 Host Melissa Armo, www.thesdocswords.com. Testing, testing. Can you hear me, Kathy? Let me know. Let me know if everybody can hear me and see the screen. OK, great. Whenever you're ready, Kathy. OK, that's it. It is 4. It is now 4.30, so it is time for you to start. Jump on real quick and tell you that is my pleasure to introduce our host for the night, Melissa Armo. Melissa, will you please take it away? Good afternoon, everyone. Can everybody hear me? Can everybody see the blue slide? Thanks so much, Kathy, for having me. Welcome. My name is Melissa Armo, and I own a company called The Stock Swoosh. And today, I'm going to lecture about how you can make 20 grand a month shorting panic action in stocks. We're going to talk about shorting. We're going to talk about what panic action looks like and why, in fact, it is profitable to short. And that's one of the things I like. So there's an earnings season class special I will talk about at the end here of the webinar tonight. I will review with you. If you have questions, you can feel free to reach out and email me at melissa at the stockswoosh.com or call me at 929-3200 Gap. It's a good idea to follow me on YouTube because I put a lot of webinars, plays of the day, recaps, and sometimes I tape the trading room and I put that on YouTube too. And I think that helps people kind of get an idea about what I do, okay? So you can feel free to go there and Kathy can put the information in the room. This will question a lot. Before I talk tonight about shorting, you know, we've been in a very bullish market. So I just want to address that first. This is a chart of the spy, ETF. And a lot of people say, well, can you make money shorting in a bullish market? The answer is yes. Yes, you can. And in fact, I think it's particularly easy to see the right stocks too short when the market's bullish because most days, most stocks that are in the overall market, I'm talking about the U.S. market, most stocks do go with the overall trend of the market. And that's on any given day. So in other words, if the market's, you know, red like it was today into the clothes, a lot of things were red today. But particularly what I'm looking to do is find unique moves in stocks that are gapping, which I will discuss tonight as well. And they work on their own. So they work. It doesn't matter if the market's bullish. It doesn't matter if the market's bearish. But I'm telling you, it's easier to see things that are weak too short when the market's bullish. And we've had a very, very bullish year. And I think this continues into 2018 as well. So let's talk about shorting and making money trading. A lot of people start out in the market, they get going, they don't know what they're doing. They lose money in the market, then they make money, then lose money. It's a back and forth process. I think when you decide you want to do this, there has to be a level of commitment. If you really are serious and want to trade and want to trade as your job or to make any substantial amount of money, which obviously 20 grand a month is, it's about 1,000 bucks a day. On average five grand a week, you'd be looking to hit as your profit goals. That is enough that can support most people. One person, a family, and you've got to take it seriously. And anytime you are deciding to take a trade, your money is at risk because the trade could fail. And when you decide to take a class, for example, I teach a class on my method, you need to have a commitment level because the class I teach actually is two days, it's 16 hours. So there's a financial commitment, there's a time commitment, and all of these things you got to think about when you want to trade. Now I will just tell you, we're going to go over some trades here today, but the period of time that I focus on mostly for shorting is in the morning. Now I'm in New York, which is Eastern Time Zone, Markets Eastern Times and opens at 9.30. I'm focusing between 9.30 and 10, 10 a.m. Eastern Time. So you got to look at your schedule and figure out, can you be at your desk? Can you trade during that period? Okay, all of these things will help you decide if this is something for you or if you might want to do what I do here, okay? So you can do this for a full-time job. And I think a lot of people just don't understand that they have to take it seriously. If you are willing to take it seriously, you certainly can make this kind of money. You can make way more. It's about getting to the process, learning it, learning the skill, getting good at it, taking it seriously. And I particularly think it's important to focus on one time of the day in one system and not only that, one directional bias. And that is really what I'm going to focus on today because we're going to focus on shorting. And the reason I like shorting more than anything else is because stocks tend to sell off faster than they rally. It's not that you can't make money going long. You can, obviously, if you go and buy a stock that the stock price is rising, then you can make money going long. But stocks tend to sell off faster than they rally usually because of panic, which we're going to talk about tonight. I did mention this before. The roughly, if your goal is to make 20 grand a month, it's about five grand a week. That may mean two or three days of really good trades. One day maybe you don't do nothing. One day maybe you'll take a loss. But that's your goal. On average, you can say $1,000 a day, but if something doesn't meet your criteria for that particular day, maybe there's no good stocks to train, no good gaps, then you will do nothing that day. It's better than losing. So it really is about the consistency if you want to do this. I say to people, chunk it out. Have weekly goals. Have monthly goals. Have an annual goal. It really helps you. Good money management is important too. We're gonna talk about the trades today. I like to use stops and I think that that's just important. It keeps your losses at a minimum. And again, it's very important to have more winning trades than losing trades. But your losers have to be cut off at some point. And that's why I think using stops is good money management as well. And we'll talk about the stock with today and the trade from today. You can also trade from home. What do you need? You need a brokerage account somewhere. You need to have internet access. And if you want to be in the trading room with me, you need that internet access too. And you need to have charts. So you can see the pre-market data, the post-market data, the daily chart of stocks. And you need to have a live active level too where you can see the price of the stock moving and the difference between the ask and the bid and be able to take trades. Now, you also have to have an account at a broker that has good short access because if you're using a shorting system, then you have to be able to have access to shorts. Pretty much most brokers have a wide, wide range of lists of shorts, but some are better than others, just so you know. Now, let's talk about Matt first. This is a daily chart. Okay, now what do I do? I look at stocks in the pre-market or sometimes at night in something called the post-market. But Matt was in the pre-market this morning. I look at the daily chart and I'm looking to see what stocks, and today this is the Matt, are gapping, okay? And I'm looking to see what stocks are gapping because I'm liking to short what stocks are gapping down. So Matt was a gap down. So let's look at it. Here was Matt from Friday. Okay, this is a daily chart. You can see the dates over here. August, September, October. Today's today, 23rd. So on Friday the 20th, Matt closed, and this is really small here, but you can see it