 her here. Let me just tell you a little bit about Melissa. Melissa has been basically just like me started her own educational company where she teaches people how to successfully trade in the stock market. She owns the company Stockswish and it's very well known, been around for a long, long time. Strategies called the Golden Gaps, Pinpoints, you know, everything you need to know about how to trade today's volatile markets. One thing she's very well known, you've probably seen her a few times, but she's been also appeared on the stock market. She runs her own TV show, basically Make a Million with Melissa. She's also been featured on world television stage on Fox News, Fox Business Networks, RT America, Chatter TV, and BC News Corporation. So she's been very well known and very recognized in the industry and we're just glad to have her here. So with that said, let me pass over the microphone to her and she's going to talk a little bit about about today's markets. And then she's going to give you guys a little offer and then Jeff will come after her at 12 and I'll be coming and joining and talking about today's volatile markets at once. So guys, sit back and enjoy the presentation and whatever you miss this will be recorded. So for your listening pleasure, but if you have any questions, feel free to ask when time is needed. So Melissa, the stage is all yours. Welcome aboard. Thank you. Just remind me here how to share my, can you hear me? Just remind me how to. Okay, great here. Let me know if you see the screen here. I'm going to turn it on in a second. Yep. Here we are. Terrific. Thank you so much for the nice introduction. Welcome everyone. Hope everyone's having a good day. We will look at the play of the day for my trading room in a little bit here. We did Stitch Fix and I saw just now recently it's still dropping. We did a quick play in it this morning. Stitch Fix was a short SFIX. If you want to look at it for those of you that never heard of me, my name is Melissa Armo and I own a company called the Stock Swoosh and I focus on stocks that are gaffing, but today we're going to talk about how you can focus on really one directional bias daily. And for me, it's shorts. So when you get really, really good at one direction, whether it's long or short, then the irony is that you get really good at the other direction. And the reason is because if you get really good at spotting weakness, which for example is what I did today in the Stitch Fix, then you're going to more easily see strength. Okay, then you're going to be able to see really what strength looks like in the market and how to make money as a day trader. You want to get in and out in moves and quick moves sometimes. Sometimes it moves last all day like Stitch Fix could go all day. But ideally, I look to trade in the morning between 9.30 and 10 a.m. Eastern time. This is me. And I do appear in Fox News and Fox Business often. So if you've ever catch me, I talk about the market, my market calls on national TV have all been accurate. So we're going to talk a little bit about the market as well. I believe the market holds the uptrend for 2018 and 2019. However, we may not be done selling off. So the volatility is here to stay. And I think that that is something that traders are just going to have to get used to. It's not bad if you know how to trade the right direction, which is what we're going to talk about today. But it is bad if you're used to doing a set thing, it may not work in 2019. And probably a lot of people have been getting chopped up buying support, for example, in the last month in the market because the market has faked like it's holding support and then broken and sold off again. If you'd like more information, you can email me at Melissa at thestockswitch.com or call me at 929-3200 Gap. And you can also follow me on Twitter, Facebook, YouTube or Skype. And I do post my television clips on YouTube as well. So talking about volatility, again, it can be lucrative, but you have to know how to trade it. If you're scared of volatility, then 2019 is probably going to be a rough year for you. You might have had a rough 2018. But if you want to make a lot of money, then volatility is a good thing. You have to be accurate. I actually think that you always have to be accurate as far as trading goes, which is why I try to focus on one trade a day and one ticker symbol a day. But if you want to do well in these volatile market times, accuracy is going to be key. And again, it comes down to the focus. How do you make a lot of money in the market? It's not about doing 25 trades a day, and it's not about trading all day from 930 to 4. It's about finding one thing, honing in on it, and then plopping it on and doing it with size or holding it a little bit longer to a bigger target. That's how you do it. And I'm just seeing here, I'm not sure how to see the chats. Let me just look at that. All right, there. There I see the chat. Sorry. I don't know if anybody asked any questions before that. Someone just said, no sound. Can everybody hear me? Okay, good. Anyway, it's getting back to what I was saying. Day trading is something where you're in and you're out. So guess what? The volatility doesn't bother me because I'm not holding overnight. Now, what if you're used to doing swing trades or if you're a long-term investor? Well, the good news is if you're a long-term investor, I believe the market holds the uptrend, but you may get upset when you look at your account, if you look at it every day, seeing the swings in the market. If you're a swing trader, you've definitely had a difficult time in the last few weeks, really since early October, because as I said earlier, the market is fake tire, fake lower end, and all kinds of crazy things. And if you don't know how to take the positions correctly and get in and get out with money as a swing trader, it's going to be a hard year in 2019. So day trading, I think, is really going to come to the forefront again in 2019 as a way to make money in the market for an active trader. Because it's going to be easier to see these moves like stitchfix today to get in and out, in and out. And that's really what it is. It's chunking out money in the market if you want to day trade actively. It's not about buying it and holding it or shorting something and holding it. Unless you want to be in as a long-term investor. And in that case, there will be some stocks, there will be some companies that are going to break trend in 2019 with the volatility, not all, but some. And some you might not expect. And I don't want to get too off topic here, but Facebook is one of those ones. I said early in the 2018 year in February. So Facebook, I kind of put in a separate bucket from the tech sector. The state Facebook is in a downtrend. And so we'll see what happens that could turn around in 2019. But as of right now, Facebook is in a different bucket than Amazon, Apple. Those stocks are still holding the uptrends. Even with the selling, Facebook has not. And I don't know if that stock recovers. And guess what? If it does, it would do it in a gap. We're going to talk here about what a gap is in a minute, because like I said, that's what I focus on. So here's the overall market. And I clipped this from yesterday. A nice bounce yesterday. We gapped up this morning. I'm going to go over this here about volatility. What do I mean by volatility? Volatility, and everyone's been talking about it everywhere on TV, and it's going to continue. Volatility is not just the market falling, then rallying, this is the chart of the spy, then falling, then