 Okay, it's loading Okay, I see your slide now We have a couple minutes till your official start time, but do you do you want to go ahead and get started early? Okay, yeah All right, let me just finish my setup here Okay, I'm gonna start recording again in just a second and then you can start your presentation So I'm recording now. My name is Melissa Arbaugh and I am the stocks whoosh, so we're starting a little bit early today I'm sure you've had a very interesting day listening to all the speakers markets closing in a few minutes Very very volatile market. We drop we rally we drop again. We fake higher It's been a very interesting couple of days short week for the market today. We're gonna talk about momentum We're also gonna talk about technical analysis and we're gonna talk about gaps Which is the strategy I trade so gaps the the market gapped down today Tried to go lower than we rally pretty much state stayed in a sideways range for the majority of the day I'm not sure if anything big is gonna happen to the market tomorrow It could it might but I think in the next couple of days. We're really gonna see Where the market's gonna head into the middle of September? What do I mean by that? I mean, we could either follow through with the rally for the last 24 to 48 hours or we could fail fail and drop So the one thing that I focus on and the thing that I think that it's important for traders to do is to make sure That they get in the trade in the right direction In other words, if you're shorting a stock and it drops you make money But if you're shorting something that rallies, guess what you're gonna lose So the direction is very important. This sounds like a very simple thing But actually it's one of the reasons why many traders lose. They just don't get the direction their trades, right? I put the chat here on the side. I can see if you want to ask me questions I can see questions as we go along today You can feel free to just ask me questions as we're going along and I'm talking So if you have questions after the fact today, you can email me at Melissa at the stock switch calm You can also call me at 9 to 9 3200 gap and you can follow me on Twitter Facebook YouTube or Skype I also appear on television and I'm on Fox News actually scheduled for tomorrow. We're gonna talk about markets and the economy That's one of the things that I do talk about on television We're in a very political environment just so happens though that guess what politics does affect the market You're not gonna be able to predict every single thing that happens all the time and you certainly can't predict political Stances or elections or things like that or choices that Congress makes or even the Fed But I think if you look at what's happening in a chart and that's what we're gonna talk about today We're gonna talk about charts you can predict with a high level of certainty Where a shock is going to go as far as a direction to take the trade Does that mean you can make money every single trade that you take? No some trades I take lose some trades you have to account for the fact that we'll lose But the idea is to use a system where you make money and you get it right more than you get it wrong And if you do that then you can make money But again, if you have any questions, you can just plop it on the side So I'm not gonna go through all of these trades here today This is the year today trading results for the trading room for the live room So far through it was the it was through last week for the first day of September. We've had a really good year I will tell you that I focus mostly on shorts and we are gonna talk about shorts today This has been a good year to short the market First of all the market has dropped off since the beginning of the year in January But I actually short and created my system in a bullish market So you can short in a bullish market you can short in a bearish market. It's all about the pick So so far year-to-date. This was the average risk of twenty eight hundred dollars per train Year-to-date, we're at four hundred seventy five thousand four fifty one again This has been a good year to capture moves to the downside and that is what we're gonna talk about today If you take trading seriously you can do it for a living if you take it seriously You can all right a half a million dollars a year or more will be at that point I mean we've got four more months left to go in the year. That's real income. That is a real job While I usually trade in the morning into the open between 9 30 and 10 a.m. Eastern time I sometimes will trade a little bit later than 10 a.m. But most of the trades most of the stats that I just showed you most of those trades were Morning trades where we were in and out quickly, but I get up in the morning early and prepare what I want to do I take it very very seriously what I do and the choices that I make in my trades. I do not take pot shots I don't go into those free Reddit chat rooms I have a specific strategy that I use and follow every single day again That's what we're gonna talk about today But if you're willing to take trading seriously if you're really willing to commit yourself to doing it You can make a lot of money trading. What does it depend on one your level of risk? Okay, how much you make per trade And two if you have a good strategy, so these are things that really are very important but a lot of people question trading once they start to do it They're back and forth But I say people that are bit with the trading bug once they start to trade once they start to do it Once you see the money can make it so fast They want to do it. It's sometimes a lack of commitment the lack of commitment that people have and then that bodes to be problematic Because you can lose money very quickly and very easily if you don't know what to do So what are some of the reasons that you might want to trade? If you want to make a lot of money with limited time and a controlled amount of risk if you want to make consistent money If you want to work in a very short period of time a day again many trades that I take them in and out in five Ten fifteen minutes. Okay, and if you're a trader that's been trading you've been doing this for a while And you don't have a strategy that may be the reason that you're not making this kind of money Having a strategy is really going to help you narrow it down And I call it finding the right pick because that's how you're going to be consistent All right, and if you're someone that is working full-time or part-time Or maybe you're retired and you really don't want to do another full-time job, but you'd like some extra income You know trading is a good side job You don't have to work 40 hours a week the market isn't even open 40 hours a week Even if you start at 9 30 in the morning and you're trade till 4 every day That's only six and a half hours a day, and I definitely do not do that. Okay. I also trade options We will talk about a few options trades here today But overall the whole point of trading the whole point of making money the whole thing that I want to talk about