 Hello everyone! Can everybody hear me? Just give me a hi. Welcome! It is 3.02 Eastern Time here in New York City. And what a great day to talk here because this market is wild! I mean, if you are in Trace today, I don't know if you went long, if you shorted. Today was a wild, wild market day. And so what I'm going to do here today is talk to you. I'm going to kind of be a little bit more relaxed because we have some extra time today. Go to the presentation. Take your time. Answer any questions as we go along. Flip back and forth if I need to with the charts. And then talk at the end when I'm done with the presentation about the market today and where I think we're going next. So for those of you that came, don't know me. My name is Melissa Arwell. I am the Stock Push. And I started trading in 2008, which seems like a million years ago actually. Now that it's 2022. But I didn't make money when I started trading. I don't think anybody wakes up one day and starts to trade and makes money. I mean, while there's a possibility that somebody could have done that in their lifetime in this line, the fact is most people, when they begin to trade, lose money. They don't know what to do. So today we're going to talk about really what is important is how you can make money trading. Because even though trading is fun, it's fun to press the buttons. It's fun to recharge. It's fun to participate in chat rooms and make friends with our traders. At the end of the day, the only thing that matters, the only thing that counts is that you are winning. So you have to have more winning trades than losing trades. The difference between the market we're in right now is that the market is really connected to overseas events. And some of you actually may be overseas, but trading being a stock market. But every single market right now is really trying to do what's happening. Obviously with the rushy crane, I don't know if you want to say war or if you want to say conflict. But it's going on. It's going to continue. I do not think that this ends today or tomorrow or even next week. So as a trader, as an individual trader, you have to find a way that you can make money in any conditions in any market. But I find that in these types of markets, you can capitalize on the momentum and the volatility if you know how to trade it. If you know how to trade it, then you can really make a lot of money during these periods. Which again, we have not seen for quite some time. And I think it's going to end because the Fed is going to increase interest rates this month. They're talking about a quarter percent. If they decide to increase it a half percent, that will create more volatility. So there's all kinds of interesting things going on right now. So let's get into it. So if you would like to contact me after this presentation, if you would like to try out the live trading room for the rest of this week, you can email me at Melissa at thestockswish.com. You can call me at 929-3200-GAAP if you have questions or follow me on Twitter, Facebook, YouTube or Skype. I do appear on TV in between trading and teaching. It's one of these things we're right now. I'm not back in the studio yet. I'm still doing it from my home, which is actually very convenient for me because I can jump on to Skype and I can talk on television about the markets. And again, it's been a volatile time. People are worried. What people are seriously concerned was that the hairdresser was at the salon last week and my hairdresser said, oh my God, I'm worried about my 401K. And I said, listen, if you're not going to retire the next two years, I wouldn't worry about it, but people are starting to get scared. And you can see that with the selling that we've had just really in the last several days. And I'm going to put in here at the beginning, even though I have this at the end, if you decide you want to come and learn and sign up for my services, the next class is March 26 and 27. You can email me if you want to sign up for this class. You cannot do it through the website. Again, I'm going to talk to you about what I do today, but I'm putting this beginning in case we don't get to this at the end. And I am doing a webinar special for David and all of his people. If you sign up at the end of this week by Friday for the class at the end of March, you will receive the trading room free to the end of the year. And again, you can come into a trial this week and email me if you want Wednesday, Thursday, Friday and be in the room. Now, if you want to do options, I do options too. I have two subscription choices for people. One is six months, one is 12 months. Again, if you want to sign up for that, the second you sign up, you start getting the trades. I will say that we have had a huge success in doing options this year. This market particularly, particularly because of the volatility has made for some great options trading. Because again, when you're doing options, when you get momentum and volatility, if it's going in your direction, you can make a lot of money and we've been lucky to get that. But it's all about the picks and it's about the direction, it's about getting the timing right and options. We'll talk about that more in a bit. So anyways, why are you here today? You know, on a three o'clock, on a Tuesday afternoon, either you're completely bored and have nothing else to do, are you absolutely have a purpose for being here? And one of those purposes may be that you really actually generally want to trade. You really want to make money in the market, you're not making money in the market, you really want to figure out how to do it, you need a new trading strategy, you are not doing one that works and again, this market may make it difficult for you. Because if you don't know what you're doing, you could be losing. So losing is a problem. And I said to people, if you're losing, if you're bleeding money, you need to stop, take a step back. There's nothing wrong with taking a break from trading and again, it doesn't mean there's anything wrong with you. So many times people blame themselves when they lose. While you may have made a mistake, that's true. Sizing yourself, exit something like that. The reality is that it may just be that the strategy that you're using doesn't work. Maybe it never worked or maybe it's not working right now. Do you understand what I'm saying in these conditions? So the best thing you can do instead of going heavier, heavier, heavier in or doubling down, which I know people love to do, traders love to double down. You can't do that when things aren't working. So be smart enough seriously to take a step back and say, wait a minute, let me reevaluate. It doesn't mean you have to quit trading forever. It just means that you're taking a little bit of a break. You might be here also because you're nailing you never traded before and you don't know where to start. I have that with some people too. I have some people that have started trading with me this year that I've never traded in their life. And they started out in a demo and that's okay too. Trade in a demo till you get used to it till you figure out what you're doing pressing the buttons so you don't press any fat fingers. Then once you know what to do, then you can trade with live money. And again, getting back to what I was saying at the end of this lecture, we're going to talk about the mark of volatility and today was really just a great day for that. And again, I don't know how we're going to close to be honest with you. I gave a couple different scenarios how we could end up the day when I was running the trading room this morning at 9 30. Right for the open. We're talking about it, but it's 309. We will be here after the close. We'll look at what happens after hours tonight. We can talk about it because I'll be here. But the fact is, I don't know how we end up today. So that'll be interesting too. And we'll talk about that if you want to stay around for the next hour. But anyways, right now people are so concerned about so many things. They're concerned about their 401ks. They're concerned about market volatility. They're concerned about inflation. So people are in this weird situation right now. We're getting out of COVID or at least here in New York. We're generally getting out of COVID, but some states, some places across the world have already been out of COVID, not New York City unfortunately. I