rallying, then falling, then rallying, faking like it's going to hold, then gapping down again, then rallying, gapping up big on after the summit, falling off a cliff, and then rallying again because we gapped up today. Volatility is not just that true, true volatility. And again, 2019 is going to be like a lion in volatility compared to 2018. If you thought 2018 was volatile, this is going to look like a baby lamb compared to 2019, because you're going to see way more of this. And what do I mean? I mean what transpired just in the last week. I'm just going to go back to the last three days. Here, this day here, the market closed, then it gapped out. And I know this is small, but you can still see it. For those of you who don't know what a gap is, a gap is the difference between the close and the open. So the market closed here and then it opened lower, then it fell. So then we had selling and then everyone's like, oh my gosh, we gapped down, we're falling, we're going to sell off, we're going to fall off a cliff, then buying came in, scooped the market up, big buying came in, market closed near the highs. So then volatility is we look lower, then we reverse on the same day. And then the next day we did it too. We gapped down slightly, then we rally, we were green, that's the tail, then we fell big time. Then the next day we fell again, this is yesterday, fell big time, then we got bought and we rallied all the way through and closed strong. And then we gapped up today. So volatility is not just normal down and then breaking or flipping around. Volatility is like on the actual day, on the actual day, you got to read the direction of bias right. And you got to not only take the train, whether you're long or short, you got to get out when you're up. Because there were people that were short the market yesterday, if they didn't get out, then they were down, they were up, then they were down. And that was true in the last week. So look for more of this in 2019, way, way more, but the benefit is if you know what to do and you know how to trade like I do, then guess what, you're going to be able to make a lot of money. If you don't, you're going to get chopped up. Okay. So day trading is a great job. Why? Because you can work from home, you don't have to live in New York. I do happen to live in New York, but you don't have to go down to Wall Street. I don't live in Wall Street. I've gone down there for different television spots. The funny thing is it's very, very small down there. If you've ever gone down there, it's tiny, looks a lot bigger on TV, but you don't have to live in New York, you'd be anywhere in the world and day trade. So it's a nice job. And it also, what I do is only in the morning. Although there's times I'm a whole trades longer. I do focus on the morning period. And I find that you get big moons in the morning. I'd say 80% of the moves of most stocks happen in the morning. Stitch mix again is a good example. If I go back and look at this, that at 401 today, I bet that 80% of the move, wherever closed, wherever the low ends up being, it will have happened within the first hour of the day in that stop. So it's just one of these things where if you focus on that time period that has the most momentum, whether you want to go short or long, you will have big moves. And so I do think that that is also part of the focus too, not just the directional bias, but the timeframe, the timeframe of when you want to get in and when you want to get out. So my strategy focus on is 930 and 10. If I'm not in something by 10, I'm probably not doing anything that day. And again, day trading is fast trades. Trades could be two minutes. Trades could be one minute. Trades could be 30 minutes. But that's still to me as fast. These are not overnight or swing trades. All right. And again, this is a career, if you want to do it from home. And I always tell people, take your time, ease yourself into it, learn how to trade, do a class like mine, and then tip toe in, start with small blocks, then raise it up, prove to yourself that you can do it, that you could be green until you quit your job, whatever you're having to do right now. If you really want to become a professional trader, take your time doing it. There's no rush. The market isn't going anywhere. Although I will say that I do think 2019 will be a very, very profitable year to actively day trade. And so it is all about the focus. Now, why do I like to focus on shorts? I like to focus on shorts because people, when they get crazy and upset and panic sell and selling action happens very quickly. So again, I like the fast trades. So you could have a move of a dollar or more that could happen lickety-split in seconds or minutes. And if you capture that move, you can make money. It's just common sense. So when people are down in positions, they will sell and they won't think twice about selling and they'll sell really quickly. And maybe they'll sell and they shouldn't sell, but they sell anyways. Okay. So that's what creates the selling action, the red that you see in my chart. So I'm going to show you in a minute, that movement down as a day trader, you're going to short. So you're going to short selling action in stocks. And that is what I teach people how to do. But you don't really need a general overall broad base of the market or any specific thing to even understanding funded metals, okay, to make money as a trader. In fact, I would never even have time to read what the earnings report said about Stitch Fix if I wanted to trade. I wouldn't even have time to do it. And it wouldn't even matter. Reading price, reading the price patterns is what counts. So if you learn how to read institutional money, and I'm going to talk about this more in a minute, and price patterns and gaps, you really don't need to do anything else. Institutional money is what moves the market and it's what moves stocks. Okay. And so if you get on with those moves and institutions, institutional money, what do I mean by that? I mean big funds, hedge funds, big banks, huge traders taking lots and lots of size, not just a little bit, a lot. Okay. And if you get on with those people's moves, when they're buying or selling, you can make money and you can make money quickly and easily in the market. But you got to pick those right. And so I've learned and taught myself 10 years ago when I started trading to do something called price forecasting. That's really what it is. It's technical analysis, but it's advanced technical analysis because I'm looking at the gap. Many people do not understand gaps. They think gaps fill themselves, even though that may work once in a blue moon, you're not trading institutional move when you're doing that. It does not work consistently. And if you want to make money, and particularly if you want to do this for a living, you have to be consistent. What is consistent mean? It means you've got to win in more trades than you would ever, ever lose. You have to have a high win ratio. If you don't have a high win ratio when you're trading, then you're never going to make it. So it's not just about having this one John Mungo trade, even though that's very nice and every once in a while it happens. It's about hitting it Monday, Tuesday, Wednesday, Thursday, Friday, and having lots of wins. It doesn't mean that every trade works. There are some trades I take that lose, but not that often. So it's the idea that you win more than you lose. So you have to look at it and say, I have 100% conviction the stock is going lower or it's going higher. And I have a method that I