today Is really momentum trading momentum trading is just one of the most profitable and fastest ways to make money trading You've got to learn how to take a position in stock in anticipation that the stock will have an explosive move These enormous moves happen in one direction and they can happen very fast. Okay Like you saw in the market last week to the downside actually Momentum trading is very profitable and that is how you as one individual trader can actually make a lot of money When you train because let's just say for example, you've a thousand shares of something Now let's say you have 500 shares of something you have 500 shares of a stock and you short it at 10 bucks And it drops to eight dollars You would make what you get a two dollar move you make a thousand dollars. That is what I consider momentum Okay, a two dollar drop in a stock at that price point is momentum And again 500 shares is what I consider a low to medium share position sizing I would not consider that a large position size. Okay, and certainly you could make more if you had several thousand shares So as a day trader as an active trader, you must have momentum moves to make profit Otherwise, what are you doing? You're scalping you you're booking small profits in baby baby baby tiny moves And then trades that you lose in you're losing full throttle Okay So then overall by the end of each week or month or by the end of the year guess what you're not up So that's a problem. The whole idea of trading is to get big moves And I think a lot of traders right now particularly particularly since the June 16th Low as we saw in the market. So it was June July August now or to the beginning of September Traders are not getting big enough moves to the upside or to the downside Meaning they're not hauling them properly to get the big enough moves because they lack conviction in what they're supposed to be Doing they lack conviction in a strategy or a system where they don't have one at all Or they lack conviction in their direction because again, we've dropped off since the beginning of the year And I'm talking about the overall general market, but I could be talking about any one specific stock We do trade the QQQs and the spy, which is the market ETFs But I also look at specific stock picks when I make trading decisions, too So what is the point of J trading though? The real point is to make money as fun as it is to talk in chat rooms and Be involved in a group or just get up in the morning and sit at your computer and Dream about all the money you're gonna make. It's not fun. If you don't make it Okay, the whole idea is making money. The idea of losing is not fun Okay, and actually it can be miserable. It could be a miserable experience. All right You must take trading seriously if you want to do it as a career But I honestly think you must take trading seriously if you want to do it at all All right So what is the point of learning a trading system if you have learned one in the past and failed to make money? Did the system you learned work? This is something important. You got to be honest with yourself about Sometimes people trade they lose money then they get down on trading or the market or ever taking a class and learning Anything new again, but the fact is the thing they learned didn't work. Are there places out there that teach systems and strategies that don't work? Yes, absolutely. Yes, you have to pick and choose the right people to go to. All right, and you have to think in your mind Okay, very grounded about the whole philosophy of each system Everybody's doing or anyone that you would listen to okay This is the point of coming to a day like today or this week when you're coming to seminars And you're getting just a blip of lots of different people to try to get some Information to see if that what that person says what I'm saying here today resonates with you You have to look at the foundation. What is the foundation for the system? Why are you doing it? Why is this person doing XYZ trade? Why are they shorting? Why are they going long? Okay? So what is the point of taking a class? The point is you want to learn something. Okay, and if you've never traded before if you're brand brand new And you've never traded your life you need a class as well So you need a class if you've never traded That's point one and point two is you still need a class to learn a system if you're trading and losing and you don't Have a system that works. Okay while it is true that Some classes and some systems do not work full stop It is also true that not every system or every class does not work some do okay It is a misnomer for people to believe that no one can be successful in the market or do well That's simply not true Everybody goes through their ups and downs. I taught my system myself. It took me three years But you know at the beginning I did take a class I did not learn how to make money in that class and I did not learn a system in that class But I learned very basic things with the help me develop my own system Which was important for me So everyone has a journey and everyone has a process very similar to life very similar to whatever career You do right now, you know, whatever you happen to be doing But the sooner you start the whole idea is the sooner you will move ahead to achieving your goals Now at the beginning I said we're gonna talk about technical analysis. What is technical analysis technical analysis is looking at past Price data to predict future price data. This is a chart. This is a daily chart. It's a chart of JWN So I don't read fundamentals I don't I look and see what economic data comes out in the market like we had report this morning But I'm not making my trading decisions based on that. Why you can have a good report in a company a good earnings report And the stock can drop or vice versa. Okay, very often That's already built into the price of the stock. This was a trade that we did It was a day trade. This was a short This was an earnings gap that happened here back here on the 24 So we shorted the stock at 1935 and we exited the stock at 1868 the profit if you took 3,000 shares was $2,010 I'm gonna show you the one-minute chart that we did what we did the trade in a minute But I want to talk about here again. This is the daily chart of Nordstrom. I love Nordstrom by the way I love shopping there. They have a new store in New York Opened a couple years ago before COVID one of the things that I liked about this was it had a gap Now let's go back and look at the very basics of what is a gap So again, first you look at the chart you pull up the chart is the daily chart of Nordstrom stock closed up here This was the night before the gap Okay, was up here around 22 and change then on the following morning. So this is the 23rd of August This is the 24th of August the stock opened here Snug as a bug a little bit above 19 or right there abouts. Okay So I Looked at it Solid found it down. Here's the volume. I knew the earnings were out Okay, and I rated it using my system to determine if I wanted to a trade it at all or be go long it or