around 16 something. Gapped down, boom. Opened in the morning around 15 something, okay? So Matt gapped down. Now a gap just means the difference between the close and the open. So when the market closed at four o'clock and opened at 9.30 from Friday until Monday morning, which was today, the stock gap down, what do I do? I'm looking in the pre-market way before 9.30. Sometimes as early as 7 a.m. Eastern time, 7.30. Whenever you get up, get out of bed, you can start to check and look to scan for stocks that are gapping down. Now, can you short every stock that's gapping down? No, no you can't. But I'm looking to predict which ones will be shortable, meaning what am I doing? I'm betting, I can't think of a better word than that to say, but I'll say I'm predicting, okay, that the stock will follow through in the gap down with selling action and fall and drop. So if I see a stock like Matt in the morning, hovering, okay, trading in the pre-market around 15.40, I look at it and then I go through a worksheet, a criteria, a checklist that will help me determine if I believe that Matt in fact will follow through and continue to sell off on the live day, which means that it would have to go under 15.40 if that's worth trading in the morning. Because you can't make money shorting unless the stock price drops. So how do you make money shorting? You're like betting that the price of the stock's gonna fall and you actually can make money doing that. It sounds like, you know, way different than people think of as trading in the market, but this is not investing. Day trading is you're going into the stock and you're taking a position and you're getting in and then you are quickly getting out. So you can bet on the downside if you want. You could bet, like I said, to go long or that prices will go up, but we're talking today about the shorts, okay? We're talking today about panic. So Matt itself, when I saw the gap in the morning, and remember the gap is just a difference between the close and the open, that's all the gap is. But then I'm looking at the gap itself and I have a criteria to help me determine if I think this is lower. And I saw this this morning, I said, yes, this is lower. So therefore, Matt on the live day is a short. So therefore, you can take a position in Matt and the price will drop and you put the stop if it sets up. So I wait for the setup when, till after 9.30, after the open. So here's a one minute chart. The clock's in front of these bars here, but this was Friday night where the stock closed up here and 16 something, opening the morning down here, what, 15 something. So Matt closed here, gapped down, opened, rallied, held, dropped, broke, boom. You could have shorted it right here and got the drop. Here is the Matt fall. This is the panicking action in Matt. So when you're shorting a stock, you're betting that the stock price is gonna drop. You're taking the position, you're shorting it, remember, wherever you're trading it, whatever brokerage account you have and you're betting the price will go down and then you exit the trade, okay? It's called a buy to cover when you get to the price, when it's underneath your price, where you shorted it. So the Matt trade here was boom. Shorting it at 1540, stop was 1560, what does this mean? I mean, so if Matt had gone over 1560, you would have been out and you would have been out with a loss. That did not happen, but I'm just going over this with you to show you the reason for stops and I'll go back and look at the chart is to protect you. So in this case here, if you took 5,000 shares in Matt, what would have been your dollar risk, $1,000. Exits what, $15.15, boom. So what was the move here? This wasn't some big, gymungous move and I'm pointing this out just to show you the move was only 25 cents. Profit, though, was 1,250 bucks. How, why? Because of the quantity, because of getting the correct entry, because of getting the move down. You chunk it out, you just take it and get out, you take it and get out. Now, this did continue a little bit more. In fact, I didn't look where the low of the day was. It almost got to 15. You could have made a slightly more on this, but the morning move really was just to get in and out. Risk to reward on this trade was 1.25 and it was a quick trick, quick trade. I'm just going over this here. Time of the day for the entry is what? Three minutes into the open. Boom. And you could have got in it right here and you could have got out of it right in here. Now, you could have folded a little bit more here, which I said, but it's neither here nor there. You take it, you're up. And why are you up? Because the stock price did what you predicted it would do, it dropped, it fell. So, if you shorted this, this was a profitable trade today. The stock price and matte dropped. Does everyone see that? Does everyone understand? Now, getting back to what I was saying about the stops, stop was over here. Now, the stock price never went over here during the course of this trade. But if it had, you protect yourself with the stop, it's like the insurance, because if it had gone over that number, then you would have had a condensed loss. What most people fail to do when they trade is limit their losses. And there's a very easy way to do that. I say to people, use a stop. Whether you take 1,000 shares or 100 shares or 5,000 shares, a stop will take you out, okay? And I just think it's important to do that. And I think it's important to do that no matter what quantity you trade. And if anything at all, the more you risk, the more you should use stops, because obviously if something goes against you, for example, and you have 5,000 shares, what if it ran 50 cents against you? That wouldn't be good, okay? Any questions here about matte? Matte was the trade today in the trading room. And I will just tell people that I do call the live trades in the trading room, like in here where I'll say 40 by 60 or 10 by 50. I'm calling the numbers for people so they know how to follow. Now this one here I'm gonna go over is a daily chart of what? This was another gap today. It was a watch, more expensive, but worked. So I used my method and system for shorts, and I had two watches today. Pass and matte, and guess what, they both worked. You could have done one, you could have done both. I prefer to focus on one thing usually in the morning, but there was two today. I did watch them both. Matte just had an easier setup, and it just went pretty quickly. But I wanna show you here that they both worked. So I predicted them ahead of time though, before 9.30. Again, not doing anything until after 9.30 as far as entering the stock, but you use the system to tell you what to watch. Otherwise, you are scanning into the open, scanning for minutes or an hour to try to find something, and you miss, you miss this thing here. I'm gonna go back to this really quickly. If you're scanning, it might take you to 9.45, or later, okay, say 9.45, here's the matte. Matte, I'm out of the matte by the time you see it on the scanner, and it pops up. So do you see how you're late if you wait till afterwards? That's why having a system, the system that I use, which I have all situated and figured out before the open, what I like, which today was Hass and Matte, helps you not miss those moves. And I'm gonna explain why in a minute, but I have a question here. Mark, I didn't understand what your question was. Were you talking to Kathy? Dan P. has asked me how to determine the entry price. I have six different entries that I look for in a stock, and I teach that in the class, and then I teach targets in the class, I have different targets too. Now, as far as beforehand, I don't know beforehand where to get in. You gotta