Thinkorswim Level 2 for Penny Stocks
Before you spend any money on a trading platform with a level 2 data feed specifically for penny stocks read this entire post.
If you are just starting out with the Tim Syke’s Millionaire Challenge (read my journey here) then you know that having a good level 2 data feed for penny stocks is very important. In fact it can make or break you as a trader. However, level 2 data feeds aren’t cheap and they are far from perfect. For example, Speedtrader charges $140, Etrade charges $100 and Interactive Brokers doesn’t have a good level 2 data feed for penny stocks. So, I wanted to share with you what I discovered from all of the research I have done thus far. (Note this might change in the future so please email me or search the site for updates.)
For the last few weeks I have asked about a good level 2 data feed from anyone associated with Tim Syke’s team. I have learned that Speedtrader gets a lot of good press for their data but is losing popularity with day traders for various reasons that aren’t important for this post. In essence, why pay $140 a month for something people are walking away from? In addition Tim Sykes says he has been using Etrade’s trading platform for 14 years because he attributes some of his success to it. However, he discourages against using it because he is only being superstitious.
Ok so here are the facts that you should know so you can make an informed decision about a trading platform. If you aren’t a newbie to day-trading this doesn’t apply because you are more secure in your ways. Please do your own research too. Don’t rely on my opinion as it might change.
- I have only been a Tim Syke’s millionaire challenge student for 6 weeks.
- I have only made 4 trades. Read my first trade here.
- I still have a lot to learn about level 2.
- My personal feelings will change as I learn and understand more.
- Level 2 data feeds can be expensive.
- Level 2 data feeds aren’t perfect.
- Level 2 can and are used to deceive so BE CAREFUL.
With all that being said I have learned that Thinkorswim’s level 2 data feed is a nice starting place for newbies. It’s free and you don’t have to fund your account. That means that you can open up a Thinkorswim account without putting money in and get a level 2 data feed absolutely free.
Is it perfect? No it’s not but none of them are. In fact everyone will give you various opinions on it. However, it’s free and it’s a way to learn, grow and explore if you are just starting out.
So, about 3 weeks ago I opened up a Thinkorswim account through TD Ameritrade and I am learning/studying level 2 from there. For your information I contacted Michael Goode (Tim Syke’s 1st millionaire student), Asheya Burton (Tim’s female challenge student up over 100k) and Tim Grittani (Tim Syke’s 2nd millionaire student) to get their take on level 2. They all had different answers that made it more confusing.
However, what pushed me over the edge to go with Thinkorswim was that during a webinar given by Michael Goode it was discovered that the Thinkorswim level 2 trading platform for penny stocks was workable. To date I have not funded the account.
I hope this helps. Please email me with any questions to see how I feel about level 2 today.