Short it. Okay. I Determined that I wanted to short it Which is exactly what I did and it worked and it fell and actually we did not do an option in this But you could have done a swing trade to the downside or you could have done a put which is a short Okay, it's an option because the stock fell so actually every day Since that day that we did the day trade in here It dropped all the way down into here broke 17 to get over here actually was at 16 and change That was a nice trade was a nice little trade if you did it as a day trade here or anything else Again, it's very important very important to get momentum. Is this momentum? Yes. Why this is this is what I consider a low price stock Okay, 50 cents a dollar again However, you want to do it as you want to day trade or you want to do it as a swing trade or you want to do it As an option. Okay, we did this as a day trade now. Let's look at the one minute So this you can even see this more so here actually This closed here. This is the one minute chart of jwm This is in the morning 9 30 into the open this closed here gap down open rally boom We shorted it got the drop got out We could have actually got a better exit in this but again, I tend not to stay in my trades all day I had a quick exit of this in and out fast in the morning done Again, what's another big thing that is important for traders. What else do you need to do? You have to book the money. You have to book it. Book it. Book it. I call it chunking it out You can't hold things forever now That doesn't mean if you're down in something and you don't want to hold it to give it a chance to go Could be a day trade could be an option I'm talking about if you're up if you're up if you're up if you've met your goal for the day If you're going for the days of thousand dollars, you would have made that here If you go for the day is 500 you would have made that here. Okay But again, this is what I call the money move boom Okay, again, this was a gap. This was a short looking back again What is technical analysis technical analysis is looking at past price data to predict future price data What did we do with this? We shorted it. It was a gap down Everybody with me And any questions here? So getting back to what I was saying initially about Having a strategy being serious about trading being serious about your own success quite frankly You need a foundation to day trade. You need a foundation Okay, you needed infrastructure for every entry and that's the strategy the strategy is a core reason behind Why are you even watching that stock in the first place or even contemplating an entry in it? Why was I even thinking about doing jwn because it got Okay, and what is a gap a gap is a difference to the close of the open That's what a gap is or our gap ups or our gap downs. It will be gaps tonight There will be gaps tomorrow morning. There are gaps pretty much every day in the market An entry in a stock should not be taken unless the trade has a foundation A foundation supporting it. Okay So many stocks on any given day and this is the truth. This is very very important Have no strategy to trade as a day trade That is why in most days stocks, you don't have a proper entry. There is no strategy a lot of traders trend trade Guess what they're getting killed this year killed killed killed Why because people are looking at the market saying the market's in enough tread then going long and it's not working Then the market broke then people are saying that they're going to short because we're saying the trend of the market Is that a downtrend and then it doesn't keep going down and then people are losing If you are a trend trader, you have no business day trading. That is not what I do Not what I do at all. Sometimes I'm with the trend sometimes I'm against the trend sometimes I'm with the market Sometimes I'm against the market one has nothing to do with the other Okay So on any given day when you decide to trade you have to have a proper entry and a foundation for why you're taking the trade in the first place the strategy Okay is the secure foundation for me. So it's like a house. You can't you can't just throw a house up You have to pour the foundation pour the concrete Okay So this is all the basics of what we're looking at here what we're trying to actually get Whenever we're choosing or making the choices ahead of time before we even put any money on before we even take a trade Before we even place any risk because again, if you're going to risk money in a trade Which you have to do in order to make money you want to be very very picky Okay, you cannot just do everything also with the market Okay So I decided to trade gaps a very long time ago because gaps have The good ones anyways have momentum and like I said earlier. I realized very very early that you can take a decent size and something 500 A thousand shares two thousand shares whatever and if you get a big move you can make a lot of money with small risk Meaning you could risk five hundred dollars and make a thousand that to me is a pretty good trade It's basically a two to one So you're risking 500 and making double where are you going to be able to do that? You can't do that in in having a savings account in money market a long-term cd even with interest rates going up Yeah dig the foundation pour the concrete the whole nine yards. All right You've got to have the structure The engineering behind it has to be there are the whole thing's going to fall apart I live in Manhattan. I live in New York City. There's lots of construction going on right now actually ever since the the COVID Reopening if you can even say that or whatever Construction's been booming in New York. Okay Buildings are going up like hotcakes. Okay Tons and tons of tons of construction in the city Certain areas more than others huds and yards are building down there. The traffic's terrible You can drive by and see these huge massive massive massive steel beams the whole thing you can look inside the buildings all of them has to be there All of them has to be there or what happened what happened the building would fall over The building would fall over fall apart And actually one of the most interesting things about living in New York I live in a building I live very high up is that the buildings are actually meant with the weather and wind for the structure of the buildings I don't know if anyone here is an engineer. They're built so that the buildings actually move So the most the the most Tallest buildings that they have the biggest tallest buildings are actually move In the weather or the wind which is a very very interesting thing, but it's it's the most supportive So when you're risking your money, I don't care if you think it's a lot or you don't think it's a lot Do you say well, I'm just going to risk a hundred dollars. Listen, that's a hundred dollars And today is day and age a hundred dollars will barely buy you gross raise for two people for the week Food has gone up Gas a hundred dollars maybe would fill your car for the week. All right Any amount of money you risk small medium little