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Tape Reading Strategies for Volatile Markets
Specs: 33 mins, 00 secs | 15.1 MB
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Jeff is a true tape reader. Take away charts, indicators and news and he could still make money every day in the markets. He truly uses just price, volume and occasionally a Level 2 screen to find good trades each day. In this interview he tells us how he does it. We discuss the types of stocks he day trades and the kinds of things he looks for in the tape to see where big size traders are hiding. We discuss how he finds high probability setups and why ideally he wants a trade to give him a 10:1 (reward:risk) ratio. We also talk about how he sets positions sizes and when/why he scales in and out of trades.

Markets discussed: Stocks


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Tape Reading Strategies for Volatile Markets


Tim: Hello everybody. Welcome back to another interview with the Trader, Tim Bourquin here from traderinterviews.com. My guest today is Jeff. We've interviewed a couple of people from his firm before but I wanted to get Jeff on the line and talk to him about his trading strategies and how he approaches the market. It's an interesting time to be a trader obviously with all the volatilities. We are going to find out what kinds of things that Jeff looks for. So first of Jeff, thanks very much for joining me on the phone today.

Jeff: Oh, thank you for having me Tim.

Tim: All right. So, if you could kind of describe your overall philosophy or approach to the markets and if it has changed over the years, but kind of talk about the kind of trader you are, what -- you know, day trader, swing trader and then what markets do you trade?

Jeff: I am a pure day trader and I best consider intraday trend. I am looking to find spots where I can get in and try to hang on for the day, you know for the duration of the move whether it be a couple hours or the whole day or whatever it be, like that. Not a scalper at all.

Tim: Okay. So, do you find that you are finding most of your opportunities say in the first hour and then holding them almost to the close?

Jeff: Not almost to the close. The morning then lunchtime, you know we will look for the retracements and that, and then try to get back on board. You know, the stock will tell us. We will take some off and then get some stops in and look around. Sometimes it depends -- you know in this day, we are dominated with hedge funds in that. So, a lot of what I do in the morning is I'm looking for sectors where the hedge funds are going to be real active. We're using that old fashioned -- little old fashioned, using high at a day ticker and a low...

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