 Hello, everyone, and welcome. This is Melissa Armo. And today, I'm going to do a short little lecture here on moving averages. And I was motivated to do this today because I was a presenter at a webinar where they had a lot of speakers yesterday. And one of the people that was speaking prior to me was discussing moving averages and how you can buy in a pullback into moving averages and short into resistance in moving averages, which is really two different topics. But I want to talk briefly today just about buying in a pullback to moving averages. And the person was making it sound so like it was so easy to do that and make money, which is completely false. I mean, I actually was laughing out loud listening because I thought to myself, God, when I remember, when I started out 10 years ago, that when I first was learning about charts and candlesticks and technical analysis and moving averages, which I have here on my charts and I'll show you in a minute, that it all sounded so great. It all sounded like it made perfect sense to do that. And it all sounded amazing until I started to do it and realize that it didn't work even half the time. And I'm just going to briefly show you a few charts here to prove my point. But the fact is that you cannot just buy pullbacks in the moving averages in charts, even if they're in an uptrend. Even if you're buying a stock in an uptrend and expect that kind of trade or move or entry to work to profit. It is not that easy. If it was that easy, literally no one would ever lose money and every pullback into a moving average would hold. And no one would ever lose any money, which is not the case. But listening to the speaker, they made it sound so easy. And I think that is one of the reasons why people get frustrated with the trading educational system, with lots of the fact that there's lots of people out there, because they make it sound so easy, certain things in the way they talk. And it isn't that easy. What I do is analyze a chart. Like, I look at a chart. Like, here's Tesla. And I analyze a chart. And I can analyze any chart. Anything you can put anything that has a chart in it, I could read it and tell you what's, what trend it's in and where it's going. But anyways, we're not going to worry about that today. The point I want to make today is, though, that it is about looking to the chart and analyzing it. It is not just about simply looking at the moving averages, seeing in what direction they're pointing, or what direction the stock is in, which very often people get wrong in the trend. And then going along into a pullback and moving average is just, I mean, the person made it sound like it was so easy. And I just thought, oh my lanta, because 10 years ago I would have listened to a person like that and believed them. And in fact, when I started trading, I believed that it was that easy too. It's not. It's not that trading is hard, but I'm telling you it's not that easy to decide what to do. It's more complex. And that's why you have to learn it. And that's why I devised a method that looks at 26 things on a chart, which is a lot. It's not one or two moving averages. But I just want to do a simple example here just to prove my point. This is Tesla. And here's a chart of Tesla. I mean, here's the whole thing. You can look at it. Stock was up at Brandywaltime. Highs are almost touched it on that news. We had that spike when Elon Musk tweeted. And then ever since then, quite frankly, the stock has collapsed, okay? Doesn't look horrible here, but it's trading down the last few days. Anyways, I want to show you how the stock has not held any of these moving averages for the last few months. Even though the stock was in an uptrend back in here. Ran up, stock's at an uptrend. Ran up in here, came in, did not hold. If you bought this here on the 200 per moving average, it's a red line, or the 50 per moving average was this green line, the stock fell. It didn't go anywhere. Then it finally lifted around a couple of weeks later. Then guess what? It didn't go anywhere. Then it fell. Then it fell in here. Again, if you bought it on the 200 per moving average here, look where you are today. So you can't just buy stocks, even if they're in an uptrend on the moving averages into support and a pullback. It will not work consistently. It's not that it never works. It will work consistently. And I think that's where people get tripped up. Tell us one example. I'm gonna show you another example, the market. Because this is an example where if you had gone long the market into this pullback in here in the moving averages, you would be up. The market has run up ever since the beginning of July. So here's an example on it. And again, the spy is a spy. Spy's daily chart. This isn't an uptrend. If you had bought into this pullback here, we rallied. Into this pullback here, we rallied. Into this pullback here, we rallied. Into this pullback here, we rallied. Market's pulling back even today. If you buy this, it's probably gonna rally too and fall through higher. But that doesn't mean that it works consistently every time. But this is an example of one that did work. And I showed you Tesla, an example of one that didn't work. So it doesn't work consistently is my point. And I could show you a thousand examples where it worked and a thousand more than it didn't work. So it's too random is my point to rely on for taking risk where you would actually put your money on in the trade or any sizable amount of money on in the trade to take risk. It's just too, it's too unknown. It's not, it's too random. The odds are not in your favor. Put it that way. The fact