bit. Okay a lot whatever. It's all important It's very very very very very very important. And I find it interesting again I've been teaching people now for 10 years trading for 14 A lot of people just don't take trading seriously. They just don't take it seriously Think about what you're doing. Don't take pot shots. Okay So for me The my whole Gap system is the foundation to the house for me to take the trade So gaps are the support system or reason why you would enter a position for me And the reason you're choosing to enter stock or the foundation for your entry should be because the stock is a quality gap A stock gaps when the opening price today is different from the closing price of the previous days trading A gap is a break in the price action from one day to the next simple So there are gaps almost every single day in the market So it's basically those from the close and the open if the stock closes at 50 oh one And then it gaps and opens tomorrow morning at 50 oh five. Guess what it is technically gapping up Doesn't mean I'll necessarily go along it But the fact is that is a gap up if the stock closes at 50 and opens the next day at 49 90 Okay, then technically speaking that is what it's a gap down Okay, even though it's 10 cents might I short it maybe again? I don't know It depends. I go through my process of my system to do it Well, I'm not doing anything unless I have conviction. That's for one. All right And the only way I would have conviction is if it passed The rating system that I utilize and I use every single day, which again Goes back to the foundation of why you're taking the trade and what you're doing Let's look at nividia Now this was Actually, this was last week So here was the stock Actually, let's go back over here This stock actually had earnings This day you may not have noticed that it was kind of weird, but it actually did have earnings It gapped down and then it reversed Then it fell here Here here here here Then it closed here gapped down again. Let's go over. What is a gap? Here is the close. This is a daily chart in nividia. This was again August 31st The close was here approximately around 150 and change Then a gap down here snug as a bug fell dropped. Okay, this was september 1st So whether you did it here Whether you did it here or here any of these days the stock was a short now We were talking about options. So I called an options trade in this stock In nividia, I sent the trade out at 746 in the morning You you can't enter an option at 746 in the morning But I knew early in the morning on that day that this would work So the day was thursday september 1st, and I called the 145 nividia puts at expire 9 9 Now let's go back and look here So did it work? Yes. Here's the drop. Boom. You can take it get in get out done boom Again, the idea is momentum. So the low in here with the day I forget exactly what it was. It was a it was a big drop though If you didn't get out this day, you still had time to get out here But again, the whole idea and purpose of trading is what to get momentum It's not long term investing where you're taking it in whole enough forever If I call a trade Go back here If I call a trade on the first expires a ninth and it goes right away Is and you're out 50% 100% right away No one said that you should hold it. The idea is chunking it out. You take it. You book it. You're out. Boom Cost of this was six dollars if you took an advanced trader risk and took 12 contracts If the risk was 7200 you could have sold it for 13 dollars profit was 8400 Return of investment was 117 percent. This is in and out. Boom. Take it get it book it You would have taken it into the open You can't do options outside of the time frame and you would have gotten the drop and got out Any questions here about that? Don't ever take a trade if you don't have conviction That's another thing too. So I use a system that gives me conviction. What is it? It's a rating system. This is what I teach in my two day class It is a 26 point rating system. You may say that is a lot of things. Yes, it is If I could create a 126 things so that I would never ever ever lose I would for several years. I've had this System that I've been doing it. Okay. And like I said, I haven't added anything to it But it did take me three years to figure it out I go through a checklist each and every morning where I will rate every gap I do like navinia, for example If the gap rates 20 points or more per the 26 point system Then I will take the gap in the direction of the gap What if it doesn't either I a don't do it at all or you could reverse it But I really usually do not do that. Now. Let's look at another one here This was a day trade. This is marvell Stock close to your gap down. This was earnings fell was a short We shorted it here 53 35 shares was $1,500 risk was 32 25 We added to this why because I really really really liked it We added to it at 53 10 total position size. Again, this is a bigger risk. You could have taken Lessons you could take it 100 shares if you want Total shares was 3000 the average cost was 53 22. This is a day trade an equity trade on margin The exit was 50 52 profit was $8100. It was a really really nice trade This was also a day. This was the 26th of august when the market was falling to I'm going to show you the one minute navinia I called in the morning on september 1st In the pre market at 746 a.m Uh, this one here Closed here gap down again. This is a one minute. So you see over here where this was And then you see where it opened And then here's the whole shebang. Okay So all of this You want to make money doing what? Getting the momentum the momentum is what to the downside To the downside, but you can see that some people were trying to go long in here Why because it was lifting this is a again. This is a one minute. That's a pretty fat green bar over there It's a fat one over here too We had a really really nice entry in this that I saw that was going to break and we did the ad But really again, there were people that were long that but I use the daily To help direct me with the rating system to tell me no no no no I do not want to go long this I want to short this Okay, which is what we did and that worked Okay Now we did the ad because it had this set up and by that point. I also knew the market was with us too Now getting back to what I was saying about Trading and taking it seriously for a job I think a lot of people look at it and they kind of get overwhelmed and they are living like in each day Like they have to make their whole Goal for the week or the month or whatever in one particular day people do that also for Classes like they're like, oh my god I've got to make the money back to this class in the first week or something the first month or whatever A lot of people just have a short term view of trading and I think it really hurts people. Okay For example, if you have a bad day, let's say you have a bad day trading If you go hog wild trying to make up the losses from the bad day save a bad day on a monday Tuesday, then you go heavy and do it to try to make up for the monday