Hello, everyone. Welcome to Options with Doug, streaming live daily on Bookmap Discord and the Bookmap YouTube channel at 1.30 p.m. eastern time. Before I get started, I need to go through the disclosures. General disclosure, all Bookmap, the metadata materials, information, and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. This disclosure, trading futures, equities, and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. Here's my contact information. The best way to get in touch with me is through Discord. My name on Discord is Doug P. Also on Bookmap Discord, there's an options-dash-Doug chat channel that's a great place to post questions, comments, and content related to the topics of my presentation today and the topics of the channel that I'll go through in just a moment. And note that Bookmap Discord is a very large Discord server. There's a wide variety of content on a wide variety of assets, stocks, options, futures, crypto, and also on a wide variety of languages. And everyone, if you're not already on Bookmap Discord, please feel free to join us. I'm also on X, formerly known as Twitter. My name there is at Doug Pless. Here are the key tenants to my approach for trading. This is the basis of my approach to trading. And I believe that options trades and market-maker hedging activity are key drivers of price in many stocks and futures and certainly in the large cap-tech stocks that I follow as well as the equity futures, the SB500 and NASDAQ. And for the SB500, SPX is the underlying index, SPI is the ETF version of that index, and ES is derivative of SPX. Also for the NASDAQ 100, NDX is the underlying index, QQQ is the ETF version of the index, and NQ is a derivative of NDX. So for the SB500, when traders buy and sell puts and calls, in SPX and SPI, market-makers hedge their delta exposure by buying and selling ES futures. And the same for the NASDAQ, when traders buy and sell puts and calls in NDX and QQQ, market-makers take the opposite side of those trades and they hedge their delta exposure within Q futures. The focus of my presentation today and the focus of the options-ash-dug chat channel is options order flow, the impact of options markets on stocks and futures, and the influence of market-maker hedging flow on price action. I have a two-step process for trading at the first is planning, and I use positional analysis. I look at how traders and market-makers are positioned to the options market and how those positions change from day to day to develop a thesis regarding the expected trading range and volatility for the day, as well as the directional bias. And the second step in my process is execution. I look at real-time order flow and book map and real-time market-maker hedging flow and spot gamma hero to confirm my thesis and for setups for entries and exits. And when I talk about setups today, I will be focusing on an underlying asset and setups and those assets can be taken any number of ways. For example, for the SME 500 setups can be taken with ES futures, spy shares, spy options, SPX options, or even ES options. So I'm going to go through this process that I use for today. I'll talk more about that in my agenda in just a moment. Questions and comments are welcome, and I will be watching both the options-dug chat channel and Discord, as well as the chat and YouTube-free questions and comments. Please feel free to post, and I'll do my best to answer your questions. And hello, Teddy, Steven, Caesar, welcome, glad you're here. Welcome Gardening Channel, glad you're here as well. All right, glad you're here, Gardening Channel. Hope you like what you see and hope this helps you and you continue to watch. All right, here's my agenda for today, Tuesday, March 5th. First of all, I want to go over news items, economic data and events for today, as well as the rest of the week. Then I'll go through my positional analysis, and then I'll review some setups from earlier today. Then I'll take a look at the live market. And when I get to the live market, if anyone has any stocks they want me to take a look at, please let me know, and I'll be glad to do that. All right, so let's start with news items for today, economic data. There are a couple of data releases today. First of all, let's take a look at the S&P 500 and see how these data releases impact the S&P 500. So this is the EES Futures and BookMam. So first of all, there was some S&P Services PMI data that came out at 9.45 a.m. Eastern time, not much of a mover. That was greater than expected, greater than previous, also greater than previous. And then I guess the more important services PMI, the ISM services PMI came out at 10 a.m. That was less than expected, less than previous, and the initial reaction was bullish, shown right here, and then very quickly price reverse lower just below the SPX 51-15 level. Talk more about that in a few minutes. Also factory orders came out at 10 a.m. That was less than expected, less than previous number. All right, that's today. Now for the rest of the week, there are some important items. First of all, Jerome Powell is testifying before Congress on Wednesday and Thursday at 10 a.m. each day, one day before the House, one day before the Senate. Also tomorrow at 10 a.m., the Joltz Report comes out. And then on Friday, the big economic data release for the week, the JOBS Report comes out at 8.30 a.m. eastern time, and that is the JOBS Report that normally comes out on the first Friday of the month, and for some reason this month it was pushed back to the second Friday of the month, this Friday the 8th. All right, so that'll wrap up the week of events and economic data. Also note there are also a number of Fed speakers throughout the week. All right, let's move on to positional analysis now. And let me check for questions, comments again. Welcome, Debbie, glad you're here. And Stephen, thanks for your help. All right, let's get started positional analysis. This is the SB500 futures and book map, bearish day to day. And before I take a closer look at this chart, I do want to step back. And hello, Caesar, welcome, glad you're here. I don't know if I missed you or not. All right, so let's step back, take a look at a larger time frame. I'm going to start with the SPX, that's the underlying index for the SB500. So the current rally began last year, October 30th, and SPX rallied up over 1,000 points. So now let's take a look at... This is a one-day chart. Let's move down to one hour chart so we can get a closer look at the top portion of this rally. So that's the same trend line that was shown on the previous chart. And during this time, during 2024, the SPX call walls have shifted up from 4,800 to 5,200. That's the current level. I'll talk more about that in just a minute. So it's been a very bullish move up for the last four months and finally finding some resistance, at least short-term, at around the 51-50 level. All right, let's take a closer look at the levels on this chart. So we know the rally currently high-pointed the rally, 51-50. Now let's focus on levels. So the dash purple lines are showing the lower and upper weekly expected move. That upper-weekly expected move may be a little difficult to see. There are some other levels up and down around that. This is the upper-weekly expected move. This is based on the options market. I update this once a week. This is based on the closing price on Friday. This is based on the options market and those levels stay in place for the week. Then the dash blue lines are showing the lower and upper daily expected move. That's based on the options market also, based on the closing price for SPX yesterday, that I update that every day. And I post these levels in Bookmap Discord and the options-dash-dug chat channel the evening before. So these levels that I'm showing on my chart, I posted in the options-dash-dug chat channel yesterday evening. All right, note SPX is trading well below the lower daily expected move for today, but still above the upper-weekly expected move. All right, the other lines on this chart are spot gamma levels. These are provided to spot gamma subscribers. They're based on gamma-weighted open interest. They're updated daily and they're shown on a variety of trading platforms. This is thinkorswim. I'm going to point out the key daily levels. And we'll also note how they have shifted. All right, so first of all, there's the put wall at 4,800. That's a strike with the largest negative gamma that can be expected to act as support. The next level up is 5,000. That's a strike with the largest absolute positive and negative gamma. So that's where most of the gamma-weighted open interest is concentrated. And the next level up is the volatility trigger at 5,095. So just below the 5,100 level. And that is spot gamma's proprietary volatility flip level. Below that level, market makers position on the gamma curve is negative. In a negative gamma environment, market makers have to trade with price to hedge their delta exposure and that tends to enhance or increase volatility. Above that level, market makers position on the gamma curve is positive. In a positive gamma environment, market makers have to trade against price to hedge their delta exposure. That tends to subdue or decrease volatility. And note that SPX, gamma notional in the beginning of the day, we'll look at that in just a minute, was positive. Now SPX is trading below its volatility trigger, moving potentially to a negative gamma environment and also trading below the 5,100 level. And that has been spot gamma's kind of line in the sand for risk on versus risk off. So SPX trading below the lower daily expected move, volatility trigger and the 5,100 line in the sand level. Alright, the next level up is the call wall at 5,200. That's a strike with large net positive gamma. That can be expected to act as a resistance. So as I mentioned before during 2024, the SPX call wall has moved up from 4,800 to current position at 5,200. Alright, shifts and levels, only one minor shift in level. The volatility trigger shifted up pretty substantially from 49,95 yesterday to 5,095 today. Alright, let's wrap up our view of SPX with a one minute chart just so we can get a closer look at the levels in play for today. So this is SPX in a one minute chart showing about two days worth of data. Dark shaded portion is the regular trading hours. So a gap down for SPX, then a move down in the morning, then some consolidation, now trending lower again, currently making a series of lower highs and lower lows. And again, SPX is trading below the lower daily expected move, the 5,100 line in the sand level, volatility trigger, and just above the lower week the expected move. Alright, let's go to book map now. So in book map, I can show these levels with my cloud notes. So I'm showing in my cloud notes, again, SPX levels. There's that 5,115 level that I talked about, 5,100 line