Anyone left out there who tapereads nyse stocks and makes a living at it? It seems I'm hearing more and more each day about people and their fancy blackboxes. Starting to think that most of the trading is just between computers these days? -Guru
I know of at least one place where it's alive and for the most part - well. Couldn't say about NYSE stocks - don't trade them. But people do and a chart is a chart/ a tape is a tape, imo. I would imagine that since black boxes are made by people - even though I trade against or with black boxes, I'm still trading people whether it be ideas or emotions or a combination of both. Doesn't matter to me if it's people or machines that are built by people. If more of them are buying than selling, I want to be buying and vice versa for selling. If, it looks like they are spending more time groping crotches - I usually retreat to the sidelines. = trying not to daytrade too much of the chop. I think that decimals instead of fractions has led to more crotch groping. Just my opinion.
I recommend "Studies in Tape Reading" written by Richard Wyckoff under the pen name Rollo Tape. It was written in 1910 but many of the main principles still apply. Definitely should be read with the modern markets (and modern regulatory stucture) in mind -- as many of the assumptions regarding what drives the market are specific to the era. It's worth it just for the references to the bizarre companies that existed at the time (my favorite is International Stove or somesuch). I also saw a book on tape reading at borders the other day but I didn't browse it. J
I dont think taperading is dead but it is different. I think the ability to read the NYSE tape and scalp is a tough way to go these days, once the nx came in and the inside quote often goes to 1x1, it has become very hard to really get an idea of what is going on. The open order book has limited value in my opinon as the outside quotes are being painted or minipulated by traders. However, it is possible to recognize strength and know when it is there by watching prints and share price movment in realtionship to the over all momentary strength and weakness of the market. It is always necessary to be fluid in ones apporach, as soon as something starts working and becomes subscriped to by the masses, the apporach will inveitabley fail as trading the market will rarely accommodate the masses. Remember when Soes trading worked until there was a Soes firm on every corner, or cookie cutter technical indiactors, once they became available on every software progema on the nternet the usefulness dimninshed,same thing with NYSE tape reading in my opinion, everything changes and one has to view the whole picture and adapt, what I find helps is to keep in mind what every trader is looking at and realize that the opposite side of the trade will be right more then wrong. Trading is truly an art not a science, black box technology will also have a limited life span in my opinon.
Because of the lower volatility. Tape reading still works, but its only worth an extra 5 cents now on a $80 stock instead of an extra 40 cents. And the market is so thin that only 1 person on the planet can get the good fill versus 10 traders.
I trade off the tape on extremely low volume listed stocks and it works just like in the olden days. No games, real size, bids you can lean on and they'll stay there, etc. Just that it's hard to get off any substantial size unless you can get in on a large print.
Ehh I would not go that far. Maybe before dead volume and volatility. I have a few stocks I can still tape read real good but if volume goes down it does not matter how well you tape read, you're getting taken for a ride.