hope this is the end of the line for us and we're finally going to get through it. But people are now getting worried about something else, not COVID but inflation or market volatility. I don't know what it is. What people just feel when they're 401k, when they get the statement every quarter and look at it or at the end of the year, if you look at it at the end of the year, once a year, people feel wealthier when their retirement savings is growing. Again, they're making money without doing anything. If you were invested in the market prior to the 2016 election, actually, the market went straight up. I know I'm going back a while here. I'm going back to 2016. We got down on that morning. The day after the election, Trump won. The market just went straight up. We made a million new highs, 2017, 2018, 2019, 2020, then COVID hit. Remember we dropped off March 2020 and COVID. That was still nowhere near. Nowhere near the 2016 lows. So really, if you've been in the market from 2016 election, day after and beyond, your retirement account has exploded because we've had so many new highs in the market. And again, many, many stocks and I could list them all have continued to grow with the market. Now things have changed. Now things have changed. And again, going back to what I was saying for some reason, people, even if even though it's not real tangible money that they could take out right now without paying a tax penalty to do so before the retirement age, people feel wealthier when the retirement is growing. They tend not to be worried about money. They tend not to worry so much about inflation. And now we're in the situation where the market started to sell off. Now we have inflation, increased interest rates, market volatility. It's kind of like the perfect storm here for people to be concerned about things. Everything is going up. Food, gas, housing, you've seen housing go up ever since COVID. And again, looking at New York City, that's so crazy to me because I can't even explain why housing went up here in New York because it's still such a disaster here right now. But in a lot of places, even Pennsylvania where I'm from, I mean, I can't believe the prices that they were getting for houses back since COVID. But things are going up. Do I think it changes anytime soon? No, because the reasons, the underlying reasons for why we're in this environment, there's no reason to expect that it's going to change because nothing is changing, the administration that's making some decisions, the economy, things that are happening. Nothing's really a set decision that's going to change the reasons for what is happening right now today. And this is nothing to do with what's happening overseas, but again, that plays into it too. So right now, you, me, everybody that's out there, people are looking for extra ways to make money, probably more so than any other time. While there was the stimulus package that happened within the last year and a half, that's pretty much going away, okay? So people relied on that. Now that's going away. And again, people had to go back to work if they were out of work. People must go back to work, but people still need more money. And they think, well, I would like a second income. What can I do? What can I do? The nice thing about trading is that you can do it for half an hour a day. If you want to day trade, you can be in and out between 9.30 and 10 a.m. in the morning. You do not have to sit between 9.30 and 4. In fact, I prefer not to do that and I rarely do. Now, yesterday I did a short in the market late that I held into the close, but it's rare that I do that. The market power trending yesterday, again, we will discuss the market in the second hour. But the fact is it's very, very rare for the market to power trend. I would say there's probably about five or six days a year that the market power trends. And when I say power trend, it doesn't mean go up or down. It means either direction. Meaning that a power trend is something that happens and goes all day long, where the market opens at the low in a long and rallies all day, and closes at the highs or vice versa in a short. That up or down is so, so, so, so, so, so, so rare. You're not seeing that today, for example, but you did see that yesterday in the market. Normally, if you want to do options, if that's something that you're looking to do, like I talked about earlier, you do not have to sit at all. You get the trade, you put in the trade, you take the trade into the open, and you can put an immediate sell order. It's a cancel day order. It's a limit order where the trade will sell out if it hits the number that you put to sell it at. And if it doesn't, you're still in the trade. So again, you don't have to watch it. What I find so interesting about 2022 is people are coming to me from all walks of life wanting to trade. Now most of them are looking to do options for whatever reason. They find that easier if they have another job. But I literally have so many different people doing so many different careers that I almost should make a list because, for example, I have a gentleman that's a trucker. I did not know this one. He signed up. He is in his truck delivering packages all day long. I'm not going to say the company works for it, but he's trading. He's trading options. I said, how are you doing that when you're out on the truck? I mean, it's different if you're in an office and you put the order in or something, and you go back and check it. He's on the road. He's on the road all day long and he's doing really well. And so he has this computer in his truck and he's trading. Figure it out is what I say. No matter what your career is, no matter what you're doing, don't think you can't do this. You don't have to put a lot of time to doing it. It's something that you could do right now and then as you get better, you could do it maybe full-time later on. But again, people are looking to do extra things to make extra money. And so again, it goes back to the same thing as I was talking to. How do you make money in the market? How do you do it consistently? That is where many people struggle and that is one of the problems that many people have. Things that they were doing in 2020 or 2021, ways that they were trading are not working now because the market has changed. So learning what to do is very important. I haven't supported any type of market environment but I really think it's important when risking your own money if you want to trade at all. And I know that everybody just wants to quick but they want to go into a Reddit chat and get an idea of how to work, make money, be done. The idea is that you want to be able to learn how to do it. While I am for subscription services where people aren't learning or just getting the trades, I really think that learning is important. I think that she will trade better if you know what to do and I think it will make more money and you can rich more if you know what to do. So I mean, it's totally up to you. The tracker that I just gave example, he has not done any classes yet at all. One day he probably will and he has time but for now he's just taking the trades. I do think it's important though for people to learn. I really think it makes a big difference long term in how much money you make. So this is the chart I clip this from today. Obviously that was since his almost two hours go around 1.30 afternoon. This is QQQ daily chart of the market in 2022. So let's just take a look at, I'm just going to go all the way back to the beginning of this year. Here we go. So again, this is January 3rd. We started up. Show the market and again, take it out to the left. The last time the market made a brand new all-time high and I'm talking about QQQs here. We'll talk about this file a little bit as well. The last time the market made a brand new all-time high was basically, I think it was Thanksgiving week. Yeah, it was 1122. 