in the sand, and then the 5,095 volatility trigger. And note, there is a difference of price between ES and SPX. And excuse me, so that offset, that difference between ES and SPX, is somewhere between six and seven points today. I'm using seven. So I'm showing, and that may be a little bit high, probably six and a half, maybe a little bit closer. Well, right now it's back to seven. So anyway, I'm using seven. So I'm showing SPX 5,100 at ES 5,107. And that is close to the current offset. I'm also showing SPI levels on this chart. Here's the SPI 5,10 level, that's a large Gamma 2 level. Good entry point for a short this morning. Here's the SPI 5,09 put wall. And SPX, the SP500 is trading below that. And the volatility trigger for SPI is up at 5,511. So the SP500 is trading both below the SPI and SPX volatility triggers. And also now below the ES, lower weekly expected move. And note the index relationships that I'm using for ES minus SPX and ES divided by SPI. I post those in Discord in the options-Doug Chat channel every morning. I post the preliminary and the final numbers that I'm using. All right, so again, very bearish day in the SP500 today. We'll talk about setups in a few minutes. Shifts and levels for the SPI, the absolute Gamma Strike did shift higher to 512. So overall just slightly bullish shifts higher in levels for the SP500. Volatility trigger for SPX shifted higher and also the absolute Gamma Strike for SPI shifted higher. And that was not necessarily my thesis for today. But anyway, just based on those shifts and levels. That is a somewhat bullish assumption. All right, let's move on to NASDAQ. All right, NASDAQ, bearish day also. Let's take a look at the underlying index charts real quickly. First of all, QQQ. And note for QQQ, 435, let me see what that is. Spot Gamma is not labeling the charts in Thinkorswim anymore. 435, large Gamma 4 level. All right, so there was a lot of chop around the 436 level. That's just around number level. And note the volatility trigger for QQQ is up at 442 well above. That level did move up from yesterday. So QQQ trading well below its volatility trigger and negative Gamma environment. And then also the put wall for QQQ move lower. Down to 420. Quick look at NDX. The only level that, well actually this large Gamma 4 level may be in play now. Let's take a look at NDX. And for some reason that level is not showing on this chart. So the 18,000 level up above briefly acted as support this morning. And now NDX is trading below that level. Let's go back to book map. Go to Nasdaq. And up above here's the QQQ for 441 acting as resistance. And also NQ is trading well below its lower, a weekly expected move. Alright so for Nasdaq, I have my own cloud notes again. I'm showing NDX levels just in the middle there. QQQ levels and also key levels for the NQ. There's the 17,900. I'm showing the big round numbers. And again the lower weekly expected move for NQ. So I have one column of cloud notes showing all those levels. And we'll take a look at setups in again a few minutes. Alright so let's wrap up the positional analysis. Take a quick look at Gamma Notional. We'll see how market makers were positioned on the Gamma curve at the beginning of the day. This is Gamma Notional. Again market makers position on the Gamma curve at the beginning of the day. For the SP500, Nasdaq and also 2000. This is the data tatable at the bottom of the AM Founders note. Note still positive for SPX. So in a positive Gamma environment this means that traders are short calls, market makers are long calls. Hence the positive Gamma and they have to trade against price to hedge their delta exposure. And of course that is changing today. And slightly negative for SPI. All these numbers did shift lower from yesterday and I expect them to shift much lower again tomorrow. Let's take a quick look at the Vana model to get a better idea of what this means. Alright so this is the Vana model for SPX. What this chart is showing is market makers delta notional on the vertical axis and the spot price for SPX on the horizontal axis. There are two curves on this chart. The first curve, the light gray curve, shows how market makers delta notional may change with changes in price only. And the purple curve shows how market makers delta notional may change with changes in price and implied volatility. And that change in delta with the change in implied volatility is the Vana effect. Alright so what this is showing is price decreases and we're going to look at the purple line. So as price decreases, implied volatility increases, market makers delta notional increases. When their delta notional increases they have to sell futures to hedge their delta exposure. So remember market makers want to remain delta neutral so they have to sell futures to hedge their delta exposure. Alright let's take a look at SPX for the day again so we can get a range of prices. So the high of the day right around $51.14 and SPX currently trading near the low of the day at $50.74. So let's locate those levels. So there's $51.12 or close to it. SPX at the high of the day was already on this left skewed portion of the Vana model and its prices moved down to $50.74. Alright so again price moved down, implied volatility increasing, market makers delta notional will increase and they have to sell futures. So this is typical of a negative gamut environment, market makers trading with price to hedge their delta exposure. Price falling, they're selling futures. Alright so we'll just take a look at the SPX Vana model QQQ and SPI are similar. Alright so let's move on to execution now. So everything that we've looked at so far other than book map is based on static data. Smart gamma takes open interest that's updated once a day sometime during the night. They apply their algorithms to that data to come up with the levels that I was showing and the levels that they do change from day to day. Sometimes more, sometimes less and that's what I use in my positional analysis. Alright so now let's move on to real time data to execution. First I want to take a look at what options traders have been doing today. So I'm going to do that with this hero chart. Hero stands for hedging impact real time options. This is available to spot gamma subscribers. So what this chart is showing is options trades and market maker hedging activity for a combined signal of SPX, SPI, XSP and ES futures. So spot gamma takes options trades and market maker hedging activity for all those instruments and combines them into one signal here that you can use for the SP500. This is what I use. Alright so the lines on this chart first of all the white line is price for SPX then the purple line is the hero signal. And a falling hero signal indicates traders are taking negative delta options positions. They're buying puts and or selling calls. A rising hero signal indicates traders are taking positive delta positions. They're buying calls and or selling puts. And so far for the day the overall trend of hero has definitely been negative. Note the total notional value for the day so far minus 2.39 billion. Alright let's zoom in on this chart now and we'll take a look at a setup from this morning. Remember the 10am data that came out, initial bullish reaction. Then that quickly shifted as traders started taking negative delta positions. Alright let's go take a look at that in book map. Let's zoom in. Give me just a moment to adjust this chart. Alright so now let's take a look at order flow. So we know just after the 10am data release that options traders shifted from positive delta to negative delta. Alright so now we're going to take a look at order flow. So first of all, here's the level. This was actually noted as support in the SPOTGAMAM founder's note. And I found those levels can act as support or resistance. And the SP500 did not quite make it to that level. This line is VWAP, the light blue line. So a little bit of a stop run after the data release that's shown by these on chart indicators. And then price reverses. The volume dots are showing markup buy minus sell. Green dot indicates more buyers than sellers. And magenta dots indicate more sellers than buyers. So a very abrupt shift from aggressive buyers to aggressive sellers. Cumulative volume delta quickly shifts. That's shown by the magenta line there. Shifts from positive to negative. And as price starts to move lower, sell stop orders help to fuel the move lower. That's shown by the falling yellow line. So the most immediate clue in book map here was the shift from aggressive buyers to aggressive sellers. Right somewhere but right around VWAP. Good entry point anywhere from VWAP to the SPY 510 level. And price continues to move lower as aggressive sellers sell the SP500. Sell stop orders fuel to move lower and traders take negative delta options positions. Let's zoom back down. Alright so that move really continued all the way down to the lower weekly expected move. There's been about three hours of consolidation and now SPX moving lower. ES moving lower again. I showed on the SPX chart. The series of lower highs and lower lows. Then SPX, ES I'm sorry, finally broke below that level. Now below the SPY 507 level that was support before. Let's go back and take a look at hero again. And I do want to take a quick look and see what traders are doing with puts and calls. I'm going to have to jump to another chart. Jump back. So I don't get this auto zoom. Alright so what this is showing is traders are buying calls today. At least initially in the morning. Aggressively buying calls from the open up to the 10 a.m. data release. Then the call buyers pretty much take their foot off the gas. Meanwhile traders. So the calls are shown with the orange line, rising orange line indicates traders are buying calls. And the blue line is for puts and a falling blue line indicates traders are buying puts. So initially traders were buying calls. They took the foot off the gas and they continued to buy puts. And the SPY 500 reverse lower. And again call buyers have pretty much again not after this initial burst of call buying. Not really doing much but put buyers have continued to buy puts. Driving the SPY 500 lower. So in this case separating separating out puts and calls gives us a lot more clarity on looking at the SPY 500 here. So no reason to even think about going long. Note the notional values this is positive 2.5 billion versus minus 5.3 billion for puts. Alright let's move on to the NASDAQ now. For the NASDAQ I like to look at this signal. That's the MAG7 signal. Let me show you what this is. So this is another combined signal. Of the stocks known as the MAG7. Apple, Amazon, Google, Meta, Microsoft, Nvidia, Tesla. These stocks make a very large component of the NASDAQ 100. And they often drive price for both the NASDAQ 100 and the SPY 500. Alright so let's zoom back in on this chart. We have puts and