loss You may actually have a terrible day Tuesday too Then you've dug yourself another hole You should just get up every single day and live in that and do the right thing every day So what if you don't get any good gaps that day, then you don't do anything What if you get two good gaps? Okay, you do them both The whole idea is to live in the moment when you're trading trading the gaps that you get or the trades that you get Whether they're options or day trades because I think people get overwhelmed when they look at the bigger pictures say, oh my god How could I possibly do this for a career? Look at it in a very small minutiae time frame that you're doing it and go day by day by day Just like you would if you had a normal job if you had a normal job you'd get up and you'd work Okay, and you work tomorrow and if you work monday tuesday wednesday thursday friday, you'll get a paycheck the following week Or bi-weekly and whenever you get paid, you know You don't go to work on a monday and expect to make your check for the whole week on a monday That's not normal. Okay So if you break it down and say, okay, I just want to make $20,000 a week You could break it down like that. You could look at it as you're making $500 a day for example Okay, maybe this helps people gather around it No, I didn't use anything for the for the for that. I looked at the gap I rated the gap per my system to determine that that rated more than 20 points And therefore I shorted it because it rated over 20 points if you're talking about marvell No, it doesn't have anything to do with that percentages either jim is saying about a percentages That's another mistake people make too Again, if it was that easy you could plug it into a system and go plop And plug it in and then you never have to think or use anything It's 26 points not 20 and I am not telling you those points here Why you would have to pay me to take my class to learn it? I don't give that information for free number one and number two the class is 16 hours I have another 30 minutes here to talk, but I would never give that information for free You are paying me to learn it. You are paying me for the information I took three years of my life to figure it out You're here today to see if this is something that you're interested in if it's something that you might want to do If you think that anything that I've said it makes any sense at all. Maybe it is maybe it isn't Again, a lot of people have a short term view of trading and I think that is also one of the reasons why The the reddit chat rooms have taken off like a hot cake because people are going there number one for free They're not paying it off They're taking random ideas from strangers, which personally I don't think is a good idea But some people have made a lot of money taking trades in those rooms the very idea that some people have Has created this motivation for people going to those rooms But in the reality most people 99.9999 percent of the people that go to those rooms lose Because those are the odds really in general trading the market to begin with you follow me When i'm looking for something when i'm looking for the gap very often we are against what the retail traders are doing Uh member was a couple weeks ago or a month ago now when that big pop happened in bbb Why that was one of the reddit stocks? First of all, I don't trade the reddit stocks because I look at technical analysis and the charts are all messed up But there was a big pop in that from some guy that did an options trading made several million dollars He had a lot of money to invest to take that trade to begin with it was an option It was calls But that chart overall was a terrible chart to go along in my opinion if I had done anything in that at all I would have shorted it but again i'm not trading bbb wide because it's all messed up because of the reddit the reddit stocks But because some people have made a ton of money doing certain things people want to go after it Let's say you've been trading for 25 years. Let's say you've been losing for 25 years or overall You're not really up you make a little bit of money But you you pretty much you're doing on your own you paid for a couple classes You didn't learn how to trade really any system But you're like back and forth you write it off to the end of the year when you do your taxes And you're not doing it for a career You hope someday you can do it you'd like to make a lot of money But you really aren't making anything to sustain yourself on it What happens is over the course of time then people lack commitment And they never really get anywhere with it and they never really do it It's sort of like if you said okay, you're going to go on a diet You're going to go on a diet and you want to lose 25 pounds You could go on a diet and slowly slowly slowly slowly use 25 pounds over the next 12 months That sounds great sounds very doable But if you're like, oh my god, I have this fabulous thing that I have to go to for Thanksgiving It's a really big party. It's a gala that I want to go to and I want to get in this dress And it's a size zero and I've got to lose 25 pounds I'm going to go on a really strict diet for 30 days or 45 days So I can drop the weight really good to get in that size zero dress. I'd rather do that. That's my personality That's my personality actually But the long and short of it is many people just can't see past The fact that they're trying to do this trying to do this trying to do this for so long They don't want to make the level of commitment the level of commitment involves time I just got done telling you my class is 16 hours the level of commitment involves money I charge from my class too. It involves all of these things And of course what happens is is years go on and people are trying to do it And they don't get somewhere with it They tend to go and want to do things where they hope and dream and pray that they'll make 100 000 dollars in one trade In one week or something like that like like people have done in that gme and bby stocks and things like that I'm not saying that's impossible people have done it, but I'm saying that's not reality. That's not reality Reality is that we are living in an environment and an economy right now where interest rates are going up I hate to say it, but they are you can say we're not in a recession Whatever makes you feel good right now the fed thinks they're going to bring inflation down to 2% by the next 12 months Probably not they haven't been right about anything get in reality get grounded even though It's maybe not what you want to hear the reality is this is reality You can do it, but it's going to mean time and it's going to mean hard work and it's going to mean commitment It's going to mean an investment the sooner you come to realize that the sooner you're going to get where you want to be And the sooner you're going to have your goals. Do you know what I mean? That's the whole point What's repeatable you lost me What's repeatable? um, I answered that question to somebody else about the points You lost me there with what's repeatable