Day traders will live and die by what appears on their level II screen. It is in reality the lifeline of online trading, especially for the day trader. This screen will display the existing quotes and sizes each market maker in a particular stock is willing to buy or sell. The key to being a successful day trader is to learn to use the level II and the electronic direct access trading system known as E-DAT; which basically is the method of online trading tying you to others who will buy and sell securities.For each security on your level II screen the online trader will see two sections, on the left side you will see the various market makers and their bid, listed in descending order from the highest bid to the lowest. On the right side you will see the market makers that are willing to sell a particular security, and their asking prices or offers. These are listed in ascending order with the lowest offer on top. Every market maker will also display the number of shares that the market maker is willing to buy or sell at that particular price. The high bid and the low offer are referred to as the inside market. If you are trading in a group it is easier to identify which market maker is a real player in a stock by seeing which one is consistently going high bid to accumulate shares or going low offer to liquidate. By recognizingwho is the “AXE”, a term to describe the major market maker in a stock, makes online trading a bit easier as you can follow on the coat tails of this market maker for bit, however many MM’s may use a fake out technique to disguise their true direction, but we can discuss this in future posts. Are We Having Fun Yet!