Profitable Day Trading By Reading The Tape
Profitable Day Traders Know How To Read The Tape
Making money by day trading is easier by knowing how to “read the tape”. Tape reading is a basic skill for day traders. There are many fundamental aspects to learn in order to be a consistently profitable day trader, but the one basic requirement is learning how to read the tape. What this refers to is learning how to interpret price action and specifically price action over time. The market goes up and the market goes down but successful day traders know that they need to have more than a one candle view of where prices are going. There is no one perfect tool or one perfect method to day trade successfully, but there are basics, and learning how to read the tape is one of those basics. In this video, I give an example of knowing how to read the tape.
Anyone who wants to learn how to day trade S&P emini futures needs to have as much information as possible in order to help determine where to place a trade. Trading is not easy to do because it is impossible to know the future with any degree of certainty. But the market does give off signals and a wise trader needs to know how to interpret the signals. Market prices seem to move erratically, but with enough information, trading S&P emini futures can be done with a greater assurance of success. An S&P emini futures trader who has Information about market signals and knows how to use them makes knowledgeable traders much more successful than others who use “seat of the pants” method.
Some of the information that S&P emini futures traders should have are:
- The Trend
- The Intraday and / or Low
- The Calculated Trading Zone via Taylor’s Book Method
- The daily calculated range
- Support and resistance levels
- Stochastics
- Candlestick patterns
These are some of the bits and pieces of information every trader needs to have in order to assess a trade. Of course, that is not to say that even with all this information a trade will work out, but having this knowledge puts the odds of success more on the trader’s side.
Having as much information as possible gives S&P emini day traders a big advantage over “seat of the pants” traders. It cannot be stressed enough that without learning as much as possible about the market, it is highly unlikely that a trader will succeed at making money by day trading S&P emini futures, much less in a trading career.
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