 Okay, let me know if you can see the slide. Okay, great, I'm gonna get started here, even though I didn't hear any sound of your guys' end. If you can hear me, we're gonna get going. Welcome everyone, my name is Melissa Armo and I own a company called the Stock Swoosh and I'm going to talk today about a day trading strategy. I'm gonna talk about how you can learn how to day trade just one strategy and make money in 30 minutes a day. And make enough money realistically if you really wanna do this for a career, for a living, to the tune of about 20 grand a month or what would be if you average it at $1,000 a day. Although some days I may not do any trades, but then there's other days where I may make three, four, $5,000 in one trade. So we're gonna talk about the possibilities of what you can do with this and learning this and if you have questions, you can write them in the room there at the bottom. You can email me at Melissa at thestockswoosh.com also if you would like more information and you can go follow me on Twitter, Facebook and YouTube as well. So what's the point? What's the point of day trading? Why even do it? What's the point? The point is to make money and not only that, to make it quickly because what I'm talking about day trading, that means you got one day. The market is only open between 9.30 and four. One day means it's not a long-term investment. So it's gotta be quick, okay? Whether it's a couple of minutes or a couple seconds or a couple of hours, it's one day. So what's the point of learning a trading system if you have learned one in the past and failed to make money? Which I know from talking to lots of people. Now I've had the business for over four years. And a lot of people say this to me. What's the point? Are you ready to learn something, Melissa? I didn't make any money with it. How do I know this thing is gonna work? Well, did the system that you learned work or not? Was it you or was it the system? And only that, what was the foundation for the system which we're gonna talk about in a minute? And then what is the point of taking a trading class to learn a system if you cannot devote yourself full-time to trading yet? Maybe of another job, okay? Maybe you have a full-time job. 30 minutes a day is not full-time though and this is what we're gonna discuss because that's the time of the period that I'm looking to trade. It's between 9.30 a.m. and 10 a.m. Eastern time. And the fact is that you have to start somewhere. The sooner you start, the sooner you will move ahead to achieve your goals, okay? So even if you don't have all day to trade, it doesn't matter. What we're gonna talk about today is my strategy and it's involved in just that 30-minute period. The main, main thing that I do is looking for a specific criteria in a set strategy that I use. And the strategy is based on stocks that are gapping, which we're gonna discuss. But no matter what you do, okay? If you're gonna day trade or take any trades at all, you've gotta have a foundation. You need a foundation to trade. You need an infrastructure for every entry that you're gonna take in a stock. And I trade stocks. I trade the U.S. stock market. That's what we're gonna discuss today. And so that is the strategy. That's the foundation. The strategy is a core reason behind why you're even watching that stock in the first place or even contemplating an entry to trade in it. And entering a stock should not be taken unless the trade has a foundation supporting it, okay? You have to have a reason. And this goes back to what I was saying. If you've learned other things in the past, did it have a strong foundation? Because if it didn't, then maybe that's why you didn't make any money doing it. The fact is that many stocks in any given day have no strategy to trade as a day trade. And that's why on most days, stocks do not have a proper entry for you to take the trade and make money. There's no strategy. And so how are you gonna make any money? That's the foundation. It's like you have to have a foundation to the house in order to live in it. This shack floating here in the water is not a secure foundation by any means. One big wave, this thing is dust, okay? So the bottom line is if you lived in here, it wouldn't be very safe. Doesn't have a good foundation, okay? You have to have a good foundation if you expect to make money in your trades. And that to me is the strategy and the system that I use. So the strategy as I was saying that I trade is gaps. Gaps are a strategy or foundation for your trades in the market. And when you choose to take a trade, there has to be support system behind why you're taking the trade for it to work if you wanna make money. And I don't care if you wanna make 20 grand a month or 10 grand a month or 100 grand a month, you gotta have a good foundation just like the house concept, okay? That's why you're entering the position. And then the reason you're choosing to enter the stock or the foundation for your entry should be because the stock is a quality gap, which is what we're gonna talk about now. If for those of you that don't know what a gap is, I'm gonna explain it and then I'm gonna show you on a stock chart. A stock gaps in 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 into the next. Simple. Now, here's an example. This was TSCL, this was last week. So this is a daily chart. You can see back here, I clipped it going back to November, 2016. This is April, this is last week. So, a symbol was TSCL. Stock closed here. The night before this is a candle stick around 70 something. Boom, open here. Run 67 bucks and change, right here. So it opened there. So the stock gap down, okay? So I get up in the morning and I'm looking to see what stocks are gapping. And I prefer to look at stocks that are gapping down, but you can look at bullish gaps too. Either way, the system I use to find the right gap each day to trade and how to know how to trade it, whether going long or short, okay? I use a checklist, okay? I use my own system I created. It's a 26 point checklist. And that's how I figure it out. There's so many symbols in the market. So many things to trade. How do you know which one to do? You have to focus, because there's just too many things. I mean, there's just too many stock symbols. So what would be some reasons if you wanted to trade that you would learn my system? Which I'm gonna talk about. If you wanna make money working only 30 minutes a day, if you want to make money with a limited and controlled amount of risk, we'll talk about this as well when I show you the trades I use stops. They're hard stops, they're limit orders. So the controlled risk is if the trade fails and stops out, I only lose what I risk. And in an option trade, you only lose what you risk if the trade fails in the quantity that you take at the position size. You can use my strategy today trade options or straight equity trades. If you wanna make consistent money, I've been very consistent. I have a trade tracking video on my YouTube site for 2017. I have to update last weeks, but it has the trade calls in there. If you wanna take good risk reward trades, we'll talk about this today as well. If you want to learn a proven strategy, I've been teaching people for four years and trading for more than eight. That's a pretty good amount of time as the only strategy I've ever, ever traded. And if you don't have a lot of time. The one thing that I think is very interesting and very inviting and very beneficial for people is they don't have a lot of time. People wanna transfer and go from this career to that career or they wanna make more money but they don't wanna quit their job. How do they do it? They don't