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 ascertain 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 are going up,” 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 bulges.” Nor is it any of the hundred othe foolish things practised by the millions of people without method, forethought or calculation.
Tape Reading seems to us : The science of determining from the tape the immediate trend of prices. It is judging from what appears on the tape now, what is likely to be shown in five minutes or more. It bears no relation to clairvoyancy and we do not believe that spirits of departed friends could be of assistance to students.
Tape Reading is rapid-fire horse sense. Its object is to determine whether Union Pacific, which is now 159, will sell at 160 before158, or vice versa ; to make deductions from each succeeding transaction every shift of the market kaleidoscope; to grasp a new situation, force it lightning-like through the weighing machine of the brain, and to reach a decision which can be acted upon with coolness and precision-all within the space of a few seconds.
- Preliminary Suggestions
- The Stock List Analyzed
- Stop Orders, Trading Rules, Etc.
- Volumes and Their Significance
- Market Technique
- Dull Markets and Their Opportunities
- The Use of Charts as Guides and Indicators
- Daily Trades vs. Long Pull Operations
- Various Examples and Suggestions
- Obstacles to be Overcome-Possible Profits
- Closing the Trades-Suggestions for Students