determined that before the open. So I'm not trading on the fly after the open. I liked stitchfix actually last night, but I rated it this morning using my system about 7am. So I knew last night, two and a half hours before the open today that I was going to short stitchfix. Now I didn't get in. I didn't get in until after the open, but I knew that I liked it. So let's talk about price forecasting because that's what I did this morning. This is what I do every day. Forecasting is used to historic data to determine the direction of future trends. And I look at a daily chart. Business utilize forecasting to determine how to allocate their budgets or plan for anticipated expenses for an upcoming period of time. And this is typically based on the projected demands for the goods and services they offer. So when you decide to become a day trader, it's like you're running your own little business. It's you. You have your own business. You're sitting at your desk. You have your trading account. You have your charts. You determine how much money you're risking per trade, just like you were planning at your expenses. If you own your own business, you're working for yourself. You're the boss. You're the worker bee. You are in charge of yourself and you have to be responsible. Okay? So you're saying, I want to spend the money on my business on this stock or this trade. And I think that this is worth spending $500 risk or $1,000 risk or whatever you want to risk, just like if you had your own business and you were working for yourself because that's really what you're doing. And that, again, is a benefit of trading. It's just a lot of people are not responsible for themselves. But if you want to do this, know that you do have to be responsible for your choices and trades. Okay? Um, let me just see here. Any questions? No, I don't think so. Okay. A couple people said no sound. Can everybody hear me? Am I talking to myself? I'm not talking to myself. I ain't here about price forecasting. This was sex today. I know this is already broken lower since I clipped this a ton of 52. It dropped some more. But let's get back to what I was talking about earlier about gaps. Okay? So this close is a daily chart. It's a daily chart of stitch picks stock close here that last night, whatever the number was, I don't know, 25 something open boom down here this morning, right under the cusp, basically right under 21 ish. I know the exact price. But right there, so the stock close to your gap down. So a gap is a difference between the close and the open stocks and cap up stocks can gap down. Okay? But this closed here and then it gap down and it was a short. So I did my own little price forecasting and I determined the directional bias of stitch fix today would be lower. So I said this is going to go lower. And if you know a stock is going to go lower, guess what? As a trader, you can short it. If you know something is going to go higher, then you can go long it. But the idea is to get in before the move happens. Otherwise, you're chasing it. Now let's just look at what a gap up is. Again, we're not talking about that today, but I just want to show you. This is all the way back here at the beginning of October, middle of October, stock close to your gap up closed here. This is four o'clock Eastern time, boom, open in the morning right here at 930. Had a little rally. You could have bought that there. I wouldn't have done it, but it had a little tiny move up. So anyway, this is a gap up and this is a gap down. So in the morning or at night, whenever the stock's capped, sometimes things gap in the at night, sometimes things gap in the morning. I rate them and I rate them using my system that I developed. And if you wanted to come and learn my method, that's what you would learn from me. It's a 26 point rating system. I will tell you AEO is another ticker symbol I'll be watching tonight. It has earnings. I don't know what it's going to do. I don't know if it's going to gap up. I don't know if it's going to gap down. I don't even know if it's going to rate well per my system to even trade it at all, but I know that I will watch it. Now you get gaps for many reasons. News, a lot of things gap with the market. Somebody gets fired. That's a CEO or earnings. Many, many reasons. Downgrades, upgrades, lots of reasons for gaps occur, but that's neither here nor there because like I said, I don't look at fundamentals. Now, although people like to do that, I said, listen, if you'd like to do that fine, but don't ignore the price and trade based on fundamentals because you're going to have a hard time doing that as a day trader and particularly in these volatile times. One great example of that is a favorite stock that everybody loves. It's Apple. Apple's been breaking and breaking and breaking. Everybody loves a company. Apple's not going back up anytime soon. But if you've been going along that stock for the last couple of weeks, you've been down money or you are down money, if you're still in that position is long depending on where you bought it. So again, when you want to make money as a trader, you're looking at the price action and you've got to forecast where is it going to go next and then you take it and you up and you're out and you take it and you're up and you're out. Okay. Again, this is not long-term investing. For the shorts, you have to be three upticks though. If you are, if you are, RK is asking about upticks, when you short a stock and this is just, I mean, this is just a very basic question. You have to have the stock available to short of your broker. It's called a pre-borrow and I don't want to get too off topic here, but you can ask your broker about this, but many stocks that we trade are down and they could be down more than 10%. In the case of Stitch Fix, it was down more than 10%. But it doesn't mean that you can't get in the train. Okay. Every time you have a move down like this, you can place an order or you can take it with a hotkey using whatever ECN that you determine is good for you to take it to get filled. But you have moves and I didn't, I don't know if I put the one minute. No, I didn't. I didn't put the one minute in this, but you can go look at it or we'll look at another chart I have in here that we've done before. You get pushbacks and things, little green bars. So you're going to get filled. If you press the button to get filled and you don't get filled right of ways, leave it, sit there. You're going to get filled. Okay. But long and short of it is that 10% down or more, sometimes it can be that it's difficult to get filled. Sometimes it's not difficult to get filled. Sometimes if you use the right ECN or if you have the right broker, you're going to get filled. You got to have the stock to short. So you definitely have to trade at a broker that has a lot of shorts. Okay. But anytime something is down 10% or more, you do have to be aware of the fact that you may have to force yourself in. Okay. What does that mean? It means pressing it, pressing it, pressing it or letting the order sit. It's going to fill you. Okay. But we don't have any problems getting filled in these. You do have to have a broker though, that allows you to short stitch fix. And if you don't, then what I'm saying is that you have to find another broker because there's a bazillion brokers out there prop trading places, retail brokers, and many, many of them have lots and lots of shorts. And if you check it in the morning, which you need to do and you don't have it, then you call the broker and say, I would like 5,000 shares of sticks fixed today