This is How You Should Read the Tape

Dear Traders,

This is Brian, writing on behalf of Andrew.

For my first trade today I borrowed a page from Thor’s camarilla pivot strategy. NVDA broke higher at the open but as it approached R4 I expected a pullback so I shorted it.

I did not stay long in the trade as I recognized the price action buying strength and large orders waiting at higher prices, so I covered and waited for a breakthrough of the R4 level before going long. NVDA stayed strong for most of the day and I made money going short then flipping to long.

Just like Paras, you have to let the price action tell you where the stock is going.

Today in the chatroom, Paras showed how he strategically added to his position to optimize profits.

Adding to a position refers to increasing your investment in an active trade when market conditions are favorable. For example, a trader who holds a profitable position may purchase more shares to leverage continued momentum. When executed correctly, this tactic enhances profits but requires careful analysis, as the risk escalates if the market reverses.

So how does Paras have a higher chance of being on the right side of the trade? The answer is tape reading.

Tape reading is a day trading technique that involves analyzing the raw price action and order flow from the market. Tape reading focuses on monitoring the bid and ask sizes, executed orders, and the speed of these transactions to gauge the supply and demand dynamics in the market.

By mastering tape reading, day traders can identify shifts in momentum, spot large institutional trades, and better time their entries and exits. This skill helped Paras anticipate potential reversals or continuations of price trends this morning, providing him with more confidence when adding to positions or managing existing trades.

Paras has a course on Trading Terminal that shows the step-by-step process of how to read the tape. We’ve had many students who took his course and increased their profitability by reading the tape.

Learn More About Reading the Tape

This week we have important webinars both at Bear Bull Traders and Trading Terminal. Here’s what’s coming up until Wednesday noon:

• New Members Onboarding & Technology with Carlos
  Every Monday — 8:00 PM ET in the Onboarding Room.
• Strategy & TradeBook Webinar: Introduction to Futures Trading with Thor
• October 8, 2024 — 8:00 PM ET in the Webinar Room.
• Bookmap Webinar with Nathan
• Every Wednesday — 12:00 PM ET in Webinar Room.
• How to Trade the Opening Range Break Setup with Lenny
• Thursday, October 10 — 7:00 PM ET in Trading Terminal Webinar Room.
• Over the weekend I was going through the Funded Training Accounts and I found some interesting patterns.

Many new traders are good at consistently making profits but most of them lose the majority of their accounts in one or two bad trades. This is one example of how the trader was consistently growing until they blew up the account after 2-3 weeks of great trading.

Even Andrew and I make mistakes after years of trading, but we have learned the lesson how much to risk per trade and how to stay in the game. Many of you might even remember the $2 million loss Andrew had a few years ago. If you have followed his journey you know how he stayed disciplined and recovered all those losses.

I highly recommend using a Training Funded Account like the one in our Diamond Annual Membership to practice your psychology and trading skills.

These type of accounts give you the opportunity to feel the mental pressure and all emotions like excitement, stress, anger, and loss. It is normal to have all these emotions, especially when new to trading but the key is to keep them under control and avoid bad trades that lead to blowing up your account and savings.

Get 50% Off Diamond Membership

Andrew has begun his summit push on Cho Oyu, after spending a night at Camp 1 (6,400 meters / 21,000 feet) and resting briefly at Camp 2 (7,000 meters / 23,000 feet). His goal is to reach the summit by sunrise on October 8th (local time) which is this evening EST.

With temperatures between -30°C to -40°C (-22°F to -40°F) and oxygen levels at just 30% of sea level, this will be a challenging climb, but Andrew is fully prepared and using supplemental oxygen to safely climb at these high altitudes.

By now, he should be well into the summiting process, and we’re all eagerly awaiting his next update.

Stay tuned for more updates on Andrew´s amazing expedition to climb Cho Oyu.

See you in the chatroom,
Brian