Andrew Aziz > 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

“Many famous traders say trading is 80% psychology”
― 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 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

“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 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

“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 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 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

“éxito en el day trading proviene de tres destrezas importantes: 1) aprender y dominar una o varias estrategias de trading; 2) tener una adecuada gestión de riesgos (saber con qué tamaño de operación entrar y saber cuándo es el momento adecuado para salir de esta) y, como lo he enfatizado varias veces en estas páginas, 3) controlar tus emociones y tener una psicología sólida. Es como una silla de tres patas, si le quitas una, se viene abajo. Para ser exitoso en el trading, necesitas dominarlo completamente. Dominar exitosamente unas cuantas cosas al mismo tiempo es algo que tienen en común todas las disciplinas basadas en el desempeño.”
― Andrew Aziz, Como Vivir del Day Trading

“Recuerda, eres tan bueno como las acciones que operas, así que, incluso si fueses el mejor trader del mundo, si operas las acciones incorrectas, perderás dinero.”
― Andrew Aziz, Como Vivir del Day Trading

“While risk-taking in trading needs to be carefully and rationally managed, an excessive avoidance of risk can be a major roadblock to success.”
― Andrew Aziz, Day Trading for a Living

“La gestión de las operaciones es tan importante como la calidad de tu plan de operación inicial. Una gestión adecuada de tus operaciones marca la diferencia absoluta entre los traders que obtienen ganancias de manera consistente y aquellos que están destinados a fracasar.”
― Andrew Aziz, Como Vivir del Day Trading

“Novice traders believe that when they enter the trade, they should not do anything else but patiently wait for the price to hit their profit target or stop loss level. This is the opposite of what professional traders do. The professionals know that this is not enough. When you plan for the trade and enter a position, you have a minimum of information about the market and the validity of your idea. As the market moves after your entry, you will receive new price action and data about your initial trade idea: the price action of the stock is either supporting or not supporting your reasons for being in that trade. Therefore, you need to manage your open position.”
― Andrew Aziz, Day Trading for a Living

“Right in his website, there is an 11-page article entitled, ‘Trading as Mental Warfare’. In this article, Steenbarger explains how trading, like the battlefield, offers an environment typified by risk, danger, and uncertainty, rewarding the efficiency of mental processing. The successful trader is one who can rapidly observe market conditions, orient himself, integrate information into effective decisions, and quickly act upon those decisions”
― Andrew Aziz, Mastering Trading Psychology

“First of all, as I discussed above, you should learn from your mistake of not having moved up your stop. That stop should have already been raised to break-even.”
― Andrew Aziz, Day Trading for a Living

“As a day trader, you shouldn’t care about companies and their earnings. Day traders are not concerned about what companies do or what they make. Your attention should only be on price action, technical indicators and chart patterns. I know more stock symbols than the names of actual companies.”
― Andrew Aziz, How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology

“What are Stocks in Play? They could be, in no particular order: A stock with fresh news A stock that is up or down more than 2% before the market Open A stock that has an unusual pre-market trading activity A stock that develops important intraday levels from which you can trade off”
― Andrew Aziz, Day Trading for a Living

“An Angel is a low float stock (usually less than twenty million shares) that has gapped up significantly due to important fundamental news.”
― Andrew Aziz, Day Trading for a Living

“I don't read much about the technical aspects anymore, because I think I know enough to make a living out of trading, but I'm always constantly reading about the psychological aspect.”
― Andrew Aziz, Day Trading for a Living

“experimentados saben que es riesgoso entrar cuando el precio está subiendo significativamente. A eso se le conoce como perseguir la acción (chasing the stock). Los traders profesionales buscan entrar en las operaciones durante los momentos tranquilos y cobrar sus ganancias durante los momentos de volatilidad. Es el opuesto absoluto a cómo operan los traders amateurs. Estos se unen a las operaciones cuando las emisoras empiezan a moverse, pero se aburren y pierden interés cuando los precios se muestran somnolientos, por decirlo de alguna manera.”
― Andrew Aziz, Como Vivir del Day Trading

“El Level 2 es, esencialmente, el registro de órdenes de las acciones que cotizan en Nasdaq. Cuando las órdenes son colocadas, se lleva a cabo a través de diversos creadores de mercado y otros participantes. El Level 2 te muestra un ranking de los mejores precios de compra (bid) y de venta (ask) de cada participante, dándote una perspectiva detallada de la acción del precio. Saber exactamente quién está interesado en cierta acción puede ser muy útil, especialmente si estás en el day trading.”
― Andrew Aziz, Como Vivir del Day Trading

“Cada Estrategia de Reversión tiene cuatro elementos importantes: Al menos cinco velas en una gráfica de 5 minutos que se mueven al alza o a la baja. La acción tendrá un valor extremo de Índice de Fuerza Relativa (Relative Strength Index, RSI) en 5 minutos. Un RSI por arriba de 90 o por debajo de 10 despertará mi interés. El RSI, desarrollado primero por el afamado analista técnico Welles Wilder, Jr. es un indicador que compara la magnitud de los incrementos y de las disminuciones recientes del precio en un periodo de tiempo para medir la velocidad y el cambio del movimiento del precio. Los valores de RSI van de 0 a 100. Los traders que usan Estrategias de Reversión utilizan los valores del RSI para identificar condiciones de sobrecompra o de sobreventa y para detectar señales de compra o de venta. Por ejemplo, lecturas de RSI por arriba de 90 indican condiciones de sobrecompra y las lecturas de RSI por debajo de 10 indican condiciones de sobreventa. Tu plataforma de trading o el software de tu escáner calcula el RSI de manera automática. Si te interesa, una búsqueda en Internet te dará bastante más información acerca del RSI.”
― Andrew Aziz, Como Vivir del Day Trading

“dos traders experimentados elijan la misma acción: uno en largo y otro en corto. Frecuentemente, al terminar el día, ambos lograrán ganancias, demostrando que la experiencia en la gestión de riesgos y operaciones, además de una adecuada determinación del tamaño de la posición, es más importante que la acción y la dirección que elijan los traders.”
― Andrew Aziz, Como Vivir del Day Trading

“You can be the best trader in the world, but if your stocks do not move or have enough volume, then you cannot make money consistently. Trading a stock that doesn’t move is a trading day wasted.”
― Andrew Aziz, Day Trading for a Living

“Regularmente, una Bandera Alcista mostrará varios periodos de consolidación. Yo me uno solamente durante el primer y el segundo periodo de consolidación. El tercer periodo de consolidación, así como los que le siguen, resultan riesgosos ya que el precio probablemente se ha extendido demasiado, indicando que los compradores pronto empezarán a perder el control.”
― Andrew Aziz, Como Vivir del Day Trading

“sería que nadie se convierte en un trader excelente por sí mismo. En la página web de Bear Bull Traders pueden encontrar esa lección: No Opere en Solitario.”
― Andrew Aziz, Como Vivir del Day Trading