.25 and 1% per trade? I plan to watch all of your videos over the coming weeks, as you guys really know what you are talking about. Thanks for making great educational content, I look forward to becoming a long-term profitable trader. Thanks Dan

Jason Lin says:

half way in the video and I am getting such an important message that I wanted to thank you first before finishing the video

Michael Anthony says:

Do you teach people from Canada? Am i able to use the simulator here too?

William Buckley says:

Ross, does level 2 trading work with NQ, CL, and other Futures? Also, you explained L2 better than any body on youtube.

Sid C. says:

Hi, at the 180K bid, how did you know to buy at that price (5.5) before hand? I may have missed something. Thanks in advance

Oliver Gien Pacheco says:

Really grateful for these free vids. So many guys out there who make money day trading but cant give solid info that beginners need. Thank You!

K M says:

What does it mean if someone’s short?

Vaibhav Toora says:

in lvl 2 in buyers section (bid) are they processed or they’re waiting to be bought? same on the other side are they looking for buyers? waiting to get sold or they are just transactions ?

Devin Hulan says:

I have to work for a living but try to do level 1 when I can.just from what u said on past videos.it still works for small profits but I’m limited by the 3 trades a week cause I’m less then 25k

Dion Rod says:


Andyzee says:

Love your videos man!! I love how the knowledge is just packed in without any small talk and bs! Btw what are the “right kind of stocks” to trade using lvl2? Thanks!

waliky2002 says:

Man, you are so good in teaching these stuff. If I understand this, everyone else would. Really, thank you.

Jesus Guillermo says:

In less than 2 months i have learned so much from your videos Ross thank you. Saving up to get on your course once again thank you.

mike doyle says:

so if a huge order to buy comes out it normally means the stock will go up?

pathnativejam says:

wow, that was a lot to digest! but so valuable ! thank you for all your videos! I am learning on my days off and hopefully someday I can be like you .

king man Mak says:

hi what software are u using.thx

Nico Leon says:

Absolutely the best level 2 explanation I have come across! Subscribed!

B Bangegas says:

Great video, thanks a LOT! For the detailled video, i learned a lot

John Wayne says:

thanks for the video

Rebecca Vazquez says:

what platform do you use?

dbssmiley says:

love the video!!!!



Cody Martin says:

Brilliant video, Ross!

everydayidie alilmore says:

40:39 he uses the term “squeeze up” does that mean the price of the stock is being driven up by the volume of buyers?

Capital Hedger Trader says:

Great presentation. I appreciate the focus on the topic, unlike others that jump from one topic to another.

Rene Mauricio Bermudez says:

Ross, you are such a blessing bro. No one, and I mean no one, goes into this much detail on any of their videos online without having to pay some kind of an amount. Thank you so much!

Fire says:

Very detailed and instructional video. However, perhaps the fact that the order sizes seen on the L2 Montage may not be real should have been mentioned?

kingmike40 says:

In the late 90’s when day trading was at a high point for that period. I asked a stock broker with years of experience at Edward Jones what level 2 was and she didn’t know.

om prakash says:

SIR with the level 2 screen only candlesticks are forming then what is the use of candle stick charts sir
more over pls tell me how u are interpreting quickly support and resistance levels throgh level2 screen

Vuong Hoang says:

Much love for you Ross. Honest and great teaching

Vladimir F Sousa says:

how do you manage risk if you are constantly changing how many shares you trade? if you keep 2:1 but say win on the 100share bets….but lose on the 1000 shares bets? not sure how to manage risk here

Mohamed Hassan says:

Ross i want to thanks you, you are such a great teacher, and I just subscribed. I have a question, what platform do you suggest for my startup new penny stock career? with no PDT RULE.

Alan Barnes says:

Ross another gem Sir!!! Thanks Again!!!

Michael Anthony says:

What size account do you suggest a trader starts with?

JWhoGaming says:

39:30 Can someone explain what happens here? I thought that large sell orders led to a dip in price, did Ross know otherwise because of how fast the sell order got executed and bought through? Thanks

LK T says:

Hi There! Mr. Warrior Trader.  I would assume if I pay the fee for LVL1 Data with a Trading platform/Broker that the Charts(candle stick) would be live also?

unclhos says:

Can’t imagine how it gets even more in depth than this. Guess I’ll find out in a few weeks when that lesson opens up.

Victor Nichols says:

Wow, This was a very educational video. I have to agree that I learned so much from this one video than I have from Tim Sykes videos posted on YouTube. I’m always learning something new and I understand each person teaches differently.

Mark McPherson says:

I am very, very impressed with your video and thank you for doing it. Okay, I would like to understand something in relation to that “100,000 share seller at $11.75”.

If I understood what you were saying, the reason the stock starts to drop is because with such a large amount to sell, BUYERS could not expect the price to rise above $11.75 until those 100,000 shares were bought. I am also inferring that other SELLERS might lose interest (and cancel their trade) because it would take “forever” to get a buyer because of that 100,000-share “monster” looming above.

Lastly, when you do have this kind of situation occur, after the expected drop in price, does it then tend to result in a flat channel? Buyers cannot expect higher prices until the 100,000 shares is completed, so I am assuming that Level I buyers keep buying and waiting, and waiting, and waiting until that huge seller is done.

I welcome your thoughts.

Sherri Bisaillon says:

Get e’m Ross you the man!!!! The market having a lot of problems out of you lol great video dude.!

Ajay KC says:

fwhich ones on the lists are market makers and do they have specific color? and what do all different colors mean? red, green, gray blue yellow?

J J says:

Can’t believe there are only 37,000 views on this video. Probably because so many retail traders don’t even know
Level 2 exists. Scary for them.

Serik Aytenov says:

Man,you just rock.Thank you so much!


thnx for the video , ive been looking for this for while , thank you  for sharing lots ….

G. Fong says:

Hey, I am inspiring to be a day trader. This is good stuff. Can I join your team? Group? Do you have a trading room??

rene rosalez says:

Very good video , thank you !

poochpoints says:

Is it true Ross that institutional traders have the ability to conceal the size of their orders on level 2 by only showing 10 % of their orders if they so choose?

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