watch it because why? What if it doesn't even set up? You don't know, and nobody knows until the market opens. So I am predicting that Hass is a short, Matt is a short, but you don't know, and I don't know, and nobody knows that you will be shorting Matt at 1540 at 7 a.m. That you don't know, does that make sense? That you have to wait until the live day, but you will watch and learn, you'll learn in the class what to look for in the setups that if it does set up, that you can do it because it might not. And that's one of the reasons that I don't trade in the pre and post market because something can completely reverse, something may not even work. You know, the system tells you this is a good watch, high odds that you're gonna be able to short it today based on the 26 points, which I'll explain what I mean by that in a minute for those of you that already know that you know what I'm talking about. But the system I do, if you came and learned my system from me, says this has high odds of falling on the day, but high odds isn't 100%, nothing's as 100% until the market opens that you don't know until the market opens, okay? Otherwise, we'd all take, you know, our whole entire accounts are 1 million shares in the pre-market because actually, Haas dropped down to 88 something. So you gotta wait. And Haas here, and I'll show you the one minute in a minute. Oh, here, here it is. This could have rallied all the way up here. Now it didn't, but this is a one minute. It opened here around 9,240. So that's the other reason you don't know where the entry is until a live day because what if this ran all the way up here? You don't wanna get in it here. You'd be down before you're up. Do you see what I'm saying? So you need to watch it live. And this is part of the support of being in the trading room. The trading room is that I call the trades live and I'm very good at just seeing these things instantaneously and very quick. I have a good eye because I've been, you know, doing gaps and nothing but gaps and playing in the one minute chart for, you know, nine years, but you don't do anything until after it goes. But you will learn the setups in the class. Now let's look at Haas. If you had done this on the live day, two day and matte, you could have had a pretty big day actually, but I focused on the matte. But the Haas did work. If you did this immediately, it was a little wild, but it worked. This was a better entry, which I discussed in the room, right in here. Short it, put the stop, you get the drop. And this is just boom. Again, look at these trades. You're in, you're out. Boom, boom, boom, boom. Again, 10 minutes, five minutes, 15 minutes, that's it. Now as I said, the stock to continue, you can see here it fell all day. But you know, bottom line is, the longer you're in a trade, the longer you really are at risk. And if your goal is in for the day, why not get out? Now in this example here, if you risk $1,000, if that's your risk per trade, or per day, or however you have it set up, where you do one trade a day or two trades a day, okay? Either way, if you had done this and your goal was in for the day, do you really want to hold it? Now there are times where you can hold for much, much larger moves. And in the case here of Haas, it would have paid off. But your job, if you, again, chunking it out, chunking it out, if you're really going to do this for a serious job and you're really going to do it for career and you're out for the day, if you don't get out, there's a chance the trade could flip. So you either got to be right on top of it, watching, watching, watching, lower your stop, meaning lower your stop to where you get out with the profit, not a loss, or you bar by bar it. I mean, you're right on top of it. This did continue today, though, because the market went red. Math, though, did not close weak, as you saw on that previous bar. Anyways, the entry here on this was 9120, you would short it. Stop over 90 to 10. Risk 90 cents, which is kind of large, but not really for the price point here for Haas, as you can see much different from the map price point. Your risk has to be similar, though. 1080 would have been 1,200 shares. Exit, first target into the first drop in 10 minutes, 90 dollars. But it did go to 88 something. So you can see here, you would have made more than demo. But again, is it that important? I always say in the room, no piggy targets. No piggy targets is a good thing because if your mindset is to make money consistently day after day after day, then you know that you've got to be aware of the fact when your goal is in for the day, there's always a chance it could flip. Risk to reward was 1.3. Again, a very fast trade. And not even the first entry because you could have done this here. This was a little wild though. I'll just tell you, it's flat now, but I watched it live. This is more controlled, okay? And this is not. Now, the one nice thing about trading, if you really are gonna do this for careers, you can do this and live anywhere in the world. You can live anywhere in the world. You don't have to live in the United States to trade the U.S. market. Many people like the U.S. market because it is very volatile. And the one nice thing about trading stocks, even though people love Forex, people love Futures, people love all kinds of stuff. But I'll tell you the nice thing about stocks is they have big moves. They have these type of entries we're discussing here where they're pennies, some of them. And you can be in and out of them very quickly. People have a lot of emotions associated with companies that you don't get necessarily with currency pairs or even in the futures market. It's like, people don't have the emotions surrounding things, I like they do stocks. Like for example, Google and Amazon, the company Amazon reports Thursday night. People either love Amazon, actually I don't know anyone that hates Amazon actually, but people really love Amazon. They love shopping online, Amazon purchased Whole Foods. So you have emotions that people have or ideas or feelings or thoughts or biases or opinions about companies, about stocks. And that does help with the plan and the volatility that you get, particularly when they're selling off, which in the case like I said today, we're gonna talk about panic. But I think that's one of the reasons why trading the US market is nice and also trading stocks, which are companies is nicest too, with the exception of the ETFs in the market. But it only takes a couple of hours a week for you to do this. I say get up in the morning, prepare as early as you can. Do the work in the morning to prep work. What stocks you wanna watch is your top picks, like today was Matt and Haas. Then you watch weight at 930. And if you're in the trading room with me, you're there. I'm giving you the picks, I get on the mic, you're trading between 930, 1010, 1015. And then I usually do a little lecturing in the room after that and close the room anywhere between 1015 and 11. And that's it. It's not a job we're trading all day. It's one of the nicest things about trading. You're not working till four o'clock. You're not working till five o'clock. You're not working weekends. If you wanna take a day off, you can when there's federal holidays and markets close. And you can make good money doing this. But how is it possible? Well, you have to have a system that is consistently profitable, number one. And number two, you have to learn how to do it. You have to get the skill. And until you get the skill, you follow along with someone like me who's calling the trades in the live room. And you take the trades. But you still have to learn the skill yourself because obviously you wanna be able to do this yourself. That's