Trade Stocks like a Professional with CEO.ca PRO
I don’t know about you, but I’m always looking for ways to tilt the odds of success in my favour when it comes to investing. Creating a list of rules to invest by, or completing a thorough analysis of a prospective company are just a couple of things that I do to ensure I have the best chance of making a profit.
Recently, I added a service which, in my opinion, has made a HUGE difference in how I buy and sell shares in the stock market. This service is CEO.ca PRO, which allows you to view and interact with Level 2 Market Data from the Canadian Securities Exchange (CSE), TSX Venture Exchange (TSXV) and the Toronto Stock Exchange (TSX).
If you’re wondering what Level 2 Market Data is, don’t be embarrassed. I had the same question. First, let’s discuss Level 1 Market Data, which encompasses basic information on how a stock is trading. These are things like the bid price, bid size, ask price, ask size, etc. Using this information, an investor can see approximately where they need to place a buy or sell order if they are looking to have it executed at that moment.
Level 2 Market Data goes a step further and allows you to see more than just the highest bid price or lowest ask price. With CEO.ca PRO, you can see the top 10 bid and ask prices along with their sizes. This gives you a glimpse at how the stock is currently trading and where the potential price action is headed.
Now that I’ve used the level 2 data, I can say without a doubt that you’re missing a massive piece of the puzzle, when it comes to buying and selling in the junior resource sector, if you don’t have this data. This is especially true with the thinly traded companies, because they have a wide range of buy and sell orders and seeing them allows you to make a more informed decision about the price at which you should set your order.
NOTE: Never ever put a MARKET BUY or SELL ORDER in on a junior resource stock. I was told this very early on in my investing career, but never thought twice about it. Now, having seen the Level 2 Data, I can see just how dangerous a MARKET ORDER can be!
In particular, the CEO.ca PRO service gives you both a visual and a tabular display of the bids and asks, allowing you to quickly go through your portfolio or watchlist and decide what you want to buy or sell. The following images are screenshots; Beginning at the top left, there’s a stock chart followed by a visual display of the bids and asks, then a list of orders by price, a list by order and, finally, a list of recent trades.
CEO.ca PRO Stock Chart
CEO.ca PRO Visual Bid & Ask Chart
CEO.ca PRO Tabular Display
CEO.ca PRO Recent Trades
Level 2 data has been invaluable to me over the last few weeks and I would feel truly blind buying or selling in the market knowing that others were able to see a clearer picture of how people were attempting to buy or sell a stock. Level 2 data may not be the most important part of investing, but it’s a service that more than pays for itself.
Additionally, CEO.ca PRO comes with access to the PRO channel on CEO.ca, where many of its top minds hangout and chat about their best ideas for investing in the junior resource sector. This is a great bonus to a valuable tool, which I believe can help tilt the playing field further in your favour.
Check out CEO.ca PRO, I know you won’t be disappointed!
NOTE: For those who don’t know, CEO.ca is a website or cell phone application which acts like an investment conference in your pocket. It connects you to some of the top minds in the resource sector at the touch of a button.
Until next time,
Brian Leni P.Eng
Founder – Junior Stock Review
Disclaimer – The following is not a recommendation, it is an idea. I am not a certified investment professional, nor do I know you and your individual investment needs. Please perform your own due diligence to decide whether this is a service that is best suited for your personal investment needs. Junior Stock Review does not guarantee success from the use of the CEO.ca PRO service, use at your own risk. I have not been compensated to write this review of CEO.ca PRO.