have a lot of time. They can't sit there and trade for six and a half hours a day. With my strategy, with my system, you don't need to do it. You don't have to work that long or hard for the money that you make with my strategy. So if the trade fails and I take a loss on the day, I'm out quick, okay? It stops me out, I have the loss, the loss is quick. If the trade works quick, which I'm gonna show you some examples here in a minute from last week, then it works fast and it works quick and I'm upright a waste. And I didn't work that long to actually make the money. Now I prep in the morning, okay? I open the room at 8.30, I start talking on the mic at 9. You should really be there by 9 a.m., okay? The room is only open though from 8.30 to 11. Sometimes I close it by 10, 15, 10, 30 if we're done trading. So we're not working that hard for the money that we make. So when we have a trade and get the trade and taking the trade and get in it and it moves, we're at money very quickly and we don't have to work that hard to do it. And even if you prep for 30 minutes before the trade itself, because I don't trade in the pre-market, I trade after the open after 9.30, you're not working that long to make the cash, okay? To be able to make 1,000 bucks without only working for 30 minutes or maybe a little bit more with the prep time is amazing, okay? Even if you're a doctor, physician, an attorney, you would work a couple of hours even at a very high per hourly rate to even make that kind of money. And so the very, very interesting thing, an attractive thing about day trading, specifically the strategy that I do is that you're not working that long or hard for the money that you make. So here is peer. This was peer one imports, this was last week. What happened to this? The stock gapped. It actually gapped at night. It had earnings. So here it is. This is a pre-market data up here on the 15 minute chart. So you could have prepped it the night. After the earnings, you could have looked at it and figured it all out at night. Then you could have got up in the morning and you could have double checked it again before the open. Here's the open. It worked. It was a short, okay? So you were doing the work ahead of time. You could do it at night. You could do it in the morning and then you trade in the day. This is the first 15 minutes and you could have shorted this and been out. The stock continued. You could have made a little bit more money. You could have traded it down all the way down into one o'clock if you wanted, but you don't have to. And this is the period that I focus on the first half an hour. So it's very, very quick and it sets up fast. So if you can make a thousand bucks or any amount in 30 minutes, why wouldn't you wanna do it? And this is the reason that I like to do what I do because I would go crazy if I had to trade all day. Okay, your brain gets tired, your eyes get tired, your mind gets tired, you get distracted with emails and phone calls. And the odds are against you. The more trades you take, the more profitable you would be. It's higher odds that you will make more money the less trades you take. So you have to be very thoughtful about the ones that you're doing and you have to be very, very focused. You have to be focused if you want to make the money. So whether you wanna do this for your career, whether you have lofty goals or not, monetary goals for nature or not, it really doesn't even matter. Even if your goal was to only make 100 bucks a day, the only way you're gonna achieve that goal is if you're focused on what you are doing. And you have to learn it and you have to do it and you have to be thoughtful about it because this time period has a meaning and I'm gonna go over that with you and why. Why this time period that I'm doing works between the nine, 30 and 10. So the strategy is looking at what? It's looking at stocks that are gapping. Then I have the checklist and I rate them and what am I looking to do? I'm looking to find what institutions, meaning banks and hedge funds are doing with their positions in these stocks. This was the TSCO again and I wanna show you that the stock has fallen every day since this day and this was an earnings day by the way. So it's fallen straight down, boom, like a brick. So not only could you have done the day trading here, which I did, you also could, this was Wednesday, this was Thursday, this is today, you could have done a swing trade, you could have done an options trade. It's the same strategy, the same concept that you're playing on through as a continuation, okay? If you have a strategy, you do it every day. If you don't have a strategy to trade, you've gotta get one and that's the whole point here of what I'm talking about because one stock symbol, one pick is all you need every day, whether it's peer, whether it's TSCO, or whether it's Netflix. Netflix had a trade set up and we're gonna go over today as well that was along and it reports tonight, I don't know what it's doing, it reported after four, it had earnings, earnings tonight, but one pick is all that you need. So as I was saying, the strategy I do is based on stocks that are gapping. It's a very specialized strategy and if you wanna make money, you have to act like a professional and again it doesn't matter if you're working for five minutes or 30 minutes or one hour, the point is that you're thinking like a real professional trader and so you have a focus and a reason for taking the trades. One strategy and a focus on that helps you to be effective and efficient and it minimizes the losses. The more trades you take, the more potential you have to lose, not win, it's the opposite, okay. You only need one trade each day to actually make a lot of money because you take the size in it and you plop it on and we're gonna talk about that as well, how you make more with the size, okay. So the most important thing is to be consistent. Now let's get back to what I was saying about the time of the day. Here was the TSCO, this is a one minute chart. I take my entries in the one minute chart. In the first drop, the first move in this that I did, the stock open in here, set up and dropped a buck and a quarter. Boom. This is all that you need people, okay. So here's the gap, the stock goes to your gap down. Boom, this is 9.30. This is the night before four o'clock. So in the morning, I'm figuring out if I wanna short this or go long it or find the pick which I found this day was TSCO. This was Wednesday, last week. But this move here, do you see the time of the day? It's 9.30, here's 10 o'clock. I actually kept going, all right. So this is what you're looking for. Boom, boom, boom. This is the money move in here. This is the period that you're trading. It's where you're taking the entry and where you're looking to get out. And that's all you have to do. And you only need one of these. And do you see the big size of the move that it had in that period? So the speed, the fastest is real because I'm looking between this period. Now why, why am I looking between that period? Because say you're a hedge fund and you read the earnings on TSCO or Netflix or whatever or you're listening to the call and you don't like something that they say and you long the stock, you own the stock, okay, you own it, you don't like something they say. And for various reasons, there's many, many reasons, you decide to sell your position into the open of the stock that you own. And so you do. You're not gonna, if you don't like something that's happened with the stock earnings, you're not gonna wait until 1205 till the market's been open for two and a half hours in the morning or even an hour and a half in the morning