1122. So November, December, January, February, we're into March. We're going to have months to go basically. That's a long time for this market. If you have been participating in the market, if you look at the chart at all, you've been training actively like we have. I can tell you the last time the market went four and a half months without making a new high. I cannot think, and again, I probably would have to go back to prior to 2016. Seriously. So the market's been on a tear and now all of a sudden it's not. Is the market in the downtrend? No. Everyone's screaming on TV today and yesterday and I wasn't on any channels today or yesterday because it was too busy trading, but everyone's screaming. We're in a bearish market territory. That is not how I see it. So as the stocks push the rules of things that I look at, that is not how I see it. I do not look at things as percentages. I 100% disagree. If I go in anywhere tomorrow, I will say that exact thing. But people are saying that. And obviously when people watch the news and they watch TV and they get scared and they hear that and they don't know anything about the market or trading or charts, they worry then about, like we talked about, their 401k, their investments, and everything else. What you see right now even here today and in the last couple of months since the beginning of the year, how much the market has changed since 2022. But getting back to what I was saying about following your dreams, working for yourself just like the tracker guy, it's possible. You know, if you have things that you want to do, sometimes you've got to do the work. What is the work? Figuring it out to make the time in your life. You know, spending the money to sign up for a service, spending the money to sign up for a class, spending the time to learn in a class, opening up an account, going through all the processes of the paperwork, learning how to press the buttons, trying to figure out in your lifestyle how to make time to do this, even if you have two kids a job and everything else. The reality is the work sometimes is just trying to figure out how you're going to do it, how you're going to make the time in your schedule and in your life. No one said it's easy to just all of a sudden decide to up and do and learn something new. That's the process. That's what it is. But you'll be far better if you do it now than fast forward six months from now, 12 months from now, when at the end of the day, you're like, oh my God, I would have done this. I can't believe the cost of gas now. I should have started doing this on the side or whatever the case may be. Because again, before you know it, it's going to be July 4th. I mean, this year I already feel has just flown, flown by. So if you really want to work for yourself, if this is something that you want to do, sit down, get a plan of action together and figure out how you're going to make it happen. But it is possible to work full-time and trade and make money in the side. Like I said, there's people doing it. You can name lots of people from doing lots of different things that are doing it. So you can. So don't think that you can't. You absolutely, absolutely can. Getting back to what I was saying earlier, let's talk about inflation, what's going on. So the biggest thing I've seen is food prices and gas prices go up. Now what happens when gas prices go up? You could say, okay, I live in New York. I actually don't drive a car. I don't drive at all. In fact, I may never drive a car again and I don't even care. I don't miss driving. Congestion is terrible in New York and obviously you have to pay for parking and everything else. But the fact is that everything you pay for, even if you don't drive, even if you don't own a car, every single solitary thing that you pay for, the price will go up. Why? Because how are you going to get it? How is it going to get to you? How is the products and services and goods and things that you want going to get to you? People drive them to you in trucks just like the trucker guy that I just mentioned. So this affects everything. Everything, everything, everything, everything, everything. So again, people tend to be more conservative when prices of things go up. It's a regular thing that they get. So guess if you drive and if you drive back and forth to work every day, that's something that you can't live without. What else can't you live without? You can't live without food. You have to feed yourself. You have to feed your family. I snipped this from my Amazon cart. I am shocked about some of the cost of things. But again, I live in New York. So this is the most expensive place to buy food, bar none in the country, even more so than California. Even though gas in California is more expensive, I think than gas in New York, but it's pretty close. I went to the, got to the cart the other day. The organic eggs, one dozen, in New York City was almost $8. I said, I called my mother and said, you're not going to believe this. Guess how much eggs are in New York? I mean, I bought them. I bought them. What am I not going to eat eggs? Of course I'm going to eat eggs, but it's just the point. It's the point. If somebody has a family with four kids, I mean, you know, these things start to add up. You can't live without gas. You can't live without food. These are staples and things you need. So what are you going to do? Again, it goes back to the same philosophy, back to what I was saying, become financially independent, make the decisions for yourself. Instead of whining, complaining, or getting depressed about it, or wondering when this is going to ever end, the reality is you'll take the bull by the horns and make some decisions for yourself. How are you going to take advantage of the situation, which is the volatility in the market, and make this be a choice that you make for yourself, that you're going to do something else in your life where you have extra money coming in. And you know the way that it is. The prices of things never go down. I've noticed that in New York already. It's not like, oh, you know, once the price of gas goes down and the price of costing to drive the eggs into New York City is going to go down. No, no, no, no, no. Probably that's going to be what eggs are. Like that's it. Do you know what I'm saying? Like prices never seem to go down once they go up. Gas is different. Gas is different. But for different products and things, I've noticed that even big items, like say you want to go buy a washer and dryer or something, even big things that we buy, once again, are the prices of those things going to go down? Probably not. Probably not. So any questions here as I'm going through? Just look. No, okay. So anyways, let's get into the nuts and bolts, again, of being practical. We talked about why you might want to do this, why it's important to learn to do this, why you would maybe want to make more money trading. It could be a sacrifice that you have to make the time and the cost to learn how to do it so you can be somewhere in a month from now or six months from now with this where it's actually working in your favor, meaning that the money's coming in towards you every week, every month. So I like to look at trading as a bigger picture. I call it chunking it out. $500, $1,000, $200, $1,000, $3,000, like that. I'm looking as a big-term picture, week by week, month by month. Sometimes when you look at big numbers, people say, oh my God, I could never make six figures of your trading. I don't know how to do it. Take it, break it down. If you are willing to just look at it piece by piece by piece, you're going to be a lot better. Even if you take a trade and have a losing trade, I absolutely do have some trades that lose. My win ratio is around 80%. So far this year, though, it has been higher than that because we've had so many good trades. But if you come and take 10 trades and we figure two, we're going to lose. Two, we're going to lose. You have to account for that. But it's not the end of the world. If you take a trade that loses, if you know you have a high win ratio, that the next one's probably going to win because it's about probabilities. It's about probabilities. So it's the idea of chunking it out, having more winners and losers and constantly booking profits along the way. So how can you earn money trading? You have to have a strategy. And this is where I think a lot of people falter. Number one, they trade and they don't have a strategy. They take ideas willy nally from wherever. That's not a good idea. Number two, people trade and do something in the market that they think is a strategy that works. And again, it really isn't a strategy at all or conditions have changed and it maybe used to work and now it doesn't work. And now it just doesn't work at all. So these are two things that I think are extremely important that people get in the situation and