Matt anyways, the whole point is doing it learning it and doing it Right repeatable meaning if you learn it The repetition is when you see the pattern or the setup in the gap rating Then you do it and you replicate it when you see it day after day after day after day The whole idea is learning it once you learn it and you know it then you can do it Does that make sense? I mean the break away? I don't know what you mean by break away somebody's asking about a break away um Here's the spy. Okay. We did this one here. This was nine one Actually, this was just last week this closed here this gap down. We shorted it again. This may not look like much I still don't know what you mean by the break away I don't know what you mean by the break away. We're shorting the gap This closed here this gap down. Then we got in we did it and we made money and we got out Entry is 392 35 shares was 1500. This is an advanced trader risk 29 25 Ad was 392 25 average price was 392 30 total shares 3000 exit 390 40 So this little this little trade here maybe doesn't even look like much We made 5,800 50 dollars and right there And it doesn't even look like much, but we got in got out at the right points. Here is the one minute So here's where this closed the night before then it opened here okay Then we got in it and again the momentum is what to the downside. This is a short short short short Um, we do the market and we also do other things like we did more val we did a video I mean the markets had a lot of gaps this year The market's had it has a lot of gaps in general the market has bullish gaps. The market has bearish gaps Um, this just happened to be a bearish gap on september 1st We don't necessarily do the market every day though. No, no If there's a good gap in the market, I will do it and I will say the one nice thing about trading the market is Again, the market moves the market also has lots and lots and lots of volume So all the things we do have volume Okay, meaning you're gonna get filled in you're gonna get filled out the same thing with the options too We don't trade any cheapy cheapy stocks. We don't trade any Low float stocks. Okay, we are we're not trading any penny stocks The whole idea is we're looking for institutional money to trade with institutional money not retail traders That was where I I went off in a tangent there, but that's I lost my train of thought I was trying to say that earlier I'm looking for things that I'm seeing that the institutional money is putting money in to push the stock up and go long and investing in it Or selling selling a shorting positions in it Big positions in it. Okay, so everything that we do Right out of the gate has volume. Okay, and everything that we do has the potential The potential for a large move if you're doing something like a penny stock or something that costs a dollar or two dollars or whatever You are you're uh, you can't get a large move in that. Okay And getting back to what I was saying one daily pick is really all you need to be successful. Why? Because if you do something like more vell and you get a three dollar move in it That's it. That's all you need one dollar two dollar three dollars again same thing with an option It's the same idea the idea is to focus on one strategy to be efficient and effective Okay, and again the strategy people are asking questions That is what you will learn from me in the class is a two day class It is a paid class that is not what we're doing here today The whole idea of getting good is to learn a strategy that you can use and repeat and replicate Over and over again for the rest of your life in any market conditions, whether it's bullish or bearish Again going back to what people go through when they are attempting to trade they go through a process The process is ups and downs The process is wins and losses and that process can emotionally not just financially But it can emotionally be people up The best thing that you can do for yourself Like I said is get real with it and ask yourself your true level of commitment Because I know from teaching people for 10 years and having the stocks wish business plus personally personally going through what I did At the beginning of my trading career when I started in 2008 is that if you are committed you can do it You can and just because you're not successful now doesn't mean that you can't be if you should decide that you want To commit yourself to doing it and doing well you can do it and I try my best to help people I really really do make myself available to people every day in the live trading room Or email them me and call me with questions, okay But the only way for consistent money trading is getting the best pick and Getting the momentum why because some trades lose Okay, if you you can go back to the stats. David's taping this and see the beginning We have some trades that lose so if you take a trader making 10 cents, that's not going to cover The losses, okay, you need big ones You've got to get some big ones the big ones the big moves the momentum is going to make you money And it's going to cover the losses, okay? So again, how do I find the best pick? I use a rating system. This is the whole crux and the meat and potatoes of what I do This is what I teach in the class and there are thousands of gaps every day So again, you got to find the best one and you need a proven system to find the best gaps So I created a system called the golden gap. It is a 26 point professional bearish gap rating system The purpose of this system is to help you evaluate which gap to trade each morning using a checklist If I go through gaps in the pre market in the morning, whether it's 7 45 in the morning or 8 a.m Or 6 o'clock when I get up if I don't see any gaps or nothing rates per my system We do not trade that day. Like I don't know what I'm going to do tomorrow. I may do nothing I may do three things. I don't know. Okay I have no idea what I'm going to get because it's not tomorrow morning I know kr reports earnings tomorrow morning. It's kroger the grocery store. I don't know how it's going to gap I'm not in any trades in that because I don't know how it's going to gap and not only that I don't know if it's going to be a good gap. Okay. I don't know if it's going to rate per my system over 20 points Uh, somebody's asking is a 26 point system going to be set up automatically from the trading platform I don't do that if you want to input the system to do that yourself You can do that yourself. I don't do that. I'm trading live. I'm going through it I take my time if that's something that you want to do after the class that is something you can do That's not something that I do again, everybody Has to kind of use whatever they need that's going to work for them You know what I'm saying like some people do options and they don't like to day trade the day trades They find and move too fast whereas some people are the opposite some people don't like options Okay, they don't want to have to sit and watch and watch and watch something They want to do the day trade being in and out in five minutes Use whatever