I was standing in front of a crowd of 330 traders and not one hand went up when I asked the question, “Who here watches your time and sales window when you trade? In other words, who here knows how to read the tape”? A rush of emotions went through me starting with shock and disbelief that so many people traded blindfolded to gratification that I was there to inform and educate. All of these traders were trading with a blind fold on and they didn’t even know it. Doesn’t it make sense that if you are going to invest in a stock that you would want to see who else is investing and what price they are buying or selling this stock?
I want to see everything. I want to see every single transaction that happens in my stock. I want to see where the smart money is buying and where the smart money is selling. Every buy and sell is recorded and printed in your time and sales window. Trading is like driving a car. In order for a car to go up the hill, it needs gasoline. In order for stock to go up it needs volume. Would you get into a car and start driving without looking to see if there was gasoline in the tank? Well that is exactly what you are doing when you enter a trade without seeing if there is any volume. We can see volume on our charts, but it’s in our time and sales window where we see what price most of the volume is happening.
By the time my 30 minutes was up, I had taken off everybody’s blind fold. I had done my job. Being an educator has its priceless moments and this was definitely one of them. Happy Trading, The Stock Whisperer
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