Techniques Of Tape Reading
Trade what you see, not what you think. That's what tape reading is about. A form of trading taught in the 1930s, tape reading is a tool of technical analysis and shows traders how to assess what a stock is really doing as opposed to what the hype is saying. Techniques of Tape Reading brings back this valuable art to today's market. People who "traded the tape" in the early days were simply looking at the ticker box and making all their decisions based on the movement of the stock. Each individual tick, and nothing else. Modern day tape reading is done in a similar fashion but without the old ticker tape machines, which no longer exist. Now, traders are jumping in full force into the modern technology offered by the Internet today.
Techniques of Tape Reading is not just reading a time/sales ticker, but understanding the correlation between the rate of change in volume to rate of change in price. This is where other descriptions fall way short of the true understanding of tape reading. No longer does the stock market have the incredible momentum we had just a few years ago. As such, traders are looking for ways to trade this type of market, which lacks momentum. The advantage of tape reading is the consistency of the method. It is profitable in both up and down markets. For traders who want consistent gains, this method has been invaluable.
Tape readers don't cloud their trading decisions with all the hype, rumors, disinformation either valid or invalid, they simply trade off what the stock is telling them to do, with no emotions. The primary reason 80 percent of traders lose money is that they trade what they think as opposed to what they see - they are led astray by all the various external input. Those that win, trade what the stock is telling them tick by tick and are not influenced by the masses who are 80 percent wrong. Techniques of Tape Reading shows traders how to take advantage of his method for consistent gains.
Publisher: McGraw-Hill Professional
Publish date: 2003-09-01
This book doesn't have any reviews yet
You need to be logged in to post reviews