works for you. It's the same system either way Okay You apply it yourself how you want to after you learn it So the whole thing is it teaches you a high probability of directional bias for the entire day big moves on the day Early confirmation of a bias and then move between 9 30 and 10 am eastern time and precise entries with follow through And a good risk to reward As far as the win ratio somebody's asking The win ratio We again, we're doing two things The options are a newsletter the win ratio for the newsletter year today is 77 We are having a phenomenal year for options Now the reason for that is you have more time in the options for my day trades for the year I think i'm about 70 percent. I haven't added it up since september 1st So my win ratio for day trades is slightly less than options We're having a higher win ratio for options this year. Of course the year isn't over yet than day trades And as far as that goes it means I might call it trade Actually, let's I'll show you this new video. I don't put this one in here But this is a good example The day that this had earnings Here That's not the option I have in here. It's the one in the first I watched this today trade I didn't do it if I had I would have lost So I would have lost in it never worked right, but I did call an option in it I called a put I held it trade was completely down And then it went on to work Because I had a whole week to get the move. Do you follow me? So this is like I'm just setting up the scenario because someone asked The reason we're having a higher win ratio and options and day trades this year is because again, we didn't do this But if I had I'm just playing out the scenario. Sometimes this is what occurs Sometimes something doesn't work as a day trade and then it does as an option And this would have been a good example. I didn't do that though as a day trade I saw pretty early on it was not going to work right on the day But then it did in the option So that's a good example When you take a trade say you have every 10 trains you got to figure You know two or three you're going to lose when you're sizing yourself When you're choosing your risk whether it's 500 a trade a thousand dollars of trade three grand a trade Whatever you're going to risk you have to pick and choose and know that you're going to have an average of two to three losers again It's no matter how you want to do it But getting back to the confirmation of the time point I am still looking for the confirmation early between 9 30 and 10 even if I'm doing an option I would like the confirmation early That I can get a big move that I'm going to get the follow through and then of course with the day trades I'm looking with for precise injuries in the one minute And a good risk to reward But the whole philosophy behind the system is to analyze a large time frame to make the trend decision of the directional bias for the gap That's how you make money again. You got to get the direction right I'm doing options for the weeklies. That's it. We're not doing any long-term options and we're not doing any Leaps I also do bullish gaps too We did a we did calls this year in cbx Um, I'm not in anything with that right now Cbx is chevron. It's an oil stock. We've done several options in that this year We've done several day trades in that this year. They've all been long So that is something that I have gone long this year. We did it. We did an option in alta Alta broke out yesterday. Alta was a call Um, I can't think of anything else at the top of my head. We've gone long But we have gone long this year and I will go long. I'm not against going long. I prefer to short I prefer to short. Why do I prefer to short? I feel like shorting gives me an edge. A lot of people don't know how to short Even though people are trying to get in the bandwagon of the downside right now People really have in their mind the june 16th was low for the market for the rest of the year And people think the rest of the year in the market is has an upside Well, that could be true and very well could be true It's neither here nor there for me unless you're in something like a retirement account or a long-term option Like we're talking about leaps, which I don't do I don't do leaps, but I'm saying who cares if the market rallies between now and the end of the year Who cares if it drops if you're an active trader if you're an active day trader If you're an active options trader like me then you're in and out Getting the momentum and making the money in both directions depending on whatever we get on the day You know what i'm saying it trying to predict Where the spy is going to be by 1231 is like saying to me, okay Um, you know so and so is going to win the presidential election in 2024 First of all, you don't even know who's running and second of all how on earth it be even who's running How would you know who's going to win? I mean like do you know what I mean? So it's like the fed trying to predict what they think inflation is going to be in 12 months from now They're not going to get it right It's impossible Okay So you make money right now as an active trader you're living in the moment So we're looking to make entry decisions and exit decisions based on a small time frame on the women A chart but but looking at the large chart chart for the accuracy and the gap for the direction That allows us to get good trades with a high risk to reward We usually have three to five gaps A day in earning season three to five gaps a week and not earning season Everything is based on the points again. If you sign up for the options newsletter, you're getting the trades I'm rating the gaps. That's a subscription service if you sign up for the class and want to learn it I'm calling the trades in the live room But it's the idea of having a checklist the checklist is a plan of action The checklist tells you what pick to do or tells you don't do any picks Having that focus and having it set up in the pre-market helps you do I forecast gaps? No No, I don't how could I possibly do that? I have no idea with the gaps where we gap tomorrow in the market. I don't know No, it's like I just said k r k r is going to have earnings I don't know where it's going to go. I'm not getting in stuff before it gaps. No It's like saying, you know what apple earnings are going to be in three weeks from now And even if you did you don't know how the stock's going to react because they don't know to react exactly how it's going to be we do not I do not get in a position before the earnings No, the big bucks are if you're in a trade And it gaps in your direction But that's not predicting the gap. We're already in it. I don't know if that makes sense Anyways, what is it about gaps that makes them so profitable? Again momentum large institutional money are creating the moves That's what makes the gap of the first place. It's buying and selling or shorting The professional gaps that happen and play out in stocks are formed by one thing and one thing only large institutional money therefore You need a way that will help you pick the correction to