or whatever. And you request it. And then they usually get back to you by 9am or 915 and tell you if they can get it or how many shares they can get, whatever you want. And sometimes you do have to pay a small fee for that. Sometimes you don't. Again, this is all, these are all questions that you ask your broker. But in general, we do not have a problem getting filled. Every once in a while, maybe once a year, I have a problem getting filled in something or have a problem where I can't get the short, but it's so rare that it doesn't even matter. Okay. And we are trading on the one minute chart, which I'm going to show you in a little bit here. Anyways, getting back to what I was saying, you, when you're looking for something or looking for institutional footprints that are coming in that are going to take control. And one of the things that's been so erratic about the market is that it's been very difficult for people to, to tell whether or not the bulls are coming in or the bears are forcing the market down. Okay. So like there was, this is gosh, I think two weeks ago now, there was news that came out, you know, the Fed made a statement and the market had this giant Mungo move up on the day, like out of nowhere, but then it didn't go anywhere. It didn't go anywhere at all. And then people get upset and they said, well, well, I thought that everybody was in that this is, we turned around the group along again, and then we fell again. So, you know, when you're looking at this, you have to focus on the gaps, you have to focus on the gap rating, and you have to focus on institutions. And I will tell you right now that it has been tricky reading the market. A lot of people have got it wrong. And I believe a lot of people are going to continue to get it wrong. And I'll say this really quickly, I don't want to get too off topic here, but if you are doing something like futures traders, man, you better know how to read the market in 2019. And a lot of things people are doing aren't going to work. Now, I don't trade futures, but I'm telling you the market is going to fake higher, fake lower, fake, fake, fake, fake, fake, fake. What you've seen in the last couple of days is going to be way worse next year. And it's going to be the norm. Like this is it, like we've started, like welcome to 2019, the way the market's acted. You have to be able to read truly the institutional footprints. And it isn't necessarily a big green bar or a big red bar, if that makes any sense. Okay. What gap are you talking about? The only chart I've shown so far was I talked about Stitch Fix, and I had the market back here. That's all I've talked about so far with charts. Okay. Let me get into this here. So let's talk more about gaps. Okay. So again, this was last week. It was Friday. This was big. Okay. Big gap down. Big gap down. Big, actually. Stop close here the night before Thursday night. Boom. Gap down in the morning, right around 32. Big was a short. So I forecasted using my rating system that this was a short. But guess what? Some traders went long it. But the play was to the downside. Now here was the play. This is the one minute chart. Stop closed here. Gap down. Open 123. Boom. We shorted it here with the stop up here. Dropped. So this pushed back. We held in the tray to stop held. Broke fell. Really nice tray. This is expert like Melissa all over it here because a lot of traders thought this would fill the gap. It was a big gap down. The stock did lift over the high. It did it more than once. People bought it in here that were traders. I was shorted. Shorted, shorted. Got the drop. I made money. This was a short. Now you would have had to again know my rating system to be able to predict this was lower because it looked like it was going to move higher because it did move higher initially. But we were in it short. And I was very aggressive on this but it was a good guy. So we traded the one minute chart. But I forecasted this before the open. Before the open. I don't wait and say well maybe I'm going to go long this. Maybe I'm going to short this. No. No, no, no, no, no, no, no, no. You can't have 100% conviction something's a long and a short at the same time. That's no conviction. You either have 100% conviction that big is a short and the price is dropping lower or you have 100% conviction the stock is going to move higher. Which I did not. I had conviction it was lower. But it's either one or the other. And I don't play the same stock in both directional biases in any given day because again that's no conviction. Zero conviction. And if you want to make money in the market you have to have this in 2019. And if you don't know you don't have it it's probably because you don't have a full understanding of rationale of why to have conviction that big is lower. Which is what I teach in my class. But either way you need to have an understanding and say oh I get it. I see what she's talking about here now. And it's the same thing with the market. Okay. It's hard to explain this on TV sometimes I try and layman's trends but I'm not in front of a chart and television. It's a lot easier in the trading room. You know when I'm when I'm pointing at a chart. But the market here is one of these things where again a lot of people's perception of the market is that we are going to continue lower. We may drop some more. And then people's perceptions of the overall market are going to be that we're bearish. Even though to me technically speaking we're not going to go bearish. Barring a world war. Which you know I hope that doesn't happen. But I always preface it in saying that. But I'm telling you people are going to start to be bearers. Even the talk all over the place. I mean I've already gotten emails from it of different educational places and people have been discussing on TVs since October. But I am still bullish on the long-term market. It doesn't mean you can't short the market on a gap down on the day that it falls. But you don't want to be overnight the market to the downside. And to be honest with you right now. I really wouldn't be overnight the market long in any direction for long at all. I mean take it one day get out the next day. It's quite a different story. I called the market right into the close on the Friday before the summit. And it gapped up big. And I said to people get out. Get out. Get out. Get out. Get out into the open. This was an immediate profitable trade. You took it Friday night. Get out of it Monday. But the market then fell. So again you could do it quickly. But I wouldn't be in anything long. Now again if you're in long-term investments then you got to stay the course. Unless you're in the current retirement. Then you got to sit down with your financial advisor and determine what you're doing with stuff. Because I mean it's going to be a rocky 12 months for the market here. Anybody else had any other questions? Do you suggest getting in the pre-market with anticipation? Absolutely not. No way I know how. And sometimes I'll watch something fall off the planet in the pre-market. Even though I know I like it. Between seven and nine or six and nine. Or sometimes I see things when I get up if I'm on TV at four a.m. I don't get in them. No. You've got to wait. You have to wait. It's not going to benefit you to get in. Because you're never going to be able to take five thousand shares of something and make it work in that type of morning trading. It's way too volatile. Things can move against you. You don't have the volume. I mean I could list a hundred reasons why I don't do it. But don't do it. Richard said wow. I