Do I need to remove tranny fluid?

I just purchased a nice used 2001 Dakota with the 4.7L engine and I'm still getting used to the truck.

This morning I checked the tranny fluid level on the dipstick on a stone cold engine (overnight low around 40 degrees) and with the engine turned off I just pulled the dipstick and expected to see the tranny fluid level at the Cold level on the bottom end of the stick. Instead the transmission fluid is clear up above and slightly surpassed the Hot holes on the dipstick.

I'm wondering if I am reading my dipstick correctly.
Even on a cold engine do I need to start the truck and put the truck in neutral...and then take a Cold reading on the dipstick with the engine running, or am I supposed to take a cold reading with the engine turned off?

I apologize if this is a stupid question.

Harkauto

The only stupid question is the one you dont ask. The engine has to be warmed up to operating temperature, (drive it). Then check the fluid level with the engine running, in Park and the emergency brake set. Truck must be fairly level also.

The only stupid question is the one you dont ask. The engine has to be warmed up to operating temperature, (drive it). Then check the fluid level with the engine running, in Park and the emergency brake set. Truck must be fairly level also.

Thanks DeltaP for the info.
After sending this message, I thought........well you dummy.....why don't you see what the owners manual says about this".
I found that it says exactly what you said only to put the gear selector in neutral.
And then I thought..."if the instructions say to check the tranny when hot, then what is the purpose of a Cold mark on the dipstick?
I guess maybe I think too much.
Thanks again!
Harkauto