calls separated out. Note from the open this has been bearish. Traders buying puts and selling calls. Brief interruption just after 10 a.m. And then continued. They took their foot off the gas about 10.45 and there was some consolidation. Alright so let's go to the NASDAQ chart now. Very somewhat similar picture. Except again the options traders and the MAG7 stocks were bearish from the open. So if you waited for the zoom in. Waited for the data release at 10 a.m. Which I typically do. I think that's a pretty good practice. There's plenty of opportunity after. Same shift in order flow as the ES. Aggressive buyers on the way up. Aggressive sellers come in. Entry point around QQQ 438. In Q50, 18,050. Note the lines in the sub chart. Vagenta, Kimlet, Kivoyim, Delta. Yellow stops. Light blue, Iceberg orders all moving down. All these numbers are negative. So traders taking negative Delta positions in the MAG7 stocks. Aggressive sellers, sell stop orders. And large traders with Iceberg orders all selling. No reason to even think about along. So that's NASDAQ. Alright let's take a look at some stocks. And hello bear, Nicholas Channel. Welcome, glad you're here. Hope I didn't pronounce your name too badly. Alright so this is the, we'll zoom out now. Alright let's take a look at some stocks. Alright so the first that I want to take a look at is AMD. I've been trading AMD the last couple days. Let's zoom in. So I've turned on a couple of indicators here for AMD. Normally I've been leaving these off for stocks. I decided to turn them on to see if there was any reason to look at them. I think so. So this is the absorption indicator. This has been around part of book map for quite some time. This is showing, these are passive orders. And so this is showing that sellers were absorbing the aggressive buyers. Right at the 204 level. Then another couple of absorption indicators up above. There was a little trend break. And then, let me zoom just a little bit here. Alright so note the liquidity at the 205 level. Talking about this right here, this dark shaded area. The heat map and book map are showing a history of the limit orders and the order book. And the dark shaded area indicates a greater number of orders. Above price those are limit sell orders. And those orders often act as a magnet for price. This is classic absorption right at that level. Price reverse lower just after the few minutes after the 10am data. And finally move down all the way to the 200 key gamma strike. Let's see what options traders were doing. So let's go to hero. And by the way you could have picked any one of these stocks that I follow. They were all bearish this morning. I'm going to shift back to the total signal. It was a little bit more clear.  Alright so you can see the shift in hero here. Positive delta to negative delta. And price reverse is lower. And finally makes it to the 200 key gamma strike which was the primary target. Alright so that's AMD. And by the way I track my trades and I track the confirmations that I'm using. And for me this year hero is by far the most productive of the signals that I look at. Like looking at CVD or stops or icebergs or hero to make a trading decision. And by far for me hero is the best signal for me for day trading, inter-day trading. And Julian asked where can we find the spot gamma toss indicator and is it free or for sale. So let's take a quick look at this. So I assume this is what you're talking about. These spot gamma levels. So this is available to spot gamma subscribers. There are three levels of subscriptions. And this is those levels are available on a wide variety of trading platforms. Bookmap. I use my own levels for bookmap. But bookmap, trading view, ninja trader, thinkorswim. They're available to all levels of subscribers. So I think that is standard pro and alpha. Alright so that's AMD. Nice short anywhere between 205 and 204. Down to the 200 key gamma strike. Let's take a look at meta. Another short in the warning. Meta is another one of those stocks that has just been crazy bullish over the last few weeks. Now reversing note the hero alert that comes in right at the open. Some consolidation. Then after the 10am data, traders start taking negative delta positions and meta reverses lower. Let's go take a look at bookmap. Go on to meta. Tone down the volume dots. So kind of a wedge pattern here. Right after the 10am data. Oops, wrong tool. And meta breaks below the 494 level and also the VWAP. Shown with a light blue line. Note. I'm starting to look at CVD again for some stocks. It's been bearish all day. Cumulative volume delta. And Caesar says that's helpful to hear. Not cheap but seems to pay for itself easily. So yeah, if you want the levels. I don't know what the cost of the standard subscription is. But certainly should pay for itself pretty quickly. The levels. The founders notes. Everything but equity hub and hero come with a standard subscription. Hero comes with equity hub comes with the pro subscription and hero comes with the alpha. All right, so short setup here in meta. Aggressive sellers come in. As traders take negative delta positions. Shown by the budget of volume dots. Falling cumulative volume delta. All right, the next is NVIDIA. All right, NVIDIA good short right around 855. Just after the 10am data release. Let's zoom in on this. Note the aggressive sellers that start to come in. Initially right around 945 aggressive sellers. Then they come in again. Few minutes after the data release. All right, let's go take a look at hero. And that was an alert. We'll take a look at that in just a minute. Right, so there's meta. Traders taking negative delta positions. Pretty typical pattern. Aggressive buying or selling in the morning. Take the foot off the gas somewhere around mid morning. And price consolidates or moves in the opposite direction. So the best time to get a large directional move. Is typically in the morning. Anywhere from the open to somewhere from 930 to 12. Depending on when they take their foot off the gas. Let's move on to NVIDIA. A couple of flow alerts. Then after the 10am data. Traders start aggressively taking negative delta positions. Again, they take their foot off the gas right around 1045. And looks like NVIDIA is trying to recover. Seems like there are always dip buyers ready for NVIDIA. All right, WB wants to look at SMCI. Let's do that. I don't have SMCI in book map. We can take a look here in hero. Pretty similar to NVIDIA. Bearish options trades. Negative delta in the morning. Take the foot off the gas. They start taking positive delta positions again. And price moves higher. Note the flow alert. Just after the open. All right, Anirag asked, could you please suggest what the market may be doing now? Could we look at the hero signal please? I assume you mean for the SB500. Yeah, I'll do that in just a minute. So wanted to wrap up this setup review. All right, so there's SMCI. All right, so let's move on to live market now. All right, so this is for the SB500. Let's check mag 7. Again, here's that typical pattern for mag 7. Just like we saw in many stocks. Very aggressive, negative delta positions. The warning shifts. Now looks like it may be trending lower again. All right, let's go back to the SB500. The SB500, the hero signal is still moving lower. All right, let's zoom in on this a bit. All right, so it looks like the hero signal is not really moving up or down at the current for the last 30 minutes or so. Now may be moving down. All right, Anirag asked, has the market seen its bottom for the day and now going up? That I can't enter. What I can tell you is the clear setup was from 10 to 12, those two hours. That was the most clarity for stocks and futures. So I would certainly not look for a long at this point. Again, I'm done for the day. It was a good morning of trading. I'm done for the day. Again, I have no idea if this is the bottom or not. Certainly I don't see any signs of price moving up. We just saw the hero signal still moving lower. Timber to volume delta and stops both moving lower. The only bullish... Well, that's another alert. Let's go take a look at that. So the only bullish signal, this is really not bullish. From about 10 to 11 large traders were buying that move down, buying weakness with iceberg orders. And that has pretty much leveled off since then. Well, cumulative volume delta stop orders continue to move lower and traders are taking negative delta positions. And Tom Bee says, can I ask what was your trade? I traded AMD and NVIDIA today. So this is not really about my trades. This is about understanding how to use order flow and options trades, market maker hedging flow to define your own trades. All right, let's go back to hero. And I want to take a look at there were some alerts that came out. That was that sound just a moment ago. I think it was this alert right here. I've set it so that it will just make a sound for alerts on my watch list. All right, let's go back to SB 500. All right, let's zoom in. And WB asks, in SMCIs, you zoom in on the hero chart. The blue line goes above the price line, whereas in the zoomed out picture, it's below the price line. The zooming in give you a better picture, a better hero understanding. Yes. Let's go back and take a look at hero. All right, so that's why I've zoomed in here. So note, this is for the SB 500. Hero signal continues to move lower. So far the ES is chopping around the spy 507 level. Let's check NASDAQ. NASDAQ trading around the low of the day as well. Let's go back to ES. All right, Bruce has asked me to talk about trading in book map. So what I'm showing is the trade control panel. And this is just an example of using the trade control panel. This is not a trade that I would take if I do take a trade. Again, not a trade that I would take. But just if I do take a trade, it will be an example of how to use the trade control panel. So let me talk about that for just a minute. So I know that the hero signal is trending down. And I know also that ES is really just chopping around right now. Hero signal trending down, CBD trending down. All right, so if you want to trade in book map, it is a trading platform. First of all, you need to subscribe to data. I use rhythmic data for futures, DX feed data for stocks. You also need to have a connection to a broker. I have a connection to trade of eight. That's my futures broker. Note I am in a demo account. So if I do take a trade, it will be in demo. And this is the trade control panel over on the left. So in the trade control panel, I can choose whether to trade on the chart, which I like, or the dome or both. I like trading on the chart. I can also select the instrument that I'm trading. And for the SB500, I can trade ES. Or this is the cross instrument, the micro futures, the MES. Select the number of contracts. Also have a bracket order here. I'm going to do a quick check of hero