they need something. And what is the thing that a lot of people have been doing? Well, they've been buying the dip. If you've been buying the dip this year in 2022, you are losing. Hands down, period, end of story, full stop. Now again, I didn't have time today to watch TV. There's some shows I could have put on. I could put them on tomorrow, watch the same thing. We'll talk about the market, how it closes today when we're done. But the reality is, let's go all the way back. Here's a daily chart. Take it up. Here we are. Now, what happened here? If you were looking to buy the dip this year, first of all, buying the dip is not a strategy. It just isn't. A lot of people on TV would do it too. I mean, I would say it to their face as well if I ever go back in the studio. But it is interesting to me how people that are financial advisors actually, which I am not, but people that are financial advisors tell their people to buy the dip too. It does not work. It's not a strategy. Now it worked in 2020 after COVID drop. And it worked in 2021 too. Why? Because the market kept going and going and going and going and going and going and going. So it worked most of the time for the last 18 months. And now it's not. But over the life of anything that you do, any stock, anything out of the market, it doesn't work. And I'm telling you that from experience trading for 14 years. But the reality is, because people were doing it last year, they made money going stocks that were strong. They made money buying the dip and stocks that were weak. People made money buying anything, anything at all. And it worked. But it really isn't a strategy. It's not a good strategy. And if you want to tell me, oh my God, it is. The fact that you made money doing it last year, if in fact you did this, does not mean it was a good idea. Now if you say, well, I have my retirement account and I don't care. At the end of the day, if I said to you, listen, and I'm not saying this, if the market would go to 300 or 275 in the case, would you rather buy there or would you rather buy at 330? I mean, even if you say to me, well, I'm in it for the long term. No, many people cannot afford the pain. You're not in pain. Again, like I was talking to the salon at the hairdresser lady, you're not in pain if you've been in the market with your 401k since 2016, or anytime after that, because the fact is the market kept going up. So even though you're sold off and even though you don't like to see the market come in and your profits disappear, the fact is you're still up overall. You're up overall if you've been in the market for years and years and years and years and years. Again, we're nowhere near the numbers that we were. In fact, we've doubled. I'll pull it up and we can look at it then the next hour. We've doubled even since then, you know, five, six years ago. But anyways, buying the dip didn't work. Oh, here we go. Didn't work, boom, drop. Didn't work, boom, drop. Didn't work, boom, drop. Didn't work, drop. Didn't work, didn't work, didn't work. Here, this isn't going to work either. So I don't even care how we close today, it's not going to work. So people came in and tried to buy the dip today, it's not going to work. So people are losing. And I can tell as a person that runs a training educational business, I can tell people are losing because I can tell by the communication that the emails that they sent to me that are people that are looking to become clients and become customers, the things that they're saying to me. It's almost like people are in desperation and they don't understand why buying the dip isn't working. It doesn't work, that's why. The fact that it did work in 2021 has nothing to do with anything at all. You got lucky if it worked. Sometimes anything works, quite frankly. I mean, sometimes you can short the strongest stock in the world like Tesla and it would work. That doesn't mean you should ever do that. So I mean, we're in a situation where people kind of have to take a hard look at the trading and say, wait a minute, what the heck am I doing? Should I be doing this? Did this ever work? So you can make money in the market. People do it all the time. However, not everyone does why. They simply do not have a strategy that consistently works in any market. And they will often do something that worked one time even if it didn't work 10 times after that. And they'll continue to chase the one time that it worked and lose 10 times after that because they scrap it down that one time it worked. I think the biggest example of that is GME, the stock. Now I never played that stock, and unfortunately I cannot touch it and we'll never play it again because it's ruined because of the way that it's been traded by the red traders, nothing in the chart is a disaster. It's basically flat right now but because people made a lot of money and I don't think that was a year ago now actually, people insisted that it would work over and over and over and over again. So people have lost money in that since then. It's never done what it did that one period of time. People have lost in it and they don't understand that it's just not going to work. So if someone said, you could do this and you could make 25,000. People think, oh, I can do that same thing and make 25,000 every single time. Not if it doesn't really work. So sometimes you could do anything and have it work as a once-off. Do you follow me? It doesn't mean it works consistently. And that's the thing. That's the thing. That's the thing about trading. Making money is about consistent gains every day, every week, every month, every year, year over year in any market conditions. It's not sometimes, it's as often as you decide to trade. This does not mean every single trade. If every single trade that I did work and I have to size myself, I could risk my whole account in every trade or every day or every week and I don't do that and that would be silly and that would be foolish. Nor do I tell other people to do that. If someone comes and they have $5,000 to risk to trade options, you could trade options with $2,000. You can open up an account. It doesn't mean you should risk $2,000 in one trade and you shouldn't even risk $1,000 in a trade. So at the end of the day, the thing is that you have to look at it and chunk it, chunk it. Chunk it, chunk it, chunk it. Chunk it out. It's consistent gains. Not sometimes. You take an account, if it's small, you can build it up. You have another account and you get to it and you build it up. That's how you do it. It's building it over time. It's just like anything really that you would do if you think about it. Like if you were playing a sport, when you first learned the sport, you probably weren't very good. And you got good because, for example, say you were a golfer and you started golfing and you started playing more and more and more and you took lessons and then you got better and better and better and over time, over the months and over the years, you became this excellent, excellent golfer. It's similar to trading when you're doing the same thing over and over and a lot of people just don't do it. The reality is that you've got to get to the point where you are actually doing something that consistently works so you can build your account, or whether you have a large account. Now, going back to what I was saying here in 2021, this is the QQQs. So remember I just told you 2021 was a very, very, very bullish year. Here's the beginning. And 2020 was bullish too after the drop-off in COVID. Oh, actually here, I do have it in here. So this is the COVID drop. See it? Right in here. Then we had a gap up here. This was April. Now I'm going all the way back. April 2020. This is almost two years ago. Take it to the right. Look here. I said we basically doubled in price like we did. So this was the QQQs in April of 2020. Now go up where we were here. November, we went over 400. So we actually did double from April of 2020 to November of 2021. This was here the last time I made a new hide and the queues. The market double. So that's why really, even though we sold off here, again, like I'm saying this, we're not in a bearish market here whatsoever at all. We're just not. But it is scary for people because from this number, from 400 to lose almost 100 points is scary to people. Okay? It just is. But anyways, getting back to what I was saying earlier about people buying the