How to Day Trade for a Living Quotes

“believe every trading education has three parts: The mechanical aspect (Chapter 2) The technical aspect (Chapters 3-7) The psychological aspect”
― Andrew Aziz, Day Trading for a Living

“To summarize my trading strategy for VWAP Moving Average Trend trading: When I am monitoring a Stock in Play and notice a trend is establishing around a moving average (usually 9 EMA) in the Late-Morning session, I consider VWAP Moving Average Trend trading. If the stock has already lost the VWAP (from a VWAP False Breakout), it most likely will stay below the VWAP. Similarly, if the stock squeezed above the VWAP in the Late-Morning session, it is most likely that it will stay above the VWAP, as it means the buyers are in control. Once I learn that either 9 or 20 EMA are acting as either a support or resistance, I buy the stock after confirmation of moving averages as a support, but only if I can clearly see it “held” the VWAP. Similarly, I go short below the moving averages if I have the confirmation that it has “lost” the VWAP in the Late-Morning session. I buy or sell short as close as possible to the moving average line (in order to have a small stop). My stop will usually be 5 to 10 cents below the moving average line or, if a candlestick, close below the moving average (for long positions). For short positions, a close above the moving average would stop me out. I ride the trend until the break of 9 or 20 EMA. Usually, 20 EMA is a stronger support or resistance, so it is better to wait for that. I usually do not use trailing stops and I constantly monitor the trend with my eyes, but I know that many traders also use trailing stops. If the stock is moving really high away from the moving average, offering me an equally really nice unrealized profit, I may take some profit, usually at the 1/4 or half-position. I do not always wait until the break of moving average for my exit. Traders will say: you can never go broke by taking good profits. If the price pulls back to the moving average, I may add again to my position and continue the VWAP Moving Average Trend trade. Remember, when you take profit, you should always bring your stop loss to break-even. Never go red on a stock that you already booked some profit on.”
― Andrew Aziz, Day Trading for a Living

“To summarize the VWAP Reversal Strategy: After I build my watchlist in the morning, I closely monitor the shortlisted stocks in the first five minutes after the Open. I identify their opening range and their price action. The stocks will either move higher or below the VWAP. Depending on the price action, I may be able to take an Opening Range Breakout to the long or short side. I monitor the price when it moves away from the VWAP and look for a sign of weakness. If it is above the VWAP, failing to make a new high of the day may be a sign that the buyers are exhausted. If it is below the VWAP, failing to make a new low of the day or a new 5-minute low can be a sign that the sellers are gone, and the stock can be ready for a squeeze back to the VWAP. I take the trade only if I can get a good entry and a good risk/reward ratio. Remember, most of the time stocks move really fast without offering a good entry and a good risk/reward ratio. If I am short above the VWAP, I cover my short at the VWAP and bring my stop loss to break-even. If I am long below the VWAP, I sell part of my position at the VWAP, and keep the rest for a squeeze above the VWAP (or as some traders would call it, a VWAP Pop). Do ensure you bring your stop loss to break-even, because sometimes the stock can bounce back from the VWAP as well.”
― Andrew Aziz, Day Trading for a Living

“To summarize my trading strategy for VWAP False Breakouts: Once I’ve made my watchlist for the day, I monitor the price action around VWAP at the Open and during the morning session for the Stocks in Play. A good Stock in Play shows respect toward VWAP. If the Stock in Play sells off below the VWAP but bounces back and breaks out above the VWAP, it means the buyers are gaining control and short sellers perhaps had to cover. However, if it loses the VWAP again in the Late-Morning (from 10:30 a.m. to 12 p.m.), it means that this time the buyers were mostly weak or exhausted. This provides a short opportunity with a stop loss above VWAP. The profit target can be the by then low of the day, or any other important technical level. I try to go short when a Stock in Play has lost the VWAP. Sometimes I go short before the price loses the VWAP, to get a good entry while it is ticking down toward VWAP in the anticipation of a VWAP loss. However, be very careful, for the job of a trader is identification and not anticipation. Take small size and add more shares on the way down if you have truly identified a good trading setup.”
― Andrew Aziz, Day Trading for a Living

“After buying or selling a large position in a stock during the day, institutional traders compare their price to VWAP values.”
― Andrew Aziz, Day Trading for a Living

