 This is Melissa Armo of the Stock Swoosh and I just wanted to talk today a little bit about trading with risk and how to get the results that many, many, many of you want. So I do these webinars and sometimes I talk about advanced trader risk and I talk about making $1,000 a day or $1,500 a day and I get all kinds of questions and people get excited and they're excited about the money and they want to make 20 grand a month and they want to make 30 grand a month and there's an average of about 20 trading days a month in between holidays. So one thing that people struggle with that they really, really, really have difficulty with though is what? Not making $1,000 in a trade. That's something that if you take my calls in a room, you can have many, many, many, many days where you'll make $1,000 or more in a trade, okay? That's not what people struggle with. So what is it people struggle with? People struggle with when a trade does not work and inevitably some trades, even trades that I call, do not work. Now if trades, then bad trades, I call them more winning trades than losing trades. The fact is that when someone takes risk, which would have to be, let's use an example of $1,500. If someone takes a risk of $1,500 in a trade and that trade fails, can that person stomach the loss of the $1,500 or will they go into conniptions and convulsions and try to fight back for the day to get back, to not having a loss at all and then as a result end up losing more over two grand, over three grand, whatever it is. So so many people say, oh yes, I can do this, whatever, but they can't handle when it does not work and inevitably some trades do not work, okay? How do you make money in the market? How do you get results? It's consistency, consistency, which is what I do with the rating system and the entries and the strategy that I follow. It's a consistency. So I'm looking for the same thing every day in different stocks. I'm consistent. I also use stops. Does it mean that every trade works? No. But it means roughly about seven and a half out of every 10 trades works. So you got to figure two, two and a half losers in any given period, whether it's turning season or busy season or slow season. If you can't handle the two trades that fail of 10 or three trades that fail of 10 in that given month, then guess what? You cannot risk an advanced risk of $1,500 a trade or $1,000 a trade. So guess what? Common sense would tell you risk what you can handle so that you can keep going because what people don't understand is that if your mental attitude about money is an on-right, you will make bad choices and you will have losses and you will go fall off a mountain and do crazy nutty stuff. Like take one loss in the morning when something doesn't work instead of stopping. You'll take trade after trade after trade after trade after trade and have a huge loss day. It's impossible to do that with me because I don't call them any trades in the room. We only have the room open usually to 10, 10, 15, 10, 30 in the morning. So you know when you go off and leave the room or trade alone or if you trade alone and you're not in the room with me and you don't show consistency in what you do and you cannot handle an advanced risk, then you can't handle the games when they come either. It goes hand in hand. So let's just say mentally you can't. You can't stomach having a big loss like $1,500 a trade, then you can't risk that. Then risk what you can mentally withstand to not go off the deep end and do something nutty. So what if you risk $300 in a trade and it works? Guess what? You're probably going to make $300. What's wrong with that? So what's wrong with making $1,500 a week? Nothing. Okay? You do not have to risk an advanced amount of money. You do not have to make $1,000 a day. No one said that you did, although that could be your goal. You could say, well, I want to get to this point. I want to be at this point by 2019 or whatever your goal is so that you can support yourself making XYZ amount if you need to make that much, if you need to make 20 grand a month to live, which a lot of people don't quite frankly. But let's say you did. Start what you can handle because everybody can handle making $1,000 when the trades go. But can you handle the losses to get the results to stay consistent because you must stay consistent to have the results. If you can't walk away today when something doesn't work or if you can't walk away after one loss or two losses, if you can't walk away, then you're risking too much in your trades and you need to know it. Or if you're killing the trades arbitrarily too soon, which some people do too, then you're risking too much because you got to be able to take the trade to get a decent move in something. You don't want to risk $1,500 and then make, be up $250 and then have it start to tippy toe against you and then kill it. No, you're trying to make a decent amount, at least one or close to that. And that is what you really should do. So long and short of it is, consider what you are risking because you might be risking too much. And this idea of risk, sure it's great when the trades work, but when they don't, can you handle it without going off the deep end and still follow? Because you are not going to make money in every trade that you take. Period hands down. I don't care how good you are. I'm great and I don't make money in every trade that I take. So again, my wind ratio varies between 75 and 80% depending on the given time of the year. So you've got to figure to use stops and you have to be okay when they don't work. And if you are not, then your risk is too much. Making $200 a day or making $300 a day or making $500 a day consistently will be a lot easier for you. And when you lose, it'll be a lot easier for you. If you can handle that in stomach it rather than taking the big risk. It doesn't mean you're never going to get there. You might get there in a month. You might get there in two months. It might take you a year. I don't know. I don't know your stomach for risk, but I know that if you can't stomach risk, you're going to have a problem. If you get up Monday and make $1,000, get up Tuesday and make $1,500, and get up Wednesday and lose $1,500, if you turn that one loss, which should still be up $1,000 for the week, into something disastrous for yourself because you can't handle it, then you are risking more than you can handle mentally, emotionally. Sometimes it's not just about the money that you can afford to risk. It's about your mindset. People sometimes occasionally lose when you take trades. Everyone does, including me, and you've got to know that. This is your playing the odds. So you use a system that's consistent, which my GoldenGap system is, and you put the odds in your favor, and you follow it, and you don't go off the deep end, and you don't over-trade, and you don't trade all day either. So every once in a while, I might do something in the morning, and I might take a couple hours off, come back in the afternoon, and look at it. That's rare. In an ideal world, I do something in the morning, and I stop one trade a day. If you can't do that, chances are you're risking too much, and if you're killing the trades too early, then you're risking too much too. You've got to be able to hold for a move. There's nothing wrong with making a couple hundred bucks a day. In a half an hour, an hour, it's more than people do sometimes that work for eight to 10 hours a day. Get it into perspective. The only way you're going to have good results, if you're consistent with what you're doing, and take it from me, it's very, very important. And it's why I'm so consistent with what I do that I'm mostly looking for shorts. All right? Not only am I focused on the one thing in the gap, but I'm also mostly focused on one direction, which is shorts, and the time period. Again, consistency, focus. Have a great day, everyone.