dip as a strategy. This is January of 2021. This is January. You can see how we just kept going up, up, and then the summer. Look at the summer of last year. Summer of last year was really bullish. And then we lifted here into the fall. This was the next push up. Remember this? And this was actually when the election was. A year after. So, I mean, it really was just one of those times where I don't know. Every time after the election, we do have a bullish move. Let's find November 2020. So, here's November. This was November 2020. We were right around 290. Yep. And then here we were. That was 100 plus points. So, from here to here was 200 points. From November 2020, election was over 100 points. Look at that. So, that's the market. The whole last 18 months since COVID. What do I make money trading? What do I do? I trade gaps. Now, what is a gap? A gap is a difference between the close and the open. The U.S. stock market opens every day at 9.30 and then closes every day at 4 o'clock. So, there are something called after-hours trading, which is post-market trading and pre-market trading, which is in the morning. I do not trade that. But that is when the gap is occurring. So, again, what is a gap? What is the difference between the close and the open? You have bullish gaps. You have bearish gaps. Gaps happen every day in the market. Gaps happen every day in stocks. There are thousands and thousands and thousands of things that gap. So, how do you know what to trade? Well, I determined and created a system that took me about three years to determine what stock is going to have a big move in the gap. And now is how I determine how to trade it. Whether I'm going to go long it or whether I'm going to short it. I'm going to go long stocks and I short stocks. But I will tell you that I prefer to short. We were talking about, you know, how do you become consistent? Part of it is for me, not just focusing on one strategy which for me is the gap, which we're going to talk about here. But it is also about the fact that I do go to the short side first. So, I have found that focusing on selling, shorting really has given me an edge in the market because many traders do not know how to short. Again, we were just talking about buying the dip. Many people are comfortable with that. They're very, they're much, much, much, much, much more comfortable. Retail traders are more comfortable going long than they are going short. I personally do not know why that is. But again, having a business as long as I have, I've noticed that myself. People are just more comfortable going long until they learn how to short and until they learn actually how to short and can see how exciting it can be. I've seen since the beginning of 2022 how profitable shorting can be. Again, today is a wild day. We'll look at how we close after four. But today the market actually gapped down. So again, the market opened today lower than where closed yesterday. Where is the market going to gap tomorrow? I don't know. I never know until I get up in the morning. So, there's pre-market trading, there's post-market trading and that is where the gap occurs. I don't predict the gap. Like, I'm not predicting where we're going to gap tomorrow morning in the market, even though we're going to look at it. I'm predicting where it's going to go if it gaps up or down. And so, I see it in the morning when I get up and then I make a prediction what should we do? Should we short this? Should we go long this? Okay. Again, I'm not predicting where we're going to gap tomorrow morning in the market but should we go long this? Okay. Again, I personally prefer to short. I think that gives me a niche. But it actually just is something that I find is advantageous because panic comes in when a price of a stock goes down. And that is something that can happen liquidity split like that. Very, very, very, very, very, very fast. Whereas when something's going up, if a price is rising in something and actually a oil is going to be an exception we'll look at some oil stocks, it's very rare that something will continue up, up, up, up, up, up very, very fast. So, you'll have almost like climactic moves down but it's rare to see panic buying up. I do think you've kind of seen that in the oil market though in the recent days where it just seems like it's going straight up. And again, this has to do with what's happening overseas but you've seen bullish gaps in oil stocks where the price continues to rise and it's kind of like panic buying where things just keep going and going and going, okay? Any questions here so far? Okay, let's talk about what is a gap? Again, a gap is a difference between the close and the open. This is a chart of Netflix. Now, I'm going to go back here to January. This is before the earnings. We'll talk about that gap in a minute. This stock close to the beginning of the year feels like a long time ago. Price, if you can even believe it, this is where the price of Netflix was to start out 2022. It was well over $550. Then it gap down here, boom. So it closed here right around $550 wherever it was and opened down here right around $540, fell, boom. Then it closed here. This was before the earnings, right around $500 and change, gap down here again where around $390. This had earnings on this night. It was a Thursday night and the stock tanked. So this is a gap down. This is a gap down. They looked different, but they were both good gaps and you could have shorted them and we did. The date of this was February 21st. Which again, that seems like a long time ago. But it wasn't even where the price was at the beginning of the year. So those are bearish gaps. Let's talk about bullish gaps. Here this was back again. Date in here was February 28th. Or no, I'm sorry, it was January 28th. Closed here, gap up. So we closed here again. We're on Netflix. Around 370 and change whatever gap up here. Rallyed, ran up through $400. So this was back the end of January. We had this. That was January 21st. We got down. Then we had this. This was a bullish gap. It gapped up. So again, it gap up is the difference where the close and the open is a higher price. Down here, the close was here and the open was a lower price. Okay. So you have many gaps in Netflix. A million here. Look at them all. Every single one you go through analyze in the morning, go through the process, rate them to turn in. Do you want to go long yet? Do you want to short it? Do you want to do nothing? Okay. Sometimes there's nothing to do. Sometimes it's okay to not trade at all. That's okay too. If there's no good at setups, no good at gas, you do nothing. Let's talk about Facebook. Again, it seems like a long time ago here. Facebook was up here at 320. Closed. Gapped. Down. Open. Open here around 235 changed. Felt. Boom. Felt, felt, felt. Again, when was this? February 3rd. This is more than a month ago. This collapsed out of the sky from earnings as well. Another really big market stock that was a disaster quite frankly on the earnings to start out at the beginning of this year 2022. Because this stock again was up here and lost basically 100 points from the earnings. Now is every gap I do something like this? No. We did this little bit over here. We did this trade. I did this. This wasn't like some monster gap. We did it. Boom. It worked. That didn't query it beforehand. But anyways, I'm showing you here again the power, the power of the gap and where this went since that point, if you wanted to do an option or a swing trade even, this was at 230. Remember this is February 3rd. Boom, boom, boom, boom, boom. This just saw off the cliff. Loan here on, this was the 24th of February. It broke 200. It was at 190. So again, you know, this is momentum and really shows the power of the gap in this case here particularly and also Netflix too. Let's talk about what is a gap. Let's go over the spy. Again, the spy looks a little different than the QQQs. Why? We started out the year and it gap up in the spy. I'm going to take it all the way over. Remember I told you the last time the QQQs made a brand new all-time high was November of 2021. Not the case with the spy. Not the case at all. Again, this seems like a very long time ago. Take it over. We didn't get to 500. We tried to get to 480. The last new high in the spy was the beginning of January. So we actually did make a new high in the spy this year of 2022. But again, that was