If you are trading a stock “Off the Beaten Path”, without the overriding order flow what in the tape is important? With these types of plays there are opportunities to be found everyday. These plays though require a tape reading skill that has some differences from the skills employed in trading the fresh news, overriding order flow, type plays.
One of the main reasons I like operating in this arena is because I can limit the chance of rippers! Rippers, those trades where you want to risk 10-20 cents only to get gouged for 50 cents or more. With the confidence in my ability to bypass the rippers it’s easier to hold trades longer and with better size.
What about tape reading is different in these plays? I would love to hear from you what you think the difference is in tape reading these plays. Let me know how your tape reading differs in operating “Off the Beaten Path”. I will give you my thoughts in the next post.
Jeff Davis
@Shaq48_Trading
One Comment on “Off the Beaten Path”
Hm….I don’t trade these types of stocks quite often as I tend to lose money or at best, make a little money in them. But from my personal (though fairly limited) experience, I tend to pay a bit more attention to the corresponding futures (SPY/ES) and/or the sector when trying to get a read on these stocks. I also try to limit my trades to important technical levels. Lastly, I try to determine the pattern, if any, on the tape. Perhaps a dominant market maker is buying/selling in a certain way, and I try to trade off of it. Hope that helps!