to sell your position. If the reason you want to sell is because something happened or was reflected in the earnings or say it was news. That's another reason stocks make up. Whatever, whatever the reason is if you don't like the reason that something's happened and you're long the stock and you wanna sell it and dump it, you're not gonna wait past the open to do it. You're gonna just do it. You're gonna go, and you're gonna sell it and it sells off like a bang. So what I do is look for stocks that are going to do that so that I can get in the trade before those people do that, before they sell their positions. I'm shorting selling action. Boom, this back here, that is the one minute. Here was the daily of that. This bar actually went to around 6450 by the close of the business this day. This went far, far past where I even got out of it. I had a good trade that day but I could have made more money if I'd held it. The point is if you're looking for this, if you trade with me and you learn my system, I'm predicting that the stunk is gonna go like this. And so if I'm predicting that, I'm gonna get in as soon as I can to get the best entry. Whether I hold it or not, whether I get out in five minutes like I did or four minutes is neither here nor there. It's the way that you make money. It is the way that you make money. So I'm predicting that they're gonna sell this sucker off and guess what they do? And guess what they did? They did for three days, okay? The institution funds big professional traders that own positions in these stocks are not gonna wait. The very idea that most day traders wait till after 10 o'clock makes no sense. There's no foundation to what they're doing. They're trend trading then and saying, well for the first 30 minutes the stock is in a one minute up trend. I think I'll go longer today. Really? That even doesn't even make any sense, okay? I'm looking at the daily chart right here, this thing you're looking at. And I'm looking at it, I'm seeing it. And I'm seeing it gapping. It could be gapping up or down. In the case of this, it was gapping down, okay? So then I'm saying using my checklist, this is gonna get sold off like a banshee. With it rains well. And that's the only ones I do, by the way. And anyways, then if it does, and I know they're gonna sell it, I'm gonna sell it in the open here and then I'm gonna short it. So they don't wait, okay? So you really do have to know which one to watch because if you're scanning, scanning, scanning and you're waiting till 10 or later, you're gonna miss it. You know, half the move is done. Sometimes the whole thing is done. Here was another one. This was the peer. This was Thursday of last week before the holiday. Peer again had earnings at night. Stock closed to your gap down. Look, look at the move. This is only 60 cents, but actually it was a huge move for the stock because the entry here was a roughly about 10 cents. If you shorted it. If you shorted this here, boom! Sold off like crazy. Went even further. Broke the low later in the day. Again, you could have played this one twice, but again, 9.30 and 10. Fast moves, 30 minutes is all you need. The money move. You take it and get out. Take it, get out. Boom! But you gotta be watching it. Cause if you're not watching this, this is gone, okay? UAL, this was a week ago, I guess Tuesday. This was a news gap. That guy that were dragging off the plane, okay? So this airline gap down. Closed here, gap down. Shorted, boom! Here, fell. Again, 9.30 and 10. Doot, doot. So you get up in the morning. You look for the gap. You rate it. It opens. You get the setup. I'm not getting in over here in the pre-market or the post-market. But again, you see the time of the day. There's no hesitancy, no waiting. You have to be able to take it and react. If you're waiting until when most aid traders are trading, you're not trading like a professional and you're not making this kind of money and you're not making anywhere near $20,000 a month unless you are taking huge massive size and scalping things, which is very risky. I take a couple thousand shares but I'm not taking 20,000 shares of stocks. Now here today, Netflix. This is before tonight. Again, I don't know what it's doing. Someone can write in the room and tell me what's doing. I'm very interested to see if this is gaping up or down. But today, the stock gap up. You could do gap ups or downs. I prefer to short, but this did a good bullish gap up today. Stock closed here, gap up. Open today around 144.50-ish. Boom! You could have gone long Netflix and got out. One, two, three, four. Again, four minutes. You're in, you're out. Here's the one minute chart. Here's 9.30, here's 10 o'clock. Do you see it? You just take it, get out. Boom, get out. That's it. So this is what I look to do. Day after day after day after day after day after day. Play this time of the day. You just get the money move and yeah, this was a buck 50, a nice move. Any questions so far? Netflix is at 140. It's gaping down. That's interesting. Oh no, it was down at 140 and now it's at 146.62. Oh, then it's not gaping down. Well, that's weird. It sounds like it's not really gaping at all then. I'll have to look at it tonight. Anyways, what I do is look for gaps and then I rate them. So we'll have to see if Netflix does anything or not. Sounds like it's not doing much of anything. Sounds like it had a big move down and now it's neutral or flat. I only do gaps and they have to qualify. So I have a 26 point rating system and I go through the checklist every day. And again, that's a professional activity because I have a structure. I'm not just whimsically looking for things willy-nilly on a scanner every morning and then just trading on the fly. Okay, if I don't like it before the open then I'm not doing it. So how do I pick which gap to trade? I have the checklist. The 26 points, that's my system. That's what you'd learn if you come trade with me in my class. How many apps are there any in given day? Hundreds, thousands, but they're not all playable. They're not all predictable, okay? They're not all predictable. They don't all have big money moves into that open period. They are not even all predictable that you can even predict what it will do on the day because something could be in enough trend and may not set up as along that day. Even though it's in enough trend, you can't even trend trade things in the rightful trend every single solitary day as a day trade. You can't do it. You can swing trade them if you wanna do an option trade but you can't trend trade them every day as a day trade. So that's why trading gaps is such a great way to make money day trading. And I think the only way too, okay? Because it makes sense. The moves happen quick. You get the momentum. You get a lot of volume in them and you can be in and out quickly and it's not a lot of time for the work that you put into it for the money that you can make. So what I do is use my system. I use my system to determine what to do. And we'll see if Netflix is one for tomorrow or not or something else. There's a lot of banks reporting tomorrow. Goldman Sachs reports tomorrow morning. Earning season starts this week. It's in full on. There'll be 20, 30 things every morning and every night to look at that rate. So now is the time to make money. Most of the time you get tons and tons of gaps every quarter when these companies report. Like Netflix is reporting tonight. So my system is called the Golden Gap. The Golden Gap 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 and that's what I do. The checklist tells you the stack's gonna have a high probability of directional bias for the entire day. A big move on the