How to Trade VWAP Short Squeeze Day Trading

Step-by-Step Tutorial: How to Trade VWAP Short Squeeze Day Trading

Step 1: Introduction

• The video is presented by Andrew Aziz, the author of "How to Day Trade for a Living."
• He shares his trading experience and insights on trading AMD, using examples from his trades.

Step 2: Understanding the Market

• Andrew mentions the volatility in the market and the importance of being aware of global trading times.
• He discusses the significance of the opening trade and how traders need to be prepared for potential volatility.

Step 3: Trading Strategy on AMD

• Andrew shares his trading strategy on AMD, focusing on short squeezes and using the VWAP indicator.
• He explains how he went long on AMD, starting with partialing his trades as the stock moved up.
• He emphasizes the importance of setting stop-loss orders and managing risk while trading volatile stocks like AMD.

Step 4: Stop-Loss and Partialing

• Andrew discusses using stop-market orders for highly liquid stocks like AMD, Tesla, and S&P 500 due to low spreads.
• He explains his approach to setting stop-loss levels and the importance of partialing trades at different risk levels.

Step 5: Managing Trades

• Andrew shares his experience of adding to positions and adjusting stop-loss levels as the trade progresses.
• He highlights the importance of protecting profits by moving stop-loss orders to break-even after partialing trades.

Step 6: Analyzing Market Conditions

• Andrew talks about analyzing the market conditions on a five-minute chart and making informed decisions based on price action.
• He mentions the impact of earnings reports on stock movements and the need to adapt to changing market conditions.

Step 7: Risk Management and Profit Targets

• Andrew stresses the importance of managing risk and avoiding unnecessary risks that can lead to losses.
• He advises traders to have clear profit targets and to stick to their trading plan to avoid impulsive decisions.

Step 8: Joining Trading Boot Camp

• Andrew invites viewers to join their trading community and mentions the upcoming options trading boot camp.
• He provides information on how to join the boot camp and encourages viewers to visit their website for more details.

Step 9: Conclusion

• Andrew expresses gratitude for the support from viewers and encourages them to subscribe to the channel for more educational content.
• He emphasizes the importance of continuous learning and improving trading skills to navigate the volatile market successfully.

Step 10: Takeaways

• Learn from Andrew's trading strategy on AMD, focusing on VWAP and short squeezes.
• Understand the importance of risk management, stop-loss orders, and profit targets in day trading.
• Consider joining trading communities and educational programs to enhance your trading skills and knowledge.

By following these steps and incorporating the insights shared by Andrew Aziz in the video, you can improve your day trading skills and make informed decisions in the volatile market environment.