don't know what he's wowing about. Santa Claus rally this year. I don't want to get too crazy off track with that. I'm sure I'll be talking about it a hundred thousand times on TV between now and the end of the year. But that I wasn't sure if we'd make new highs before the end of the year. The week of Black Friday it was on Fox Business. Then at this point here I knew that we would not. And then I said no. We're not going to do it. We're not going to actually I knew it here Monday because we didn't follow through. And I said no. We're not going to make new highs this year. And then I did review that on television on Charles Payne's show. I said no. We're not going to make new highs this year. But I do believe we do in 2019. Are we going to have a Christmas rally Black Friday. I said yes. I think we have a Christmas rally. You can call a New Year's Eve rally if you want. At the tail end of here's my call. Here you want it. You write it down. The tail end of 2018 we're going to have we're going to rally the tail end of the year. What do I mean by that? I can't tell you the exact time and second and date. It could be the very last day of the year literally. It could be the last two days of the year. It could be the week of Christmas. It could be the week between Christmas and New Year. I don't really want to call it a Christmas rally. I'm going to call it a New Year's Eve rally. I'm saying at the very tail end of 2018 we're going to have a rally but we're not going to go over the high. But it doesn't matter. We're still strong. It's the tail end of the year. That's all that I saw. I saw it here. I saw it here in this whatever this was here. Anyways here was the results. I just I didn't want to put the whole year in here but there's a result just so you can see here. We did the stitch fix back on this day two months ago whenever it was. Okay I forget the reason for that gap but that one worked good too. So you see here I try to focus on one ticker symbol a day and like if I do one trade and get a stop like here then I'll do another trade. Okay and then over days where there were no good gaps so we didn't do anything at all. Okay and then you know you just have to kind of look at something and say am I prepared to do two trades today? I rarely rarely rarely do more than two things but every once in a while I might do two things and sometimes I do what's called a retake. Now big might have needed that. I would have gone back after big if we had gotten stopped but we didn't get stopped but anyways mm worked but it required a retake. Acam here worked required a retake but you should give yourself at least a couple of trades in the morning but if I do one thing whatever it is and I'm in and I'm out boom I'm done like whatever it is it is okay. I'm I figure my job for the day is to make money and once that goal is accomplished I am done and that's how I look at it and really I could have made a lot more here in the big. I didn't even hold this. I didn't even hold it at all but it was getting into reversal time. It went into the first target. Okay so I mean you really have to have a set plan of action with what you were doing but all in all these are just the results in earning season. I'm pointing out October and November because it was earning season so you get a lot of gaps in earning season. Right now we're playing what we get. Yesterday we didn't do anything. Today was Sitch Fix. Tomorrow I don't know what we're going to do. You play the important times. You play the good ones. You play it hard when you get the good ones too and you don't do any trades when there's nothing good to do. You don't force it and you're never going to be able to make a stock move anyways and if everyone in every trading room everywhere in the world shorted a stock it wouldn't move it. You only get moves like Sitch Fix or Big or even the moves in the market with big money so and that is in a thousand traders even in a room or whatever people have. It's just or a couple hundred. It's about I mean I'm talking about serious, serious money that comes in and moves these stocks and it happens in the pre-market and it happens on the live day and it happens in the post market. That gap up big that happened in the market from that Friday and then the news came out for the summit on the Monday morning. Big gap up in the market. Big gap up in the market. That wasn't a couple of traders. That was real money. Okay. So one experience do you need and how long does it take? People always ask me this. You can come and learn how to trade with me and with no experience at all. In fact one of the ladies in the room that's doing the best she made a thousand dollars today and Sitch Fix is brand new to the class a couple of months ago. She just listens to every single thing I say. She takes the trade. She gets out. She puts the stop in. She just does it. Doop-a-doop-a-doop like a robot. She's new and she listens to me and she's doing great. So the best thing I can say to people is you don't have to have an experience to come to me but you don't need to listen to what I do. If you want to follow me you need to do it. Don't make up your own rules and the problem is a lot of people have to unlearn things that are previous traders in the past and they have to unlearn like things that they have been taught that don't work like gap bills and stuff like that. You're interested like to learn more the way I'm trading then email me at Melissa at thestockswitch.com. You can do a trial this week Wednesday Thursday Friday if you want. You can email me. Anyways a short time of the day. You've got to be available to be at your computer between 9 30 and 10 a.m. Eastern time. So I have people as far away as Australia. It's a different complete different time zone but in that 30 minutes you got to be there and you got to be in the room. So my system is I'm looking at 26 points. It measures the gap by rating them on the daily chart to find stocks to trade that have one high probability of directional bias for the entire day. Two big move in the day. Three early confirmation of the bias on the move between 9 30 and 10 and four precise entries with follow-through and a good risk to reward target potential. So again whether I hold it to the bigger target or not is up to me because if my goal is in for the day and a lot of times if I'm on TV in the afternoon now I'm not today but if I am then I gotta get going. So I can't hold something to four o'clock anyways. I like doing other things with my life and I don't want to be chained to a computer or TV's fun for me and and and now I have this whole another career so I mean for you yourself if you want to sit in front of a computer all day stitch fix make clothes near the lows but personally myself I look at it like I get up and I do it and I'm done. I get up and I do it and I'm done. And in the past when I have traded I mean this is like 10 years ago when I started out what I realized very early is that you tend to get piggy about it and if you make money in the morning and then keep trading you tend to give the money back. So I just don't think it ever benefits anyone by sitting there all day your eyes get tired then you start to get piggy in your mind with the money just look at it like you're going in and you're taking it and you're getting it out and then every once in a while you are going to have a big trade. Every once in a while you're going to and we're going to go over the one of those big trades here which was ACAM in a second but how much you risk is really a function of what you can afford based on the size of your