right now. Looks like a hero may be slightly ticking up some iceberg buying there. Order filled. All right, so what I did there was, and this is not meant to be, this is only a trade example, probably get stopped out again. So I double clicked in this area to the right of this line. I double clicked because I wanted to trade two contracts. I had one contract set here. And by selecting two contracts, then I can move my take profit orders. So what I'm going to do is, and this is only, everybody please understand, this is not a trade that I would take, not a recommendation. This is only an example of how to use these tools in book map to place a trade. So again, you need global plus. You need a data subscription. You need a connection to a broker. My futures broker is trade of eight. Order filled. All right, so my first take profit order was filled. So now I'm going to drag my stop down to break even. Let me zoom in on this. All right, so we've got a two point profit there. Then move my stop to break even. Then I move my limit order. That's my second take profit down above this liquidity at 5080. So I'm front running quiddity a little bit. I may not quite make it. Let's move this up. Iceberg ESH4CME cell 300. Stop ESH4CME cell 973. All right, so that stop run down really helped me out. Let's go back and take a look. Let's just take a quick summary of this trade. Again, this was not a recommendation. Just an example of how to use the tools in book map. So I know that hero was trending lower. Traders were continuing to take negative delta positions in the SB 500. So I saw this larger magenta volume dot. Also iceberg order selling. Then I double clicked here at 5085. That was selling with a right click selling two contracts. Then I got a little anxious. Move my one take profit order up to 5083. Got a two point profit. Move my stop order down to break even and then move my take profit order. Second take profit order above the liquidity at 5080. So 5080.25. Let me take a quick look. Again, remember this is just micros. I'm doing this to show this cross trading feature and also make sure that this is accessible for everyone. Let me get rid of those arrows. Alright, so there's the trade. First two point profit. Then just a little bit less than a five point profit. Again, using micros in a demo account.  I want to thank you for watching. Thank you for your questions and comments. Alright, WB asked about the difference between negative icebergs and stops. So iceberg orders. These are both CME order types. They are available for CME futures. Rhythmic is the only data provider that provides that data. It's been around for a while. The book map with this stops and icebergs. The MBO bundle indicator takes that data and shows the stops and icebergs on the on chart as well as the sub chart. So there's the sell iceberg orders shown by the on chart. So I have sub charts shown in some mode here so I can see the cumulative effect. And then the stop orders typically are used by larger traders and they often will fuel a move to the downside. So I'm looking at iceberg orders to kind of initiate a trade and then stops for the continuation. Alright, so if you trade futures, the stops and icebergs along with hero to me are essential for trading futures. Alright, so I hope that helps. My time is up. There's an example of how to use the tools in book map for trading. I want to thank everyone for watching. Thank you very much for your questions and comments. Remember tomorrow Jerome Powell testifies that 10 a.m. could be a market mover and also the jolts report and we'll talk about it tomorrow afternoon. Alright everyone, thank you very much for watching. Thank you for your questions and comments and I will see you tomorrow. Bye.


Oh, sorry, I was just taking another look through my book and braced the lead that I wrote some years ago. Okay, no I wasn't. It's just a problem to get me into this thing. You know, I meet a lot of people who don't do all that much reading anymore. Back in the day before we had computers and before we had smartphones and before we had all this other stuff that could distract us, we spent a lot of time reading. Okay, it was a lot of time watching TV too and going outside to play. But in essence, we spent tons of time reading. And these days, I don't meet that many people who read as many books. I do, you know, interact with some business people who read books, but in general, you don't see people who sit down and read anymore for either entertainment or even to learn. And I think that that is really, you know, taking us back. I mean, even today, when kids are having the right papers, instead of actually going and finding reference books, they're looking stuff up online and then they're using that as a reference. And I just don't think that you get the same experience by doing just that as opposed to sitting down and grabbing a book. And, you know, over the years, the last, we'll say, since 2001, when I decided to go into business for myself, I have read a bunch of different types of books. I read a lot of books talking about money motivation, you know, because I've always had this thing. I'm rich. I've never, I've never deviated from that. I want to be rich. Even at my age now, I still want to be rich by the time I'm 65. I'm probably not going to get there, but I'm going to see how close I can get. But I read these books because every one of these people started out pretty much like me. In essence, they weren't rich beforehand. They got into business. They did certain things. They may have had some downs, but then they were able to come back up and they have achieved some great things. So I read those types of books. I read the type of books that talk about the types of people who actually end up being rich that people don't think about. I mean, this is their research books. I mean, you probably wouldn't have known this, but plumbers can make tons of money.  I never know if they're just making that up or actually saying something.  And they don't live like millionaires. So you don't know, you know, the millionaire next door. There could be a guy right next door who may be a millionaire and you may never know it because they don't live, you know, in the big fancy house or they're not driving a big fancy car. There are a lot of doctors that you may think of millionaires who are living the life, but they're not because they're not putting any money away. They're just spending it as fast as they're getting it. So, you know, you have this perception of millionaire. So you have that. Then there are other business books that I read, you know, business strategy books. I have a bunch of those that I read. And you have books that are, in essence, business motivation. You can do it, you know, planning and different things like that. Even books that irk me a little bit, like the four hour work week. You know what, there's a lot of good stuff in that book. But there's a lot of stuff that just irks the heck out of me. You just want to smack somebody. And I'm not saying I want to smack Tim Ferriss. Okay, maybe I do. But you know what, this little guy who's achieved some great things. So it's hard to be mad at him for the stuff he's achieved. But there's some stuff that he did that just from an ethical point of view really irks the heck out of me. But still, I picked up some things from it. And so you have those types of books. Then I have the entertainment stuff. I tend to like murder mysteries. I don't know why.  And I have certain authors that I really like. And they don't all have to be serious. I mean, I have some serious stuff. And then I have some stuff that's more comical than that. But it's still along that same line in that same genre. So I love to read those types of books. More often than not, though, I'm listening to those. Because I drive a lot. And I don't listen to music almost ever in my car. I don't listen to the radio, because that irks me. So I listen to my recording books when I drive. And most of the time, I'm being entertained. I've tried listening to a lot of business books in the car. And that just doesn't work. I don't take any of it in. Occasionally, I can listen to a podcast. But most of the time, that just won't get through either. I have done biographies, though. There was a 22 CD biography of George Washington that I thought was fascinating. And so I listened to that whole thing while I was driving. And nowadays, you would convert it to an MP3. But back then, even now, I still have a CD player in the car that I can use. But it's just so much easier to put them on MP3 and put them on the smartphone and then listen that way. But I still have CDs. So I will do that. And one of the things about reading that you will find out is that at a certain point, you know a lot. You start to find out that you know a lot more than you thought you did. But there's always another little concept, something that you say, whoa, I hadn't thought about that. And in my opinion, if you're reading a book and you can get something new out of it, even if you're basically covered with everything else, then that book has been valuable. If it's well written, there are some garbage books out there, I mean, we'll just own up to it. I'm not gonna mention any because I don't give them a lot of my time. But in general, I think that we as a society probably need to get back to reading more. I mean, even writing, I'm astounded and I have no kids, but it astounds me how many kids don't know how to write their names in cursive. Are you kidding? How are you gonna sign a check? I know you're saying, well, I don't have to sign a check.  You need to know how to sign it. You need to know how to write your name. You just do. So I don't know. But anyhow, I'm really big on reading. On Goodreads, I'm somewhere around 360, 70 books that I've been able to remember that I've read of all different types that I've cataloged. My niece Crystal is somewhere over a thousand. Are you kidding me? But Homegirl, I mean, she has her thing. She must read at least one book a week and she's always reading. Sometimes it's two books a week. Oh, wow. And that's a lot of consumption. She also works in a library, so I guess that helps. But I'm big on reading. I read a lot of blogs. I write a lot. And I think that I'm able to come up with ideas, whatever, because I read a lot of stuff. So this is just my thought. But I wanna ask you guys, do you think that reading still has its place? Is it a book like this? Is it an e-book? Because I have a nook. I purchase a lot of electronic books and sometimes you get books for free. I read those late at night when I'm not in the mood to have the big light on. So I read that. I read news stories. I read stuff online, long form biographies, how to do things and whatever. I think that it's important, but let me know your thoughts on it. Anyway, that's what I had today. You take care.


