A short sale requires margin because the practice involves selling stock that is borrowed and not owned. So an account needs margin trading permissions to short stocks. Cash account can't do it.

Good evening Teruki, First off, these kinds of questions are what this site needs. Also, the video you linked is actually a recap of $ANF. Here is the video you meant to link based on the screenshots you provided. Analytical thought and true deconstruction of a trade is what really makes us all better traders. As far as your question is concerned, I am not Thor, and I cannot speak for Thor. However, I have spoken with Thor in the chat before with a similar deconstruction, and I have an idea of where he is coming from. I will now answer your questions directly. ------------------------------------------------------------------------------------------------------------------ 1: Why is it more of an ascending triangle than a VWAP false break out? In other words, how can you see that the stock would go up where Thor placed his initial order? This is an excellent question. It is basically asking, "What is the deal with pattern recognition ambiguity, how can we make a decision with two different available interpretations of a trading setup?". Obviously a moderator-esc approach to this question would be to tell you that two people can take two different trades on a stock and it isn't guaranteed that either strategy will work out 100% of the time, so therefore having opposing interpretations is the 'name of the game' and cannot be avoided. This is true. However, I believe that you have at least 3 brain cells, so let's actually think about what is happening here on a technical level. A. VWAP False Breakouts, as outlined in Andrew Aziz's book, happen in a specific Time Frame. That time frame is directly after the Open, a.k.a. Midmorning. Therefore it cannot be a VWAP False Breakout trade in line with that strategy. B. Let's think about it from a price action perspective. Before we get into the weeds of the individual candles, we have to think about the trade as a whole. First consideration: Is $AMD currently in an uptrend, or a downtrend? Uptrend. How do we know it is in an uptrend? Because it has been making higher lows and higher highs. As a general rule, we should prefer continuation instead of a reversal. This means we should have to be CONVINCED the trend will reverse, rather than have to be CONVINCED it will continue. This is also a later day play, where stocks tend to trend. So it is already a more attractive long. Second consideration: What has the price action been doing? On the five minute chart, the price has clearly reversed from the lows, but when it hit VWAP earlier, it did a nasty drop. However, the drop was on fairly low volume, so I would expect a retest of VWAP. This kind of low volume, large range, drop tells me I should be cautious on placing my stop super close after any entry. Third consideration: Heavy wicks on the 5 minute chart. Obviously huge wicks pointed against your trade direction is a huge No-No to go long into during the morning session, but remember, it is 3 p.m. at the time of this trade. The five minute chart essentially becomes the new 1 minute chart at this point. With this in perspective, you would expect to see some kind of pushback at VWAP, which could give an excellent entry to go long if it comes down to a decent distance from a support. If these 5 minute candles are treated as 1 minute candles, this pullback would be a joke. It can now clearly be seen as a preferable long with a stop placed under that higher low. Remember to perhaps space it down a little bit so you can hold onto your position in the event of something like the previous chop. ------------------------------------------------------------------------------------------------------------------ 2: Without the level 2 and tape information, are there more signs of the stock going up than down where he added? The only thing he has going for him here is that this is a late day play, he is EXPECTING a trend continuation. He doesn't know if he will get it. Once the price flew down he was nervous he would get stopped out, but what did it do? It traded flat above a support. Once he saw it was probably the bottom of that short term range, it broke up slightly and he added Risk to his position from the bottom of that range. At that moment it was very possibly ANOTHER higher low. If he was expecting continuation, then it would make sense to add at the bottom of the range, rather than at the area of his original position, which was obviously closer to the breakout region of the range. These are considerations that can help you have a preference on a trade and exactly what your options are for stop placement. This is not a complete strategy or a fool proof ideology, but it is a useful way to organize the chaos. Here are the items of importance I have laid out: 1) The Trend is up, try to go with the trend if you can, but if you are CONVINCED it will reverse, then check to see if an equal amount of signals point to continuation, and then choose the continuation trade if they are equal or don't take a trade until the chart develops hammer candles and stars that provide more information. 2) The Time Frame suggests that current trends will continue. 3) The Price Action is not respecting the 1 minute chart at all, so treat the higher timeframe (the 5 minute chart) as the new one minute chart, and seldom place a stop below any higher low on the 1 minute chart that is not dually represented as a higher low on the 5 minute. (If you see a bunch of 1 minute hammer candles at the base of the 1 minute higher low, you could consider a stop under them as valid, even if that higher low is not represented on the 5 minute). This is how I view it. Rate me if you dare lol.