“To summarize my ORB Strategy: After I build my watchlist in the morning, I closely monitor the shortlisted stocks in the first five minutes after the Open. I identify their opening range and their price action. How many shares are being traded? Is the stock jumping up and down or does it have a directional upward or downward movement? Is it high volume with large orders only, or are there many orders going through? I prefer stocks that have high volume, but also with numerous different orders being traded. If the stock has traded 1 million shares, but those shares were only ten orders of 100,000 shares each, it is not a liquid stock to trade. Volume alone does not show the liquidity; the number of orders being sent to the exchange is as important. The opening range must be significantly smaller than the stock’s Average True Range (ATR). I have ATR as a column in my Trade Ideas scanner. After the close of the first five minutes of trading, the stock may continue to be traded in that opening range in the next five minutes. But, if I see the stock is breaking the opening range, I enter the trade according to the direction of the breakout: long for an upward breakout and short for a downward move. My stop loss is a close below VWAP for the long positions and a break above VWAP for the short positions. My profit target is the next important technical level, such as: (1) important intraday daily levels that I identify in the pre-market, (2) moving averages on a daily chart, and/or (3) previous day close. If there was no obvious technical level for the exit and profit target, I exit when a stock shows signs of weakness (if I am long) or strength (if I am short). For example, if the price makes a new 5-minute low, that means weakness, and I consider selling my position if I am long. If I am short and the stock makes a new 5-minute high, then it could be a sign of strength and I consider covering my short position. My strategy above was for a 5-minute ORB, but the same process will also work well for 15-minute or 30-minute ORBs.”
― Andrew Aziz, Day Trading for a Living

“To summarize my trading strategy for the ABCD Pattern: When I find a Stock in Play, either from my Gappers watchlist or from one of my scanners, or when I’m advised by someone in our chatroom that a stock is surging up from point A and reaching a significant new high for the day (point B), I wait to see if the price makes a support higher than point A. I call this point C. I do not jump into the trade right away. I watch the stock during its consolidation period. I choose my share size and stop loss and profit target exit strategy. When I see that the price is holding support at point C, I enter the trade close to the price of point C in anticipation of moving forward to point D or higher. Point C can also be identified from a 1-minute chart. It is important to look at both time frames in order to gain a better insight. My stop is the loss of point C. If the price goes lower than point C, I sell and accept the loss. Therefore, it is important to buy the stock close to point C to minimize the loss. Some traders wait and buy only at point D to ensure that the ABCD Pattern is really working. In my opinion, that approach basically reduces your reward while at the same time increases your risk. If the price moves higher, I sell half of my position at point D, and bring my stop higher to my entry point (break-even). I sell the remaining position as soon as my target hits or I sense that the price is losing steam or that the sellers are acquiring control of the price action. When the price makes a new low on my 5-minute chart, it is a good indicator that the buyers are almost exhausted.”
― Andrew Aziz, Day Trading for a Living

“To summarize the strategy: An Angel is a low float Stock in Play which is gapping with heavy volume in the pre-market. At the market Open, our Angel makes a new high of the day but sells off quickly. You do not want to jump into the trade yet, not until it consolidates around an important trading level such as the low of the pre-market, or moving averages on your daily or 5-minute chart. This is where our Angel will have fallen to. As soon as the stock is coming back up with heavy volume, that is the place you take the trade to the long side. The entry signal is to see a new 1-minute or 5-minute high after the consolidation with MASSIVE volume only. You must remember that the volume on the way up needs to be significantly higher than previous candlesticks. The stop loss is below the consolidation period. The profit target can be (1) VWAP, (2) the then high of the day, (3) the high of the pre-market, and (4) any other important level nearby such as Y High or Y Low. If you don’t see an obvious support level and consolidation, do not trade the stock. If you see a breakout but it does not have strong volume, do not trade the stock. Fallen Angel is generally a difficult strategy to trade, especially since it is difficult to manage the risk in. You will have seen in the above examples that most of the drops are sharp, and if you are not quick in getting out of a losing trade, you may get stuck in a very bad position and be forced to accept a heavy loss. Remember, these stocks often gapped up significantly and can lose the majority of their gap during the day, so holding them during the day may not be a good idea, especially if volume is dropping during the day. I recommend trading this strategy in the simulator for some period of time before trading it live. When you go live, make sure to take small size. I know, it is easy to take a 10,000 share on a $1 stock, but remember, every cent up and down in a $1 stock is the equivalent of a 1% swing in your position. I usually take 4,000 shares for low float stocks below $10.”
― Andrew Aziz, Day Trading for a Living

“To summarize this pattern: when the market opens, the stock will make a new high of the day but sell off quickly. You do not want to jump into the trade yet, not until it consolidates around a trading level such as the low of the pre-market, or moving averages on a daily or 5-minute chart. As soon as the stock is coming back up with heavy volume, that is the place that you take the trade to the long side. The entry signal is to see a new 1-minute or 5-minute high after the consolidation with MASSIVE volume only. You have to remember that the volume on the way up needs to be significantly higher than previous candlesticks.”
― Andrew Aziz, Day Trading for a Living

“You are only as good as the stocks that you trade”
― Andrew Aziz, Day Trading for a Living

“Many famous traders say trading is 80% psychology”
― Andrew Aziz, Day Trading for a Living

