HOW TO DAY TRADE FOR A LIVING SUMMARY (BY ANDREW AZIZ)


Have you ever considered quitting your 9-5 for a career in day trading? Well consider this: – Day trading has a steep learning curve – Day trading is very competitive Only 16 percent of day traders are profitable after their first six months – Day trading is a profession and not a strategy to get rich quick But! … and this is a big BUT: – Day trading can be executed from anywhere in the world where there’s a proper internet connection, including the beaches in Bahamas. – Day trading is flexible. You can be finished by 10:00 a.m. and then do whatever you want doing the rest of the day! – Day trading is a license to print money, if you succeed, and it’s probably the only one that the government won’t put you in jail for … And you’re in the right place because this is … a video summarizing the most important takeaways from How to Day Trade for a Living a book written by Andrew Aziz. Let’s get to it! Takeaway number 1:Stocks in play Day traders always step out of their positions before the end of the day. That’s what separates them from other traders. It’s said that the day trader is only as good as the stocks he’s trading, and the best stocks to day trade are called “stocks in play”. Stocks in play fulfill three essential criteria: 1. They are trading at a high relative volume. Meaning that, they are being bought and sold more than what’s typical for the stock. High volume is positive for a day trader because it’s easier to get in and out of trades. 2. They have a fundamental catalyst, such as an earnings report, a merger, a major product release, a major contract, etc, etc 3. They are trading independently of the market, and independently of the market sector that they belong to. Andrew Aziz uses scanners to find these stocks. He uses two different types: a pre-market scanner and a real-time intraday scanner. Once he has established which stocks that are in play, he will open up their stock charts and set up a plan. He will monitor these stocks on three separate computer screens, and usually there are only two to three great stocks per day anyway, so one chart per screen. From here, it’s all guerrilla warfare. The day trader wants to wait for the right opportunity, then get in quick and get out even faster. Takeaway number 2: The 2% rule A traders primary objective should be to: “Live to trade another day”. As mentioned before – only 16% of day traders are profitable after the first six months. In other words – the learning curve is ruthless! But if you can survive it, great rewards will come. As your primary objective is surviving, the importance of risk management can’t be overstated. You must learn to limit your losses. If you want to reap the long-term profits of a great trading system, well … you must be able to survive for the long term first! Therefore, never risk more than 2% of your total capital in any given trade. Risking 2% only will allow for you to be wrong a lot, and still survive. Because there will be times when you are wrong. Times when you need to accept defeat, and get out of the trade. And you might think: “but I don’t want to make a thousand dollar loss”! Well, you definitely don’t want to make a five thousand dollar loss! Get out of the trade! Look for opportunities where you are risking cents to earn dollars. You want asymmetry in this – a large potential reward but a small downside. For example, risking a hundred bucks, but having the potential of gaining a thousand bucks. Your trade is then said to have a favorable R-multiple, but that’s beyond the scope of this book. If you want to learn more about it, head over to my summary of Trade Your Way to Financial Freedom. Takeaway number 3: Understanding the candlesticks A day traders job is to analyze the balance of the power between buyers and sellers, and bet on the winning team. Day trading is the study of mass psychology. Price fluctuations in the market are a result of the actions of three categories of people – the buyers, the sellers, and the undecisive. The best way to illustrate the price fluctuations and the underlying psychology of the market is with candlestick charts. The candlesticks are a fight between buyers and sellers. It’s an excellent indicator that tells you which group that is currently winning – the buying bulls or the selling bears, during that specific time frame. It can be hourly charts, 5-minute charts or one-minute charts. For instance – if the bulls are currently winning, it can look like this. The height of the candle expresses how much the buyers are currently winning by. So, in the following candle here, we see that they win by a smaller margin than before, and the price increases by a smaller amount as a result. Positive price action is represented by a hollow candlestick. On the other hand, if the bears are currently winning the battle, it will be represented by a filled, often red candlestick. If the sellers panic, it might look like this. Sometimes, the battle is indecisive. This is then represented by an indecision candlestick, a very thin one, meaning that the price fluctuation during that time was minor. For a chart to be complete, it should also be accompanied by the trading volume for each time frame. The trading volume acts as a great complement to the price movements. A high trading volume accompanied by either a sharp movement in the stock price or an indecisive one is an interesting situation, which the day trader can profit from as we shall see in the following two takeaways. Takeaway number 4: The support and resistance strategy Many traders love to identify complicated chart patterns. If they are accompanied by ridiculous names – all the better apparently. Try Google search “the abandoned baby”, “the dark cloud cover” or “the three black crows”. Andrew Aziz don’t believe in these. If you make it too complicated, your risk curve-fitting and if the patterns are too arbitrary, they become subjective and suddenly you can see them everywhere. Instead, Andrew Aziz prefers to use primarily two very simple trading strategies: Support or resistance trading, and VWAP-trading Support is trading terminology and means that a stock is showing respect for a certain price point. If the stock has bounced back up from such a point before, you can expect it to do so in the future as well. Resistance is the opposite – it acts as a ceiling from which the stocks uptrend is reversed. Here’s how you trade using the support strategy. 1. Each morning before the stock exchange opens, find areas of support and resistance for your stocks in play. 2. Look for indecision candles around the support area accompanied by high trading volume. Buy. Set up your stop-loss slightly below the support area, on a five minute chart. 3. Keep the trade until the next support or assistance area. 4. If there’s an obvious second support or resistance area, you may sell half your position at the first level, move your stop-loss up to break-even, and save the other half for that second level. Mirror this and you get how to short using the resistance strategy. Takeaway number 5: The VWAP strategy VWAP means volume weighted average price, and this is the most important technical indicator in learning how to day trade for a living, according to Andrew Aziz. For now, it will be sufficient to say that it’s a moving average, and that it takes into account the volume of shares that have been traded. If The stock price currently is above the VWAP, it’s a bullish indication. And if the situation is reversed, it’s a bearish indication. VWAP should be included in your trading platform, otherwise you should switch platform … So, how do you set up a trade with it? 1. See if the stock in play shows respect for VWAP as a support. 2. Buy slightly above the VWAP and set up a trailing stop, slightly below. A break on a five-minute chart should get you out of the trade. 3. Keep your position until the next level of resistance. In this case, the next resistance level was expected to be the “whole-dollar” level of $22. 4. You may sell half the position close to the resistance level, and move up your stop-loss to your buying point. If you mirror everything I just said, you can use the VWAP short selling too. The key for now should be to master just one strategy. So pick either VWAP or support and resistance, and start trading it in a trading simulator. Not over-complicating your strategies will allow for you to focus on what’s really important – the psychological aspects of the game. If you want to hear more about this, please head over to my summary of Trading in the Zone, by Mark Douglas. But now, here’s the fastest recap in the history of this channel! Day trade only stocks in play. Never risk more than 2% in any given trade. Candlestick charts! The support and resistance strategy is simple and efficient. The VWAP strategy is simple and efficient too. Trading is much like learning to ride a bicycle – once you’ve mastered this skill, no one can take it away from you. If you wish to speed up the learning process, head over to my trading books playlist. Good luck, and good day.