a very long time ago or in March. So we've had a lot of gaps in the spy. Gaps you could have played. Let's take a look at it. This one closed here. Gapped up. What happened here? This is a bullish gap. So the stock price or the market, this is the ETF for the S&P, gapped up overnight. Theoretically, you could have gone long there as the day trade got in and the market got out. I did not go long this as an options trade. I don't know if there was any profit to do that in there or what the profit would have been. Now here was a gap down. It happened immediately after it closed here gap down. This started the sell off that really took us down here. This was in the middle of February. We have never recovered from that. Look at the slide that we had here. Again, how did this happen? We're gapping down. The following through was selling. It's selling. Here's another gap here. Closed here gap down, fell. Closed here gap down, fell off a cliff. Now today here in the SPI we opened neutral but we did open down in the cues. And again, we'll see where we close here in 15 minutes. So gaps happen every day. It's not about finding gaps. There's thousands of them. It's about finding the very, very, very, very specific ones to trade. You only need one good trade a day. If you can find one good trade a day, you can make money. You could do as an option. You could do as a day trade. Either way, it's the idea of finding one good one and then just adding size on to it. Size. So what do you need to make trading work? You need a strategy and something that sets up consistently in the market and you've got to have something that moves. The stocks that I just showed you, those stocks move. You can't really make any money in my opinion doing penny stocks. You have to take way too much size and way too much risk in stocks that don't have enough volume so we do not train penny stocks. I'm trading stocks that are companies that you know. They have earnings reports. They have tons and tons of volume. They have momentum. They move. You know what the products are, the things they produce and what they do. And so I feel there's a safety in that we're doing options when we're doing options as well. But you have to have something that you're looking for like you're trying to, like I'm trying to hit a bullseye every day. I take it, I'm trying to hit the bullseye every day. The chances of me hitting one bullseye a day are pretty high. I got done telling you around 80%. The chances of me hitting bullseye, bullseye, bullseye, bullseye, bullseye. All day from 9.30 to 4, the odds go down. I'm probably not going to hit a bullseye every time if I throw a dart all day from 9.30 to 4 o'clock. Do you understand? That's why, again, trading success has to do with honing it down to intricate, intricate details so that you can just find one really, really good thing that's going to move in a volume of momentum that you can add size to it to make money to chunk it out. The concept we were talking about, about the consistency about trying to build up your account. But for me, it's just about the reliability in my gap system and then sticking to one thing. So if you're sticking to buying the dip, you're losing all year, literally. Unless you're getting out with very small profits in the small rallies that we've had, none of which have helped since the beginning of 2022. And so I think that it's difficult for people when they're so, so, so used to doing something that worked even for 12 months. And 12 months isn't nothing, but really trading is something that you should undertake and undergo that you want to do for years and years and years and years and years and a long time. Not something that should be just a shot in the dark, or where you're gambling, or where you're doing something just periodically. It should be something you're saying I'm going to do this thing and it's going to work and I'm going to learn it and I'm going to do it over the course of my whole lifetime and I'm going to do it for short-term trading and I'm going to do it for long-term trading and everything else. And that's how you really get to the point where you're making a lot of money and you're building your own personal wealth. And in reference to what I was talking about earlier with 401ks and what's been happening in the world and the economy, if you understood the market and you understood how to read a chart and analyze it, you could even be looking at what your investment advisors have you in in reference to your 401ks. And usually they're in different funds that may have different stocks in them. You could look at it and pull up the charts and say, what's in this fund? I want to know exactly what's in it. Apple, Amazon, what? Nivea, ask them. You have a right to this information and you can look at every chart and make a decision and determine if you think that this is something that you even want to be in. That you even want to be in it all. And so again, it's your money. I always found that the best person to make the best decision about your own money is you. But I think a lot of people lack confidence and they do not trust themselves. And people's confidence really goes down the toilet once they start losing money. And then people start losing more money because they really just do not know how to do. And they get frustrated and they get angry and the reality is what they did probably never really worked consistently. And it's hard for people to take a step back to that and learn something new. So anyways, for me, I have a checklist that I go through each and every morning in the pre-market to go through my daily picks to find the best thing to do. I do not know what I'm doing tomorrow and I won't know until I get up in the morning. So every single day I may do a different stock. And I don't trade the market every day either. If the market has a good gap I'll look to do it. But I'm not trading it every day. I'm looking at it every day though. You also need a method and structure to enter and exit. That's another thing. You can't get in something to stay in it forever and ever and ever and ever and ever. What I'm doing, the gap trading is based on something called momentum. Again, we talked about volatility. With volatility you get momentum as long as you get in the right direction but you can't forget to exit your trades. We get really good entries where we're in options time pretty good generally so that whether we get out right away or hold really is neither here nor there because the momentum is on our side. But you've got to know where you're exiting trades. For me, for the day trades, I like to be in and out quick between 9.30 and 10 am Eastern time. I'll get out of an option the same day if it goes the same day but I might end up being an option for two or three days if I'm waiting for it to go. Because again, I want the momentum. I'm trying to see momentum. What is momentum? In a stock that gaps up I'm looking for the momentum to go up higher buying money coming in to buy the stock up. In momentum in a gap down I'm looking for selling or shorting which pushes the price down. Again, we've seen that in the market. So again, everything I'm doing is momentum trading and what I find interesting too is a lot of traders don't know how to momentum trade and in this particular market again the market the brand in 2022 they don't know how to momentum trade and it's important because really that's the only way you're going to make a lot of money as one individual with a small account and I mean that you can get big moves $2, $3, $4, $5 moves even in something like the market or $20 moves in something like the market which is real momentum and you could have a thousand shares of something and have a jimunga stay. It is about getting the momentum. That's how you get somewhere with this where you can have a larger account and build it up and what the benefit is that you can pay yourself and then risk more once you grow your account. Any questions here so far? So anyways you know if you know what some is going to do before it does it it's great. I'm not predicting the gap. I'm seeing the gap. So I let the gap happen then I predict where it's going to go on that particular day on that day. Okay so again it's 350 eastern time Tuesday. I don't know where the market is going to gap down tomorrow. I can give you the scenarios and tell you what's going to do based on these scenarios but