What is don't fight the tape?

This is a phrase which advises traders not to go against the market trend. So if stock prices are rising, this statement would tell you not to sell.

Where have you heard about don't fight the tape?

It's a popular piece of advice that you might have heard in relation to stock markets. It's sometimes phrased in another way - "the trend is your friend".

What you need to know about don't fight the tape.

"Tape" means the ticker tape which shows real-time stock prices. This advice essentially advises investors to follow the crowd; buy when everyone else is buying, and sell when everyone else is selling. It's based on the idea that prices for stocks, and the market overall, gain momentum so it's more profitable to trade with the trend rather than against it. However, fighting the tape can sometimes be profitable in a volatile market because price changes can happen very quickly.

Find out more about don't fight the tape.

Check out our guide to groupthink to learn more about the psychology of trading.