What's the point of tape reading?
- Thread starter wxytrader
- Start date
just because someone can't extrapolate profitable info from the tape doesn't mean someone else can't.
I'm not saying the information isn't useful but it's already on the chart ..while you are watching L2 wondering whether the bulls or bears are going to win the tugowar on price, I have simply drawn a triangle and gone on with my day. All the money I make in stocks comes from me basically not even knowing I made money...like when I got my Lotus...I had no idea Dogecoin had rallied from .05 to .55. Real money in trading is made by accident ..not by staring at numbers.
I like your general content but this post of yours here is utter nonsense. You see shit on level 2, 2023, period. A huge percentage of orders are either hidden or routed to alternative venues and reported late. Level2 is complete and utter garbage today. It's like you driving a car and everything you see has already happened 5 seconds ago. Good luck.
Edit: I am not saying that the remaining information is useless. I ma claiming level 2 is useless, all that is needed is trades with volume and price dynamics (as limited as it already is thanks to market fragmentation) that can all be gleaned from level 1.
Edit: I am not saying that the remaining information is useless. I ma claiming level 2 is useless, all that is needed is trades with volume and price dynamics (as limited as it already is thanks to market fragmentation) that can all be gleaned from level 1.
Useful to scalpers assuming it's someone who also uses a broker that offers a trade execution platform that's suitable for scalpers.
Simply, if you're not a scalper...I wouldn't worry about tape reading especially in today's markets with algorithms, high-frequency traders, and such that are trading in mili-seconds...exploiting short-term price and liquidity changes.
Further, we're in the dawn of AI (artificial intelligence)...manual scalpers will not be able to compete although one can argue a retail scalper that's not using an automated trading system can not compete in today's markets.
wrbtrader
Assuming the MM's or the Big Players are not playing any games.
But that's the whole point of using the DOM or L2, at least for me.
I use Tape on the ES if a big order comes through that can help break or hold a S/R level. I only watch for big big junks thou, I have an alert so tape reading is not becessary.
The famous Japenese rice trader already did that in todays money.