100 thoughts on “HOW TO DAY TRADE FOR A LIVING SUMMARY (BY ANDREW AZIZ)

  1. 📈 Learn more from some of the world’s greatest trading wizards 📈

    – Top 5 Takeaways from Trade Your Way to Financial Freedom (by Van K Tharp): https://bit.ly/2kAp8lj

    – Top 5 Takeaways from How I Made 2 Million in the Stock Market (by Nicolas Darvas): https://bit.ly/2m8sbSc

  2. Great video just finished the book…Do you day trade and if so are you successful?

  3. Thank you for a great channel.
    Will you be doing a video that covers candles in depth?

  4. Thank you so much sir for the excellent video 👌👌👌💕💕💕

  5. 1. Stock Selection
    2. R
    3.Price Action
    4. Price Action
    5. Price Action

  6. Bro you are so f**king good
    Your channel is a must for traders
    I love you and your contents

    One thing tho, even tho I haven't noticed it yet, but if you ever not sure about an info you given out state it in the video so we can do more research on it.

    Other than that you are doing gods work

  7. day trading is just a brilliant marketing idea devised by monitor manufacturers

  8. Beware of anyone claiming to know how to make money, which they will reveal to you in exchange for money.

  9. Wow. You actually started with the cons. Very subtle but important. Thank you.

  10. I wish i was good at day trading lost a lot of money…I'll keep researching day trading but i think investing for dividends are easier to deal with. buy and hold good companies. plenty of opportunities to swing on the up or simply hold and eat dividends.

