Tag Archives: trading

“Float means the number of shares available for trading. Apple Inc., for example, as of July 2016, had 5.3 billion shares in the”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/im2qFs7

“Rule 7: Retail traders trade only Stocks in Play, high relative volume stocks that have fundamental catalysts and are being traded regardless of the overall market.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/hDEhNoZ

“If you examine the work of most successful traders, they all take many small losses. Their results are littered with numerous small losses of 7c (cents), 5c, 3c, and even 1c per share. Most good day traders have few losses that are more than 30c per share. Most winning trades should work for you right away.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/apYRpJL

“There have been times when I’ve been in the trade, had an $ 80,000 position, and all I needed to do was to sell. But as I was looking at my keyboard, I found myself frozen like the proverbial deer in the headlights. I couldn’t even figure out which keys to punch. This sort of paralysis is not unusual when you’re overwhelmed.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/6jUCqga

“Keep a daily record of both your trading results and your physical condition and you will see these relationships for yourself. Begin preventive maintenance by keeping your body, and thus your mind,”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/fWQODmM

“One of the key contributors to traders’ self-discipline is their physical and mental health. People who eat well-balanced nutritional meals, exercise regularly, maintain proper body weight and fitness levels, and get adequate rest are likely to have the levels of energy and alertness that are required to make them effective traders.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/8ddPx9I

“You should never risk more than 2% of your account on any given trade.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/eKFLbmX

“I am holding around $ 25,000 in my trading account and I usually choose 800 shares to trade. My daily goal is $ 500 or $ 120,000/ year. That is sufficient for my lifestyle. What is your trading goal?”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/2ZfSrKe

I thought of you when I read this quote from “How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology” by Andrew Aziz – “Rule 5: Success in day trading comes from risk management – finding low-risk entries with a high potential reward. The minimum win:lose ratio for me is 2:1.” Start reading this book for free: https://a.co/9Xee8Ge

“One of my favorite trading expressions is “live to play another day”. This simple saying says so much about the mindset of a professional trader. If you survive the learning curve, then the good times will come and you can become a consistently profitable trader.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/2uuvrPW

“From when the market opens at 9: 30 a.m. until around 11: 30 a.m. New York time, is when the market will have the most trading volume and also the most volatility. This is the best time to trade and to especially focus on momentum trading”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/79m0OoM

“The majority of day traders don’t trade penny stocks or on the over-the-counter (OTC) market. Penny stocks are extremely manipulated and they do not follow any of the rules of the standard strategies. We trade real stocks. Sometimes we may be trading Facebook (ticker: FB) and sometimes we may be trading Apple (ticker: AAPL), but we will always be trading the stocks that are having a big day.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/fJpfgE8

“The stocks that are gapping significantly up or down are going to be the stocks that retail traders are watching.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/7nePQix

“You just want to ensure you are trading stocks that are moving because they have a fundamental reason to move and are not just moving with the overall market conditions: Stocks in Play.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/6mZch8o

“Of the various HFT programs that are currently operating, one of the least effective is the so-called “Buy the New Low” program. When a stock reaches a new intraday low, many day traders will go short to ride the downside momentum. This program then begins to buy the shorts from those day traders to push the price higher. This causes day traders to panic and to cover their shorts. Because the organizations behind HFT programs have almost limitless buying power, the plan sounds flawless. The plan quickly breaks down, however, when another large institutional seller is behind the trade and decides to dump their large positions.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/dhNBlhx

“It is extremely important to stay away from stocks that are being heavily traded by institutional traders. As an individual retail day trader, you must stick to your retail trading territory.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/ip43QAP

“As a retail day trader, you profit from volatility in the market. If the markets are flat, you are not going to make any money; only high frequency traders make money under these circumstances. Therefore, you need to find stocks that will make quick moves to the upside or to the downside in a relatively predictable manner.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/3lxbH0E

“But if you short sell that company at $ 5 and then the price, instead of going down, starts going higher and higher, then there won’t be any limit to your loss. The price may go to $ 10, $ 20, or $ 100, and still there will be no limit to your loss. Your broker wants those shares back. Not only can you lose all of the money in your account, but your broker can also sue you for more money if you do not have sufficient funds to cover your shorts.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/67NJwwm

“Day traders can borrow shares from their broker and sell them, hoping that the price will go lower and that they can then buy those shares back at a lower price and make a profit. This is called selling short, or simply short.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/0Piolok

“Many traders, including myself, do both day trading and swing trading. We are aware that we are running two different businesses,”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/aAFg4uw

“overall, in my opinion, the most common reason that people fail in day trading is that they do not regard it as a serious business. They instead treat it as a form of gambling that will quickly and easily make them rich.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/2JoAPYJ

“In my opinion, the most important lesson that you can learn from reading this book is that you will not get rich quickly by day trading.”

— How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
https://a.co/fmI1u8k

Options Trading

I have been trading options for a bit but starting to keep journal of my trades here. I have lost some serious money in it but also made some money, overall I am breakeven at this point. Based on my previous experience, I will avoid making big risky trades in options and keep my risk to $500 or less while I still learn this.

My current portfolio:

June 21 Expirations

SymbolStrategyStrike PricesCostMargin Notes
AAPLIron Condor195/200/205/210370 Credit$500Sold before trade war started. Now it is looking a loser trade.
CARAIron Condor10/12.5/22.5/25$828 Credit$1750Strike prices are way out of 1 standard deviation. Pretty good ratio of reward to risk.
LULUIron Condor150/160/190/200$361 Credit$1000Earnings are coming up. Could spike up or down after earnings. Though strike prices are around 1 standard deviations when I bought it, I lost big on INTU. Need to stop doing earning plays.
ORCLIron Condor48/52/55/59$361 credit$1200No earnings, 1 std. deviations away strike price when I bought it but $52 put is ITM. Probably should close this position if it keeps dropping
ORCLIron Condor47/51/56/60$383 credit$1200Bought this to try laddering but now I don’t like it. Too concentrated in one position. If Oracle keeps falling, I will lose $2400 instead of $1200.
SBUXIron Condor72.5/75/80/82.5$440$1250No earnings, 1 std. deviations away strike price. Looks like it is behaving as expected.
SNAPCall Credit Spread12.5/13This was a mistake. Bought $13 call but it kept falling, I could have closed position but selling an opening $12.5 call earned me more credit. It is overall loser trade, will try to close it as soon as possible.

June 28th Expirations

SPY Long Call at $295 expiration. When market was rising, I would buy calls and sell them at 20-30% profits. It was easy money. And whenever there was a dip, I would double my position and still come out ahead. Here I did same thing but market has not bounced back and unlikely to. I would lose almost $2000 here.

July 19th Expirations

SymbolStrategyStrike PricesCostMarginNotes
CATDebit PUT Spread110/120$275Trade war and down trending market.
QQQCredit Call Spread186/187$119$4001 std deviation, trade war. Buying ETF reduced risk of huge spikes.

I have been watching TastyTrade and OptionAlpha videos. A lot of useful information.