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Frequent Contributor

Fighting the tape

This summers market re-inforced a very valuable lessson I learned years ago .... not to fight the tape but to roll with it. Jen made great calls on the rain;  that weather wasn't ideal and that rain amounts weren't gonna be widespread.  Yet the market continued to fall. Some fought the tape and fighting the tape is hard on your account and on your trading psychology. I have employed 3 methods to prevent this ....1. never trade against the macd. 2.Never trade w/o stops and after watching the macd for a while you can fine tune stops. 3. Time is more important than price. Computers don't care what the price of a commodity is they care what direction it is going and when it reverses and time is the indicator for that. There is a great timer that posts on here. I would encourage you to join him. It will help to not fight the tape. Time, stops,  and macd have been my medicine. Neither is always correct but both help prevent fighting the tape.

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3 Replies
Veteran Advisor

Re: Fighting the tape



Good post.  Everyone has their way of trading and what is good for you or me, might not be for the other traders.  Jen did fight the tape and she knew more than the Chicago Traders, but the market did not care what Jen knew or how smart she was.  The market was going down no matter what.  


BTW, I have been trading since 1988 and don't use stops and only trade two or three days out of the week.  But I analyze the market every single day to look for opportunities to buy or sell.  

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Senior Contributor

Re: Fighting the tape

Ehoff,  Can you explain the macd and how to use it?  Much appreciated!

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Honored Advisor

Re: Fighting the tape

Wisdom that we have both learned the hard way Eddie. See you next week.

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