  11. Wow, could there be any job more insignificant, meaningless and unfulfilling than this??

  12. I admire your strategy as it worked Perfctly when i tried it out …..but you need to see this strategy, it makes me $100+ everyday spending less than 1hour daily…

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  13. Join Robinhood and we'll both get a stock like Apple, Ford, or Sprint for free. Make sure you use my link. https://share.robinhood.com/mitcheg523

  14. With the help of videos like this and Mrs Allen's assistance in trading, changed my financial story for good. With a simple strategy she introduced me to, she was able to make $ 4,560 within 2 days on my behalf.

  15. While it's not a get rich quick job with the right education & time spent educating you can be successful & live comfortably in those first 6 months. Just follow those rules you're mentioning.

  16. I didnt understand half of what you said, mainly i dont understand how to read candlestick

  17. Thanks a lot for such quality content. keep being awesome.
    keep up the good work bro!

  18. Step 1: build you career
    Step 2: day trade on the side as a plan b. Plan a is to build your long term
    Step 3: good luck

  19. very good lesson thank you by the way who make the video i need 1 for my sharpening business.

  20. Great Chanel, I'm hooked. But what about tax? In Sweden, where I also live, The tax on The ISK is so low. Can you get away with paying such a small amount if It's your income?

  21. Excellent summary! Awesome job! Your work saves a ton of time and presents info in a beautiful way!

  22. Anyone who trades professionally for a living knows that this book is a waste of time. Sorry, but almost all books on trading are useless.

  23. Hey man, incredible video.

    Can one use your video animation for his own videos ( only video animation not your voice) ??

    Thanks.

  24. Just by listening to you talking I can tell that you are not a profitable trader that is if you trade at all.

  25. most experienced traders like myself would rather learn proper skills to analyze price charts in making our own trading decisions, but many traders out there especially amateur traders still wonder if they can really fast-track their Binary Options success using Binary Option Signal Services, now don't get me wrong signals are great, especially if you find the right one, but it is also smart if traders could be able to positively and accurately analyze price charts and make good trade results. if we closely have a look at some of the main reasons why people fail to make money from investing online. whether it is stock trading, binary options, forex or cryptocurrencies, you will find out that the problem lies on traders being lazy and depending too much on signal services and also lack of understanding of trading before going into trading. so to be on the safe side it is best that traders, especially those still learning and practicing how to trade should know these tips first before entering into any online investment scheme:

    1.Use a signalling service. …

    2.Learn to use technical indicators. …

    3.Trade stocks before trading binary options. …

    4.Track your performance in each binary option security. …

    5.Buy the right option length for your trading style.

    for more tips and trading strategies that can get you $10k-$20k per month kindly get in touch with me by mail as i am ready to show interested traders, both newbies, pros and amateurs how to trade confidently and make good profits using strategies that fetches $10-$20k per month

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  26. Commenters are so happy to hear your advice. Did they hear the part about 80% failure rate. Doesn't Wall Street hire the smartest kids to bet against you? A sobering thought.

  27. Few years ago I was thinking forex scalping as one of the difficult platform in trading, not until last month i came across the IQD momentum Strategy, This strategy has changed my perspective about scalping trading market. I'm happy because as i am reading and learning this strategy, I'm going through what i learnt and many of my trade entries have been a success. my time of google research didn't waste because i worked with the information that was given to me.

  28. How many Youtube videos have you watched? How many books have you read? How many courses have you taken and still can't consistently make money with Forex/Stock Options? That's because everybody is doing it wrong. i will teach the truth about the market, If you trade everyday without a game plan you are wasting your time. learn how to grow your account successfully by managing your money with a game plan, strategy and a signal that truly works, i will not say much here, reach me by my personal email [email protected] and i will be sure to reveal to you how you can conquer and come out successful in all trades you make.

  29. I agree it is very important to be patient and only wait for the best opportunities/setups…

  30. Where were you, for so many days, I was searching youtuber like you for months..SUBSCRIBED..

  31. How exactly will a single daytrader compete with an artificial intelligence developed by a hundred quants/engineers.

  32. This is an unique and excellent video indeed.I follow the VWAP. Please explain us what is the difference between VWAP and ATP ? REGARDS.

  33. Day trading is like a poker game…the market is the game and the goal is to transfer money from someone elses trading account to yours using "buy low-sell high" tactics…

    The difference between a poker game and the trading game, some players hold an edge, they can manipulate charts and some have Insider information beyond your reach.