the reality is if I get up in the morning and I see the gap tomorrow then I will predict where it's going to go on the day. Tomorrow being Wednesday. Now let's talk about day trades. So here were some day trades that we did in the last month. I do use my gap system for day trades and for options. The benefit of the difference is when you're doing day trades you need to have a margin account. When you're doing options you don't need a margin account. So if someone like I said only has $2,000 or $5,000 you can open up an options account because all you pay is the cost of the option. When you want a day trade you have to take the position and you need something called buying power to take the full position and you need a margin account. The broker is giving you buying power. It doesn't mean that that's the cash amount. It means you must be in and out and flat before the end if you did not know what a margin account is you can call a broker and ask them. You can train US stocks from anywhere in the world as long as you can open up an account to trade US stocks. Again when we're doing day trades we typically look to short. I will short I will go long. It's both that I like to do but I do prefer to short quite frankly. Now let's look here. This is the price of zoom. In fact I have not looked at this actually for a little bit here. It looks like this was today's zoom. Oh no that was yesterday's zoom. I'm sorry. I don't know where this is today. This was where it was yesterday. So let's take a look at the day that we did. It was 3 2. 3 2. So we enter the trade short. Oh I don't know why I have the 0 0 there. Originally I had 800 shares. Sorry about that. This is supposed to be 800. So I enter the trade short at 1 1750 with 800 shares. Then I add it. I doubled my position sizing. I doubled it up to 1600 shares. I added at the same price. Okay. So my average price was the same. Why did I do this? I'm going to show you the one minute in a minute. Because I thought it was going to drop lower. So I wanted to take more of the trade because I only had 800 shares initially. It had a nice drop. Remember I was just talking about momentum? So this is almost 3 bucks. So entering at 1 1750 and exiting at 1 1475 is almost a $3 drop. That's a nice move. Even if I had kept the original 800 shares I would have made half that. I would have made over 2 grand. But I added because I really liked it profit 4,400. So here this was 3 2. Let's look at the daily 3 2. First I'm going to look at the gap and I'll show you the one minute. So this close here this gap down this tail is what we shorted. And again I'm going to show you the one minute chart. So even look at how this close which is really funky here. We made money shorting this. We got almost $3 out of it. Remember I was telling you about hitting the bull side. This is what I'm talking about. Boom. You just go after it. You find that little hit and nug it. So this closed here it gap down. I liked it to drop. It did. We got into it early. We got to drop. Boom. And then you get out. Because again you have to get out. And particularly for day trading. This was a day trade on margin. You must book it. I'm never holding a day trade overnight. But anyways that was supposed to be 800 there. So I doubled up. Let's look at the one minute. So here is the day. So this was 3 1 over here. 2. Today we shorted it. Now again we got in this a little late. I shouldn't say late but a little late. But here normally I would have been in this earlier. We could have gotten this up in the 120s. I don't remember why I didn't do this early on the day. Anyways we ended up getting in it roughly right about in here. And then here is the drop. Boom. So this is what I call the money move. Remember we were talking about momentum. Here is momentum on the 1 minute in zoom. It's falling. This is to the downside. Okay. So we can look at zoom and see what this is doing today. This is another stock that has been absolutely clobbered really in the last few months as well. A stock that you would have thought would continue up and up. So many people are still working from home. Again I don't follow the fundamentals. I really am a technical person. I'm looking at the chart and averaging looking at the advanced technical analysis to look at the chart. But some people love fundamentals. They love stuff with this. But I will say, even though I don't follow that or make trading decisions based on fundamentals it is kind of surprising that zoom has time. I guess part of that is the market too. Let me see a question here. What would be the recommended account size to generate average 20% return monthly? Again, I don't work off of percentages. So let's talk about two things. We're going to talk about return an investment and risk to reward. First of all, if you're looking at a return an investment, on average I'd say 50% to do an option is a good return on investment. So for example, if you're taking a risk and an option of $1,000 what's a good risk? $500. I mean a good return on investment $500. Do some trades go more than that? Absolutely. But if you want to be conservative you could set your sell order at $500 if you risk $1,000. So I don't go by percentages as far as account size because I'm not a long-term investor. I think you're thinking long-term investments. I look at return an investment for my options trying to get 50% or more. Ideally 100% of my trades. And when I'm doing day trades which I'm doing on margin it's something called risk to reward because to take the zoom trade it's roughing it out here. A thousand shares of the zoom trade you would have needed in buying power. If you don't understand what I'm saying here ask me but I'm going to say it anyways because of the question you would have needed $117,500 in BP. That does not mean that you would have needed $117,500 in cash. And I'm talking about if you took a thousand shares if you had a retail account you would have needed about $29,000 in change cash to take the position of a thousand shares of zoom to short it. That's rough got you profits of what three bucks let's say. If you took it and you risked a thousand you could have made $3,000 but you needed $29,000 to take the position but the risk was not $3,000. So I forget where we put the stop in this. It probably was over $118,000. So let's just use an example say I risked $1 put a stop a one buck over it and we took a thousand shares you would have risked $1,000 and made $3,000 in that case your return of investment is 3 to 1 and if you want to look at percentages it's 300% but that's not how I look at day trading on margin because you've got to have that cash there to take the position and that varies from stock to stock we did forward okay we did forward. Forward is way cheaper than zoom so you may not need the same buying power for zoom forward if we do the spire the cues you're going to need more because of the cost of those so I don't look at it about percentages because it depends one if you're doing an option two if you're doing a day trade and at three it depends on the price of the stock that you're trading because you're going to need the cash there to take it does that make sense so I don't look at it exactly that way TD I think you're thinking of something like long-term investments I look at it like I'm getting the trade and I'm looking for 1 to 1 in my day trades if I'm risking a thousand in a day trade I want to make a thousand if I'm risking 2,000 in a day trade I'm trying to make 2,000 if I'm risking in an option of 1,000 I want to make 500 to 1,000 not that I can't make more but that's what my expectation is I don't know if that answers your question but this isn't about investing so it's not about taking 100 grand and saying well if I take a 100,000 in my account how much can I expect to make in a month it depends how many trades you take it depends what your risk is going to be and you can tell me what you think you want to risk say you have 100,000 in an account do I think that you should be risking $10,000 in a day trade no no I don't it could you sure it could but effectually you'd be risking one tenth of your account in one position which I think doesn't make any sense but that $100,000 cash would allow you $400,000 buying power at a broker at a retail broker for four to one margin and that's a good size account to be able to do any one of the number of things that we're doing