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To: marc chatman who wrote (7143)	11/5/1997 6:08:00 AM
From: steve goldman	Read Replies (2) \| Respond to of 11057

Watching the tape is what the name implies. It means, that as a trader, you watchthe action in a stock. You watch the prints, theprices, the volume, the acceleration or deceleration in volume, the strength and weakness as well as the marginal strength and weakness in the bid or offer, you watch all other cos. in the sectors, etc. to determine if a stock is being actively bought or sold, acquired or distributed. Then I add little fundamental analysis since I don't like trading and more so dont like owning overvalued crap, and then you determine when you want to buy. The point is, if there is a good buyer or good seller, they can't hide their intentions. You see the pieces. A buyer of 100,000 doesnt do it in one piece, and they can't entirely mask it. Experience, and a good eye make a good trader. But not necessarily a good investor. I now great traders who stink at longer term stock picking, allocation, timing etc. I now top quality money managers who dont know what level 2 is. Level2 is the inside market for OTC stocks. It is displayed dynamically. Go to www.yamner.com, then yamner univ, and then yam library, check out some of the good docs and explainations on the OTC market. We did a nice job there, I think. Tape watching, I have found it an excellent tool, have made it my discipline and its has helped me become head trader at our firm. This, though, might be more appropriately addressed on the Trading desk Thread. www4.techstocks.com Also, one of the thread posters, Graham, was going to start a subthread on tape reading. I am not sure of his approach,etc. but I will probably join in there as well. Regards, steve@yamner.com