ARE U A DAY TRADER ?? ART OF TAPE READING

What is Tape Reading?

This question may be best answered by first deciding what it is not.

• Tape Reading is not merely looking at the tape to determine how prices are running.
• It is not reading the news and then buying or selling "if the stock acts right."
• It is not trading on tips, opinions, or information.
• It is not buying "because they look strong," or selling "because they look weak."
• It is not trading on chart indications or by other mechanical methods.
• It is not "buying on dips and selling on peaks."
• Nor is it any of the hundred other foolish things practiced by the millions of people without method, planning or strategy.

It seems to us, based on our experience, that Tape Reading is the defined science of determining from the tape the immediate trend of prices. It is a method of forecasting, from what appears on the tape now in the moment, what is likely to appear in the immediate future. Tape Reading is rapid-fire common sense. Its object is to determine whether stocks are being accumulated or distributed, marked up or down, or whether they are being neglected by the large investors.