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One of the best beginner’s guides to day trading, How to Day Trade for a Living by Andrew Aziz is packed with valuable information on risk management, trading psychology, scanning, intraday setups, and more. If you’re a new day trader or simply want to know more about the industry, this book is no-brainer resource that’ll provide you with a realistic view of what’s involved and what it takes to become a consistently profitable trader.
In this review of How to Day Trade for a Living, we’ll take an in-depth look at what this book covers, the pros and cons, who it’s best for, and more.
|Author||Dr. Andrew Aziz|
|Publisher||CreateSpace Independent Publishing Platform|
|Formats||Paperback, Kindle, audiobook|
|Dimensions||6″ x 0.6″ x 9″|
|Published||July 28, 2016 (Third Edition)|
About Andrew Aziz
A former chemical engineer who escaped the corporate rat race for the freedom and lifestyle that day trading offers, Andrew Aziz is a highly successful day trader and one of the most well-known educators in the trading community. Best-selling author and founder of the popular Bear Bull Traders website, Andrew has taught his trading system to thousands of traders over the years (check out our in-depth Bear Bull Traders review to learn more about his private trading community).
What You'll Learn
How to Day Trade for a Living provides a well-rounded introduction to day trading, covering all of the topics that are essential for beginners to understand. In the following sections, we’ll go chapter-by-chapter through the book and discuss exactly what’s covered…
“If you are a beginner trader, this book will equip you with an understanding of where to start, how to start, what to expect from day trading, and how you can develop your own strategy. Profits in trading do not come from reading one or two books, but, as I will explain later, profits come with practice, the right tools and software, and proper ongoing education.” (page 1)
In the introductory chapter of How to Day Trade for a Living, Andrew provides the reader with a realistic description of the work required to become successful. Day trading is not gambling, it shouldn’t be treated as a hobby, and it isn’t easy. Having said that, if one invests the time and effort needed to become a consistently profitable trader, the freedom and income potential offered has no equal.
Andrew also makes some great comparisons between day trading and traditional businesses in this chapter, showing why trading is the better path for entrepreneurs in many cases.
Lastly, the chapter concludes with an overview of the basic tools required to day trade.
“You are a day trader, your time span is measured in seconds and minutes, rarely in hours, and certainly not in days or weeks or months.” (page 17)
In chapter two, you’ll learn about the differences between day trading and swing trading, long vs. short positions, and retail vs. institutional traders. Andrew also discusses high-frequency trading (HFT) and the impact it’s had on the markets.
Next, Andrew talks a bit about catalysts and the importance of only trading stocks that are in play for that particular day. He wraps chapter two up with a breakdown of what his typical day looks like.
“…success in day trading comes from initially mastering one proven trading strategy; knowing how much to properly enter a trade with and knowing when to properly exit a trade, all without risking any more of your hard-earned money than necessary; and, as has been emphasized several times already in this book, controlling your emotions.” (page 35)
In chapter three, Andrew discusses the importance of maintaining discipline and being willing to quickly cut losers. You can have the best trading plan in the world, but if it’s not properly executed, it will only lead to losses.
Andrew also provides an introduction to the risk/reward ratio concept, his three-step process for effectively managing risk, and why controlling emotions can have such a dramatic impact on trading performance.
“There are too many new traders who do not know what a good stock to day trade is nor how to find one, and they waste too many trading days mistakenly believing that the market is impossible to day trade in.” (page 55)
In this chapter, Andrew begins to talk more about his stock-picking criteria, scanners, and why it’s vital to wait patiently for A+ setups before getting involved.
“Like beginning any other business or profession, to start day trading you require a few important tools.” (page 77)
In chapter five, Andrew highlights some of his recommended trading tools. Covered in this chapter is the topic of online brokers, PDT (Pattern Day Trade rule), trading platforms, Level 2, indicators, and hotkeys. He also discusses the benefits of joining a chat room or day trading community.
“…many traders don’t see candles as a fight between buyers and sellers. That little candle is an excellent indicator to tell you who is currently winning the battle, the bulls (buyers) or the bears (sellers).” (page 110)
Chapter six covers the topic of technical analysis and Andrew discusses candlestick charting and price action.
“These are simple strategies in theory, but they are difficult to master and require plenty of practice. These trading strategies give signals relatively infrequently and allow you to enter the markets during the quiet times, just like the professionals do.” (page 122)
In chapter seven, Andrew provides an introduction to his favorite trading strategies along with detailed rules for entering and exiting each setup. Once you’ve moved beyond the basics, chapter seven should be the main focus of your studies and we recommend reading it multiple times.
The trade setups explained in this chapter include:
- ABCD pattern
- Bull flag momentum
- Moving average trend trading
- Red to green
- Opening range breakouts
“When you take a trade, you need to ensure that you are focused on the right things both prior to entering it as well as during the trade. Creating a system for this thought process will take away most of the emotional hang-ups traders experience when looking to enter into a trade as well as managing it while they are in it.” (page 205)
Andrew walks you through his trading process in chapter eight, showing each of the steps he takes to plan and execute a trade. Adhering to a methodical system helps traders remove emotions from the equation, resulting in better odds of success.
“When you first begin, you must focus on the process of trading, not on how to make money for a living.” (page 246)
In this final chapter, Andrew lists seven key things that are essential for day trading success as well as his 11 core day trading rules. He also drives home the importance of practicing with a trading simulator before going live, something that will save the new trader from big losses early on.
Andrew’s book provides a realistic look inside…
The first and most affordable thing a brand new trader should invest in. Andrew’s book provides a realistic look inside the world of day trading and tells you exactly what it takes to be successful.
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Have you read How to Day Trade for a Living? If so, please let other traders know what you think about the book.
Bear Bull Traders Walkthrough [VIDEO]
While Andrew Aziz doesn't share his net worth publicly, he's a millionaire day trader who has achieved a significant level of success over the years. In addition to his day trading profits, Andrew also generates a significant amount of income from the community he founded, Bear Bull Traders.
Absolutely. Andrew does a good job of laying everything out in an easy-to-follow manner and his strong emphasis on discipline and risk management provides a solid foundation for new traders to grow from.
Pros and Cons
- Perfect for beginners but also worth reading if you're experienced
- Lays out a complete day trading system that anyone can follow
- Responsible approach with emphasis on paper trading and risk management
- Included glossary is a nice bonus if you're new to trading terminology
- Author is well-known for his willingness to help other traders
- Further study required if you're interested in advanced topics
Andrew Aziz’s How to Day Trade for a Living is highly recommended for traders of all experience levels. While this book is clearly aimed at beginners and will undoubtedly provide the most value to newcomers, more experienced traders will also learn a thing or two. Considering the price of this book, picking a copy up is a no-brainer, regardless of where you’re at in your trading journey.