New Book for BBT Community

[Abiel 475]

Hey guys, Andrew is working in a new book for the BBT Community, based on the questions members frequently ask here about day trading. Below are some of the categories and some sample questions to include in this book. It would be great if all of you contribute with questions for this new book! So feel free to post your questions in this thread! 

Trading basics    
1.    What is a stop loss?    
2.    What does spread means?    
3.    Why as soon as I place an order I am immediately at a negative number, I am doing something wrong?    
4.    It is beneficial a stock scanner subscription for simulator training?    
5.    Is there a way to find stock float without a paid scanner?    
6.    What is the PDT rule?    
7.    As a non-USA resident, I am subject to PDT rules when trading US stocks?    
8.    How to keep in check commissions as new day trader?    
9.    What does mean adding / removing liquidity?    
10.    Does an IRA account can be used for day trading?    

Learning and Improvement    
1.    What is a trading journal?    
2.    What information to log in in a trading journal?    
3.    Should I journal my simulator trades?    
4.    How to know I´m in the right track in my day trading learning?    
5.    What should be my goals while on simulator?    
6.    How to take my day trading learning to the next level?    
7.    How to improve day trading learning when the market is closed?    
8.    What advice would you give to better perform in simulator stage of learning?    

Risk Management    
1.    How to find the best stop loss point for a position?    
2.    You say we should not enter a trade without knowing where is our stop loss, but why can’t we simply have a stop loss just below our entry?    
3.    What would be the best way to define daily max loss, daily target, max loss per trade?
4.    How to take winnings with smaller position size, keeping in mind commissions and fees?    
5.    Why having a daily profit target is important?    
9.    What is the daily goal based on buying power used per trade?    
10.    What is the max loss per trade and daily max loss based on buying power used? What is the process to calculate these parameters?    

Technical Analysis    
1.    Which Moving Averages do you follow in your charts?    
2.    Why the numeric values of moving averages in my trading station differ on each timeframe?    
3.    Why it is important to analyze daily charts?    
4.    What are the differences between a good daily chart vs. a bad daily chart when making a premarket watch list?    
5.    How to use moving average crossovers in day trading?    
6.    Do you look at the slope of a moving average? How I can use it as a potential indicator for my trade?    
7.    How to make use of SPY price action during trading?    

The Day Trader Trading Plan    
1.    What is a recommended Pre-Market Routine?    
2.    Where to find stocks in play?    
3.    There are Trading Business Plan templates I can use?    
4.    Should I have a daily profit goal early in my trading career?    
5.    Do you let fundamentals influence your trading?    
6.    How broker commissions effect on day trading?    
7.    There is an ideal number of trades per day?    
8.    If your main, or only, source of income is from trading, how do you pay yourself as a full time day trader?    
9.    How to plan a trade before entering it?    
10.    How the "Above Ask" and "Below Bid" in the time and sales window relates to affecting the direction and speed of the price action?    

Trade Management    
1.    Is Andrew placing Market or Limit Orders during the morning trading session?    
2.    What is the best order type?    
3.    What is a trailing stop and how to use it?    
4.    Mental vs hard stop loss: which to use as a day trader?    
5.    How to define attainable profit targets?    
6.    Andrew, you have an amazing ability to jump into a stock right before it pops (up or down). What is it you see that tells you it is about to move?    
7.    How to manage a trade?    
8.    What is the difference between waiting for confirmation and chasing a trade?    
9.    What is the best size to take partials during a trade?    
10.    How many shares you take for each cover? What is your scaling out strategy if the stocks work in your favor?    

Trading Psychology    
1.    What is Fear of Missing Out (FOMO)    
2.    What are the healthiest habits a day trader can have to get better at trading?    
3.    What are the most common trading errors?    
4.    I have the fear of pulling the trigger, what can I do?    
5.    How to control emotions while trading?    
6.    How would you recommend learning to trade live in a relaxed state of mind?    
7.    I´m struggling with my trading, what can I do?    
8.    How to overcome fear of losing?    
9.    What would be your advice on what to do after a big loss?    
10.    How do you learn to lose?    
 

Please use a question format for your submissions. 

Thank you! 

[Glenn Budde 356]

I am sure this will be a great help and a nice book for all traders to have and review.....

Maybe a section on when you go from SIM to Live.... What to expect, Like

How the Montage will automatically be on your Live account and even though you switch to your SIM, once you go to a different stock it will be back on Live..... (this particular thing cost me quite a few bucks before I figured it out)

How important it is to have a Positions Tab open with the Account showing so that you do not make the mistake above.

