Book : Techniques of Tape Reading
“The RealityTrader mentor team are professional traders who are generous enough to share their style of trading with you and teach you the best truths abut trading what you see, following the tape and taking one trade at a time.” –Linda Bradford Raschke, New Market Wizard and co-author of Street Smarts
From the Back Cover
How Time-Proven Tape Reading Techniques Can Help You Dramatically Improve Your Trading Performance
Technical analysis is invaluable at enhancing traders’ performance in today’s up-one-minute, down-the-next markets. But surprisingly enough, as hyperspeed personal computers and complicated trading programs lure technical traders with their flash and hype, it is one of the oldest forms of technical analysis–tape reading–that is consistently proving its effectiveness and predictive accuracy in the heat of the trading day.
Techniques of Tape Reading shows technical traders how to incorporate the best aspects of tape reading into a modern trading plan. It explores how volume and price are impacted by seemingly random–but in fact quite predictable–aspects of traders’ behavior, and how traders can use this knowledge in swing trading scenarios to:
- Improve entries and exits in up, down, and non-trending markets
- Spot–and follow in–the footsteps of the smart money
- Capitalize on emotional, irrational behavior of the trading majority
In any market environment, a select group of knowledgeable traders will drive the behavior of other traders, and influence the ups and downs of the market itself. Discover how to identify the subtle activities of those traders, and capitalize on their abilities to profit from the self-defeating moves of the unskilled and unschooled, in Techniques of Tape Reading.
“Many traders overwhelm themselves with vast amounts of studies that cloud their perception. We are not concerned with creating certainties in the market, because the market is too random to believe that we can achieve certainty. We are concerned with putting probabilities on our side. Remember that there is no Holy Grail for trading. But there is a window of truth into the market, and our tape reading principles can allow this window to be wide open for your domination of the trading arena.”
—Techniques of Tape Reading
Before the Internet, onscreen trading, or even television screens, traders followed markets by watching actual trades emerge from ticker tape machines. These tapes revealed where the market had been and which direction it was moving, and allowed traders who understood market movements to concentrate on the realities of the markets, discern their own patterns, and increase their opportunities for winning trades.
Techniques of Tape Reading breaks through all of today’s hype, rumors, and disinformation to concentrate on similar techniques for trading the reality of the markets. But where yesterday’s tape readers could make decisions based only on static stock movements, this proactive book reveals how modern traders can integrate time-honored tape-reading techniques with modern technologies and techniques to:
- Determine how the smart money is trading, and follow their lead to profit from “the herd”
- Employ advanced yet easy-to-implement timing strategies to select more profitable entry and exit points
- Know when a price movement has been exhausted–and your position should be liquidated
- Make trading more orderly and profitable by selling partial positions into price/volume spikes
- Build and play more accurate and profitable set-ups
In a typical market, the majority of traders are generally wrong. They consistently ignore what the market is telling them, relying instead on market rumors, forum gossip, and hot tips. They trade what they think instead of what they see–and, most of the time, what they think is guided by all kinds of stock promoters who are only interested in taking their money.
Techniques of Tape Reading shows you a more intelligent way. It reveals a step-by-step process for moving into an unemotional state of trading reality, acting on the ultimate truth of stock movement, price, and volume instead of destructive and misleading rumors and gossip. Let it show you how to use the age-old rules of tape reading to follow what the top traders are doing today, and dramatically increase your ratio of trading profits tomorrow.