March 21, 2011
Tape Reading Strategy for New Day Traders to Practice
Bracketing the time and sales window
Tools I need:
– Time and sales window, not filtered, real time data
– Notepad
– Stopwatch (second hand on the clock)
What to do:
– Watch my time and sales window for 20 second (could be 30 or 45 secs)
– Make note of the HIGHEST price I see, and the LOWEST price I see
– I am then going to watch the relationship to the highs and the lows
Objective:
– Condition your EYES to read the tape
– Learn how to find the highs and the lows, and the relationship between the two
Challenge:
– Spend 10 mins a day for 10 trading day
– Practice this for 10 minutes and your tape reading will improve.
Best time to use tape reading:
– Entries
– Exits
– Looking for market sentiment around specific levels (HOD/LOD, double-tops/bottoms
Avg income for our traders:
· Fast Track = 30 tics per day per contract
· 1 lot = 300usd/day
· 10 lots = 3000/day
· Advanced method = 4lots = $1,000
· 30 ticks per contract per day