account. Now if you have a prop account usually get 10 to 1 leverage if you have a retail account you get 4 to 1 leverage but these are not cash positions just so you know date trading everyone trades with margin. You're in and out and you're flat before 4 o'clock Eastern time okay. Yeah sometimes I do go shopping or get my hair done. I don't trade after hours I just don't trade after hours and I don't trade in the morning I just don't do it I just there's no point in doing that. Anyways here let's go over AMAT so this was one back again December stock close to your gap down boom fell so this is a baby gap down so the stock close to your around 38 50 or whatever open here in the morning around 38 fell like a brick again this went to the target beautiful move you didn't have to hold it all the way down you could have got it early you could have held it all the way down now I want to show you here this is a 15 minute chart this is a 15 minute bar again going back to what I said as far as moves go you could have played this here boom get in and out the move up here the hog was 38 low down here was 37 so you could have got a buck out of the first 15 minutes of this and you just went on with your merry well of day now we didn't get this out of the game we did not do this in the first 15 minutes so we did a late trade in this but I just want to show you you could have you could have done it and you could have done it and just been done anyways a drop fell broke here this was a really good call this is a late trade now this was a good gap and also the market was with this thing so the market was with this to do it late and it set up and it was a good gap okay so I saw the selling was going to come in and continue so we shorted this here we did an add in in here great great entry and stopping this year it was like 30 some cents and got the drop so you what you want to do when you do these again you just want to take it get the move you could have taken here and you got the move now this is again as a 15 minute chart but I did do this as a 15 minute play why because it's late so this is a late trade around 11 o'clock 1045 11 o'clock on this day this is for an advanced trader and it will go over the beginner trader in a minute entry 3660 stop 3690 7000 shares was the initial entry in this then there was an add 3654 double the position once it broke price was 3657 14000 shares you can certainly take that size of position in this again I trade only stocks of volume I'm never doing penny stocks we're not doing crappy crap we're just not anything that you would ever trade in my room you've heard of a yo stitch fix amat apple you've heard of the companies they're real you know them we're never doing penny stuff stocks or anything like that there's no institutions that are buying that crap anyways exit was 35 30 good exit even though it kept going huge trade now what was the reason this was such a big trade 17000 almost 18 grand why great entry small stop 30 cents plus doubled it added to the position huge size and a big move that just came in right at a perfect timing with the market okay let me go back actually let me go back and show you the market here 12 for and just get back here at the market 12 for yeah I think it was here wasn't this this day I think it was this the day I think it was this day I think that was 12 for I have to go back now and look at my I think that was 12 for it's so hard to see anyways okay let's go back to amat now buying power needed to do this over 500 000 this is an advanced risk you didn't have to take 14 000 shares but I'm just showing you if you wanted to do this what you would have done is as an advanced trader position okay cash needed a retail account you would have needed only 128 000 that's really not that much considering the fact that you would have actually made 18 000 so that you know you said well that's a lot of money yeah but you could have made 18 grand when you look at that and you look at how much you percentage you would have made on the cash that you had that's really good in one trade in one day you know just in one move now if you had a prop account again 10 to 1 you would have needed 51 200 people always ask me about prop account shop around there's plenty out there if you cannot afford to open up a retail account where you actively day trade and you need 25 000 then you need to go to a prop place there are some good prop places there are some bad prop places just like there's some good retail places and there's some bad retail places it's no difference really but you have to check out wherever you want to go trade now if you were a beginner and you wanted to do this and you couldn't take that size or you didn't even want to take that size because you're new you would go through it and you would say okay I'm going to risk 400 on every trade or 200 dollars in every trade and that's how you figure it out and you set that all up in yourself before you even decide when you get up in the morning you rate the gap and I fill out a worksheet for myself and I say okay I rate it and it ranks whatever 21 points 22 points whatever it rains I say okay I'm going to risk this much on it 1500 or whatever I decide and I write it down in the sheet and then you got to stick to it and again you have to be accountable to yourself you work for yourself you're the boss so you're writing out your jobs for the day and you got to do the jobs okay you can't say well my job for the day is to make this much money and risk this much money and then all of a sudden you know not do it or change the plan that's not a good idea now if you're a beginner same exact rate there's no difference I call the trades of the remits is 60 by 90 you take it 700 shares is a lot different risk than 7 000 but still guess what same trade you could have made 1700 bucks you would have done the ad 1400 shares and here you go and again you're getting the move you're getting the move down it's a it's a short buying power needed 51 000 cash and a retail account the minimum is 25 000 so that's what you would need to go anywhere that's retail and in a prop account you would have needed 5 120 okay again check into this I'm not a broker but I'm just letting people know that you can do various sizes of risk small bank somewhere in the middle okay and I also want people to know that these are not cash accounts you do not need a half a million dollars to have done that that advanced rate okay what I do email me at the list of the stocks wish.com yeah this is a this is a this is a this is an interesting style of trading and to be honest with you I really think that this is going to be something that people listen I'm telling you you do not want to be a buy and hold person in 2019 you are going to get killed and if you lost money in day trading or doing any trading in 2018 you are going to get killed in 2019 if you made money in 2018 trading you might make money in 2019 or guess what you might lose because 2019 is not going to be the same as things before there's lots of reasons why I don't want to get into a whole big thing about it but I'm telling you right now you got to know what you're doing to trade in the market and come 2019 even if you thought you did you may not make money next year the way that people trade the things that people have been doing buying support and shorting resistance and these kinds of things and looking at higher highs and higher lows and lower highs and lower lows or where I even put the stop people are putting stops if they're doing trades if the game is changing people and I must say it's go last forever