Starting to hear more and more about it and starting to learn on how to tape read. I keep reading posts how tape reading is going to be dead once we go hybrid. Am I wasting my time now with trying to learn to read the tape or is tape reading always going to be around and will always be profitable..... if its done properly of course Any insight would be grateful
I don't think so. No matter what, you have to develop some sense of how the market moves. You can call that "tape reading" if you like. The games change constantly, so no fixed set of observations will work, but there is no way around looking at the price (and charts if you like) for an extended period of time to get a sense of how things play out. I've been at it since 96 and still look at T&S + charts every day.
"It would not surprise me if the persons who in the future follow my methods of keeping these records get even more out of them than I have. This statement is based on the premise that, whereas I arrived at my conclusions some time ago, as a result of my record analysis, those new people who begin to apply this method may very readily discover new points of value that I have missed. I would further clarify this by stating that I have not looked for any further points, because, applying it as I have for some time past, it has entirely served my personal purpose. Someone else, however may develop from this basic method new ideas which, when applied, will enhance the value of my basic method for their purpose. If they are able to do so, you may rest assured that I will not be jealous of their success!" - Jesse Livermore, 'How to Trade in Stocks'
Well I am in a class right now and we are discussing a brief overview of what day trading is all about. Seemed the core method of trading at this place "as I assume all day-trading firms" is basically Time and Sales and volume and being able to interpret them to make a logical choice on when you have a low risk set up to make a "smart" trade. Seems great until I read on how the "hybrid" style of trading is going to kill day-trading. I am just trying to see how people view day-trading in the next year or so with the new hybrid style. Would hate to use a year of my life learning a trading strategy to find out its useless.
I hear tape reading thrown around a lot, rarely described is a useful way. Give one example of a setup and tell me how it would be dead.
Actually, a more advanced type of tape reading seems to be on the horizon. We still have all the relationships between FV, prem/discount, sectors, depth and breadth of of the individual stock shares...plus the added need to see the where the liquidity is being taken/provided from or to. My conversations with the GS NYSE hybrid big whigs leaves me with the impression that there is still a long way to go before we have too many functional changes... We have to wait and see, I'll do my best to keep you all informed. Don
For those who don't know... what's hybrid trading? A link or short definition would be appreciated. TIA