A quick welcome to ITS 323, Introduction to Data Communications. My name is Stephen Gordon, I'm your lecturer for this course. The first time I've taught you as a group of students, I'll teach you again in some courses next semester too. This is, as the title suggests, your first coverage of communications, computer communications and computer networking. The internet, mobile communications, mobile phones and the technologies behind them. In fact, next semester I teach a lab, IT Lab 2 that is based upon this course. That is we do some practical hands-on activities in a lab about setting up networks, building and testing networks. So that's next semester. And in fact next semester you have another course called ITS 325, Computer Network Architectures and Protocols, taught by Dr. Conworth, someone else. But again that also covers communications, the internet and network. So this is the first of several courses for you about computer communications and networking. Let's talk and give an introduction to data communications and networks and then when I've covered this topic, it doesn't take too long, it's just a very light introduction, then I'll talk about the course structure at the end of the lecture. So we can get straight into the technical details first. In fact this lecture which we'll finish today is just mentioning some terminology, some definitions and some concepts, the details of which we'll cover in other lectures, in later lectures. So if you don't catch all of it, you don't understand the details, don't worry too much from this lecture, you'll catch up throughout the semester. The topic is introduction to data communications. What is data communications? What do we mean by it? Well communications, when we communicate, we're sharing information. Whether it's between computers or between humans, if I'm talking to one person face to face then I'm sharing information with that person. I'm talking to you as a class, I'm trying to share information that I have. I want to get it into your brains, so I want to communicate something to you. Of course we sometimes want to communicate over a larger distance than just across a room. So we have remote sharing information across between rooms, between buildings, between cities anywhere in the world. We have remote communications or sometimes we use the word telecommunications, tele meaning over a large distance. So not just between humans, we'd also like computers or computing devices to also be able to share information. Data, data communications, well what do we mean by data here? It's the information being shared, whatever that information is. The examples being text, some textual message that we want to share from one computer device to another, numbers, images, audio and video are the main things that we want to share between computing devices. So you want to make a voice call over the internet, voice over IP then the information is audio, your voice. You want to get it from your computer, from you and your computer to your friend's computer so they can hear what you're saying. So data communications is the exchange of data and here's some examples of the data between two or more devices via some transmission medium. Exchange of data, two devices, well that's a common example we think of. I connect one computer to another. We send data from one computer to another, two devices are sharing information but there are other cases where one device will send information to many devices at once. An example not with computers but with humans is this lecture. I'm communicating information from one person to 20 or 30 people at the same time. So it's not always between just two devices, it's sometimes say from one computer send to many computers, so two or more devices. And we say via some transmission medium. The transmission medium thing at this moment is the thing between those devices. I want to get data from this laptop to this PC. Then we'd say between them we have some transmission medium. The medium over which we transmit that information. It may be a cable that's plugged into my laptop and plugs into this PC. So the transmission medium would be that cable or the copper wires inside that cable or there may be other transmission mediums. What's the medium I'm using to communicate to you in this lecture?  I've never seen in the lecture before. Try someone else. Louder. Air. Air is a medium. So when I'm talking the audio, the information is going from the transmitter, me to your ears, the receivers, and the medium would say is air in this case. It's wireless transmission. So the medium think is the thing between the two devices communicating. So that's an example of wireless. Of course we also use in many cases wires or wired communications. So that's a simple explanation of what we mean by data communications. So we want to get information from one point to another, one to many others via some medium. How do we do that so that it works well? It may be that we have some technology to get information from my laptop to this PC but in fact we want it to be effective to work well. So how do we measure that? What do we mean by effective data communications, good data communications? Three different things that we can use to measure here. Delivery accuracy and timeliness. We want that information to be delivered to the correct destination. We want the information that is delivered to that destination to be an accurate representation of what was sent, to be accurate. And we often want that information to be delivered in a short amount of time, in a timely manner. Some examples, first some simple examples to do with real life. I want to send an email. I have some girl that I like and I want to express my feelings to her. So I write this email, I love you and so many other words. And I type in her address, her to address and I press send. And it goes into the internet, this email, out from my computer into this magic thing, the internet and it goes through the internet and it arrives not at that girl that I sent it to but at someone else's computer. That would be an example of ineffective communications because I've sent an email to someone I want to say I love you to and it's gone to someone else. So that's not good for me. We'd say that's inaccurate delivery or that's not correct delivery because the data was not delivered to the correct destination. If our communication system does not deliver to the correct destination, then it's no good. It's not good communications. So that's almost an obvious one. If I send something to computer A, it should get to computer A, not to computer B, that's delivery. Accuracy, I compose my email, I love you. It goes out into the internet and somehow the internet makes some mistakes and it arrives at that girl and it says I hate you. Again, that's not effective communications because what was received is not an accurate representation of what was sent. We have not conveyed that information correctly to the destination. So in any communication system, when we send something, what is received should be a good representation of what was sent. We say an accurate representation. In some cases it doesn't have to be 100% accurate. With an email we'd expect it to be. I type in my email, the email that a person receives should be exactly the same as what I typed in. That is 100% the same, 100% accurate. If there's a letter different, it won't be so bad but I don't think it's a good communication system. But in some applications, I have some information, I send it, even if what's received is not exactly the same as what was sent, it still may be effective communications. What's an application where that works? What's received is not the same as what was sent, but it's still effective. Think of the applications you may use on the internet, the types of applications. Not sending an email, because if I send an email and the email that the person reads is different, that's not good. Any other applications that you send? You don't need 100% accuracy. Has anyone used Skype or a similar voice over the internet application? A picture in some cases, let's use Skype, a voice call as an example, where you use your laptop and you make a call to someone and talk. What happens there is that when you talk, it goes into the microphone of the computer and the computer takes that information and sends across the internet. What the other computer receives doesn't have to be exactly the same as what you sent, because what you send is a digital representation of some audio, some sound waves. So long as when it's played back at the receiver, it sounds like my voice and that the receiver can understand what I'm saying, even if it's low quality audio, it's still okay. Same when you talk on a mobile phone. The person who talks is talking clearly, but sometimes the receiver has some bad reception and words cut in and out. It's poor quality. It still works though, you can still talk. So that's an example of even though the receiver doesn't receive exactly what was sent, we'd still consider it accurate because the receiver can still understand what was sent. So depending upon the application, we measure accuracy differently. Sometimes we need 100% accuracy, sometimes not so much. We'll see other examples of that in subsequent lectures, just a light introduction. Timeliness, I send my email, I love you, send to the girl. It arrives one year later. She's gone and got married to someone else, again ineffective for me. So we want data to arrive at the destination in a reasonable amount of time. How long for an email? You press send. How long do you think it should take to be good for the other person to receive it? What do you think? Less than a minute, okay, anyone can wait, cannot wait for one minute for an email? What about if it took one hour for an email? Would you be happy? You wouldn't care? You wouldn't know? One hour, sometimes you wouldn't know. Sometimes emails are delayed for a long time, okay, so it changes depending upon the application. What about instant messaging, you're using Line or some instant messaging application, you type in a message, press send, the other person sitting at their computer, how long do you think it should take for that message to get to the other person? One hour? One hour is not good enough, is it? One hour would mean it's not instant messaging, okay. You're talking more in terms of seconds, I don't know whether it's 10 seconds, 1 second. If it's 10 seconds, it's not so good, if it's 1 second, I can survive. So it depends upon the application as to what is a reasonable amount of time. So again, we'll look at different applications through this course and we'll talk about some examples there. So we want to communicate data from one point to another, get to the right destination, do it accurately and timely in a timely manner. That's data communications. We or people need to build computer systems that allow communications between devices. What do they need to do to build computer networks, telephone systems and so on to allow it to work? Well, we can start by simplifying communications into some model that we can follow and this is an example or this is one simple model of a communication system. We have five components in this model. We have a source. The source is some device that generates the data to be transmitted. An example is, and it's actually on the next slide, an example is my laptop. In fact, I sit at my laptop, I type in a message, think is that is the process of generating the data. That's the information I want to communicate to someone. I create the data at the source. Then we have another entity, a transmitter that takes that data, say an email, where that email is actually just a sequence of bits, zeros and ones and it converts that data into some signal that can be sent through our communication system. The next slide shows that, I said a laptop here in this old picture, it says a work station but imagine this is a laptop and maybe the transmitter device is a modem that's attached to my laptop, a home ADSL modem, which takes some digital signal and transmits some analog signal across the telephone network. We're going to spend a lot of this course before the midterm talking about to get something from one device to another, we send signals.  