but I'm saying it's going to start to change it already has started it's going to carry into 2019 and it may even last until 2020 because it's the presidential election and the market may not situate itself until until 2020 or 2021 I don't know for me it's not a concern because volatility is good for someone like me it's good but I'm telling you know morning people if you've kind of traded and you've just been like well I'm just going to do a little bit here a little bit there you know you may get hurt so take it seriously okay one of the reasons why people find trading so hard is because they lack clarity they do not have a strategy they don't have conviction they don't even know what that means conviction is important it will be more important in 2019 as I said but it's really about the knowledge the knowledge the system that I created have been doing for 10 years and my trading has improved over time it's one of the reasons I'm on Fox when you get to the point where you really know how to do something you're supposed to make more money over time you're supposed to get better the problem is that many many traders never get to that point because they jump from thing to thing to thing to thing to thing do but do but do and they never get good and then they blame the market and they say oh this didn't work and I hate the market and it just you know and then they lose conviction even in the market the market is a place that you can profit the problem is that a lot of people do dumb ass things and dumb ass trades and sometimes make money then they think they know how to trade but that doesn't mean they know how to trade sometimes dumb luck you will make money to trade when you take a wrong action and you have a positive outcome that's very very bad actually for you as a trader because in the long run you're not serving yourself you'll never then learn the right way to do what or realize that you need to know how to do it so what happens is somebody may take 10 trades lose and all of those 10 and take one that is a big winner that's a wrong action with a positive outcome which is profit and think they know how to trade even though if you look at all the trades all 11 trades the 10 losers are one winners they think they know how to trade but they don't there's no consistency in something like that it's about taking you know 11 trades and making money in nine and losing in two and then you can say well I clearly know what I'm doing here this systems is working or I see it coming together I wanted to talk about 2019 here I pretty much already did but anyways day training is not investing you're chunking it out you're getting the fast moves that's what you're looking at doing and if you want to make a living doing this a lot of people look at six figures a year it could be 100 grand it could be 200 grand whatever the set amount is divvy it up like just you know some days you won't do any trades but it's not the end of the world it's not the end of the world at all because then that's the next day you might you might have a really big tree and what if you lose them one day again the next day you may get a really good one you just have to look at it and say okay well this is per week per month per year and that's how you break it out and it allows you then to not get overly excited or are overly stressed out if you just say okay well I'm just gonna look at the whole week so my goal for the week is this and sometimes you make your goal for the week in one trade all right if you can't buy 14,000 shares guess what Linda you can buy 1400 you can buy 400 you can buy what you can afford that's why I did the beginner example the beginner example was 700 shares short then you added in a 1400 you can do this with whatever you can afford I'm showing you the different types of traders I've been doing this for 10 years no one's saying you have to be me you can short 100 share lots and if the stock moves a dollar that's 100 bucks if you make 100 bucks every day that's 500 by the end of the week and guess what that's two grand a month two times 12 is 24 grand a year and I know a lot of people that would just love to make 24 extra 24,000 extra dollars a year especially only working for half an hour an hour a day and many traders that are trading are not making 24,000 dollars a year they are losing so it's not about the fact that you have to take size you can take small size and the and the biggest thing I tell people is you got to learn it you can take a small account and you can build that account into a medium account then you can take a medium account and build it into a bigger account by learning as you go so you start and open up a small account and then you take a little bit more and a little bit more and if you can leave the profits in there you can just build it up as far as IRAs you've got to talk to whoever is managing the IRA to determine if you can take trades in it if you're allowed I know you can usually go long in most IRAs or buy things you could buy a put in the stock if they don't allow you to short then you buy that is something that you have to ask your account person that's not a question for me any broker questions I would speak directly to your place and find out you can buy puts a put is an option where you would basically be shorting the stock but you'd be buying the put they may allow you to do that I don't know you have to ask them well then you have to find out from the broker though you have to find out from the place that you have the account wherever whatever wherever that happens to be I don't know if you're allowed if you're allowed to do it or not in the account test it good questions here today anyways we did talk about this already you trade on margin we're typically looking for a dollar and something you're chucking it out okay learning as you go anyways if you want to think about doing this whether it's for part-time or full-time job it's definitely something that I think is going to be very lucrative in 2019 for day traders long-term investors are going to have a hard year unless they have a plan of action before January 1 and I said I have a plan of action you've got money in retirement in a 401k then sit down with your investment advisor before the beginning of the year and determine a plan of action all right but there are challenges that people have with trading a lot of them has to do with attitude lack of focus and really also greed you know it's great to have these big days sometimes but you can't expect that it's going to be all the time so you have to look at it as okay this is my goal today and every once in a while you get a big one and then you say thank you thank you market and you get up and you move forward all right it's the same way with anything that you do when you work for yourself you're responsible you're responsible for your own decisions but I say to people if you join the trading room with me then you have the best chance of being successful my trading room is not open for people to join unless they hire students of my golden gap course you have to take the class pass the class then you join the room the trades that are fast you have to know what to do and I'm trying to create good traders people that are successful and do well and I've I've been able to do that in the six years I've had the business so I don't want people jumping in and jumping out you have to decide if this is something that you want to do if you want to do it anyways my class I teach the golden gap points it's the 26 point professional bear scap rating system the purpose of the system is to help you