day which I'm looking for. Early confirmation of the bias. Again, early, get in quick. Between nine, 30 and 10, get in, get out. That's what I wanna do. Make the money and quit, okay. And then also I have a very precise entry that I'm looking for. The philosophy behind it that goes back to the whole idea of the foundation. I'm looking for the directional bias in the gap. I'm looking for stocks that gap down to follow through to sell off. I'm looking for stocks that gap up to follow through to go higher to get bought where people will buy the positions and move them up. Okay, I'm looking to follow these institutional moves with institutional traders and institutional money like I was talking about in funds. So I'm looking at the daily chart to make the decision on the gap when I see it, like TSCL, that it was a short, but I'm looking on that one minute chart to get a very, very, very, very pinpointed specific entry. Now everybody asked me, how many do you get a day? I only do one. You only need one trade a day. I find that if I end up taking more than one trade a day, I'm having a hard morning. And I do have times every once in a while where I have a hard morning, but it's usually because something happens or I'm not focused or I lose my internet or whatever, but it doesn't benefit you to do multiple trades. One is all that you need and then you plop it on with the size. As far as number of gaps, I usually rate between three and five every morning, okay? And non-earnings usually may get five a week, okay? But usually in earnings season, there could be five good ones. You could do them all if you want. I usually just like to do one, okay? And again, I'm looking for 20 points or more. So it's a checklist. I never skim it. I do it every day. I've been doing it for eight years. Ever since I started this whole thing, I didn't wake up in the morning, roll out of bed and start trading and make these points. It was a process of three years that evolved and I had 17 points for a very long time and then one year I just kind of, all these things came together and I ended up having 26. But I never skip it, okay? If I don't see something with 100% conviction before the open, I'm not taking the trade, I don't do it. I will just not trade that day, okay? Because trading, you know, you don't want to lose, all right? And if your goal is to make a thousand bucks a day, it's only five grand a week and I can make five grand in one trade or two trades but I can't lose, okay? You can't have a lot of losers if you want to be successful doing this and specifically if you want to use it to pay your bills. So getting back to what I was saying about how do you do it? You have to have a structure, okay? The strategy is a structure. The checklist keeps you in place. It's like a plan of action. Like if you were gonna go on an exercise regimen and you say you hire and you go and you hire a trainer, they make you do this many leg lifts and this many butt things and this many arm things. They make you do all the things you have to do and you go through the six weeks of the regimen and your body looks different, okay? You have to have a plan of action. Everyone needs that no matter what you're doing and when it comes to money it's very, very important because you don't want to get all emotional and be all worked up in your head and then make decisions on the fly. I do use my emotions when I'm trading to get very excited to help ramp me up in the morning to take it, to take it at 9.31 and to take the risk when I take the trade but then when it's in and it's up and I'm up in it and I'm out and it's done and I use stops to protect myself like I said but the structure is the worksheet that I do every day and that helps me to keep my emotions in check so that I don't end up doing 10 different symbols on a day which some day traders do and it's a nightmare and I also don't trade till four o'clock like I said. So getting back to the structure, the points themselves this is what I teach in the class, this is the bulk of the material I teach in the class this is the benefit of coming to me because it is a proprietary system that no one else has because I made it up myself and even the name of my company called the Stock Swish is actually a play that I do in the market it's something that happens and I call it this swoosh and it's actually something that I teach in the class and that I do and that's proprietary to me as well. So you never learn this from anyone else because I made it up and I do it and now I teach it to people but the reason the point system works is because it is a very detailed analysis price action on the daily chart and it works because everything that I'm looking for each point gives me conviction in the gap itself for example of stocks gapping down every point is giving me conviction that the stock's gonna sell off and I'm getting points for weakness and points for strength. The daily chart is the most powerful and real indication as to the trend in the stock for any trader of any kind so the price reading the daily chart tells you everything you need to know everything about who's controlling the stock and in what direction because it's not that simple as just saying well every stock that gaps down is a shorter every stock that gets up is a long no. Sometimes stocks gap down and they rally and they get bought and then people say oh it filled the gap, well why didn't it work? Well it probably didn't rate well that's why you gotta rate it. If it was that easy we'd shorten everything and gap down and we'd buy everything and gap down at price firstly you can't do it like that and that's why I said there's thousands of things that gap every day how can I narrow it down to pick one or even two or even three because of the points okay because you cannot trade every gap in the direction of the gap it is just not that simple it's just that the same reason when you can't buy everything that sits in a 20 period moving average in a daily chart and I do have moving averages on my charts I'll go over those there here and the next time I bring a chart up but they're just guidelines that you look at it doesn't tell you exactly what to do you've gotta get the direction right in your trade if you're gonna make money but the beautiful thing about what I do is I'm getting in so quickly that I'm getting that money move when that flush happens that flush could be down in the process of a short it could be up when the stock's getting bought in the gap up if I go long something but that's really what is makes gap so profitable excuse me does anyone have any questions? Any questions so far? Just let me know. Anyways getting back to what I was saying the structure and the foundation of the gap itself is an event it is a sense of urgency now just listen to me this is common sense common sense tells you there's a sense of urgency now let's just say someone said Netflix was at 140 it's not right now the person said or maybe it is back there you can write in the room telling where it's at right now but let's say it was at 140 it wasn't at 140 into the close okay? So let's say Netflix was gapping down six points tonight that's an event that's a sense of urgency it was there at one point tonight who knows where it'll be right now in the next hour it's moving it's trading we're in the post market tomorrow morning it could be at a different place too okay these things are live they're moving they're changing they make big moves this is the volume this is the institutions doing whatever they're doing that's why I don't trade until after 9.30 on the open but let's just say it was at 140 right now let's say it lost six dollars in the gap that's an