Introduction
My journey into day trading stocks began with a fortunate stroke of beginner’s luck. I made a significant profit on a penny stock trade that hooked me into the market, but it wasn’t long before I realized this was an illusion of easy money. That initial experience taught me a valuable lesson about the realities of trading and set me on a path that would eventually lead to becoming a consistent trader, author, and even someone who could fund extraordinary adventures like climbing Mount Everest. Along the way, I’ve faced devastating losses, learned critical lessons about leverage and discipline, and developed strategies that have helped me navigate the challenging world of day trading.
Trader Talks QnA
Can you share your background and how you got into trading?
I grew up as an engineer and went to school for my bachelor’s and master’s in engineering. Then I went to Canada for my PhD in engineering. After working for a couple of years, I got laid off. With some money saved up and a severance package, I started messing around with the financial markets. I had some beginner’s luck with penny stocks and made money initially, which made me think trading was easy. But then I started losing money and realized it wasn’t as simple as I thought. I went back to work while continuing to learn and trade on the side. Living on the west coast of North America in the Pacific time zone worked well because the market opens at 6:30 AM, so I could trade from 6:30 to 9:00 AM before heading to my job. For the last 10-11 years, I’ve been actively involved in trading and the financial markets.
Did you work a regular job while trading?
Absolutely. I’m a big advocate of part-time trading. Full-time trading where you rely solely on trading income is very psychologically difficult. When every loss directly affects your income, it’s challenging. Having a separate source of income is incredibly helpful for your trading psychology. I kept my job until 2019, even though my trading was profitable and I had other income sources. I highly recommend to all traders I coach to keep something on the side – trade for one or two hours depending on what you trade, then go back to your professional career or business. For stock trading, the time is limited to the first couple of hours when volatility is highest, making it perfect for part-time trading.
How did your PhD background help your trading journey?
A PhD is essentially about being given an unknown topic with some background that’s not necessarily close to your expertise. You’re asked to define a problem, research it, answer questions, and then defend and publish your findings. For me, as a chemical engineer, my PhD topic was completely different – working on hydrogen electric cars. The process taught me critical thinking skills that go beyond any unknown topic. This training served me incredibly well in trading, which was another unknown field for me. I approached trading the same way I approached my PhD – researching online, learning from YouTube websites and books, practicing, and eventually writing about what I learned in my book. The PhD process trained me to be a researcher of unknown topics, which is exactly what trading requires.
What was your experience with beginner’s luck?
I had a classic beginner’s luck experience with a penny stock pharmaceutical company. I had no idea what I was doing – no proper broker, platform, or commission structure. I was using a web-based broker that charged $10 per ticket and required entering phone numbers to enter and exit trades. I bought $50,000 worth of this penny stock that someone mentioned in a chat room. After pressing buy, nothing seemed to happen. When I refreshed my page, the price had significantly increased, so I sold for a substantial profit. This was pure luck – it could have easily gone the other way and wiped out my account. This beginner’s luck hooked me into trading, showing me the potential of making money with a single click, but it didn’t take long to realize that consistent profitability requires much more than luck.
What led you to write your book “How to Day Trade for a Living”?
When I first started writing, I wasn’t a great trader, and the book wasn’t great either – it was a small booklet about what I had learned in the process. I wrote it because there was no other book that walked me through the practical aspects of trading. Around 2012-2013, retail trading was just starting to become popular, but existing books were mostly technical analysis textbooks that weren’t helpful for beginners. I wanted to know what broker to use, what platform to choose, what indicators to use – practical information that wasn’t available. I self-published this small book, and it turned out to be helpful. As I became a better trader, I constantly updated it with new materials and removed outdated content. I plan to continue updating it because both trading and markets evolve. The PhD process definitely inspired me to write and share my journey, even though I never claimed to be the best trader – I was simply sharing what I had learned.
Can you share about your $2 million loss and what you learned from it?
Last year, I had a $2 million loss due to excessive use of leverage. This loss wiped out almost two years of my profits. My trading wasn’t particularly remarkable until 2020 when the pandemic happened. Before that, $500 a day was a really good day for me. During the pandemic, market volatility increased dramatically, and my account grew significantly, making this loss particularly devastating. Psychologically, it was incredibly hard – as a 39-year-old man, I cried that day. My brother, who is also my business partner, reassured me not to do anything crazy to try to make the money back quickly, which is the first impulse after a significant loss. He reminded me that if I could consistently make money over the next two to three years, I could recover the loss. The human mind is resilient, and while the loss was painful and embarrassing – especially as someone who teaches trading – accepting the mistake helped me move forward faster.
How did you develop self-accountability in trading?
Self-accountability is a lifestyle that starts with basic habits. It’s about building discipline in every aspect of your life. For example, something as simple as making your bed every morning might seem insignificant, but it builds that discipline muscle. The same principle applies to not checking your phone immediately upon waking or controlling your diet. Many people know sugar is bad or want to be in shape, but few have the discipline to consistently act on that knowledge. To become a successful trader, you need to build habits of self-discipline and self-accountability in all areas of your life. Additionally, having a community that holds you accountable is crucial. This doesn’t need to be a large group – even one or two trusted people in a small WhatsApp or Discord group can provide perspective when you’re in a difficult trade. Having someone who can ask tough questions about your decisions helps maintain accountability.
What are your top tips for traders struggling to find consistency?