play the gap and confirm if the large money will flow with it By having a formula to rate and qualify the gap you get confirmation and conviction that the large institutional money is on your side And then you're playing it Gaps are an event again getting back to the foundation they create a sense of urgency hurry hurry hurry You have to do it now whether you're getting in or getting out Thus an action is being forced by participants of the stock. This is why gap trade is incredibly powerful trading gaps Is a powerful and profitable way to trade because you're trading on the side of power and money. Okay This somebody just said something about You know doing something with overnight's again We sometimes get a trade that is a big trade where we're already in a trade for example And it goes overnight this back here. This was the middle of august So I called a put and then this gap down further here. This was a good example We did twitter too before the news of twitter came out when musk was going to dump the deal We were already in it then that's not predicting something that you don't know is going to happen We were already in the train. Okay For another setup if that makes any sense But yes, if you're in something and it goes in your direction It can be very profitable that can happen to the downside here or it could happen to the upside But you can't predict that this is going to happen You're in it because you're in it to begin with I don't know if that makes any sense if you're on the newsletter You're going to get those trades is that what we're doing every single day though? No, we're getting the trade and we're getting the play that we're doing at the moment that we're doing it And then we let it play out and the whole idea is to book money The whole purpose and the whole idea is to book money and again momentum is what makes gaps that profitable here Again, was the marvel Fell down in here. This was that day on the 26th. I remember that day that was friday. That was the day the market fell a lot Any questions here? I'm going to try to flip through to the end but you know Your brain, okay is very powerful and once you learn how to read charts Once you learn how to read with technical analysis, it's really going to make such a huge difference to you Because you're not going to be set off by news or anything that could affect you even economic data You're going to look at the price. You're going to you're going to rate it and you're going to go with the rating Okay, the whole idea if you want to do this is making extra money Whether you want to do a full-time or part-time is totally up to you But I do think it's important for people to have a system And again, I've been teaching people for 10 years if you're trading without a system You're basically trading blind and in my opinion if you're trading or not using technical analysis You are trading blind. You can't take potchots when you look for something The reason I choose gaps is because they have big moves. It just makes a lot of sense to do them I also like the fast setups and again I teach a class on it that I teach once a month the next class is september 17th and 18th Which is not this weekend, but next weekend, you know throughout the years as of top people I I know a lot of things that different people do One of the reasons why I picked to do gaps in the first place when I started out a long time ago was I really feel like a lot of people don't understand gaps and don't do them Well, and so I've created a niche for myself in doing them not just gaps alone But also the idea of shorting and you can make money shorting in a bullish market And you can make money shorting in a bearish market. We are not necessarily doing the market every single day You have to have conviction when you train for me. It's the checklist And then um, I have some testimonials here Yes, I do bullish gaps and I do bearish gaps. Yes Uh, there was something else I was going to say where we're talking about forecasting Uh, these are just some testimonials from people So anyways, if you'd like to learn what I know Or if you have questions you can email me at melissathestoxswitch.com If you'd like a trial for the room you can come in tomorrow, but you got to email me for the trial I think it's important for people to learn what to do Again, you will learn a whole system to train the class is all day starting all day sunday september 17th and 18th You would learn the 26 points and you would learn the entries and you would learn the targets The class is online. It could be anywhere in the world and take it and again You will learn my 26 point system on professional bearish gaps. The class tuition is 6999 us dollars It's online. You must email me for sign up forms. It's 9 a.m to 5 p.m eastern time I'm doing a birthday special because my birthday is in the next couple days actually And if you sign up by tuesday september 13th We receive the live trading room and the options newsletter free to the end of the year with the class Which is on the 17th and 18th Again class tuition is 6999 everyone pays the same thing I do bonus offers like this to try to help people get started so they can be in the room Train get the trains and get the options newsletter Earning season starts in about a month a month from now And that's not till october so this gives you time to get in learn And then get acclimated and start trading date training is where we're doing the equity trades where we showed you the trades in marvell The options is something different. We're just buying straight calls or puts and selling them We're not doing fancy dancey options types of strategies. And again the class is online Nope gap fills don't work even though you could say well that worked. No it doesn't every once in a while Something works. Otherwise again, something would be a hundred percent The whole idea of gap fills does not work consistently to make money Again getting back to what I said at the beginning of the program here today in order to make money in the market In order to be successful in order to hit these kind of numbers that we're hitting here with these types of win ratios And these types of profits you have to have more winning trades and losing trades while sometimes you can do what people Call a gap fill why sometimes it might work. It does not work consistently That's something very important that you need to know if you're doing that every day from january to december You will lose. I think that is one of the reasons why people shy away from doing gaps They get hurt in things when they do them and they don't work Sometimes they even do them overnight or one of the guys in here said, you know, he's predicting gaps That's that's a losing scenario too. You can't do that You have to read the price You have to read the price Let it do its thing. Then you read it. Then you prep in the morning. Then you do it and you do it into the open Listen, thanks so much for letting me talk today. Thanks so much. David for having me Anyone interested to email me if you want to trial for tomorrow email me too Thanks for having me