event okay? it's creating a sense of urgency that's something happening so everybody that's in Netflix whether you're long or short it is watching it you've got the event which is the earnings and the gap and it's being created okay? so you say to yourself well how can I make money doing there? so it's gotta be a way you only can make really good profitable money in a fast period of time if you've got volume and movement okay? you need momentum and that comes with a volume and people buying the stock or selling it or shorting it okay? so I typically look to trade stocks that move all right? but different ticker symbols every day now getting back to here this was the T-S-C-O this was from last week again, here was the entry I shorted it right here boom and then I put a hard stop now what does that mean? it means the stock had gone over the number I put the stop in I would have lost it didn't but it's a protection it's like the insurance so that if that ever does happen and sometimes I do take losses in trades I only lose a fixed amount so that also helps contain your losses anyways, I shorted it here boom, got the drop and this went on to work and go down to a big number like I said around 64.50-ish or thereabouts and I only did the morning trade so I did a quick trade in this entry was 9.31 price of the entry 66.90 had 2,000 shares and it made 1,300 bucks so if your goal is to make 1,000 bucks a day and you're up you can get out this did go on and like I said went 2.5 dollars underneath this price would have had to hold it into the afternoon but the reality is I could have made a couple grand on this I like to trade in the morning I like to trade the fast moves so this trade was in four minutes however it did go to 65 dollars alright it went 2 dollars more that is just amazing okay but this is what I like to do and if you come and you trade with me you'll learn how to do it if you decide you want to take secondary setups when they set up again which sometimes he's doing this did that's up to you but I always advise people if you get in a trade and you do a second trade and you do a later trade in the morning or in the afternoon and you made your morning money from the first move with me okay like this trade was only risk a set a smaller amount of your gains so that even if the second trade wouldn't work you would not give back the whole gains for the day so for example if you did we want to reshort this and you risk 300 bucks even if the trade would have failed for the second setup which it didn't it worked you would have still made a thousand bucks and only given back 300 so that's what I tell people for money management plans to do it because really when your goal is in for the day you should stop if it starts to back up you should stop or lower the stop at least to protect yourself now here was Pierre this did have a couple setups in it okay Pierre's first quick trade in here happened same time 931 boom you could have shorted this here put the stop drop again time of the day 930 and 10 930 and 10 alright so this had a very fast move as well time in this trade if you had done the setup for minutes you could have made more money with this and this is only a $500 risk actually because it was only 10 cents so this trade actually you could have made more money with less risk because of the quantity and the stop the difference between the entry and the stop and also was a cheaper stop okay this is much cheaper than the previous one in the TSCO we'll talk about this a little bit more people always say well how much money do I need with size of an account how much do I risk here's two examples okay this risk was around 500 bucks if you had done this trade with 5000 shares it would have risked around $500 and the trade in TSCO you would have risked more than 1000 so you have to determine how much can you afford to open up an account with but it's based on what you're looking at for the buying power leverage which you get from a broker I always tell people you should have approximately $100,000 in buying power if you want to take an advanced risk of between $500 and 1000 bucks a day you don't need that to trade my system but if your goal is to make 20 grand a month that's what you're gonna have to have in order to take these position sizes the stock prices vary they could be six bucks like this they could be 66 bucks like the TSCO and you have to have a whole gamut because we're trading in different stocks in every day you don't have to have that type of account size so to trade my system you can open up a day trade in Canada proprietary day trading place with $2,500 you're just not gonna be risking 500 bucks or $1,000 a trade but even if you could make $100 a day with a $2,500 account that's still a 20% gain every week on your money because if you have $2,500 in the account and you make $500 a week that's a 20% gain on your money every day, every week that's still huge and you're not gonna get that in any certificate of deposit or bank so you see going back to what I was talking about earlier what's the point? The point is you can make money doing this and whatever amount of money your goals are if you don't have enough to risk $1,000 in a trade to make a couple thousand each week then risk what you can whatever money you make is gonna help get you to your goal faster, okay? But ultimately, trading with size is the goal for a lot of people that I meet up with they really are trying to get focused on what to do they don't wanna take 5,000 shares in trade for trades, okay? And I wouldn't suggest that either they wanna be doing one trade and taking the risk on the day in one or maybe two so the only difference between a beginner trader intermediate trader and an advanced trader is really size, okay? A trader cannot risk more money per trade and take size until they know how to accurately trade over a period of months unless you already have some basic understanding of trading or you've practiced before you met up with me or you have enough money to risk and you feel comfortable with it emotionally and financially but trading with size is the goal so when playing with size can make your whole week that's what I'm saying I mean, that's why I don't push it, okay? I just don't push it if I get up in the morning and there isn't anything to do in a Monday then I don't sweat it I don't sweat a bullet, okay? Cause I know I can make my goal for the week in one trade and two or three great plays a month can make your whole month and this doesn't even include any option straights and months when you get lots of huge plays to dream targets, which does happen I mean, there are days where I something just bombs and explodes into the open and it goes to the dream target and I'm still in it and it doesn't even back up that happens, okay? And you're incredibly happy when it happens and it's great and then you realize why you did this because you're the time, the amount of effort and energy and time that you're putting in to training every day for what the money that you can make just can't be beat it can't be beat even people that I think that make a lot of money like I said, doctors and attorneys is the first thing that comes to mind they are working extremely hard for the money that they're making even if they charge a thousand bucks an hour and if you go to an attorney they're working very hard, you know they work hard you're not working that hard for four minutes, okay? The work is doing the class paying for the class up front before you use the system getting up in the morning and rating the gap each day doing the worksheets should only take you about 30 minutes but that's still the pre-work and then staying focused