    Eventually the amateur trader will be trading against himself, irrational decisions based on greed and fear will replace rational decision making…like a poker player throwing all his chips on a single bet.

  34. Key takeaway:

    Risking 2% if you have a stoploss doesn’t mean your position size is 2% but rather if the stoploss is hit only 2% of your portfolio is lost

  35. I have been day trading for 7 years (almost every day)already, it takes at least 3 years if not 6 to become very good, even if you have a 140 iq ,so be patient , study a lot, or don’t even begin. Don’t believe the hype that its easy. Cheers.

  36. I have a course worth $ 2500 talking about volume profiles I do not want any more i can give it to you for very little

  37. Trading is never a child's play , I rushed into trading when I first started I almost lost everything not until I got a trader who helped me recovered all that I lost

  38. 0:22 day trading isn’t as profitable as long term investments. Innovative and smart investments never pose a downfall threat which is why I still make colossal profits in the stock market utilizing the superior expertise of my broker/expert analyst Mr Hurley Jordan

  39. What do you call this animation format with your voice over ?? Any ideas ??

  40. If you find experienced and intelligent money managers like Jordan Arnold, it's usually very worth it for the end results, studies show that advisers add an average value of around 3 percent and advisory costs about 1%. Example: automatic re balancing on some portfolios. Good money managers will do this for you and it leaves you in a better position than just “riding out the market”.

  41. 16 are profitable after the first 6 month. I stopped watching right there. I haven't met 1 single profitable day trader out of hundreds trying.
    5 % are profitable after years, most working in teams with the experience and technology of large corps supporting them.

  42. Day trading with the help of an expert trader like Mr William Beckford i receive 80-90% as profits on my investment. This is the best thing that have ever happened to me…

  43. As a successful trader you should be able to tell accurately whether the price is going to FALL/RISE. And doing this you need real indicator to read signals. That why I advice you get in touch with Mr Andrew Feldstein he combines his strategies and system software that read signal on the right timing to trade.

  44. With the rate in which I lost trades as a beginner then I never believed I will ever make profits trading again until I came in contact with a professional traded mrs Michelle philips who really helped me regain fate in trading and I started making profits with her unique strategy. You can contact in case you have issues trading too <<[email protected] .com>>>>>

  45. just try this channel and you will never lose again trust me

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  47. A good Forex portfolio should have a mix of successful trading strategies. Some video once made reference to <[email protected] g mail . com> Reaching out to him has scaled up my fx business. He introduced me to his strategy and with it I make 14% minimum profit weekly. He is a really good mentor

  48. Words cannot express how grateful i am for David's kindness and generosity in handling my trade. I found this account manager really reliable and safe as far as its services are concern, would like to recommend this expert trader on to others.

  49. You need to get your understanding correct. Nobody can be consistently profitable in first six months. It's just beginners luck. Only genius can be like that.

  50. You want to trade like a Pro, with TOP-DOWN analysis, knowing when the market is SUITABLE to DO or NOT, ain't here to talk because I was told to or cuss I personally like him❌, his works are too perfect for me to hide it from new-traders/investors with all the fear accumulated together with the capital and whom to put it to, pray you get his response

  51. There are few persons who are aware of what I would be sharing. Let me tell you that 'Trading forex ' is not a hoax, its actually a profitable means of acquiring financial security; all required is, 'understanding' and 'proper combination of schemes'. i came across a testimony of someone thanking expert Anthony and i said to myself why not contact him and i did after few weeks I started receiving my ROI in bitcoins. My life is blessed since I started trading with Anthony, i earn more than $27,000 in a month now if you going through a tough time and you are looking for a break through contact him and start winning big today * [email protected] com* Follow his directives and earn online purchase

  52. Be careful of fraudsters in the trading community . Trading with the right strategy is the simple secret .I have lost so much to all these quack strategies in my early days and i am too happy with my present strategy Mr Reid Hoffman is highly Reccomended

  53. Trading engulfing pattern is a hard strategy.
    The reason being is that so many traders are getting it wrong. Amateurs neither expect to lose nor are prepared to manage losing trades. Calling themselves under capitalized is a cop-out that helps them avoid two painful truths: their lack of a realistic money management plan and lack of discipline. Lukasz Wilhelm's strategy can only give you knowledge but it is entirely up to your discipline to make money with it.

  54. All thanks to expert trader Mr Dwight Cleansmann, he helped me recover my losses and making good profits weekly.

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