that it sometimes works like it did here in the market has nothing to do with anything at all. Sometimes everything works. Sometimes something works that doesn't make any sense at all. Just like sometimes something doesn't work that works a lot. There's no 100% either way. But the point I'm trying to make is, well, how do you make money as a trader? Whether you swing trade or do options or day trade, you have to find something that consistently works more than it does not that you can predict so that you can do it. Because looking back after the fact, looking back now, it's easier to say, well, I could have gone on the market here, here, and here. Yeah, but did you? Did you do it? You probably didn't. You know what I'm saying? So you have to find a system that consistently works and yet on top of that, you have to be able to know where to get in before the move happens to get the money before it goes, before it works. You have to be able to predict it. That's something that I do. That's what I do. And it's not, it's nothing. Nothing at all to do with anything at all. With pullbacks and moving averages, it is not how I trade. It's not how I trade. I will never trade like that because it doesn't consistently work and you can't predict it. This very well could have come in here and failed. In fact, here is an example. This came in here in the 20-period moving average and failed and broke down in here. And this could have failed and broke down in here. And this could have failed and broke down in here. I'm telling you, and the markets too would have been in an uptrend, all right? You don't take entries that way. This person yesterday made it sound like that was, if you had listened to this person yesterday, you would have said, oh my God, I can make millions of dollars in the market. It's so easy. I see every pullback and I see every moving average and it all makes sense in the world. It does it. That is not how you can consistently make money or trade and it doesn't work all the time. It doesn't even work half the time. It doesn't work more than half the time but it works less than half the time. I don't even know what the odds are but it hardly works at all and I know because when I started trading 10 years ago, I heard the exact same stuff and it never fails to amaze me how when I listened to other people talk, how they make trading sound like it is just one or two things. Just do this one or two thing people say. Just this one or two thing here and you'll get every trade right or a lot of trades right, wrong. When I look at a chart, I'm focusing on one strategy, strategy is gaps. That's true. My focus is on one strategy but how I come to the conclusion to do the gap, whether it's the spy, whether it's Tesla, whether it's Facebook, whether it's anything and all, how I come to that conclusion to pick that one kick or symbol that day, that end on any given day where I do it. Whenever I call a trade, whenever I do anything, options, day trades, anything at all, how I pick that tick or symbol and how I predict that it's gonna go on work is because I'm looking at 26 things, not just one thing. It is not just about one thing and it's not just about two things and it is not just about indicators at all. You will never get it right or make any money consistently if you do that. The problem is that sometimes people make money going long and they pull back into supporting up trends and because it sometimes works, they think it works a lot. But why doesn't it work sometimes? Because it's not reliable. Because all these moving averages are is the price that is being averaged in the chart by a computer system, which is whatever your platform happens to be that it does it automatically. And that's why you see these lines sometimes are pointing up, sometimes they're pointing down, sometimes they're wiggling and jiggling. You can't rely on them to trade. It's, oh, I can talk about this for an hour, for two, for days, weeks and years. But I'm telling you, traders so badly, more than anything else in the world, wish that they could just focus on one thing and just say every time it comes into the 20 per moving hours, you're gonna buy it and that I can wrap my head around. People say and that I'm gonna do it and I'm gonna make money and I'm gonna get it and it's all gonna be easy from here on out and everything's gonna be great. Wrong, wrong, it's just false and wrong. And I don't know why people insist on having to look at things in such a way. I'm telling you right now, getting your head that learning how to read price is a skill set it takes looking at many, many, many, many, many, many things together. That's how you get the high odds in your favor. You wanna take the time to learn it like I have learned it to do my class, to know it, to get it, to understand it, comprehend it, to learn it because that's the way you're gonna make money. And once you learn it, then the money comes. And then you're in a place of knowing which is a lot different than a place of guessing. A place of knowing is different than guessing, okay? It's knowing, knowing I know that the market is higher. Period end of story, okay? The spy is 2300, I know that, okay? It's a lot different than guessing. Well, I think it's gonna go here. I think it's gonna go here, I think it's gonna go here, I think it's gonna go here, no, okay? So you gotta get into that place of knowing. And until you do, you won't understand what I mean unless this makes total sense, which hopefully it does. Anyways, have a good day, everyone. If you're interested in the Golden Gat course, email me at Melissa at thestockswish.com. Have a great day.