part of the process you wanna get good on your own. And again, I said earlier at the beginning, people gotta take this seriously. So how can you make six figures at your training if this is really what you wanna do? So many people come out and they say, well, Melissa, well, if I have this much money, how much should I risk or what should I do? Or if I don't wanna need to make 20 grand a month, what if I just wanna make 100K a year? How much do I risk? You know, $500 a day is still $2,500 a week. That's a good amount of money. It's not that you have to run out of the gate right after the class and make 20 grand a month. If you feel you can and you're ready and you picked up everything in the class, you learned it all, you feel confident and you have an accountant ready, go for it. But you have all the time in the world to make money. You honest to goodness do. The market isn't going anywhere. I say it's better to be in a curve. And I don't have a picture here, but you wanna be in an upward curve where your account is growing. Now that doesn't mean that one day, you don't have a loss. One day you might have a loss, but then you pick it up again. The next day and the curve goes up. So you want a gradual curve, an equity curve, which is growing where your account is building and in that process, your skill level is building as well. So you're building on the skill level and you're building your account too. I think it's important for people to believe they can be successful. I totally get that people when they start out trading usually lose money. I did when I started two in 2008. And I did the class myself. I learned very basic information. I didn't learn one, one system. If I could give you any advice, I'd say really you've got to focus on one strategy. And I have taken that to the nth degree because I focus on one time of the day, one strategy, one directional bias. I mean one chart, which is the one minute chart to take the entries. I mean, I am so focused, I've narrowed it down, like I said, to 26 points, which is how I'm making these predictions, which we'll talk about too. I think the more you narrow it down, down, down, down, down like a pinhole, like a boop, like that, that's how you get these kinds of the picture where you can get in and get out so quickly. Because ultimately the longer that you're in any stock, any trade, anything at all, swing trades, day trades, options, anything, the longer you're in the trade, even if you're up, you're still at risk. So the best thing to do for yourself as an individual person, and everyone has a certain amount of money that they're only able to risk, the longer you're in the trade, the longer you're at risk. So why not get in and out quick? And the one thing that I like about Schwartz is again that they tend to come in quickly and they come in fast. But it is very interesting that I've talked to so many people and like I said earlier, they're just not serious enough about trading. Many people take it like it's well, it's in the back of their mind, they might do it someday, they kind of dibble dabble in it, a little bit here, a little bit there. You know, this isn't like pot luck. It's like you really, really have to be serious. It's 100% commitment. That doesn't mean seven days a week and it doesn't mean 40 hours a week, but it means 100% commitment with the time that you do spend doing it. So if you're gonna spend one hour a day trading, then it's 100% commitment to that one hour. You're gonna learn how to do it, you're gonna do a class, you're gonna have a good account, you're gonna have one strategy, you're gonna have one focus, you're gonna do one trade a day or two trades a day. You're gonna be all in, you're gonna be perfect for that 60 minutes or 30 minutes that you're there. You're not gonna let any emails or texts or anything distract you, not the television. You're gonna be full on, okay? So that's what you have to be. You can't be completely all over the place and distracted and scanning and looking at a million different types of strategies and things to do. If you wanna be successful, you have to be very, very focused. That's my personality. I think it's one of the reasons that enabled me to figure the system out that I do. And I think that's one of the reasons I'm good also at mentoring people and being in the room and calling the trades live for them to say, Matt, boom, boom. For people to hear that, it helps to give them the confirmation. It's interesting, there's a gentleman that's been helping me in the room some of the days. He was one of my first students and he said to me last week, I have an option letter, which I call trades in the option letter, they're option trades and they're based on my GAP method. And he said, Melissa, it's interesting because sometimes you've been calling the trades and I'm already in them. And I said, wow, that's great. He said, you know what? I love that because it helps my own confidence and it helps my own conviction that I saw something either at the same time as you or right before you as far as the longer term. He's more big into doing overnight trades, swing trades and options. But, you know, I tell you the skill is something that you will build over time, but you gotta take it seriously. And if you don't take it seriously, then you're never gonna get the skill. It's kind of like I played the piano. I can't tell you the last time I played the piano. So I'm not great at playing the piano because I don't do it all the time. I'm sure I could sit down and play the piano somewhere if I sat in front of one, but I mean, I would be rusty. I don't remember any songs like I used to have to memorize. You gotta do something all the time. You gotta take it seriously to really be good at it. I don't care if it's a sport, if it's a skill like trading, if it's a musical instrument, singing, dancing, whatever, a hobby you have, even something to craft, you gotta do it all the time, like golf. You know, my dad's a good golfer, but if he goes in a period where he's too busy with working and can't golf, then he doesn't do so well. If he's in it right now, if the weather's nice, he's golfing as much as he can, he's doing great. You know, it's training is very similar to that. You gotta do it every day. You gotta give it your all every day. It doesn't have to be for eight hours, but from that time that you're doing it, you are going to give it your all, 100%, okay? Anyways, let's go back to originally what I was saying about gaps, okay? That's the strategy I'm looking at. I'm looking for stocks to short that are gapping down. In a nutshell, that's it. But I did say earlier, you cannot short every stock that's gapping down. You just can't. Some stocks will rally that gap down. And sometimes there's a reason, sometimes there isn't any reason why they flip and rally. But you need to be able to look and find the ones that you can predict will gap down and follow through and sell off on the live day. So again, like I was saying, what is the main thing I'm looking to do? Well, I'm looking to short, but I'm looking to short stocks that are gapping down. What's the philosophy behind that? I'm looking for big money, institutional money, people with big position sizes. I'm trying to predict those people in the stock that they're gonna sell and dump their shares of XYZ stock. It could be mad, it could be has, it could be Apple, it could be anything, okay? So what I'm trying to do in the morning, and this is all before 9.30, with the strategy that I've developed myself, which is based on stock gapping, is I'm trying to predict who is gonna come in and dump a big position or stock, which is gonna do what? It's gonna push the stock price down. A lot of traders do