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Advanced Techniques in Day Trading: A Practical Guide to High Probability Day Trading Strategies and Methods

by Andrew Aziz (2018)

Quick summary -- an in-depth PhD-level extended summary (10-30 pages) for this book is coming soon.

Advanced Techniques in Day Trading: A Practical Guide to High Probability Day Trading Strategies and Methods

Author: Andrew Aziz | Categories: Day Trading, Trading Strategies, Technical Analysis, Beginners

Executive Summary

"Advanced Techniques in Day Trading" by Andrew Aziz, Ph.D., published as a follow-up to his bestselling "How to Day Trade for a Living," provides more sophisticated day trading strategies and methods for traders who have mastered the basics. Aziz, founder of Bear Bull Traders (formerly Vancouver Traders), draws on his experience as a full-time day trader and educator to present detailed strategies including VWAP trading, opening range breakouts, ABCD patterns, and more advanced setups for traders ready to move beyond beginner-level techniques.

The book maintains Aziz's practical, no-nonsense approach, with specific entry and exit criteria for each strategy, risk management guidelines, and real trade examples. Despite the "Advanced" title, the book remains accessible and well-organized, making it suitable for traders transitioning from beginner to intermediate level.

Core Thesis & Arguments

Aziz argues that advanced day trading requires mastering a small number of well-defined strategies, understanding market microstructure (Level 2, time and sales), and developing the discipline to trade only the highest-probability setups. He emphasizes that day trading is a probability business -- the goal is to find setups where the statistics are in your favor and to manage risk so that winners exceed losers over time.

Chapter-by-Chapter Analysis

Chapters 1-2: Foundation and Platform

Review of essential tools, broker selection, trading platform features, Level 2 data interpretation, and hotkey setup.

Chapters 3-4: Watchlist Building and Pre-Market Preparation

How to identify "stocks in play" using pre-market scanners, gappers, float analysis, and catalyst screening.

Chapters 5-8: Advanced Trading Strategies

Detailed coverage of: VWAP trading (support, resistance, false breakouts), Opening Range Breakouts, ABCD patterns, Bull Flag/Bear Flag setups, Moving Average trend trading, and reversal strategies. Each strategy includes specific rules for entry, stop-loss, and profit targets.

Chapters 9-10: Trade Management and Psychology

Advanced trade management techniques including partial profit-taking, trailing stops, adding to winners, and the psychological discipline required for consistent execution.

Key Concepts & Frameworks

  • VWAP (Volume Weighted Average Price): The institutional reference price used for intraday support/resistance.
  • Opening Range Breakout (ORB): Trading breakouts from the first 5-15 minutes of the trading session.
  • ABCD Pattern: A four-point price pattern that provides measured move targets.
  • Stocks in Play: High relative volume stocks with catalysts offering predictable intraday volatility.
  • Level 2 Reading: Using order book data to gauge supply/demand at specific price levels.

Practical Trading Applications

  1. Use VWAP as the primary reference level for determining intraday bias (above = bullish, below = bearish).
  2. Identify opening range breakouts within the first 15 minutes for early session momentum trades.
  3. Apply ABCD pattern targets for measured move profit-taking.
  4. Build a pre-market watchlist daily using gap scanners and catalyst filters.
  5. Use Level 2 data to confirm or reject trade entries at key price levels.

Critical Assessment

Strengths: Specific, actionable strategies with clear rules. Good progression from basics to advanced concepts. Real trade examples with annotated charts. Practical platform and tool guidance.

Weaknesses: "Advanced" is relative -- experienced traders may find the strategies still basic. Focus is primarily on small-cap momentum stocks. Market conditions and strategy effectiveness can change.

Best for: Day traders who have completed beginner training and want structured, rule-based strategies for the next level of their development.

Key Quotes

"Day trading is a probability business. Your job is to find setups where the statistics are in your favor."

"The most important skill in day trading is not finding trades -- it is managing the ones you are in."

Conclusion & Recommendation

Andrew Aziz's "Advanced Techniques in Day Trading" delivers on its promise of providing more sophisticated strategies for developing day traders. The combination of specific strategy rules, practical platform guidance, and emphasis on risk management makes it a valuable progression from beginner texts. Traders should practice these strategies extensively in simulation before live implementation.