Q&A by Don Bright
READING THE TAPE
You often mention “reading the tape” in your articles. What do you mean by that? Please explain. Also, what trading software do you recommend? Thanks for
your help. — Moses Mannaa, via e-mail
Reading the tape is probably the single most important talent traders can develop. Each trader has a dedicated
ticker that shows every trade on each individual stock (one tape for each security). After you know the players
and the things to look for on the tape, you can successfully identify short sellers (extremely valuable!),
institutional buying, company buyback programs, and so on. This is a learned talent that floor traders have used for decades.