not know how to short. A lot of traders don't know how to short. They really suck at it, actually. And they really are afraid to short it. Many, many places where I'm actually shorting or calling trades, okay? When you're looking to short a stock, what are you looking for? You're looking for a push down where a big position, ideally, because you want a lot of volume and stuff and you want a big move, which to me would be like a dollar or more, okay? You're looking for someone to really sell, okay? So selling action is mostly what makes the good shorts. Now that's not to say you don't have shorts and sellers sometimes in stocks like the Haas, because obviously day traders were shorting Haas today. There were people in the room that were traders that shorted the Haas today, but the Haas today fell like a brick. Down broke 89, went to 88, something why? Because it had selling, okay? So the best fast shorts is selling action. So who are the people that short? Someone like you, someone like me, okay? Short sellers have been depicted as pessimists who are rooting for a company's failure. I don't know if that's 100% true, but you may say, if you could say failure on the day, I think it's a better terminology that the price will fail on the day, meaning that the stock price will drop on the day. You have hedge funds at short, day trader short, large institution short, and sophisticated investors. So but it's selling action that's coming in, shorts and the sellers, and they are moving the stock price down with big, big positioning. Now short selling is the selling of a stock that the seller doesn't own. So you might short Haas, but you don't own it, okay? You're borrowing it. More specifically a short sale is a sale of a security that isn't owned by the seller, okay? So that would be you, for example, if you wanted a short, but that is promised to be delivered. So this is why if you're a day trader, you have an account with a broker and you have the account of margin and you're borrowing the short, you're borrowing the stock and you're saying I'm gonna borrow this at 1540 today and I will give it back to you, Mr. Broker, at 1515, okay? And it's really a very simple concept, but a lot of people, even people that short in the market that are traders just are horrible at doing it, nor do they even understand it, but you can make a lot of money doing it because of the panic, which we didn't get to yet, but I'm gonna talk about in a minute. Anyways, when you short sell a stock, your broker will lend it to you and that's why you have to have a broker that has a good short list, which is something you gotta ask when you set up an account. If you wanna trade in the room with me, you gotta know that. Ask them. And this list will change from day to day too. The stock will come from the brokerage's own inventory from another one of the firm's customers, which can happen, or from another brokerage firm. So sometimes you have to ask them, do you have this and you'll have to borrow it. The shares are sold and the proceeds are credited to your account, which is a difference between your entry and where you exit the trade. And hopefully that's profitable. Sooner or later, you must close a short by buying back the same number of shares. It's called covering. I said that earlier, buy to covering and then you return them to the broker. And all of this happens behind the scenes when you get your statements and everything. It's all a wash, you get in and you go out. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. So again, same concept is going long, you're making a profit on the difference, but in this case, you're betting the stock is gonna drop. If the price of the stock rises, though, then you lose. Which for the example today in Mad, if you had to stop at 1560 and it had gone over 1560, then you would have lost. And you would have lost what? 20 cents from 40 to 60 for the entry, depending on the amount of share quantity. In that example today, with an increased risk of 1,000, an advanced risk and the trader risk, it would have been 1,000 buck loss. But if you are a beginner trader, you might have only taken 1,000 shares. What would have been your loss? 200 bucks, okay? So that is determined by that. But it's 20 cents, 20 cents times the share quantity. Now, going back to what we're talking about here in a minute, what is a short? Now this is a stock here called the Teeva. This stock is a short. It's still a short here today. It's been a short for a while. Back in August, the stock gap down, this is a good day trade. Stock closed up here at 31, gap down here overnight. Remember, that's when gaps happen. Around 25 something, okay? So it dropped, boom, boom. The stock has literally collapsed. It's even falling in here today. So this is a short, which means the stock price is dropping, and this is a great example because it's really dropping like a brick. From the time that the gap here happened, which was an earnings gap, just so you know, not that it makes a difference, but I'm pointing it out. From the earnings gap price in here around 25, literally within a month, from, this is about August 3rd to September 5th, the stock prices lost $10. And if you go back and look from the previous day before the earnings, it was at 30 something, and it was down at 15. The stock has lost 50% of the value in one month. So this stock is a short. What is happening in Tiva? Panic. I mean, if you're low on this stock, there's no way you could be making any money. If you're short, guess what? You're up. So what happens in shorts? Fear and panic. And these things are good for stocks. So, you know, a lot of people say, well, you know, panic isn't good in the market. It's good if you're short. And I'm not saying you're playing on the fear of people, but to be honest with you, you kind of are. Every time that you take a trade, you gotta know that you are, you are not creating a product, okay? You're not, when you decide that you wanna trade and you take a trade, and this is why it is a skill-based industry, okay? And that's why you gotta learn the skill. And if you don't know how to do something specifically or have a good strategy, that's why you learn a skill from someone that has a skill, which by the way is me. I have a skill for reading stock prices and movements and predicting them in gaps. When you trade, you're not creating something. You didn't make an apple pie and sell them for a price to people to come and have pie for dessert tonight. You're not creating a product or anything at all. You are taking money from other people like this guy here who's a wreck. You're taking money from people when you profit in the market. So it's really a contest. You have all these people in the market and it's a contest between people. And that's why there will always be more people that lose than win. But that doesn't mean that you can't be one of the winners because there's so much money in the market and so many people in the market and so many players that inevitably, again, you still could be at the top of the people that are profitable because there are so many people that don't understand this, that don't get it, that don't have a good system, that don't do any of the things that I've been talking about for the last half hour, quite frankly. But it is up to you to understand this concept. When you trade, you're not producing anything, a product or anything else, like an apple pie and you are actually taking money from other people because you chose to do an action that was the correct one and that other person, whoever that was, did the wrong thing and you're taking money from them and that's what trading is. And so the concept of panic really will set in very quickly because