{"id":44263,"date":"2016-09-09T14:52:27","date_gmt":"2016-09-09T18:52:27","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=44263"},"modified":"2016-09-09T14:52:27","modified_gmt":"2016-09-09T18:52:27","slug":"reading-the-tape-is-all-you-need","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/reading-the-tape-is-all-you-need","title":{"rendered":"Reading the Tape is all you need"},"content":{"rendered":"

\"orderflowa\"<\/p>\n

Reading the Tape is all you need! For some trades and some traders that is.<\/p>\n

One savvy trader in an email exchange with veteran traders, said it so well:<\/p>\n

\"orderflow\"<\/p>\n

When we teach our new traders to make trade decisions, we ask them to consider 5 variables:<\/p>\n

    \n
  1. The Big Picture<\/li>\n
  2. Technical Analysis<\/li>\n
  3. Reading the Tape<\/li>\n
  4. Intraday Fundamentals<\/li>\n
  5. Intuition<\/li>\n<\/ol>\n

    On most trades we want our traders considering ALL of these variables to make a trade decision, so that their trade decisions are best.<\/p>\n

    But, but, but the savvy trader above said it so well.\u00a0 You can make trade decisions JUST from the tape, or order flow.\u00a0 That is enough to make excellent risk\/reward trades.\u00a0 And that is anathema to the long-standing propaganda that you must use an extensive knowledge of fundamentals to trade with an edge.\u00a0 But Reading the Tape, especially for the active trader, is enough in of itself to give you a trading edge.<\/p>\n

    I would mitigate my thesis above with some trading advise.\u00a0 Make sure that the signals from Reading the Tape are significant<\/strong> if only making trades from the order flow.\u00a0 Save your order flow trades for very large changes in the Tape, signaling a trade.\u00a0 HFTs may chop you up if you do not.\u00a0 And consider shorter-term, active trading when using the Tape.\u00a0 We say for “scalps.”<\/p>\n

    Related posts<\/strong><\/p>\n

    Listening to the flow of market conversation<\/a><\/p>\n

    Reading the footprints of large market players<\/a><\/p>\n

    Is Reading the Tape still important?<\/a><\/p>\n

    How Reading the Tape helped me play a bounce in $LULU<\/a><\/p>\n

    *no relevant positions<\/p>\n

     <\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Reading the Tape is all you need! For some trades and some traders that is. One savvy trader in an email exchange with veteran traders, said it so well: When we teach our new traders to make trade decisions, we ask them to consider 5 variables: The Big Picture Technical Analysis Reading the Tape Intraday Fundamentals Intuition On most trades … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":44264,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[338,5126,653,1354,1989,1349],"class_list":["post-44263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","tag-reading-the-tape","tag-savvy-trader","tag-trader-training","tag-trading-coach","tag-trading-course","tag-trading-mentor"],"yoast_head":"\nReading the Tape is all you need | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/reading-the-tape-is-all-you-need\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reading the Tape is all you need | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Reading the Tape is all you need! For some trades and some traders that is. One savvy trader in an email exchange with veteran traders, said it so well: When we teach our new traders to make trade decisions, we ask them to consider 5 variables: The Big Picture Technical Analysis Reading the Tape Intraday Fundamentals Intuition On most trades ... 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