Sorry for my ignorance but what does this chart actually mean?

Asks and bids depth on MtGox portrayed on extremely confusing and stupid artistic way.

yes you should

it means alot.

its shows everyones bids and ask.

you should not focus solely on the bids and asks to do your trading, but it a useful piece of info.

so wow that drop

i guess bitmovements really is always right  

1.947 BTC profit after covering my previous losses. Had a couple of near-botched trades on these waves, but managed to recover.

Now I am going to be a disciplined guy and transfer this profit from the exchange and to cold storage.

My current strategy is to trade with a fixed BTC sum. Once I am over it, the excess gets transferred out until both sums are in balance, at which point, I will increase my trading threshold a little.

Thanks, it already feels a little better. Full BTC has been a decent position historically, so let's say I just made a few percent gain on my future millions.

That's actually a good idea for me as well. I do most of my trading on Stamp (My volume there means I have lower fees) but it also means there can be quite a lot of slippage in price when trading. It's not really helpful to keep trading a growing pot as eventually you stop being able to buy/sell all of it at one good price.

600$ that way to low, everyone will panic sell into our bids