if, say, Mr. Smith, that guy that was holding on to that guy's leg is in a panic mode, okay? He's in Tiva long, let's say, okay? Say he's long Tiva, he owns the stock Tiva. And let's go back to this. Say, you know, Mr. Smith bought Tiva and I'm just gonna use this here, this is a late, late thing, but say Mr. Smith bought Tiva here in the green bar day and say he paid 17. He thought that was a great price. The stock could rally back, fill the gap, go back up to the 30s at the very least, retrace 50% here up to 22. So he bought the Tiva. He thought this was extended down. Then the stock drops down to 15. I don't know where the stock price is today. I know it's lower than this. But anyways, he's panicking now because he bought Tiva here. He's down in his trade and he doesn't know what to do. So panic can set him very quickly, just out of the gate, out of anywhere, out of nowhere, all right, on the live day or sometimes overnight, which is why sometimes you get the gaps. And then what happens, you get selling. Now today the market went red, which I briefly discussed. In fact, let me just flip. I remember what that chart was. I did show you here this, this is the spy. I know I don't have this really big, but you can see the market was red today. This is not panic. So the market was red today. You had some profit taking because the markets had a nice run up. It's bullish, but this isn't panic. So again, would this have been a good short today? No, would you have made money short of this today? Yeah, I guess you could have, theoretically, but I never would have done it and I didn't call it because this isn't really panic. Do you see that doesn't seem that, let me find it here, and this, oops, and this. I mean, very different, like 100% different, okay? So this has more, what is the word, umph, you know? Like something like this will give you more confidence, more conviction to short, higher odds of working, okay? In fact, I wouldn't be surprised if the market flipped around tomorrow, and I'm not saying it's gonna happen because I don't know if we gap down tomorrow, gap up, open neutral, whatever, but I'm saying that you can see here how conceptually you could bite into something like this with your money, take the risk on something like this to drop more than the market, at least from my perspective. Now, many, many people probably think this market is a good short, that it's made a top and after today's sell-off, people probably think that maybe it should be shorted. That's a terrible decision, to be honest with you. But anyways, the idea of panic is really something that should give you conviction in the market to short. It sets in fast, and this is part of becoming an expert in what, if you wanna learn my method, of what I do. I'm finding that, I'm spotting it, and I'm doing it with a system I created in the morning, the points really helped tell me that. I'm reading the price action of what's going on in the stock, what are people thinking, what are people doing, where are people, where are the people, okay? Are the people long, are the people short? Is anybody panicking at all, does nobody care? Do you see in the market there's no panic? So it's a terrible short. I just made a really important point here, actually. I don't know if anybody got what I just said, but I just made a really important point. Anyways, what does panic look like? Here, now I want to open and widen this up. This is Tiva going back to 2000 and three. You can see here that this stock looks like it's falling off a cliff, all right? So this is a good example here of showing you really this almost vertical drop of when that gap occurred, and then it went like that. And again, it looks like a line down because I squished the bars together at the time period from the month, but you can really, really see it. And here was the bigger chart. So going through this, what is a short? A short is where you're betting the stock price is going down, apple gap down. Last week, on Thursday morning, there was some news. Apple was a short for the day. In the longer term, apple's in an uptrend, but for the day trade, apple was a short. The stock close here the night before opened down here, around 156-ish, open rallied, and the stock price dropped. So apple Thursday, you could have shorted the stock. The stock price went down. Again, you're looking for panic. This was a news-related incident in apple. So some people panic, they're low on the stock. It had rallied, wasn't an uptrend, isn't an uptrend, but now it's not going higher. With the market, people are panicking, they're having some news. This thing, that thing, they're new products. So you got some panic into it Thursday. So then it had a sell-off. Okay, do you see this? So this is just a one-minute chart showing the panic in apple. So how do you find the best shorts? You've got to find the ones that have the panic look to them so that you can short them so that you are shorting the selling action, which is shorts of the sellers, and get the quick moves. Some moves will be small moves like math, but you can still make money. You could still flip around your money 100% or more in that one trade in a few minutes, or some moves will be longer moves. You could have held the Haas, like I said down, if you'd done the Haas. Any questions so far here from anyone? Let me know. Anyways, I teach my method of how to pick these stock symbols like math, like Haas. It is a checklist, it's a worksheet, a rating system where I go through 26 points. I'm not looking for a perfect score, I'm looking for high odds. The Golding App System is a 26 point professional bearish gap rating system. That's what I do. Every morning I rate the gaps. The purpose of the system is to help you evaluate which gap to trade each morning using the checklist. It tells you this is a high odds that the stock will sell off on a live day. Therefore, you wanna look for the setup into the open and short it when you get the setup. So the philosophy behind it is, number one, a high probability of directional bias for the entire day, which is ideal. It's something more ideal if you have something that drops all day. Two, big moves in the day. Three, early confirmation of the bias in the move, which is what? Between 9.30 and 10, as I said earlier, that's the main, main focus of the time. And precise entries will follow through in a good risk to reward, which is why I'm looking at the one minute chart. So I use a checklist to trade. That's what tells me, watch Matt, Melissa, watch Haas, watch it in the morning, rate the gap, watch Apple. So these are the things that you would come if you did my class and you learned from me how to find these stocks, how to watch them, how to pick them, how to predict they're gonna drop. It doesn't mean that every single trade works. Not every trade does work. Again, if you understand the concept of the market, which we discussed, and you know that every time you win, you're taking money from somebody else, there will inevitably be of the 365 days in a year of the 200 plus trading days in a year, there will be some days where somebody will get you and somebody will think ahead of you and take your money. But overall, you wanna be the smarter one. You wanna have the edge, and I absolutely do. Knowing that, I think knowing that helps people make it. If you are going back to the level of commitment and taking it seriously, if you're thinking of this, like, la la la la la, you're not gonna do as well, okay? It helps if you have someone guiding you like me in the room, 100%, but I will tell you, you still have to have the attitude, like you're going into something that you're taking money and you're going in like you wanna win. You gotta almost look at