to do what you're supposed to do and not get off track but I run a live trading room and I think the benefit of being in the trading room with me after the class is that I do keep people on track I do keep people targeted I call the exact entries and stops through the trades I mean, TSO I'm like boom, boom in fact, I think I have the room tape for that day up on the YouTube if anybody wants to go there now, getting back to what I was saying how much do you need to risk to make $20,000 a month? $500 to $1,000 risk per trade that's an advanced risk if this is your goal, okay? You wanna make $1,000 a day that's where you wanna be what is your weekly goal? If your weekly goal if your monthly goal is 20 grand then your weekly goal should be about five, okay? You could do it in two trades you could do it in one trade you could chunk it out in a couple trades a week your ideas to minimize losses focus each day on one good gap and do one trade and put the stop maybe two how much buying power do you need to trade to make $20,000 a month? As I was saying, at least $100,000 in buying power now what does that mean for cash? It means depending on what type of brokerage account you have at a retail firm it'll be $25,000 in account size at a prop firm it's $10,000 in account size because you will get 10 to one leverage at a retail firm you will get four to one, okay? So that gives you some kind of an idea one of the benefits of coming to me and only doing one system is that you are training your brain to be very, very focused and to do the trades quickly and see it there are six different entries that I do and that I teach in the class that's it so you don't know which one you're gonna get when the stock opens at 9.30 you have no idea and I'm never gonna end the trade at 9.30 the students that would never be in is 9.31 but I'm only looking to get in between 9.30 and 10 so it's you're training your brain when you do my course when you're in the room with me when you're training, trading, trading Monday, Tuesday, Wednesday, Thursday, Friday you're training your brain to just see it and do it see it and do it, see it and do it you're not overthinking it you learn it and then you just do it there's no overthinking it so many traders like they analyze and they think and they weigh it back and forth and what should they do and they can't make up their mind and then they can't decide and then they take too many trades and they go long and they go short and they go long the same stock again and they wait for an hour and a half I mean, no, no, no, no, no, no, no okay first of all you can't have any conviction in two directional biases for the same stock on the same day that's totally, you know, bust okay either you have conviction something's gonna sell off or you have conviction it's going to rally that's it I don't know what Netflix is doing like I said but it's either gonna do one of two things tomorrow it's either gonna rally or it's gonna fall you can't have conviction it's gonna do both, it's impossible that means you have no conviction then so you have to train your brain to learn how to do it so that when you see it you just take it and then it alleviates the anxiety then about the risk and then you put the stop and to protect yourself like I said, like the insurance and also if you know you're only doing a certain number of trades per day or per week and you also know that you're gonna stop by 10, 15, 10, 30 or 11 o'clock the latest that helps set the structure for you that it's not anxiety on your brain about the fear of losing too many trades losing your gains from the previous day or blowing up your account or anything there's programmers in place that I have when I trade, call them risk management controls but they're risk management controls that I have placed on myself which is using stops and also using the time of the day to stop myself trading and also the checklist which I use in the morning to determine what to do or determine what not to do because if I know that there isn't anything that meets my criteria before 9.30 then I'm not trading so that's how I help to train my brain as well. Any questions so far from anyone? How's everyone doing? So I mean, it's just really, really important I think to, if you want a day trade, all right to look at it for what it is you're not becoming Warren Buffett when you're doing this you're not an investor you only want to get in and out quick you could trade from 9.30 to 4.00 all day if you want to but that's not the point of day trading and the point of day trading is not to take all these trades all day long I know trading rooms are open all day long but I'm not and the reason is it just doesn't make any sense to trade all day that's not the way to do it financial freedom doesn't mean having multiple, multiple, multiple strategies it means getting really, really, really good at something that you're doing and to pull money out of the market in the time period that it gives the big fast moves which is into the open for the reasons I specified in stocks that are gapping and also then to not have to work so hard okay so for many, many people people think financial freedom is tons and tons of money that's having extra money or are making a good amount of money or making 200 grand a year all of that's part of it but a lot of the financial freedom has to do with lack of stress, low stress you're not working that hard to make this money when I did my mortgage job which I did for a very long time I can't tell you how hard I worked for the money I made in some of those loans it was like pulling teeth to get documents from clients or working with the underwriters or the banks it was a nightmare I had no free time I was working seven days a week financial freedom also means not working so darn hard all the time it means you could do other things with your life whether that is that whether it's doing a business whether that's doing another career whether it's spending time with your family whether it's doing a hobby it's the idea where you're not under the gun of constant, constant, constant stress that you can pay your bills you can pay your bills with ease and you're not doing nothing but working all the time so the really attractive thing like I said about what I do about the golden gap trading is it's not just the money with size even if you can't take this risk and take the size right now because you're new and you don't have an account to do it say you only have 2,500 like I said it's the idea that you're not working that hard for the money you make and that's the really nice thing about it there was a man that was here back in March that was doing some private mentorship with me that was here in New York he has a full time job he works a lot of hours he works for the IRS and I didn't ask him exactly what his salary was for his job but I know when he was here the days that he made a couple hundred bucks he was happy as a clam I mean because he was only in trades for like two, three, four, five minutes and made more money than he made working all day so it's freedom means not having to be strapped to a desk and not having to report to a boss so you don't have to work that hard as a day trader if you use my system if I had to work till four o'clock actually to be honest with you I'm just thinking about this I wouldn't do it I wouldn't do it to have to work from nine, three to four is to work hard and the traders that are out there that are doing multiple different things and many, many trades and trade all day from nine, three to four they're working very, very, very hard to probably make the same amount of money that I make on some of these days in four minutes to