Tuesday, January 08, 2008

Daily Summary


CF was my biggest winner. I traded it with 100 shares and caught a few three $1+ moves on the shortside. This stock is not easy to trade and late entries can be costly because it is thin and can move $1 in a minute. Today I did good in this stock by picking some good spots.


LP said...

I'm struggling a little to understand the concept of Bid and Ask near tops and bottoms. What should you look for to recognize reversals. When you look at the bid and ask prints. Any help would be much appreciated. Also miss your posts I know you are busy but share you wisdom brother when you have a moment.

OBAT said...


I am trying to find a way to answer your question. If you want to understand tape reading you need to study 1 or 2 stocks and watch the prints and also the bid and ask quotes. After awhile you should get a feel on how to read the tape.

When I look at the tape I use a common sense approach. Here's an example. I go long a stock at 70.95 and the stock keeps printing at 80.

The bid and ask is 50x10 70.99 80. I got to ask myself why doesn't the stock break 80? Usually that means there's a seller at 80 so I will get out of my long if the 5k bid at 70.99 is taken out.

I think this thread from elite trader will help you understand it better.


OBAT said...

The address I posted earlier was too long and it got cut off.

In elite trader search for

Maverick74 and tape reading.

The title of the tread is
TAPE READING (chat room cont.)

LP said...

Thanks man...I appreciate it.

About Me

I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.