 Good evening everyone and welcome. My name is Melissa Armel and I wanted to do a lecture tonight on stops That means stops that you would take a trade and put in a stop I call it a hard stop. Actually the stops that I take in trades are limit orders. What does that mean? That means if I have a stop at $15 for example if I'm short the stock and a stop if I'm let's just say I'm short the stock at $14.90 I put a stop at $15 that means I'm risking 10 cents or 10 pennies if the stop if the stock runs over 15 through 15 at 15 and beyond I get taken out. That means I lose 10 pennies 10 cents, okay? The reason that I trade with stops whether I have 2000 3000 4000 5000 10,000 shares is because of the fact that I want to know what my calculator risk is. I don't feel comfortable trading without knowing in my mind the worst-case scenario the worst-case scenario is I will lose a thousand dollars $1200 $1500 whatever I choose to do in the stop and the stop is in my class Which I teach this it's a difference between the entry and the stop It's a difference between where I'm entering the stock and where I'm putting the stop and so if I'm shorting It's always the number below it is the entry and the number above it's a stop. Okay now. Let me finish. I Talked to someone the other day This was this is actually a student and he's a student of mine And he told me that he's not always putting in the stops It was like going to the confessional and he was confessing to me that sometimes he doesn't put in stops I said oh my lanta That means that the trains that you lose you have an unlimited amount of risk You have essentially You could lose your whole account It doesn't make any sense. I don't care who you are You have to have like a kill point where you say That's it. I'm out The idea of dreaming and helping and wishing that the stock is gonna Pull back and go back to the main thing. I mean I will tell you one thing that I do extremely well I know like a level that if the stock goes over this price, it's not gonna work It is killing get out put the stop It's not gonna work a lot of people say well I don't like to use tops they get run up and then they come down to work No, no, no, no wrong. Oh those people that say that and trade like that lose a crap lot of money I have absolutely no idea how to trade and don't know where to stop I use stops if I ever get to the point where I'm running the hedge fund You know what? I won't use stops But at the end of the day until I get to that point if I ever get to that point as long as I'm trading my own money I will be using stops and I know where that stop has to be Now what if I take a trade and it gets sucked out and I'm down I'm down a thousand dollars the stock rallies holds. It's a short it shorts It drops it falls it falls in a stretch to fall rise back again. I can always take a second trade I'm I'm still down then the amount of the first stop But at least I know that's all I'm down and then I can take a second trade or Or I can choose not to take a second trade if I've lost conviction and and stop on the day and lose one risk unit Do you have any idea how much money people lose by not having stops? crazy amounts of money I Can come back from a one loss in like a second the day that something works I don't I don't give a crap about one loss But what is concerning and what I know from prior past experience back in the day when I used to trade and didn't think about these things When I take something over and over and I put the stop I'm telling you right now learn this from you right now today Put the stop in no learn how to do it put the stop in Retake it if you want to watch a scenario What if you don't retake it and you take the one risk unit loss who cares you get up tomorrow you make money You make three four or five risk units and you pay for the stop of the previous day and you make money the next day What I hate to see happen to people and what I'm telling you right now And I'm trying to teach you in this lesson tonight is that don't don't don't risk a certain amount of money Let it go craze only over that amount of money To the point that you have to take five or six trades To even get back break even of the one trade of the loss that you never put the stop and let run against you So, I mean that's suggestive tonight But I'm telling you there is a way to learn where to put the stop I teach you that in the golden gap class any person that comes to me and says they don't believe in stops Or they don't work or whatever is is ridiculousness and it's crazy That person doesn't want to deal with the idea of the fact that you actually have to assume the risk Take the risk have calculated risk and kill it not every trade works I would love to sit here and tell you that I have a hundred percent win ratio that would be a lie That's not true. Some trades. I take do not work and thank goodness I can take a stop. Do you do you know my life would be like if I couldn't put in the stop? I wouldn't trade because I have to have a certain amount of money that I risk that I know if it doesn't work I'll lose and I know all the other days it works And that's what a system is and that's where you follow it and it's called a trading plan, by the way And you must do it. I take my stops I know where they are if you don't believe in stops come take my class Even know how to where to put them come take my class. You must put in a stop I hate it when I hear stories of people using this you losing this insane amount of money Losing their accounts in one trade or doubling down. You can't just you cannot train like that as a day trader It doesn't make any sense. It makes no sense whatsoever This is Melissa arm of the stocks which calm email me if you want to sign up for the golden gap class this weekend January 9th And 10th. I'm telling you I teach in the class where to put the stop where to exit the trade It's not working and you do need to know that and by the way, you can figure that out I know how to do it. I will always use stops and if you're not then ask yourself why you might be in La La Land or Completely not wanting to acknowledge the fact that you don't have something right with your trading and need to learn it Don't take an unlimited risk in your trades. The market is serious business people You can make a lot of money in the market, but you have to think about what you're doing It has to make sense for the risk to reward Think about that when you're trading and email me if you have more questions. Have a great night everyone