“To illustrate this point, let’s think about the sky. When our ancestors originally studied the sky above them, they saw what appeared to be a random mass of stars. As they continued their observations, however, they came to realize that specific patterns of stars were always present. And not only were they always present, they were also so consistent that people could actually establish calendars and chart navigation based on those patterns. Of course, we know now that the sky is not random. It is based in the forces of gravity. The point that I am trying to make is that this is quite similar to the stock market. Prices go up and down, and anything can happen at any moment, but there are certain patterns that show themselves over and over again. And the good news for traders is that there's a good chance you can actually make money by recognizing those trading patterns.”
― Andrew Aziz, Day Trading for a Living

“Interactive Brokers offers a trading platform called Trader Workstation (TWS), but it also allows you to use the DAS Trader”
― Andrew Aziz, Day Trading for a Living

“This publication can be regarded as a sequel to my first book, How to Day Trade for a Living: A Beginner’s Guide to Tools and Tactics, Money Management, Discipline and Trading Psychology.”
― Andrew Aziz, Day Trading for a Living

“Rojo a Verde es otra estrategia de trading fácil de reconocer. Como mencioné en el Capítulo 5, uno de los indicadores que tengo en mis gráficas es el precio de cierre del día anterior. Este indicador es un poderoso nivel de soporte o de resistencia y los traders deben operar hacia él cuando el volumen esté al alza.”
― Andrew Aziz, Como Vivir del Day Trading

“Cada mañana, después de armar mi lista de observación del día, le doy un vistazo rápido a las gráficas diarias de las acciones en esa lista y encuentro las áreas de soporte y resistencia. Monitoreo la acción del precio cerca de esas áreas en una gráfica de 5 minutos. Si se forma una vela de indecisión alrededor de una de esas áreas, entonces sería la confirmación de ese nivel y entraría en la operación. Regularmente compro estando lo más cercano posible al nivel de soporte para minimizar mi riesgo. El nivel de pérdida será una ruptura y un cierre de una vela de 5 minutos por debajo del nivel de soporte. Tomo una parte de mi ganancia cerca del siguiente nivel de soporte o de resistencia. Mantengo la operación abierta hasta que llego a mi objetivo de ganancia o hasta que llegue a un nuevo nivel de soporte o resistencia. Regularmente vendo medias posiciones estando cerca del objetivo de ganancia o de los niveles de soporte o resistencia y muevo mi nivel de pérdida a mi punto de entrada o punto de equilibrio. Si no hay un siguiente nivel de soporte o resistencia obvio, considero cerrar mi operación en un punto igual o cercano a los niveles de medio dólar o dólar completo.”
― Andrew Aziz, Como Vivir del Day Trading

“El precio debe tener un rebote claro desde ese nivel. Si no estás seguro si el precio ha rebotado desde ese nivel, entonces probablemente no sea un nivel de soporte o resistencia. Los niveles importantes de soporte y resistencia sobresalen en las gráficas diarias. Te piden a gritos que los aproveches. Para el day trading, es mejor dibujar las líneas de soporte y resistencia sobre los precios extremos o en las mechas en las gráficas diarias, en vez de hacerlo sobre las áreas donde la mayoría de las velas se detuvieron. Esto es el opuesto al swing trading. Para el swing trading, necesitas dibujar las líneas de soporte y resistencia sobre el filo de las áreas congestionadas donde la mayoría de las velas se detuvieron en vez de dibujarlas sobre los”
― Andrew Aziz, Como Vivir del Day Trading

“Los soportes o resistencias menores hacen que las tendencias se detengan momentáneamente mientras que los soportes o resistencias principales las hacen revertirse. Los traders compran en el soporte y venden en la resistencia, haciendo de la efectividad de estos niveles una profecía que, por su propia naturaleza, se cumple a sí misma.”
― Andrew Aziz, Como Vivir del Day Trading

“Soporte es un nivel de precio donde la compra es lo suficientemente fuerte como para interrumpir o revertir una tendencia bajista. Cuando una tendencia bajista llega a un nivel de soporte, rebota. El soporte se representa en una gráfica como una línea horizontal que conecta dos o más niveles mínimos (por favor, observa la Ilustración 7.26). Resistencia es un nivel de precio donde la venta es lo suficientemente fuerte como para interrumpir o revertir una tendencia alcista.”
― Andrew Aziz, Como Vivir del Day Trading

“hablar con tu mentor, o asistir a una clase. Tienes que desarrollar tu método preferido lenta y metódicamente y luego serle fiel. Ninguna estrategia es mala si te funciona. No hay nada de bueno ni nada de malo en estas estrategias; es realmente una cuestión de preferencias.”
― Andrew Aziz, Como Vivir del Day Trading