it like you're winning a race, like it's a competition. If you look at it like that, you're gonna do a heck of a lot better. If you look at it like, oh, dude, dude, dude, dude, dude, then you're not gonna do as well, okay? A lot of times when I'm calling trades and I like things and I have certain watches, there are other trading rooms that are calling longs. They're actually buying stocks that I'm looking at shorting. And that is the truth, okay? What I do is extremely unique. It doesn't mean that every trade I take or call or anything works, but most of them do. And the reason is because I'm looking at who's controlling the stock in the gap? Because that's where the power is. This isn't trend trading. Like Apple on the long-term trend is a long, okay? But Apple was assured it's a day trade on Thursday. I didn't actually look to see what it did today, but it's still on the uptrend. Does anyone have any questions about anything here where I'm talking? It's a good lecture tonight. Anyways, the philosophy behind my system, if you wanna come learn it with me, is to analyze a large time frame to make the trend decision on the directional bias for the gap. All large trainers of every kind look at large time frames to make decisions particularly institutional traders, okay? And you wanna be with those people who are taking big positions in stocks to make entry decisions and exit decisions based on a small time frame, like the one-minute chart, which we reviewed today, which is a high degree of focus and accuracy. And then using the daily chart, which is how I do the points, to make the decision for the stock pick. And that allows you for accuracy. And again, you have to put the stop in. And you put the stop in based on the one minute, okay? Using the one minute chart allows for good risk-reward trades with accuracy. This is another one here. I just wanna show you this was from Friday, C-E-L-G. Again, how to stocks drop? Panic selling. I wanna show you here at the clocks and the way again. But the stock the night before was up here around 1.36-ish. And this stock in the morning opened where? Around 1.24.50. I mean, that right there looks like a piece of crap. Anyways, then it dropped, looked more like crap. Then it rallied up and then it set up and then it dropped. So do you see the panic here? On this live day, if you shorted the stock, it dropped, do, do, do, do, do. And again, this went a little bit past 10. But the stock dropped basically three bucks within 30 minutes. And that is selling action. And again, you would have had to rate the gap using my system to predict that this was a good gap based on the 26 points in the morning. Because it very well could have rallied. I will tell you that it very well could have rallied. Why? Because there was a big differentiation here. If the stocks have a 1.36 and it was in the morning at 1.24, that's a huge move down. It's a $12 point gap down. The stock could have pushed back. In fact, it could have pushed back and still been a good short as a swing trade. But the stock did not push back at all. It really showed immediate panic. Okay? And you gotta learn how to do the entries right and put the stops because not everybody, like I said, has just a crazy amount to risk. You gotta decide. Do you wanna risk a thousand bucks to trade? Do you wanna risk 500? And that's why you put the stops in to protect yourself. Cause in this case here, if this would have flown over the number here, it would have been stopped out. It didn't. But again, that's why it's important to use stops. Any questions from anyone here? Let's see, Kathy's writing some stuff. Anyways, precision matters, detail matters. Why? Competition, competition. The people that are playing sports, they're in good shape. They exercise, they get massages, they eat right, they drink lots of water, they do everything they're supposed to, stretch. You know, you gotta do everything you can. Accuracy counts. You gotta have a quality strategy, which for me is a golden gap. Good risk to reward. If I'm in and I'm risking a thousand bucks, I'm watching the trade when I'm up that amount flipped around. I'm watching and watching and watching it so it doesn't get away from me. Cause if my goal for the day is a thousand and I'm up for it, essentially my day is done. It doesn't mean you have to kill the trade if it's still working, but you're watching it. You gotta get the right entry. Again, part of that has to do with getting the good size that you can take something like 5,000 shares and that today, correct size and proper exit, which you'll learn the targets in the class, if you do the class with me and the money management part of it. Being successful in the market takes detail and it takes precision and you gotta be serious and all of this helps because it is a competition, you're competing with other people. And I gotta be honest, most people won't put it all together. They just won't. They will do a million classes and they will trade in the market themselves and they will not put it all together. My personality is that anything that I do, I throw myself into something with everything I got. It's my personality. It just is, okay? And I'm very analytical. So I created a system which is very in depth and it took me three years and I threw myself into doing this trading thing. I had absolutely no life, no life at all when I did it. And if I was married with kids or was in focus, I wouldn't have been able to spend the time. But my personality is that I'm this kind of person which makes it a good person to come and learn from me because the strategy itself and the system I created was developed because I threw myself into it, lock, stock, and barrel to do it. That's rare, okay? And it's rare that anyone would be able to physically or financially have the commitment level that I did because most people do have lives and kids and families and whatever, you know? So coming and learning from me, you're paying me for the knowledge and for the three years that it took me to figure this out so you don't have to spend three years figuring it out for yourself, okay? Any questions at all? Okay. A trained eye matters. Here was the CELG again. Remember, focus on the momentum. We talked about the time of the day. It's between 9.30 and 10. Chunk it, chunk it, chunk it, get in, get out. Very important when your goal is up for the day and here's the stats from the last week, basically. Earning season has started, which is a busy time. Excuse me, I have to drink some water here. Does anyone have a question about anything? And all these trades are an advanced risk, $1,000 a minimum. You don't have to risk that per trade. If you have questions, you can ask me on that. It's a busy time now, okay? So, you know, there's a lot of things to do. In non-earning season, though, when it's not busy, you still get three to five good gaps a week, but you really only need three good trades a week and you could hit it, you know, like even today. I mean, today was not a big trade. I mean, you know, but it was easy, it was quick, and you know, it's real money. So, you got to be there Monday through Friday. You gotta look for the gaps. You never know when you're gonna get a good one, but this is a definitely, definitely a time to do it. And I say, book money early. We did discuss that today in the trading room. It's important to have a business plan. If you cannot afford to risk $1,000 to make 20 grand a month right now, then risk what you can afford. Have a business plan. Your plan is, you can risk this much right now until this many months, and then when your account gets up to this amount, then you're gonna up it. Figure it out. I mean, nobody just all of a sudden just starts out and knows