hello frineds this is sumit here i m new here also in the market i want learn a tape reading how to look at tape ?? on what basis you take a trade either long or short what basis you know buyers are strong or seller i need help to understand it because my losses is bigger than my profit i am frustrated dont understand what to do....
How do we read?
By telling ourselves a subjective story of what we're seeing, feeling, reading, observing, understanding.
Example of how I "read" the tape and tell myself a story:
Who's losing? Who's winning? Who's fearful? Who had or has good trade location? Who had or has bad trade location? Who's confident? Who's disappointed? Who's assuming more risk by trading long or short right now? Where can I risk a little to make a lot? I see an opportunity, does it fit my money management plan? Who's probably going to take profits soon? Who's probably not going to take profits soon? Where are the losers trading?
How I use the story:
Generally, I just look to do the opposite of what I think the losers are doing (that may take you some time to figure out for yourself), and I only trade if the opportunity fits within my money and trade management plans and strategies which I engineered to fit my knowledge of self and the markets.
Start making observations yourself. Learn how and why certain kinds of patterns repeat. Lastly, figure out how you can trade them by engineering solid money and trade management plans and strategies. Last but not least, you need to put in the work. It may take several months, or several years of studying 8-16 hours a day. You should also keep in mind that most people never never make it in this business. From what I've heard, probably less then 1 in 2,000 traders are consistently profitable for more then a year.
Last edited by Portland; September 27th, 2016 at 10:07 PM.
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In my experience, reading Price Action is more reliable then T&S. Watching the T&S can be very deceiving, but Price never lies. It's objective data. However, it can also depend on the particular market. For example, it's much easier for me to trade off the CL T&S then the ES T&S (which I mostly ignore).
If you day trade equities like your profile suggests, unfortunately I wouldn't have any idea what to look for because I don't have experience with those.
Last edited by Portland; September 27th, 2016 at 05:06 PM.