PPJ Healthcare Enterprises Inc (PPJE)

[Ed the Trader]

I will not argue about the utility of L2, not only for pennies, but for all stocks. However, the thing about L2 is that you actually then have to dictate large swaths of time to watch the damn thing. :)

Where I spend most of my time is doing research rather than watching small movements in price. If my trading style was to go wide on a position to flip for a few ticks, I would be glued to L2. If I was doing Tim Sykes style trading, where he buys $20-100K in one stock, watches it for hours, and then usually gets out the same day, I would have to be using L2 constantly.

Most of my trading involves 1-2 tick flips plus concurrently running one or two high risk, longer term holds at the same time.

On the 1-2 tick flips, I just plain hold until the target price hits, and I don't care what happens before that. I am usually holding about 50 of those at any given time, so watching all of them with something like L2 is not remotely viable. There is just too much data.

On the long term holds where I am holding significantly, there is usually someone on iHub providing updates about the general state of L2 to give me a good enough idea of what is coming... if I even care that day. Plus, for those trades where I am in for large amounts, I have a general range for my exit points and don't worry that much if I exit at, for instance, $0.0058 or $0.0059 or $0.0060. I was already probably coming from 30% or more below that point anyway, so I don't lose sleep over missing out on extra profit from a tick or two on those.