That's what we're going to focus on and spend some detail in the first few lectures. That's what's sent and carries the information between devices. The source creates the data, the transmitter converts that data into a signal and sends or transmits that signal through the transmission system, through our transmission media, for example. The transmission system carries the data as a signal from source to destination. At the other end point, the receiver, it takes the signal, converts it back to the data and then the data is, let's say, consumed by the destination. The destination makes use of that data. We can treat usually the source and transmitter together as the source system and the receiver and destination as the destination system. Another example, my laptop has a socket for the LAN card or LAN cable. Think of that as the transmitter. That's inside my laptop. My laptop is the source and has a device or a chip in there that acts as the transmitter. Then the cable, when I plug it in, if I plug in one of these normal LAN cables into here and it connects to the receiving device on the back of this computer, think of this as our transmission system. It's a very simple one in this case. It's just a single cable. In more complex networks, the transmission system may consist not just of one cable but other intermediate devices connected together. So, communications is simple because all we need is these five components. But in fact, the problem is the things that each component must do to make communications work well, to be effective, are quite complex, in fact. What the transmitter must do to convert data into a signal can be very complex. The transmission system can be much more complex than a single cable. This is, as we say, a simplified view of any communication system. Source and destination transmits information to a receiver via some transmission system. That was one example, I think, maybe, okay, let's say laptop, some home ADSL modem connects via a telephone network to some server which is also attached to a modem, where we send data, the source, transmitter, transmission system, receiver, and the destination. We will see other examples that follow that model through this course. So, if we think of any communication system as this model of five components, it looks easy. But the reason why we have this course and you have courses next semester is because it's not so easy. In fact, to work in an effective manner, there are many different tasks that have to be performed. And we're going to spend this course looking at those tasks. Here are some of them listed. You don't have to understand these. We're going to go through a lot of them during this semester. Somehow we need to generate, for example, electrical signals to send across a wire. How do we generate those signals? What type of signals? Sometimes we send some signal across a system and there are some errors. There's interference. Something goes wrong. So we may want to detect if there are any errors. But if we detect errors, correct them. So there are different ways to perform error detection and error correction. So we'll look at some examples of that. I want to send a message to an individual student in this class by telling them something. How could I send a message to one particular student in this class? What do I need if I want to talk? I need their name. So if I want to send a message, if I say something, you got a D in your exam. Who receives it? Well, no one knows who it's intended to. But if I say Steve, you got a D in your exam, then Steve would know it's intended to him. So to communicate with devices, we need some addressing scheme. In your case, your address is your name. In computers, we have different addressing schemes. You would have seen IP addresses. Maybe you set up your computer for internet access. You may see an address like <IP_ADDRESS>. That's a type of address that we use in computer networks. We need security mechanisms. In this course, we're not going to touch upon security mechanisms. Most of you will take IT security next semester. Actually, I teach that as well. And then you'll see some more aspects of security. In this course, we don't have time to cover it. And other tasks. The point is to have communications work in a large system. There are many complex things to do. And therefore, it's not as simple as this five block model makes it look. And that's what we're going to cover this semester. How these complex things work. So the people have come in. What we're doing is we're going through a very quick introduction to some aspects of data communications. At the end of today, we're going to talk a bit more about the core structure. And the details of things that I'm mentioning today, we're going to cover in subsequent lectures. So even if you don't catch everything today, next week, the week after, it will come back and we'll repeat some of these things. It doesn't mean go to sleep, but it means don't be too stressed at the moment. To categorize different technologies we use for communications, we can roughly divide them into two groups. The technologies used for communicating across a single link. And for those for communicating across multiple links or a network. A single link is when I plug a cable into laptop, into PC, they're directly connected together. How do we get data from one to another via that link? Well, sometimes that's referred as data communications. Transmitting signals in a reliable and efficient manner across individual links. How to get it from A to B across one link. Unfortunately, most of the things we want to achieve today cannot be achieved by just communicating from one computer direct to one other computer. Because I want to connect to Google and do a search for the Google web server. I cannot plug a cable into my laptop and then another cable into the Google web server. A, I don't have a cable long enough. B, the Google web server doesn't have enough ports to have everyone's computer in the world plug into it, okay? So what we do then is we connect from one computer to another device. That connects to some other device and we keep making connections until we find a path that gets from my source computer to the Google web server. And that's a network. I think at this stage a network is when we, or networks allow communications across multiple links. And there are different problems and therefore different technologies used depending on whether we're considering communications across a single link, simply data communications, or communications across a set of links or across a network. So we sometimes distinguish the two. We'll talk about each of them just briefly. Data communications across one link. What are some of the issues? Well, in fact, we've covered it a bit. This is almost the same diagram as we saw before. And I think there's not much more to say in that. Think for a single link. We have a source system, a destination system, and we send across a single link here represented by the transmission system. So we take our data, for example, some text. We may represent it as some sequence of bits. If it's an email, we can use ASCII encoding to represent, to convert it down to a sequence of zeros and ones bits. And the transmitter takes that stream of bits and creates some signal to send across our link. If the link is made up of this cable, just a normal LAN cable, I'm sure you've used these on a regular basis, have you ever cut one in half? If you cut it in half, in fact, you can see from the end points, it's made up of eight different wires. You cannot see very well. But there are eight different wires in here, or eight white, green, blue, orange and brown-coated wiring in here. In fact, each of them are twisted around, and we get what's called twisted pair-caven. We'll cover the details of that later. But inside these wires are just copper, strands of copper. And if this is our link, the signal that we send across it is just electricity, an electrical signal, which somehow carries the information from one end point to the other end point. So from our transmitter to the receiver. Electrical signal is received, and then the receiver has the job of converting it back to some bits, some zeros and ones, which are consumed at the destination. So we're going to spend a few lectures looking at how to transmit different signals and what type of mediums, media can we have in between the transmitter and receiver? The thing in between, when we just have a single link between transmitter and receiver, this cable is sometimes simply the transmission line. It's a line between one point and another. It's important because that's where we send our data via. It's that link between transmitter and receiver. When we build a network, when we build a transmission system, you go and get a job, and your job is to design and build a link between one computer device and another computer device. Then you need to choose which transmission line to use, which one's best. And to do that, you need to think about choosing one that provides the required capacity, is reliable and is cheap. Let's explain those three. I want to get some data from this laptop to this PC. Just a single link. I want to transfer a file. It's a small file, 100 bytes, small file. I just want to get from this laptop to this PC. What are some different transmission mediums or transmission links or technologies that I could use to communicate from the laptop to PC? Can anyone name some? A USB key, okay. Correct, except it involves a human. I have to plug it in and then unplug and plug it into the other one. But yeah, that's a transmission system. It involves the human. But we can even use a USB cable. You can buy cables that plug into one USB socket and go into the other. Not so common. So USB is one. Another one. To transfer data from laptop to PC. Okay, the SATA that you use for the hard disks. Okay, yep. Bluetooth, okay, my laptop has Bluetooth. I don't think the PC does. Some PCs, you can get Bluetooth or you plug in a Bluetooth adapter, USB adapter. So then we could use Bluetooth. And Bluetooth uses what medium? What is the medium that Bluetooth uses to send data from here to here? Wireless or simply air. It's a wireless transmission system. Bluetooth, it transmits some signal through the air and it's received here. What else could I use? USB, some hard drive SATA cable, Bluetooth. This LAN cable, okay. Sometimes called Ethernet or just a LAN cable and plug it in here, connect here, set it up, send my file across there. Another one. There's an antenna here. Wi-Fi, okay. So there is different technologies I could use to get this 100-byte file between them. Okay, let's cut some. We had Wi-Fi, we had the LAN cable, Bluetooth and for simplicity, let's leave it for those three. There were others, but just keep my example simple. Now I want to transfer of burnt 10 DVDs onto my hard drive. So I've got about 50 gigabytes on my hard drive. I want to transfer that 50 gigabytes to the PC. Choice of Bluetooth, Wi-Fi or the LAN cable. We'll have a vote. Hands up for Bluetooth. Anyone? I want to get 50 gigabytes from laptop to PC, Bluetooth. Why not Bluetooth?  