Tape reading is one of the long lost arts of trading, yet it is one of the most powerful tools that traders have at their disposal. Tape reading started when traders literally read stock ticker tapes to gain insight into patterns and market psychology that could not be gleaned from corporate financial reports. Many of the greatest traders of the early to mid-twentieth century, from Jesse Livermore to Richard D. Wyckoff, were master tape readers out of necessity, because modern charting and technical analysis wasn’t feasible before the computer age.
While these early traders couldn’t pull up flashy looking charts with instantly-drawn indicators, they gained a feel for market psychology that many of today’s computer-based traders simply do not have. Though quant or technical analysis-based trading is all the rage right now, I believe that the best approach is to go back-to-basics and revive the long-lost art of tape reading. In all of my stock trading, and the courses that I teach at Cyber Trading University, I place a very high emphasis on tape reading with a modern twist.
A Valuable Art thats All-but Forgotten
I believe that traders who are extremely skilled at reading the modern-day “tape” (which includes time and sales, Nasdaq Level II, Bookviewer, and more) have a distinct advantage over traders who only follow chart patterns and indicators. The problem with those more modern forms of analysis these days is that trading algorithms and high frequency trading programs are designed to detect them and create “fake-out” moves that trick the majority of traders that use them. By tricking these traders, the savvy smart-money traders are able to trade against them. Modern-day tape readers, on the other hand, are able to see and read order flow and detect market maker traps, which allows them to trade alongside the smart money and earn consistent profits the way they do.
Modern tape readers are few and far between these days, and there are even fewer trading schools or instructors who teach this long-lost art. In addition, there have been virtually no modern books written about tape reading, which makes it even harder for traders to learn. In fact, Cyber Trading University is one of the only schools that actually teach the skills necessary to become a modern tape reader and gain an edge over other conventional market participants.
If you want to become a modern-day tape reader yourself, you can attending one of Fausto's courses and gain this long-lost knowledge. Please email us at Fausto@ctutrading.com or call Cyber Trading University at 1-877-702-9237 to learn more.
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