Andrew Aziz Quotes
Books by Andrew Aziz
Best 49 Quotes by Andrew Aziz – Page 1 of 2
Day Trading for a Living Quotes
“A good intraday stock offers numerous and excellent risk/reward opportunities.”
“A perfect execution requires excellent risk management, position sizing and, of course, trade management.”
“After buying or selling a large position in a stock during the day, institutional traders compare their price to VWAP values. A buy order executed below the VWAP would be considered a good fill for them because the stock was bought at a below average price (meaning that the trader has bought their large position at a relatively discounted price compared to the market).
Conversely, a sell order executed above the VWAP would be deemed a good fill because it was sold at an above average price. Therefore, VWAP is used by institutional traders to identify good entry and exit points.”
“Alexander Elder writes in his book, 'Trading for a Living': successful traders watch their trades and their money as carefully as professional scuba divers watch their supply of air.”
“An Angel is a low float stock (usually less than twenty million shares) that has gapped up significantly due to important fundamental news.”
“As explained earlier, some experienced traders never enter the trade all at once. They scale into the trade, meaning that they buy at various points.
Their initial share size might be relatively small, but traders will add to their position as the price action validates their idea. They might start with 100 shares and then add to their position in various steps.”
“Float means the number of shares available for trading. Market cap is the total market value of all of a company's shares.
It is calculated by multiplying a company’s float by the current market price of one share.”
“For my charts, horizontal support and resistance levels are the only levels I rely on.
This is because the market only remembers price levels, which is why horizontal support and resistance lines on previous price levels make sense, but diagonal trend lines don’t.”
“Having two important moving averages on both 5-minute and 1-minute charts make that level even stronger.”
“I believe every trading education has three parts: The mechanical aspect, the technical aspect and the psychological aspect.”
“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.”
“I usually close at the 1/4 point and move my stop loss to break-even. Soon after moving your stop loss to break-even, you will be in the driver’s seat of the trade. You will have nothing to lose and you will now be trading with the house money.”
“If there is such a thing as a secret to the nature of trading, this is it, the psychological side.”
“If you overtrade, your broker will become richer, and you will become, well, broker!”
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“In critical moments, men sometimes see exactly what they wish to see.”
“In trading, the more trades that you take, the more emotional you become.”
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“The world has changed, but people haven’t changed, and the mind hasn’t changed.
I believe if there’s a young guy that wants to start a business, if he’s willing to pay the price, if he’s willing to make the sacrifice, if he’s willing to do without some of the frills people think are necessary, he is going to make it.”
“In trading, you accept a loss, without questioning your strategy. You make another trade, and you accept another loss, and in the third trade, when it works in your favor, you make sufficient money to cover your previous losses, if you are using a risk/reward ratio higher than 1:3 in the execution of your strategy.”
“Let me explain two important fundamentals of successful trade management: Never let a winning trade turn into a loss. Move your stop loss in the direction of your trade.”
“Many famous traders say trading is 80% psychology and 20% technical knowledge.”
“More people in the world are addicted to food than to anything else. Sugar, oil and salt are the three most addictive chemicals humans have ever tried.”
“More than education, more than experience, more than training, a person’s level of resilience will determine whether they will succeed or whether they will fail.”
“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.”
“One of the most important trading rules is to take partial profit when a trade goes in your direction. You should take 1/2 or 1/4 of your position as profit and let the remaining position continue to move in your direction.”
“Recognizing trade patterns is important, but execution is equally important.”
“Remember, it only takes one bad trade to blow up your account and for you to be done with your day trading career forever.”
“Support and resistance lines on daily charts are not always easy to find, and at times you will not be able to draw anything clear. If I cannot see anything clear, I don’t have to draw anything.
There is a good chance that other traders will also not see those lines clearly and therefore there is no point in forcing myself to draw support and resistance lines. In that case, I will plan my trades based on the VWAP or moving averages or other levels that I earlier discussed.”
“The boundary is powerful because you just don't cross it; if you have justified crossing it once, there's nothing to stop you from doing so again and again.
Similarly, in trading, giving a trade more room 'just this once' is an act of desperation arising from wishful thinking. Professional traders will accept a small loss and stay alert for another trade. They often take several quick stabs at a trade before it starts running in their favor and toward a large profit.”
“The fact is, when people truly stare down reality, they prepare themselves to act in ways that allow them to endure and survive extraordinary hardship.
This is also true for successful traders. They’re resilient. They can and will train themselves in how to survive before the need arises.”
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“The goal of a successful day trader is to figure out if the sellers will end up in control or if the buyers will end up in control, and then make a calculated bet, at the appropriate time, quickly and tactically on the winning group.”
“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.”
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“Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach.”
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