“Como he dicho antes, las estrategias dependen del tamaño de tu cuenta, personalidad, mentalidad y tolerancia al riesgo, así como también del software, herramientas y bróker que usas. Sin embargo, deseo enfatizar que las estrategias de trading no son algo que puedas imitar sólo con leer un libro,”
― Andrew Aziz, Como Vivir del Day Trading

“Los traders dicen que nunca quebrarás si cobras buenas ganancias. Si el precio regresa a la media móvil,”
― Andrew Aziz, Como Vivir del Day Trading

“MÓVILES (MOVING AVERAGE TREND TRADING) Algunos traders utilizan medias móviles como puntos potenciales de entrada y salida en el day trading. Muchas acciones empiezan una tendencia alcista o bajista cerca de las 11 a.m. y puedes ver sus medias móviles en las gráficas de 1 minuto y de 5 minutos como un tipo de soporte o resistencia dinámico. Los traders se pueden beneficiar de este comportamiento y aprovechar la tendencia a lo largo de la media móvil (por encima para ir en largo y por abajo para ir en corto).”
― Andrew Aziz, Como Vivir del Day Trading

“, pero los Rompimientos del Rango de Apertura (Opening Range Breakouts) de 1 minuto se han convertido en las estrategias principales que utilizo. Explicaré todas estas estrategias más adelante en este mismo capítulo.”
― Andrew Aziz, Como Vivir del Day Trading

“Configuro mi escáner para que me indique qué acciones han mostrado cuatro o más velas alcistas consecutivas. Cuando veo que mi escáner agrega una nueva acción, reviso rápidamente el volumen y los niveles de soporte y resistencia diarios para ver si representa una buena oportunidad. Espero confirmación para una estrategia de Reversión Bajista: (1) la formación de una vela Doji bajista o de una vela de indecisión o, en su defecto, una vela sumamente bajista, (2) la acción está siendo operada en, o cerca de, un nivel importante de resistencia con un volumen alto y (3) el RSI debe ser superior a 90.”
― Andrew Aziz, Como Vivir del Day Trading

“Espero confirmación para la estrategia de Reversión Alcista: (1) la formación de una vela de indecisión o una Doji alcista o, en cambio, de una vela extremadamente alcista, (2) la acción está siendo operada en, o cerca de, un nivel de soporte importante y (3) el RSI debe estar por debajo de 10. Cuando veo que la acción logra un nuevo máximo en las gráficas de 1 o 5 minutos, entro en la operación. Mi nivel de pérdida es igual al mínimo de la vela roja anterior o al mínimo del día.”
― Andrew Aziz, Como Vivir del Day Trading

“Si utilizas todos estos factores, recrearás la estrategia que ha sido exitosa para mí debido a su atractiva relación de ganancia y pérdida. Tu relación de ganancias y pérdidas es el promedio de tus operaciones ganadoras contra el promedio de tus operaciones perdedoras. Muchos nuevos traders terminan operando con una relación de ganancia y pérdida muy baja porque venden sus posiciones ganadoras demasiado pronto o porque mantienen sus posiciones perdedoras demasiado tiempo. Este es un hábito muy común entre los traders principiantes. La Estrategia de Reversión, sin embargo, permite que los nuevos traders logren una relación más amplia de ganancias y pérdidas.”
― Andrew Aziz, Como Vivir del Day Trading

“Finalmente, más de cinco velas consecutivas que terminan en una vela de indecisión o tipo Doji definitivamente captarán mi atención. Estas velas indican tanto que ha habido algún tipo de lucha entre los vendedores y los compradores, como que quien tenía el poder hasta ese momento, ha dejado de tenerlo.”
― Andrew Aziz, Como Vivir del Day Trading

“. Cuando mi escáner detectó a EBS, cambié rápidamente mi gráfica a una diaria y encontré importantes niveles de soporte y de resistencia en $27.36 y $28 dólares. Como mencioné antes, si deseas aprender más acerca de cómo encontrar los niveles de soporte y resistencia continúa leyendo este capítulo.”
― Andrew Aziz, Como Vivir del Day Trading

“En una estrategia de Reversión Alcista, si el precio sube muy rápido y repentinamente regresa, me salgo y acepto la pérdida. Si entro en largo esperando que el precio suba y en lugar de esto el precio se mueve sin tendencia alguna, tendré una señal de que probablemente veré una consolidación para otro movimiento a la baja. Si entro y mantengo mi posición por unos minutos y el precio permanece estable, me salgo sin importar lo que suceda después. Puedo estar equivocado, pero no me gusta exponer mi cuenta a lo desconocido. Necesito estar en el patrón correcto y si aún no está listo, me salgo. Si logro llegar a la zona de ganancias, puedo empezar a ajustar mi nivel de pérdida, primero al punto de equilibrio y luego al mínimo de la última vela de 5 minutos. Luego sigo ajustando mi nivel de pérdida conforme el precio sigue subiendo.”
― Andrew Aziz, Como Vivir del Day Trading