Fighting The Tape

DEFINITION of 'Fighting The Tape'

The action of placing a trade or trades that go against the ticker tape. Fighting the tape is viewed as a contrarian stance, as traders who choose to trade against the tape are taking positions which oppose the general market perception. Traders who buy when the rest of the market is selling might say they are buying when there's "blood in the streets."

BREAKING DOWN 'Fighting The Tape'

Someone who is buying stocks while the overall market is falling is said to be fighting the tape. Many traders say that fighting the tape is a cardinal sin. In volatile markets, however, choosing to fight the tape can lead to profitable trades, since such markets can make directional changes very quickly and abruptly. Conversely, traders can also lose their shirts if the market continues to move against them for a prolonged period.

RELATED TERMS
  1. Broad Tape

    A modern version of the ticker tape produced by the Dow Jones ...
  2. Ticker Tape

    A computerized device that relays financial information to investors ...
  3. Digits Deleted

    A designation on an exchange's ticker tape that refers to the ...
  4. Tape Is Late

    A situation on the trading floor where trading volume is so heavy ...
  5. Consolidated Tape

    An electronic program that provides continuous, real-time data ...
  6. Runoff

    The procedure of printing the end-of-day prices for every stock ...
Related Articles
  1. Trading Strategies

    A Legendary Market Skill Experience Traders Have

    Tape readers interpret complex background data during the market day to gain a definable trading edge over the competition.
  2. Trading Strategies

    5 Ways To Adapt To Tough Markets

    Tough markets undermine profitability and lower self-confidence. Fight back with five simple but powerful rules of engagement.
  3. Trading Strategies

    Consider The Season On Trading Day

    Calendar and clock bias, better known as seasonality, is a frequently misunderstood concept that exerts a huge influence on the ticker tape.
  4. Technical Indicators

    Break Down Modern Market Trends To Grasp Movement

    Convergence points to dynamic conditions that can elicit strong trends while divergence suggests conflict, more typical of rangebound price action.
  5. Trading Strategies

    Why & How To Reevaluate Your Trading Strategy At Midday

    Take a step back at the lunch hour and reevaluate the trading day.
  6. Investing

    Top 5 Reasons For A Stock Slide

    Prices seldom drop without cause. Find out what might make your stock hit the skids.
  7. Active Trading Fundamentals

    Four Steps To Manage A Downturn In The Market

    A few simple adjustments could end your losing streak as soon as it begins.
  8. Professionals

    A Day In The Life Of A Day Trader

    Day trading has many advantages and, while we often hear about these perks, it's important to realize that day trading is hard work.
  9. Active Trading

    Getting Through The Rough Patches In Trading

    Learn how to recognize and adapt to tough times in the markets.
  10. Trading Strategies

    Can Perpetual Contrarians Profit As Traders?

    Succeeding as a contrarian is all about knowing when to act on your opinion about the next turn in the market.
RELATED FAQS
  1. Which of the following equity trades would appear on the ticker ...

    Free info on financial certification exams including study guides, exam questions, and much more! Read Answer >>
  2. What does churning mean?

    A. Trading with yourself, or with someone else in attempt to make the tape appear more active than it really is.B. Trading ... Read Answer >>
  3. Why do all mutual fund tickers have an X at the end?

    It's true that all mutual funds' tickers have an X at the end of their symbol. The reason for this is to distinguish between ... Read Answer >>
  4. Excessive trading is:

    A. acceptable if the client is young enough to recover from any losses before retiring.B. acceptable if the firm mandates ... Read Answer >>
  5. How do proxy fights work?

    A proxy fight occurs when a group of shareholders in a particular company attempts to join together to effect change in a ... Read Answer >>
  6. What is the difference between investing and trading?

    Investing and trading are two very different methods of attempting to profit in the financial markets. The goal of investing ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center