evaluate which gap to trade each morning used in a checklist which you will do in the pre-market this checklist tells you what to trade when and in what direction the 26 point checklist predicts directional bias and a stop and I do it every day I never skip it I don't skip it I don't eyeball it I don't trade on the fly okay the last class of the year is this coming weekend so my class is called the golden gap course it's 59 99 6 grand us dollars you email me if you want to sign up you have to sign up through by emailing me you get the forms and you fill them out you pay with a credit card and it comes up the stocks whoosh LLC the class is December 15th and 16th Saturday and Sunday 9 to 5 last class of the year email me if you want to sign up it's six years I've had the business actually anniversaries this week so I'm doing a big happy birthday special good timing for those of you that are interested you sign up by Friday you get the year free in the trading room normally the room is $3,600 after the class but you get the year free which would be for one year if you do the class this weekend you just got to sign up by Friday so think about education I'm running short on time here but just want to make a couple comments when you choose to do this you're investing in yourself when you take a class whether it's my class or anybody else's you are investing in yourself first of all you're paying me from my time which is very important and you're also paying me for my information which is important too but you're really investing in yourself when you choose to do this and say I believe in myself and I think that this is something that I really want to get serious about and do and I'm going to do this thing in 2019 but the benefit is you will be able to get my trade calls in the room free for a year and when you follow someone else particularly someone that knows what they're doing and has conviction which you could you can tell when I make the calls in fact I I put the trading room online for YouTube I uploaded it and go there YouTube listen to the call today and the stitch fix I gave it it's a lot less stressful when you follow someone okay then doing it on your own and for some reason I I don't know why but I want to share this story many people would prefer to slowly be in pain losing a little bit of money day by day and week by week in the market I don't know why I guess it's a slow pain a slow bleed rather than just paying for a chunk of money in a class but I don't think that's a good idea and I think people are going to have not slow pain in trade in 2019 people are going to have big pain and lose more than they think that they would normally or have in the past and also you also waste time if you spend months and years trying to figure out how to train or jumping around even if you're not you know putting forward six grand for a class if you lose six grand over a month or over a year you're wasting time and you're still losing and you're still into what to do there was a man that I spoke to and I'm sharing this with everyone I haven't talked to him at all since October he called me to do my class had been following me for a year had 20 grand his account in September for whatever reason decided not to do it I guess he thought he didn't need it he admitted to me jumped around then I followed up with him in October he said I can't do the class I can't afford it I said what do you mean can't afford it he said I just lost half my account I said what first of all I could still afford it he still had 10 grand he lost 10 grand in one month to this day he's not done the class and I don't even know if he has any money left in his account at all this is a story that many people have gone through I'm sharing this story because I'm telling you uh don't don't be dumb you if you don't know how to trade you're not going to make money in the market fact it's just the market just doesn't pay people consistently they don't make money it doesn't mean you'll never make money in any trade some trades you will but it doesn't mean you're doing the right action and the problem is when you take the wrong action and you have a positive outcome you're training your brain then to think that that action is correct and you will take that action again and the likelihood of then the positive outcome from a wrong action is low not high odds so when I take a trade or when I rate my gap in the morning when I look through my points it has to be 20 points or more 20 points or more if it's the 17 18 and not doing it if it's 20 points or more I said I'm going to do this trade has high odds it's high odds you look at the odds when you're training you're looking at the odds you say okay high odds this is going to work or low odds low odds you're ever going to make money in the market if you don't have proper education low odds low odds you're ever going to make money in the market if you're not following someone that knows what they're doing unless you know what you're doing on your own so you have to look at the odds and you have to go with it and I'm trying to warn people of that some people listen to be some people that don't I had no idea that mammalus happens to count from September to October but if I had told him he would I don't think he would have listened to me anyways okay I don't think people should trade with that education it does not mean that every education out there is good well it is true that not all trading education out there is good it has absolutely true some trading education is not worth the money but it is also true that not all trading education is bad the problem is the people never sure if they will learn enough to cover the cost of the education they're more concerned with the output of the money again they'd rather slowly bleed it in the market they feel like they're losing by paying for education up front in a chunk but meanwhile they're losing market year after year so be smart about it be very very smart is what I'm saying and think about it because 2019 is going to be a very volatile year more so than ever before and if you are not prepared mentally education wise just in your head about what your expectations are for the coming year and of yourself you are not going to have a good year and I want people to do well I want you know I want to like everyone to do well but the fact is that not everyone will do well in the market and when I take a trade like big and big is just such a good example because people were long that stuck on Friday traders were long at not institutions or wouldn't have fallen off a cliff but traders were part of that I took money from other people in that because I was short it and traders were long it I took money from those people that lost I made money they lost I took it from them when you trade it's a zero-sum game there's always a loser and there's always a winner so you have to decide if you want to be on the side of the winner and a smart intellectual person will understand that if you want to be successful and good and you want to make a lot of money then you will learn how to trade properly not do it in the flying not jump around and you will get focused on what you're doing penny stock platforms I do not trade and I would not trade penny stocks they're too speculative uh if you can do options a lane you can buy puts which is basically a short email me i'm elissa at the stockswish.com if you have any more questions good webinar everyone any questions from anyone else thank you oh you there hailey has my information up at the top any questions from anyone oh thanks for having me