My top three tips for traders who haven’t yet achieved consistency are: First, trade in a simulator for at least three months. Practice without real money on the line to develop your skills and strategies. Second, build a couple of trade books. Write down your strategies with specific names, rules, and step-by-step processes. Have this printed and next to your desk as a handbook. The process of building these trade books creates muscle memory, and by the time you’ve written and printed them, you’ll have mastered those strategies. Third, trade with small share sizes. Position sizing is critical for managing risk and allowing yourself the psychological space to learn and grow without catastrophic losses. These three fundamentals – simulation, written strategies, and small position sizing – create a foundation for consistent trading.
Dr. Andrew Aziz Trade Statistics
Throughout my trading career, I’ve maintained detailed records of my performance. My trading style focuses on US stocks, primarily during the first two hours of market opening when volatility is highest. I’m a scalper, with most trades lasting only 2-3 minutes maximum. Below are some key statistics from my trading journey, including both successful periods and challenging times.
- Typical profitable day before pandemic: $500
- Account growth during pandemic volatility: Significant increase
- Largest single loss: $2 million (excessive leverage)
- Recovery time from major loss: 2+ years of consistent trading
- Maximum trades per day: 2-3 quality setups (scalping style)
- Trading time window: First 2 hours of market open (9:30-11:30 AM EST)
- Primary instruments: US stocks (common shares and options)
- Average trade duration: 2-3 minutes
| Performance Period | Key Metrics |
|---|---|
| Pre-Pandemic (2019) | $500/day average, consistent part-time trading |
| Pandemic Peak (2020-2021) | Significant account growth, increased volatility |
| Loss Period (2022) | $2 million loss, excessive leverage use |
| Recovery Period (2023) | Steady recovery, return to core strategies |
Key Trading Insights from Dr. Andrew Aziz
My trading journey has taught me numerous valuable lessons that I believe can help other traders navigate the challenges of the market. These insights come from both my successes and failures, with the latter often providing the most profound learning experiences.
- Part-time trading advantage: Maintaining a separate income source reduces psychological pressure and improves trading decisions
- Leverage dangers: Excessive leverage is a double-edged sword that can wipe out years of profits in a single mistake
- Acceptance of losses: Quickly accepting trading mistakes and losses allows for faster psychological recovery and learning
- Trade books/playbooks: Having defined, written strategies creates consistency and prevents emotional trading decisions
Dr. Andrew Aziz Trading Strategy
My approach to trading has evolved significantly over the years, developing into a structured system that emphasizes consistency and risk management. I focus on quality setups rather than quantity of trades, with strict rules that govern my trading decisions.
Opening Range Breakout Strategy
One of my primary strategies is the 5-minute opening range breakout. This strategy focuses on identifying significant price movements during the first 5 minutes of market opening. I look for stocks breaking above or below the established range with increased volume, indicating momentum. These setups typically offer quick 2-3 minute trades that align with my scalping style. The key is waiting for confirmation of the breakout rather than anticipating movements before they happen.
Double Bottom Reversal Strategy
Another strategy in my playbook is the double bottom reversal pattern. This counter-trend strategy identifies potential turning points where a stock has made two consecutive lows at approximately the same price level before reversing upward. I use volume confirmation to validate the reversal and enter positions as the price begins to move upward. One of our traders has named a variation of this strategy “Mountain Pass” – giving it personality and making it more memorable. Every trade I take must fit into one of my defined strategies; if I can’t identify which strategy a trade belongs to, I shouldn’t be taking it.
Risk Management Parameters
My risk management is built around several key parameters. I have a daily stop-loss that prevents me from losing more than a predetermined amount in a single day. If I take four trades and reach my daily loss limit, I stop trading for the day, even if I see another potential opportunity. I also set daily profit targets – once I achieve them, I either stop trading or reduce my position size significantly. Additionally, I have a strict time limit of 11:00 AM EST – no matter what’s happening in the market, I stop trading after this time. These parameters create structure and prevent emotional decision-making.
Dr. Andrew Aziz Tools
Throughout my trading journey, I’ve utilized various tools and resources that have contributed to my development as a trader. These include platforms for execution, educational resources for learning, and community tools for accountability and growth.
- Trading Platforms: Direct access trading platforms with fast execution capabilities for scalping
- Charting Software: Advanced charting tools with real-time data and technical indicators
- Journaling Tools: TradeZella for automated journaling, back testing, and performance analytics
- Educational Resources: “How to Day Trade for a Living” book series and Bear Bull Traders educational platform
Common Trading Mistakes to Avoid
Having experienced significant trading mistakes myself, I’ve identified several common errors that traders should avoid. These mistakes have cost me dearly but have provided invaluable lessons that have shaped my approach to trading.
- Excessive leverage: Using too much leverage can wipe out years of profits in a single trade, as I learned from my $2 million loss
- Averaging down: Adding to losing positions in hopes of a recovery often leads to larger losses and ties up capital
- Holding losers too long: Turning day trades into swing trades or investments when they go against you violates trading discipline
- Overtrading: Taking too many trades, especially after losses, is a recipe for further losses and emotional decision-making
Conclusion
My journey in day trading has been filled with both triumphs and challenges, from the initial beginner’s luck that drew me in to the devastating $2 million loss that taught me humility. Through it all, I’ve learned that successful trading is less about finding a secret strategy and more about discipline, risk management, and psychological resilience. The PhD process taught me how to approach unknown subjects systematically, while climbing Mount Everest taught me about pushing through mental barriers. Both experiences have shaped my approach to trading. I continue to be passionate about helping new traders navigate the markets through my educational platform, Bear Bull Traders, and sharing the lessons I’ve learned throughout my journey. Remember that trading success comes not from avoiding losses but from how you respond to them, building systems that create consistency, and maintaining the discipline to stick to your strategies even when emotions run high.