Reading the tape is all about reading the psychology in the market and the underlying order flow. This stuff is not rocket science; tape reading boils down to identifying the buyers and sellers and following those with the big order that move stocks. Recognizing the buyer and sellers is easy part, the hard part is putting that together with all the other variables: the importance of the price at which the person is buying/selling , the time of the day, the type of play available because of this, is this person wrong short term? too aggressive? Taking his/her time filling the order? etc. You get the point.
The purpose of this training program is to teach you how to identify those big buyers and sellers. Then we break down most of the trading possibilities available based on all the other variables afore mentioned. We have tried to simplify tape reading and offer you a few trading setups that are best for those traders just learning about reading the tape.
It is important for you to understand that it will take some time to develop this important skill set so use this training program as the foundation. It is through practice and hours upon hours of watching the market and watching tape of your trading that you will master the plays discussed in our manual.
The program is laid out as follows: you will first learn about the level II and all the flashy numbers you see on the screen. It is important to get familiar with the trading jargon as covered in the glossary. Next we will delve into understanding the prints to get information about the stock. A very thorough quiz is given at the end of this session. You must make sure to be extremely comfortable with the terminology before proceeding from there.
Then as the foundation has been set, we will cover the most important topics on tape reading: held bids/offers, unusual holds, and hunt orders/white prints. You will learn the differences between these three. You will watch several videos with examples and test your understanding of these three topics.
Next we move onto the psychology of tape reading and the mentality you must have for the different trade setups. We will talk about the different times of the day, what type of plays work best, what type of questions you must ask yourself before entering a trade, teach you how to think like the big player, and we teach you how to always be thinking about your position.
With all that knowledge then we can then get to the fun part: Trade Ideas, Trading Plays and Trade Execution. First we will cover how to find trade ideas and how to get some clues about potential held bids/offer from looking at a chart. Next we will talk about all the different trading plays that arise from held bids/offers and hunt orders. We will break the plays into two separate groups: Scalp plays and Big Picture Plays. Under scalp plays we will cover support, resistance, range, momentum, and fade plays. Under Big Picture Plays we will cover big intraday levels: support & resistance, breaks, consolidation, trend and unusual hold plays. We will offer suggestions on how to properly execute on all of these plays so you we eliminate all the guessing from trading.
As a final note it is important to understand that this last part of the manual is the most intensive. When you finish the training program you will feel like you can now take over the world and that you are now ready to properly execute on any of the plays laid out for you. Unfortunately, when the bell rings next day you will find that it will be much harder than you originally thought. Do not be discouraged.