Why not? Cheap. It's slow. If anyone's used Bluetooth to transfer much, it's quite slow to transfer a large amount of data. Usually it's in the order of one megabit per second, one million bits per second. What did I say? 50 gigabytes, which is 50,000 megabytes. We'll look at units and prefixes later, but 50,000 megabytes is the amount of data I want to get from A to B. Bluetooth allows me to send it, let's say, one megabit per second. That's the speed. How many bits in a byte? Eight. So 50,000 megabytes is 400,000 megabits. 400,000 million bits. There should be bit. So if I want to transfer my data at one megabit per second, I've got 400,000 megabits, it would take me 400,000 seconds, okay? I don't know, that's 30, 20 hours or something. So it takes a long time to transfer that data from one computer to another. That's why we wouldn't use Bluetooth. Well, that's one reason. Bluetooth is cheap. The devices are inbuilt to the laptop, but slow, Wi-Fi, both have Wi-Fi. Would you choose Wi-Fi? You've got two choices left, Wi-Fi or the LAN cable, hands up for Wi-Fi. Anyone, anyone game? You may use Wi-Fi. How fast is Wi-Fi? Bluetooth is one megabit per second. It depends. It depends upon your device, how much you paid for your laptop or how old it is. I think the one in the PC is quite old. It's around 54 megabits per second. So it's about 50 times faster than Bluetooth. So it would be taking the matter of tens of minutes, maybe an hour or so. I can't do the calculations in my head, but it would be much faster than Bluetooth if we use Wi-Fi. LAN cable, how fast? These are reasonably, well, they're not too old. The LAN cable, most recent LAN cards in computers, laptops and PCs, can go up to one gigabit per second or 1,000 megabits per second. Just plug the cable in, set them up, 400 seconds. What, seven minutes to transfer my 10 DVDs from one computer to another. There's just rough calculations. So what's all this about? These speeds, we'd say are the maximum speeds of the transmission line. That's the fastest we can go. It's also called the capacity. When we choose a technology, we want to choose one which will provide the required capacity. When I wanted to transfer this 100 byte file, 100 bytes is very small. I don't care if it's at one megabit per second or 1,000 megabits per second. It's still gonna be a few seconds to transfer. Doesn't matter. But if I have a lot of data, then I'll require a higher capacity. And therefore I may choose a different technology. I would choose a technology with a higher capacity. So when you need to design and build networks, you need to choose the transmission line, the technology for that transmission line that gives a high enough capacity. We will see many or different examples of these technologies and also wired technologies through this course. You don't need to remember this information, but we'll see some other details later. But it's good to be able to have an idea that your LAN is normally much faster than Wi-Fi, which is much faster than Bluetooth. Acceptable reliability, well, some transmission systems have more errors than others, less reliable. Especially wireless is less reliable than wired, even at the same capacity, which means if I use Wi-Fi, I transmit the data, some of the data received is not correct. It's different from what was sent, their errors. I'll have to send it again and that slows things down even more. So we need to consider not just the capacity, but also reliability, how reliable that system is. I want it to be cheap as well. I could go and buy some special device that gives me 10 gigabits per second and then buy one from here. It costs 5,000 baht for this laptop, 5,000 baht for this laptop. Gives me 10 times increase in speed, but it's cost me 10,000 baht, okay? So it may not be as cheap as I want. We need to consider the trade-off between capacity, reliability, and cost. We have a topic that's called transmission media and in that topic we'll compare what's the difference between these wires, optical fiber, coaxial cable, wireless, satellite, or different wireless technologies. We'll compare them. And some of the things that we'll answer in those later lectures are, how do we, for the transmission system, how do we convert data into a signal? What media to use, wired versus wireless? Which one's better? Which one has the different trade-offs? How do we, this is similar to the first one, how do we take the data and convert it into a signal and code? What happens if there are errors? What if there are many people wanting to send at the same time? How do we share that media? We'll answer those questions in subsequent topics. That's briefly about communicating across a link. Networks allow us to communicate across more than one link, across a set of links, a series of links. Allows us to go further and communicate with more people. Because we'd like to be able to allow any user to communicate with any other user. By user it could be a human, it could be a machine. I shouldn't be restricted to be able to communicate from this laptop to any PC in this room. I should be able to communicate from this laptop to any computer in the world. That would be much better. And that's what the internet allows us to do effectively. For this to work, to be able to communicate with more than just nearby machines, we need some special software. And we'll see that we'll refer to that as, well, that comes up when we look at the internet and the internet protocol. And we often distinguish between different types of networks as well. So let's just talk about them first. Wands and lands. So networks now. Not just one link, but many links. That's categorized into two different types of networks. It's not a very accurate classification. There are types in between and slightly different, but it's a common one that we'll see. We'll distinguish between wide area networks and the next slide, local area networks. And the difference is, one's a network that covers a wide area and one covers a not so wide area or a local area. So the difference is about how much geographical area they cover. Roughly, we say a wide area network is a network that covers a city. So different points across Bangkok, maybe a wide area network, connects between cities, Bangkok to Chiang Mai. That may be a wide area network between countries across the globe. Classify them as wide area networks. They span a large geographical area.  They're generally local area networks. There's no exact definition, just a rough one. But they differ not just on the size, but also how they're built and the technologies available. Wide area networks, before I describe that, let's consider an example of a wide area network. We have a campus here and we connect to the campus in Rangsit. It's about 15 kilometers. So we wanna connect the two campuses together so we can communicate. So that would be classified as a wide area network. Connecting these two remote locations would say we could use a wide area network technology to connect them. And we do, we have a connection between them. Let's say SIT wants to build their own link using wires, using cables from this campus to Rangsit. What we would need to do is we'd need to dig a hole in the ground all the way and put some cables down and then we could connect some devices and transmit through there. That's not easy because we don't own the land between this campus and the other campus. If we wanna dig some holes, we need to get the permissions of the people who own the land between our campus and the Rangsit campus. Very hard to do. Time-consuming, complex, very costly. Because you need to get access to all the land. You need to cross public land and also private land. So most companies, SIT and most individuals, you and me, we don't build our own wide area network. There are other companies whose specific purpose is to build wide area networks. Telecommunication companies, TOT, True, Cat in Thailand and different companies, it's their job. They build wide area networks and then they rent them to users like SIT and other companies. So what SIT does is we pay a telecommunications company to use their network to connect between our two campuses. We don't have our own network. And that's common for wide area networks. Large companies, telecom companies, internet service providers, sometimes called common carriers, they build the wide area network and then they get customers to use that network. So that network may carry data of many companies, many organizations. Whereas a local area network is a network that we build or we use inside, say an office or inside your home. Think of your home. You may have your dorm, you may have an ADSL router for internet access and you plug a LAN cable for your PC maybe, maybe even to your TV for streaming TV and maybe Wi-Fi for your laptop and mobile phone. That's a small local area network. Think of the devices. You own all of those devices. You own the PC, TV, mobile phone and you own the cables most likely, maybe the ISP, the internet service provider, let you borrow the cables and the router but you could own that. Usually with a local area network, the person who owns the end devices, the computers, the computers also owns and operates the actual network. You build the network, you maintain it how you want. With a wide area network, the person who uses the network doesn't usually own the network. A telecom company builds a network and rents it to the person who uses it and that has a difference on or has an impact on the different technologies used. We'll see these two types of networks come up in different topics. There's a topic on LANs. We'll cover a little bit later after the midterm and talk more about the technologies available. Answer some of the questions like, if you've got a network going from across the globe, some companies have networks that cover a large part of the earth, then you wanna get data from Bangkok to somewhere in California. Does it go on the path up to Tokyo and then across the Pacific to LA? Or does it go on the path that goes in the opposite direction across Asia and Europe and then across the Atlantic? What path does your data take to get from source to destination through the network? That's a problem that we'll try and address after the midterm with routing, finding a good path. And how do you deliver the data? And again, we'll have a topic on that. We may mention some example technologies that you probably haven't heard of, SDH, frame relay. This is not money machine. This is a different technology called asynchronous transfer mode. You don't need to remember them now. We'll come across them later. And with LANs, you should know these because you use them all the time. Wireless LAN, often called Wi-Fi, and the wired LAN, sometimes called Ethernet. They have different names. You use them on a regular basis. Half an hour ago, let's try and finish in the next 10 minutes and then talk about the structure of this course. Very quickly, the internet. So, what is the internet? Think now that inside homes, you have LANs. Inside office buildings, we have LANs as well. In each office building, every company has their own LAN. Between, maybe between buildings across cities, between cities, we have wide area networks. We have many different networks. They may all use different technologies. What the internet allows us to do is to communicate from one network to any other network irrespective of what technology is used in between. Effectively, it connects all the LANs and all the wide area networks together and we get the internet. We may say more about where it come from when we look after the midterm about the internet protocol. It came from a US research effort about 40 years ago and the internet or the technology the internet is based upon is often referred to these two protocols, TCP and IP. So, you may see this come up. But we'll explain them later. I think no need to go into the details here. What is the internet? Collection of networks, a collection of LANs and wide area networks connected together using one common thing. So it doesn't matter if my LAN is Wi-Fi, the wide area network is SDH and some other LAN is using Bluetooth or whatever.  