everything and has all this money to risk. If you gotta start from somewhere, that's part of taking it serious too. It doesn't mean it has to take forever. It doesn't mean it has to take weeks and months or years. It means you gotta go easy on yourself. You have to have a business plan. You have to take the amount of money you're okay with risking that you can financially afford. You're doing the class, which you have to be able to financially afford. Learning it, gaining the skill, understanding that, seeing the gap, setting up the account, get organizing your brain, you know, so that you can be focused in the morning too. You're gonna have that time available between 9.30 and 10 because that's the time that they're there and you're looking for the results. Everybody wants results. Everybody wants the good risk to reward. In the case of Haas, it really had a big move today, but you can't fault anyone for getting out of that trade in the morning right at 90, but you know, the stock dropped almost $2 underneath that. I'd say one should be your daily goal. Two is great, which we get a lot as well. Three or more, but sometimes you have to hold it like the Haas and if you don't wanna do it, and you don't have the patience, which some days I don't, you get out, okay? But there are days though where I see things and Apple actually was one of them where I felt very confident would go to 155, got it close to that. You know, some days you just, there's such a good gap and it has to do with the rating. You get a high-rated gap, it's 24, 25. Obviously that has a higher potential to have a much bigger move and something that rates 20, you know? And that's part of the system too, which you would learn as well. Any questions at all? Let me just skip ahead here. If you wanna make 20k a month, how much do you have to risk? $1,000 a day, an average 500 would be fine. That's still a really good amount of money over 100 grand a year. Some people can't afford that. $300 a day is still $1,500 a week and that's still almost 80 grand a year and that should be doable for anyone that's looking to train. $300 a day should be doable for anyone that wants to open up an account. I mean, and some people don't make $1,500 a week at their job and again, this is working in an hour, 30 minutes a day, working from home, so start where you can. If you can't afford $300 a day, if you can only afford $150, guess what? If you can prove to yourself that you can make $750 a week, you can step it up probably within a month to double that to $300 a day but prove to yourself that you can do it first. Any questions from anyone at all? Good webinar tonight. Anyways, I can teach you how to short if you wanna learn how to do it in my class. This teaches a 26-point rating system. It teaches how to figure out targets, the entries, the exits, you will definitely look at charts much, much differently if you come and learn from me. I teach technical analysis in a very advanced manner. It's the checklist, that's what you learn in the class. A lot of people say it's the class for beginners or advanced. It's for both. You can come and not know anything and learn from me. However, I tell you that you're gonna have to study a little bit, ask me questions. Don't be shy to do that. You can ask me questions in the room if you're brand, brand new. The thing is sometimes people don't know anything. They come and they're better off than advanced people because sometimes people that have been training for a while have a bad attitude. I say the best thing you could do is come to me with a good attitude. Whether you have no skill trading or you've been trading for 20 years, have a good attitude, be open minded, listen to the things I say, be in the trading room with me. Everybody goes through their own process. I mean, it's not like there's a set thing for everybody because we're all different. Everyone's different. Everyone has different experiences. Like I was telling you about my strengths that I 100% focus on things and I throw myself into things. But you know what? There's been other things in my life that I've taken a back seat to that. So there's always sacrifice, okay? There's sacrifices that you make in order to be successful sometimes at things. And you gotta look at it like it's temporary too. You sacrifice the money to take by class, the time invested in it to do it. It's not like it will take you forever. You make the sacrifices to do well, to be successful, to reach your goals. And then you will, whenever that happens. Only you will know once you start to do it how quickly you pick it up, you know how quickly you're doing it. And everybody's on their own path and you kind of gotta have some patience with yourself too. But I wouldn't let anything stand in your success if you wanna do it. You gotta look at it like a competition. That's just what it is. A lot of it does have to do with your mindset. The system helps. Being in the room with me helps. And it's just a nice career. It's a nice career because once you get good at doing it you're in a groove. I'm definitely in a groove now trading for almost nine years. And you know, you can learn a lot from me. So empower yourself today if you wanna learn how to trade in my class. The Golden Gap course is a complete system to use to train. I'm teaching the class this weekend, October 28th and 29th. It's a full today course on how to strategically find pick and play stocks that are professional bearish gaps. The class is online. You can be anywhere in the world and take it. The cost of the class is $4,999. If you wanna sign up, email me at melissaatthestockswish.com. Deadline is Friday, October 27th. The class is from nine to five Eastern time. And also I teach a class called the Trends Course if you're interested in this. This is $9.99. It's a course on how to re-trend in stock charts. If you're interested in this, email me at melissaatthestockswish.com. If you sign up for this with the Golden Gap, the Trends class is in November. The Golden Gap is in October. You will save $500. The Trends course is good for people who are doing swing trades or options trades as well. It will teach you how to look at long-term trends in stocks. Before you know it though, I mean the holidays are almost here. If you wanna trade in 2018 and you really don't know what you're doing or you are new to my system or new to Gaps or you've been struggling and you wanna have a solid, solid year, I'd say the best thing to do is learn now in October. Get into this earning season. Learn it, learn the skill. It's a good time to start. You'll work it up. You've got almost three months, two and a half months to be in the market. Ramp yourself up for 2018 so you can have a whole calendar year knowing what to do, having learned the class, having learned the earning system, practicing between now and the end of the year so that 2018 you can set some goals for yourself. And I'm just, I'm basically giving you your business plan right there. Take between now and the end of the year, learn the system, do it, practice, open an account, tiptoe in, and then you'll know by January 1 to go full on for the whole calendar year if this is really what you wanna do if you want a full-time trade. Any questions from anyone at all? Any questions from anyone? Thank you, Kathy. I talked a little bit over. Does anybody have any questions about anything at all? If you do, email me at melissathestockswish.com. If you wanna sign up for the class, you can email me. If you wanna travel to the trading room, email me as well. I hope you learned something tonight. I have said some really important things. I hope everybody caught them, okay? You're welcome. Thanks, everybody. Have a great night. Thanks, Kathy.