 

Also How important it is to have a Play Book and try your hardest to log into it as much as possible, reviewing for yourself and determining if you have made the right choices in entry, partials, add ons, and exits... How to improve each trade, Why the stock was on your screen in the first place (why was it in play) ect......

 

 

[Magna 31]

Please have a section to go in-depth on price actions. 

[Brendon 146]

 

On 11/9/2019 at 9:52 AM, Abiel said:

Risk Management    
4.    How to take winnings with smaller position size, keeping in mind commissions and fees?    

 

I call this FoF (Fear of Fees), not to be confused with FILG (my fav strategy). My solution was just to trade under PTD. If you are new to trading, FoF will mess with you because you probably will be watching your PnL and not the setup you planned out. You can try hiding PnL as well, but you won't. 

Until offshore brokers are competitive with IB, trade under PTD otherwise you may try to push a trade too far to outrun fees. New traders have much less self control, knowledge, and smaller accounts. A triple threat to try to outrun fees. They have a large hurtle to climb. Now we know why Andrew is so good, he literally climbs mountains. If you grow your account and survive the learning curve, you are rewarded with better fees. It's awesome and something to see as a reward for 'good behavior'.

My 2 cents, until I dig deeper into this list. 

[Justin 264]

On 11/9/2019 at 9:52 AM, Abiel said:

What advice would you give to better perform in simulator stage of learning?    

I know Andrew is writing the book, but here is my advice on that one 😛

It's something I think a lot of people don't change or consider. They take the default $25,000 equity the SIM gives you and tries to start trading/learning based off that. If you starting with 3k or 10k, train off of that.

[Andrew Aziz 98]

Thanks guys!

[GA 2]

I believe one of the biggest problems that new traders seem to have is deciding share size.  I feel that many do not understand the benefit of creating a risk (dollar amount) that is constant, no matter what stock you are trading; how to do the math to create this constant risk. 

[Jason H. 56]

Here are some I've seen answered in chat:

1. When you say "clean chart" what does that mean in the pre-market? While the market is open?

2. Can you go more in-depth on time-and-sales and level 2 signals? 

3. How do I develop market instincts?

4. What specific trading computer should I use?

5. What other hardware items might help me in my trading? (Elgato, keypads, etc.)

6. Should new traders scale out of trades with a lot of tickets, or only a few?

 

[Goh 1]

Finding the trading style that best works for yourself is the hardest and most important aspect of becoming a successful trader, I believe.  Yet the topic is often too open-ended for a new trader with an advice such as "you have to try different strategies till you find what fits you."

Can you include in the new book several detailed sample game plans / trading rules that you have gathered over time or from moderators for entries and exits, for  different trading styles?  That way, new traders can try out specific sample game plans to see what closely work for them, and further refine for their taste.

 

[Goh 1]

Another request.  Can you add a reference section where recommended books, trading tool websites, software and even other notable trading communities are listed?

[IamKarthi 342]

I would love for Andrew to write a book about his new strategies at the open. He has grown as a very successful Trader after his original book,  and killing at the open very regularly. May be he can write a new book for advanced Momentum traders. 🙂 

There is so much of interest for people to trade at the open, but consistency is very rare. 

[Mina Naghavi 0]

Question for Andrew: Which x-min chart are you looking at for trading? is it 1-min, 2-min, 5-min, ...

also, how does this change when it's early morning vs midday vs near closing.

 

Thanks!

[Haroon 0]

1- tape reading,  understanding Level 2 , and how to act accordingly?

 

 

[Brendon 146]

8 hours ago, Mina Naghavi said:

Question for Andrew: Which x-min chart are you looking at for trading? is it 1-min, 2-min, 5-min, ...

also, how does this change when it's early morning vs midday vs near closing.

 

Thanks!

I think he usually places his entries off the 1-min, stops off the 5 min, and partials off the daily or other levels. There's always exceptions and can depend on the setup and trading style. The stock could begin to look weak or show strength, indecision, at any time. The 1 and 5 are most used the get in and out of a trade.  

The stock can sell off then be bought right back up on the 1 min, that shows strength that everyone is getting aboard. Like today with $BBY in the morning. 

[JOSECALCAS 11]

Thats a good News and I expected the book is ready early next year!!

Some questions:

Technical Analysis

What does mean Magic Levels and what type of this use to be and how to use?

How to analyses the PRE MARKET movements and how to read?

Trade set ups or style or Risk

There are some related into the time and style to trade set ups?

If the time in the year or moment like summer or earnings seasons tha suggest to take different analysys or risk management?