The idea is that if the devices in our computer networks use IP, it doesn't matter if the technologies differ, all computers can communicate with any other computer. And that's what we effectively can do with the internet. I can communicate with some computer in the US. I don't care what technology that's using as long as it's using the internet protocol. And we will, after the midterm, explain what is the internet protocol and how it works. It'll be a large topic. What does the internet look like? There are several examples in these, but let's go straight to this one we can mention. Ignore the details here, but imagine this is a LAN, a local area network. Imagine there's a cloud drawn here. This is another LAN, another local area network. And a third local area network here. These are two wide area networks. So we have three LANs, two wide area networks, five networks, all connected together by some special devices. Combined, we'd call this an internet. By connecting them together, we get an internet. And in the internet we have today, you think of it as just much larger than that. Many different LANs and WANs connected together. There are some other examples there. This one, one about SIT. But this one is what I want to finish on. And I don't have it here. I'll show you the pictures. From this website, you can access, and it's good to do in your own time. You'll see why. You can access two maps showing different views of the internet in Thailand. I'll show you the two maps. So if you go to that website, and I think follow some links, it's provided by Nectec. Nectec is part of NASDA, which is in Science Park at Rung SIT. Thailand Science Park there. And they provide some maps of the internet connectivity inside this country. Up-to-date maps. You can click on them and download them. Here's the first one. Of course, I didn't print this out because it's too hard to read on paper without color and a small scale. But you can read this at the back, clear. If I ask a quiz question, you can read this. Not very easily. It's all right. Relax. I'll zoom in in a moment. Let's just look at the structure. What it shows is the connections between internet service providers inside the country. So it's called the Thailand Domestic Internet Exchange. It is just focusing on internet inside the country. If you want to communicate from your home via some internet service provider who you pay on a regular basis to access their network and communicate with someone else, how does that work? Well, these blue ones around the edge, when we zoom in, we'll see our internet service providers. They're companies that provide customers access to the internet. They have lines going from them and connecting mainly into these central ones, which are what's called national internet exchanges. We'll see IX here, IX, IX, IX, an internet exchange. So these links represent connections. These lines represent connections between an internet service provider and an internet exchange. If I'm here at home, I subscribe to this ISP. I pay them every month to use their internet. You can think I connect into this ISP, into their network. If I want to communicate with someone connected to this ISP, my data goes to their network, follows one of these lines to an internet exchange and then goes to this ISP and then to their destination. That's the general way to read this. Let's zoom in and see some details. First, the central ones and see some of their names. These internet exchanges, there are what, eight or nine, are provided by different companies or organisations inside Thailand. CAT is the main one, one of the government communication organisations. They have two internet exchanges across Metropolitan Bangkok. Sorry, I've gone the wrong way. We have CAT. ADC is a commercial company for internet access. I think affiliated with AIS, everyone would be familiar with AIS for mobile phone. CS LOCKS INFO you may have heard of, provided internet exchange, Jasmine Telecommunications, SBN, TCCT, and this one you would have heard of is TRU, the TRU Internet Gateway and TOT, another government organisation. These are six or seven organisations that provide these national exchanges in Thailand. Everyone's internet inside Thailand goes through one of these, not always true, unless you're communicating with someone on the same ISP. If you're communicating with someone on a different ISP, your traffic would normally go through one of these internet exchanges. Some of the ISPs at the top here. If you can't see from the back, this is TRU Internet. So if you at home subscribe to TRU Internet, then you connect into this network and they have connections from these lines into different internet exchanges. TRU, TCCT, TOT, others that you probably, some will recognise the names at least of ISPs or telecom companies. So you subscribe to these blue ones, connect to their network, their networks connected to these internet exchanges. Each line has a number on it which represents the capacity. For example, TRU Internet has a 90 gigabit per second capacity if we follow it to the cat internet exchange. That's the amount of data, 90 gigabits per second equivalent to 90 LAN cables going in. Here's a 60 gigabits per second to someone else. I can't see over here. 200 megabits per second from this ISP into wherever it goes down here. So you can follow those lines around and see which ISPs have how much capacity to the different internet exchanges. Of course, they're upgrading them on a regular basis so increasing that capacity because more people are wanting internet access inside the country. This is, again, as I say because there's so much detail in this picture it's best to look on your own computer in your own time and you'll be able to explore the detail. I'll just give you the outline. This is just domestic. What about we want to access the internet outside of the country? This map is similar structure but it shows we'll see similar companies here. These are not national internet exchanges. We'll see when we zoom in IIG it's an international internet gateway. It's a gateway between ISPs in Thailand to ISPs in other countries. So we have gateways operated by CAT, ADC and so on the same as in the national internet exchanges. We have some local ISPs the blue ones and all these grey ones are along the outside international companies. Overseas let's zoom in on the grey ones see if we recognize some. Sprint in the US so an ISP in the US Star Hub is in fact in Singapore I think Singtel, Singapore SG so several from Singapore here so these are internet service providers in Singapore and they have links into the different international internet gateways which are down here. So when you're accessing say some website in Singapore which may go through Singtel then your data goes from your ISP to either a national exchange or direct to an international internet gateway and then to Singtel's network in Singapore and then once it's inside Singapore it goes through Singapore's internet which may have a similar structure Hong Kong NTNT the Japanese company UK not just internet service providers here, Microsoft and we'll see later there's Google Facebook, Yahoo they are connected into Thailand so that when we access their information their websites we have fast access to their content called content providers so when I download something from Microsoft Microsoft's website I'm not downloading it from Microsoft's server in the US I'm probably downloading from a Microsoft server in Singapore maybe Hong Kong I cannot tell from here Microsoft have servers located around the world so they're closer to us, the end users so you can go through and see there's Google and many other international companies there, Equinix Korea France and many different countries represented so that's the connectivity inside the country was the previous diagram and the connectivity from Thailand to the rest of the world so it's one view of the internet from Thailand's perspective there's more information you can read down the bottom but we're out of time for today


So, the question that I want to ask is, do it off-subject more SAP-specific? We're going to have Hasel on later on on the QPO. Okay. We're going to have Reggie Jackson on, too, who's coming on. You're a solid guest. You're like we call the meat on the bone. Good solid guest. Subject matter, solid leader. I want to ask you about internally the SAP. What's been his effect of late? I've been in big discussions with his HANA project. He's got a lot of lengthy on-the-rolls to do with ownership. And he's the two, and also the customer that makes a lot of the DRD labs. But what's been the impact internally on SAP? SAP's talking about internally. Is he a part of it? What is the customer that thinks he's talking about internally that we think I'm asking? Anybody get some good control? It's pretty new. It's exciting. I've always been blogging about, you know, I've heard myself and Dave as well, that, you know, founders always need to stay around company because no matter what happens, or else at least he's talking about what's happened to me before, founders are important. And he said that DNA. Okay, so final question before we break for me, if you want to answer that final question, is share with us going forward in your mind's eye through the arrow forward a couple of years, three to five years, what will the cloud environment look like? Well, how do you see it unfolding? And it doesn't have to be specifically around SAP, because in general market place, there's a small technology. His goal is to add a million developers to the business. But your goal has got to be to appeal to those individuals. It's a major challenge for a company that, you know, has always focused on its largest customers. You make a good point, but one of the other ways I look at that is if you look at the studies around millennials and how they consume software, how they actually interact, how they text, how they multitask, how they collaborate, it's very different from how we grew up when we worked within the tech environment. Absolutely, yeah. And there's no secret repository of kids coming out of college who are like us to use the software that we did. It's all changed. Right. So we are adapting to that change across our applications because there's applications and those platforms need to be created with a view to the mind of the people coming out of college today. And they all grew up with the internet.  Provider you went using Dafa. Yeah. We want to have you on theCUBE more. Great conversation. We'd love to expand the conversation around the important platform discussion which I think is very relevant. So if your PR analyst can make some time over the next couple of months, we'd love to have you on either remotely on theCUBE or on a peer insight. But it's great. This is the ESPN of tech. You're a tech athlete in the trenches making things happen. Thanks for coming inside. Thanks a lot. Great to meet you. Thanks very much. So this quick break and we'll be continuing wall-to-wall covers here at SAP Sapphire. And I want to say this independent coverage would not be possible without the generous underwriting support of SAP and EMC for over the years supporting us. We really appreciate them. And so virtual hat tip to them. We'll be right back in this next segment.