Lost

axehawk · Mar 21, 2002

Originally posted by Threei
Tape reading you are talking about is something of staring at ticker (T&S) trying to gauge the strength/weakness. I can't understand how anyone could trade this way. Even in more sophisticated version, like observing the blocks, spotting major players and analyzing their action it's too intense and requires incredible degree of concentration that probably would burn out a trader fairly quick.

That is how Jesse Livermore did it, and its stood the test of time. I believe tape reading and feeling out the market is the way to go. How many guys do you think read charts on the floor of the exchange and in the S&P pit???

Just a thought.

AX

Threei · Mar 21, 2002

Originally posted by axehawk

That is how Jesse Livermore did it

This is exactly the one who I consider to be my first mentor

And principles he applied go way beyond that. Intensity of trading at that time was way lower, today he would have used the charts I think

Vad

axehawk · Mar 21, 2002

I guess it depends on your time frame. I just think the guys in the pit/exchange floor represent the purest form of trading. Their are still wiley veterans down on the floor that pound out cash every day. They don't analyze charts. They just read the tape like they have been for the last 40 years.

So I'll have to disagree that Jesse L would be a chartist today. Just because we have the technology (computers + advanced software) doesn't mean it is foolproof. Although nothing is foolproof.

Actually, I'm surpised Don Bright hasn't jumped in here yet. He very anti-chart reading.

Good luck!

Ax

tom_p · Mar 21, 2002

Originally posted by axehawk
Once you have lost all your $$$, kick yourself in the balls and call it even.

This would be a little difficult for Jeannette. If, however, you accompanied her, she could kick you in the balls, call it even and you could then enjoy the free drink

Threei · Mar 21, 2002

I actually agree with this. The reason I think trader of Livermore scale would be using charts is, it seems not possible to focus that intensively on many stocks. Trader in the pit using this method isn't likely to LOOK for familiar situation aming many stocks, he monitors very limited amount of those he is familiar with intimately (at least that's how I see it, maybe not entirely correct).

In order to see events that happened before you staretd monitoring stock closely you would still have to use chart, tape is just not as convinient. And, when I say chart, I mean still the same price - volume - pace, so it's still the same tape reading, just different media.

Vad

axehawk · Mar 21, 2002

Originally posted by tom_p

This would be a little difficult for Jeanette. If, however, you accompanied her, she could kick you in the balls, call it even and you could then enjoy the free drink

OOoouuuccchhh!!! eek: LOL!:

Personally, I think "1-post Jeannette" is actually a snakeoil salesman in disguise getting to peddle his trading system to Elite members. Its not like this hasn't happened before on this site.

But I could be wrong.

ax

Lightningsmurf · Mar 22, 2002

I often see minimum volume recommendations. This makes sense because when I want out, I want out NOW.

My question is: Should traders consider a stocks average volume in terms of being TOO liquid?

I ask this because I sometimes find that my position trades are more apt to get stopped out on "thick" stocks. For example: if I buy 200 shares of GE with a $350 stop loss then I feel as though I'm more apt to get stopped out than with a thinner stock, but with similar daily volatility. Am I nuts? Or is this a real phenomena?

Don Bright · Mar 22, 2002

Originally posted by Lightningsmurf
I often see minimum volume recommendations. This makes sense because when I want out, I want out NOW.

My question is: Should traders consider a stocks average volume in terms of being TOO liquid?

I ask this because I sometimes find that my position trades are more apt to get stopped out on "thick" stocks. For example: if I buy 200 shares of GE with a $350 stop loss then I feel as though I'm more apt to get stopped out than with a thinner stock, but with similar daily volatility. Am I nuts? Or is this a real phenomena?

If you think about it, wouldn't just the opposite be true. The more liquid a stock is, the more shares between your entry price and your stop. Take bank stocks for example, they are extraordinarily liquid, so many traders simply trade really big size to make nickels and dimes, so they wouldn't have a 20-30 cent stop triggered (we never recommend actual stops anyway, always use "alerts" and "mental stops"....

MUChris · Mar 22, 2002

Just a suggestion, you should do your own research (based on the old argument, if the other guy was so good at picking stock why would he tell the whole world, yada yada yada)

Anyway, maybe starting out reading some books and checking out sites like www.fool.com would be better than paying someone else. Also, that gives you time to learn about the market BEFORE throwing your money at it. The old dive right in principle will not make the pool warmer to you any quicker in the stock market.

Chris

TNO-Mike · Mar 22, 2002

Two scanning devices, the Tony Oz Scanner and Hottrend have a wealth of information on the web that you can read to help understand them. Check out www.tonyoz.com to read about the Tony Oz Scanner and for information on Hottrend take a look at http://www.realtick.com/about/packages/Hottrend/hottrend_introduction.asp. Mike Felix, a cofounder of Hottrend, did a chat on Elite Trade last month with the transcript posted on ET's Home Page that provides some good information too!

Good Luck!

Michael Garvey
Client Services
Terra Nova Online