make $1,300 or $2,000 or you know, whatever they're working six and a half hours in multiple trades scalping to just try to find anything that's moving to make a couple thousand bucks a week I don't work that hard I only say the market either gives it to me or doesn't if it doesn't, I'm not trading if it gives it to me, I do it you just, you let it give it to you I don't know if I'm gonna do Netflix if it doesn't give it to me, I'm not doing it if the gap doesn't rate good, I'm not touching that and it might be a bust because if it's at 146 it sounds like it might be a bust I'll look at that when we're done Any questions so far? Anyways, my class is called the Golden Gap course if you wanna learn what I do it teaches a strategy in how to trade gaps the course teaches 26 points as I was saying and that's the meat and potatoes of what I do it also teaches you how to play the stock on the day which is the six different entries and it teaches you advanced technical analysis on a daily chart and on a one-minute chart which is very, very rare because most people don't know how to trade in that timeframe and they wait till after 10 but not with me I'm a good fast trader I can read the one-minute chart very quickly and if you're in the trading room with me you're gonna get the calls in live time to do it with me when I say 10 by 40 that means you short the stock at the first number and you put the stop at the second number and you just do it, okay and I really do think people need to use stops so as I was saying the checklist is an invaluable part of what I do and I never, ever skip it it tells you what to do every day it's your own money management plan and then you choose yourself how much money you wanna risk but if you wanna make a thousand bucks a day you're gonna have to risk between $500 and $1,000 but this checklist it saves you time in the end because you're not scanning into the open for an hour you're not going back and forth you're not wishy-washy about what you're doing you're not gonna have to trade all day the market either gives it to you in the pre-market or the post-market and if it gaps or something gaps and it rates good or not and therefore it's less stress and I'm telling you when you have less stress in your life you're gonna be happier when you have less stress in your life you're actually gonna make more money because you're gonna be happier you're gonna be thinking clearer and you're gonna have better results so this idea of trading from 9-3-4 is stress, stress, stress doing multiple trades stress you're better off taking one good quality trade and risking $1,000 or even $2,000 than trading all day long and 25 trades risking $2,000 you're not gonna have better odds with that you're not gonna have better results with that at all you want to fund stocks that have the volume of momentum and you can pinpoint and predict the directional move and that's what the points tell me, okay and that's why having a checklist is just invaluable and I just don't do it without that so it's one pick, one day and that's the reason to come and learn with me and the other reason my system works is because I'm looking for this momentum in the big money I'm looking for that flush that's coming in right into the open it's an explosive move, okay it's an enormous explosive move with volume of momentum that I'm looking to have an end of the open and I actually want to get in before that explosion happens like in the TSEO I mean like I was in there at 931 I'm getting in before the explosion in that case it was a sell-off and then like I've been talking about it the whole time it's the fast money I mean you get the fast moves, the fast money you don't have to work that hard to do it and it just makes sense it's just it just makes sense to me so you've gotta figure out what you're gonna do if you're gonna day trade but I'm telling you that what I do if this speaks to you if it made any sense at all to be looking for these type of move within that first period I can teach you how to do it like I said I've been doing it for eight years and you would come, you would learn from me you would take my class I don't think that you have to have an experienced trading to come to me I've taught brand new people I do allow free retakes for my class but I just wouldn't waste time trading, trading, trading trying to learn a little bit of this a little bit of that and becoming a jack of all trades in the market I don't think it makes sense I think getting good at one thing is how you really beat the odds in this because the odds are that there are a lot of people out there that lose money in the market so if you don't wanna be part of that big massive group of people then you gotta beat the odds and the way that I beat the odds is I have a very strict program if I don't get the criteria in my rating system I don't trade I'm only trading between 9.30 and 10 I shut the room down I'm only looking for one take a day I do prefer to short so I really err to the short side more than the long side and I become very, very good at trading on a one minute chart so I put the odds in my favor to beat the odds kind of thing and so I have, okay doing things like the way that everybody else was doing is just, you're just looking for results like everyone else and a lot of people are losing but I will tell you that I just really have so much conviction in gaps I've been doing this now for so long I just don't see any other way to make money as one individual unless you've got a million bucks behind you and a huge massive account and you know, just 35 years experience and you know how to read all these earnings reports I mean, as one person you know, with whatever you have available to you, whatever money I mean, even if you have a good amount of money to trade with 50 grand, 100 grand you've got to have conviction in what you're doing and for me, it just the events that happen in gaps it makes complete and perfect sense to me and that is how I'm able to predict it when the stock rates 20 points or more it's the only way I think one individual can make money doing this at all whether it's a thousand bucks a day or whatever John is saying you're buying the actual equities not the options and the equities I do occasionally do options trades but as far as Money Tuesday, Wednesday, Thursday, Friday I'm day trading, yes I'm doing the actual equity and I prefer it to short, not buy but I do sometimes go long, yes but I prefer it to short but sometimes I am doing option trades, yes but not every day so I'm not doing options every day it's only when I see one I was hoping to see something in Netflix but I don't know if I will as an option, not a day trade I tend to, if I do an option trade I tend to do it on the expense of things but actively day trading I actively am equity trading not actively doing options but if you don't have the time or the size account to do active equity day trades you could actively trade options although there will be some days it won't make sense in some of the stock picks let's just put it that way some of them make more sense than others to do the options some of them have more volatility more volume John is selling, saying here yeah, sell, okay so $20 stock 2000 shares is $40,000 in equity, yes here's how you figure it out this is for, I'm gonna just type it in the room for everybody say the stock price is $20 per share if you wanted to take 2000 shares short, okay you would take, and this goes for any example $20 per share times 2000 share size or quantity equals what? Simple math, you would need $40,000 in buying power so you don't need $40,000 in cash you need $40,000 in buying power when you day trade, you have