QUESTIONS ON DAY TRADING

[IR2020 0]

WEEK 1: QUESTIONS-enhancing my self-learning curve
1. How to automatically enter a stop loss order?
2. Meaning of RPL and its usefulness under montage.
3. Meaning of CXL and its usefulness under hotkeys
4. Aiman (use of 1-min, 2-min, 5-min, 15-min, 30-min and daily charts) while for Andrew, only 1-min
and 5-min charts are being used. Can you please tell me why such differences?
5. Andrew mentioned “higher time frames are stronger: Daily >> 5-min >>1-min” but you don’t use
daily chart.
6. Implications of NITF orders? What do they mean?
7. Choppy price action-do you mean a price action which is devoid of any trend under the 5-min chart?
8. As novice, I want to trade only at Open using ABCD patterns, VWAP and ORB, do you think they are
ok?
9. If you short-sell during the same day, you will not need to pay any interest, please correct me if I am
wrong?
10. You said to make only 2 to 3 trades per day, do you mean “trades” or “stocks” because for one
specific stock, there can be as many trades-one trade for the entry, one trade for the exit. Please
clarify.
11. I want to trade from 100 to 500 shares and hence please confirm if this is my zone of comfort; if yes,
then, how to I make this consistent with what you mentioned about account sizing: never risk more
than 2% of your equity account under a single trade?

RISK

$50 $75 $100 $125 $150 $200 $250

$0.10 500
$0.15 333 500
$0.20 250 375 500
$0.25 200 300 400 500
$0.30 167 250 333 417 500
$0.40 125 188 250 313 375 500
$0.50 100 150 200 250 300 400 500
$0.60 83 125 167 208 250 333 417
$0.75 67 100 133 167 200 267 333
$1.00 50 75 100 125 150 200 250
$1.25 40 60 80 100 120 167 200

12. Questions on ORB
a) ORB < ATR; how do you check for that?
b) If ORB is too extended from VWAP, avoid taking that trade, why?
c) For 5-min ORB, there is need to look at 1-min chart back for confirmation, why?

d) Is ORB always a scanner-oriented/initiated trading strategy, that is, you take the strategy
only when it hits your scanner?
e) 1-min charts are good for best entries under ORB, why?
13. Do you trade ORB/VWAP only when it hits your Trade Ideas Scanner or it is more when you look at
patterns visually?
14. From watching you, I found that Stocks in Play you use = from scanner + Stocks in Play day/days
before +highly active stocks from Top list, please correct me if I am wrong.
15. Overlook foreign companies-do you mean to ignore those companies which report in non-US
currency only.
16. Grateful if you can explain the combinations below
Minute EMA SMA
1 9 200
5 20 50
17. F1 for 1-min chart, F2 for 5-min chart, what about for daily, 15-min and 30-min charts?
18. Compared to MAs, VWAP is only 50% correct in identifying Resistance/Support levels; why?
19. Level 2 signals can be used for trading- do you mean the counter-intuitive philosophy, i.e., if
presence of many asks, then likely to be bullish; if presence of many bids, then, likely to be bearish.
20. Explain reasons for why:
(i) 1-min dojis are not really reliable
(ii) high wicks-do not enter into these stocks
21. Technically speaking, how do you define medium and large float stocks; is it only by price or only by
volume or by both price and volume
22. To implement ORB strategy, it has to be close to VWAP, why?
23. In the book, partials are in form of 50/50 while in practice it can be 25/50/50; isn’t the latter more
costly in terms of money and time especially when you are watching 2 or 3 stocks simultaneously?
24. How do you manage to look and trade 3 stocks simultaneously because once you enter a trade into
one stock, that takes up your whole attention until you exit that stocks-I mean if you focus on 3
stocks and trade them simultaneously-it could be that while focusing on one stock, the price action
of the other stock has completely gone astray as to blow your account chiefly when stop loss is
being entered manually and not automatic-please correct me if I am wrong.
25. I was surprised to see you trading TVIX because it is an ETF and in our scanner we ensure that we
deal with stocks by having float number equal to 1, so, does it mean we can also trade ETFs?

[Atomspapa 2]

Uh. WOW.