day trading buying power which means you gotta be flat by four o'clock which obviously I'm in I told you I'm in it now quickly you're not, I'm not carrying these positions overnight, okay so if you open up an account say at a proprietary day trading place you would need four grand to cover that position it would be $4,000 times 10 you would have $40,000 in buying power you could cover the position to get in to get out so brokers give you leverage or buying power to take the positions but you must be flat by four o'clock which is what I do anyways, okay again this is not investing oh here was Netflix here here was Netflix tonight I guess this was earlier I clipped this so it was trading up at 1.47 like I said if it's at 1.46 it's not doing anything at all it's actually gapping down just a little little bit let me just see here if John is answering the question if you're 80% sure about a gap down do you also sell the call since it dropped if you don't think the stock has likely to rise no I just do one thing I'm either if I decide to do the option and I'm doing the option if I decide to day trade it then I'm day trading it could you do two things, yes you could you can do whatever you want I usually do one thing whether either I do the option or I do the day trade but that's up to you I think there's people in the room that are doing that to be honest with you I'm not but I think there's people in the room that are anyways if you wanna come to me you can learn I'm teaching people how to trade people are making money with me it's amazing it's great again I'm very unique and very unusual not only have I bet the odds as far as most people to trade myself but I've also beat the odds as far as actually being able to turn people into profitable traders which most companies out there that are educational companies and A, don't care people that they teach are profitable or not which I do care a lot about my students and I talk to them but B, people are actually making money and I think if I ever decide to go off on my own and never trade again or run the room people would be, people would miss me a lot my students would be very, very sad I make it very easy for people in the room to make money giving the calls so but you learn everything in the class that you need to learn in order to do it yourself I don't hold anything back I will teach you how to make money in the market I will teach you how to get conviction I will teach you the correct way to trade gaps so if you wanna do it you can empower yourself today this is an individual job you've got to do it yourself having a mentor like me counts but it's really up to you you have to be committed you have to say I really wanna do this I know that I can do it and whatever amount of money you have to risk you start to do it now and then you set a goal for yourself you said well I have this much money now I can risk $300 a day but I can't risk $500 yet but I know by June 1st I'm gonna be able to and you build your account up so the class is a full two-day course in how to strategically find pick-and-play stocks with a professional bearish gaps retakes are free the class is online it's this weekend April 22nd and 23rd from 9 to 5 the cost of the class is $49.99 the class is online it can be anywhere in the world and take it and I'm offering the wealth manifestation class for free with this class which is next Tuesday 12 to 3 on April 25th this class is normally $3.99 it's about trading psychology it's a great class it's very popular and if you do the class this weekend you get that for free so it's a nice bonus John has a quick question here keep the same example of $20 a share and you short it would you sell the call at $22 a share what is your bottom limit on volume to filter out stocks with institutional money in play 100,000 shares a day and 1 million shares a day okay that's a bunch of questions there I am not trading stocks that have any less than about $300,000 average volume at any given day I'm just not doing it so that answers that they don't have to have a million every day but if it's 300,000 or less I can't get interested okay now typically when a stock gaps it will have at least the average volume that it has in a day if not more on that day so that's one positive thing but I just can't predict that it's going to have 1 million shares if at any normal day it only has 50, 60,000 so I do have set criteria for that I just told you what they are that doesn't have anything to do with the points that's just personal preference washing stocks and how they trade and how they move if I put a stop in first of all you want to be a blip I mean if I'm taking 5,000 shares or something I don't and say it only has 50,000 shares at any average given day that means that I'm 10% of the position in the stock no that means I could actually move the stock when I get in the position or exit it I don't want to do that and neither do you so you know I have to have enough volume in there that I can take a good position myself like the ones I'm talking about and not move the stock I mean just say here do I shoot for 3% or 5% move on some other percent move on your target stock no I don't have anything like that if it was that easy you could just program my my points and my targets into a black box no I can't say if it's down this much percentage the target's this much percentage or if it's going to move this much percent no it really is based on the points and then I really do I teach how to figure out the targets in the class I really do look at targets based on the chart not percentages because you don't know where it's going to open anyway so it's not based on a percentage of the move but if the stock actually for example peer if peer normally moves 50 cents in a day then I'm probably going to look for peer to move 50 cents of the day I'm not going to look for peer to move $3 in the day if it normally moves 50 cents in the day but it's not based on a percentage whether again whether you do an option in a way to take the straight equity trade is up to you it's it's too much for me to do an option and a day trade at the same time into the open into that first five minutes and run the room it's just too much you can do it if you want to you could you could quick get the option order out do the day trade when I call it you can you could you could like I said I think there's people in the room that are doing that in fact the one guy roomy I think he does do that he does do options and he does the day trades he does so you know but I don't you have to be able to do both pretty much put the order out at the same time watch to get it filled in the option and then then do the day trade does my system give a clear entry and exit price yes in the moment when we're doing it yes do I know where exactly I'm going to enter before 930 no I have an idea I know if it's going to move in the right direction I know the gap rating I know the number of points it rates but I don't know exactly if I'm going to short it at 6690 until it sets up you don't know until it actually sets up which is after the open exactly where you're getting in it's live but then when you see the setup then you know where to take the entry anywhere know to put the stop if that makes sense if it doesn't email me and I'll explain more and I'll look at I'll look at Netflix and do a video on YouTube for everybody I appreciate when I'm coming thanks so much email me if you are interested and and John email me any other questions you have because I think how comes gonna kick me out all right have a good night everyone sorry we went over you're welcome email me I'm Melissa the stockswish.com for more questions you're welcome