Zoom, BA, Spy, Q, Diamonds all kinds of things that we're trading because you could do expensive things with that kind of money you can take 1,000 shares you can take 2,000 shares, do you follow me and as far as options go same principle say you want to do an option and we will talk about those in a little bit too say you want to do an option say you want to do an Amazon it costs $5,000 for one contract because that's how expensive those puppies can be say you say okay you could if you had $100,000 in an account take two contracts take one tenth of your account I still wouldn't risk one tenth of your account in one trade and in reference to an option that is what you're risking because it's on cash, it's not margin you have to have the money there you can't lose more than you risk but you are taking it and many times you're holding it overnight and you should never miss one tenth of your whole account overnight in the trade I hope that answers your question Do I trade stocks? Do I trade stocks? Are we talking about Zoom? Zoom is a stock Do I trade ETFs? Yes we just talked about the spine and the cues I don't trade futures so I trade gaps I do them as options and day trades What else? That's it Alright lets talk about another one here B.A.s without a shot of a doubt the chart of the week we did the 200 puts we did the 195 puts we did the 180 puts And the day I called the 180 puts I don't think I got some emails from people. Are you saying are you think this is gonna keep going and It did it did be a open this morning I think I think under 170. I think it was 169 and change or something I don't know what the low of the day was we can look this chart again getting back to what I was saying with momentum It's so interesting to me how people are like. Oh my god it that I don't understand What are you talking about? You know, I mean again the reality is that people really that are actively actively actively trained just consistently to me Want to do something that's tricky and seems to make no sense whatsoever at all and What I'm doing to me makes perfect sense But quite frankly what I'm doing makes is actually just using common sense while I'm actively looking at the charts are reading the gaps I mean, it is amazing to me How many people want to just go long every dip every dip in the world? They just want to do it and they're losing losing losing losing losing all year So, I mean if you walk away today from anything anything at all Stop buying the debt. I don't care what it is. Don't do it anymore It doesn't work and I don't care if it worked every day in 2021. It doesn't work. It just doesn't It's not just not working this year. It full-on flat-out doesn't work Consistently and that's all that matters. That's all that matters. Think about GME people made a lot of money doing that at one point The one time it worked. That's it done You have to be consistent with what you're doing. This was 228 228 is here Well, this is really funny looking at this. We shorted this here and it flipped We got out with profit the entry was 19850 shares was 1500 risk was 2700 bucks Exit was 19690 so we pulled about about 50 bucks 60 out of this before it flipped This is really funny here now looking at this. I forgot what it did profit was 2400 again One-to-one close enough my target was 197 broke it boom out again One-to-one one-to-one. So take it over here this closed here gap down We shorted this was little tiny tiny tiny tiny tiny tiny tiny tail was the problem that we made and we got out of it It flipped but it's really funny here because we did do puts in this and the puts worked Look what it did after the fact boom. I forgot that we did this this day because I was out before it flipped Here here here was one minute stop close to your gap down open boom. We got it. I'm pretty aggressive I'm pretty aggressive if you follow me if you want to do trial for the remedy can email me But I just hit it boom and out done profit done I was in one minute, but that flipped Look at that I forget what happened there why that did that that was Monday Yeah, was it 28th? So again, this would be a trade on margin So again, you can open up a prop account. What's the prop account? Well, the retail account you need twenty five thousand a day trade you get four to one margin a prop account You're gonna get ten to one margin or maybe more at some places You need a minimum usually of twenty five hundred to sometimes five thousand So you open account with five thousand you get ten to one margin and fifty thousand BP to trade So then you can only do as many shares as you can do based on the cost of the stock that we're doing So that's what you know, you that's what you have to work with again I was talking about there earlier. How do you make your dreams come true? You got to do the work. I Mean, that's what it is and sometimes the work is I wish I had a million dollars and I could trade if I I'll just wait till I do well Meanwhile years and years and years and years and years of life We've passed you by and many opportunities to trade and just straight and make the money that you want to trade instead People are just like pie in the sky about it Again, I do not understand this this mentality. I've never been pie in the sky about things Well, I have big aspirations for myself and big dreams for myself. I consider them goals So I take active steps towards my goals That is the only way to achieve your goals You must have a plan of action and you must take actionable steps to achieve those goals. That's it Just like if you were wanting to stop smoking you're like, how am I gonna kick this habit? You have to take real steps to kick it, you know, you're not gonna just gonna get up one day tomorrow I'm all of a sudden quick cold turkey. You probably get sick. You have to wean yourself off You have to figure out what to do whatever the case may be or same if you wanted to exercise You're going to exercise for a more diet or lose weight Say when you lose 50 pounds, it's not gonna happen in a week, it's not gonna happen in a day It's not gonna happen without doing it in all You need real steps to get your goals and achieve your dreams The fact is you can take those steps and as soon as you take the steps, as soon as the things that you want to happen are actually gonna happen Anyways, I use my system going through a 26 point checklist This is everything you've learned in the classroom. If you decided to class, like I said, it's more 26 and 27 But ultimately the niche I have is that I'm looking for large institutional money, B.A. B.A. is a good example of what happened there. Selling, selling, selling, selling, selling, selling Gas are created with institutional money, large institutional money. That's what makes a gap in the first place Even though you have retail traders that are in the market, they're not in control of stocks and they're not in control of the market GME is a one-off And I go back to the chart as an example because at the end of the day, they're not controlling it much Because no matter how much people want their stock to go back up to $500 a day, they're never gonna happen unless institutions come in and buy it They're never going to go there again And people are waiting for it to go there and they're in a long position Some people are in it like crazy numbers, like $300 or $400 And they're down So it's institutions, as much as people hate hedge funds, and I don't know why, I don't hate hedge funds But as much as people hate them, the fact is that large institutional money is in control It's in control even when you think it isn't B.A. is actually a great example of that The professional gaps that happen and play out in stocks are formed by one thing and one thing only, large institutional money There are plenty of ways to help you pick the correct direction to play the gap, long or short And confirm that the large money will flow with it So again, how much money do you need and what kind of returns can you earn? One-to-one on day trains, and ideally, one-to-one in an option But I'll take 50% in an option, I think that's a fine return in investment Again, if you risk $2,500 in an option and can make $1,1200 in a day, what's wrong with that? What's wrong with that? Nothing Now again, how much money you need is you need $25,000 at a retail account to trade on margin Or prop, you can open it up with less You can go anywhere that you want, I would do normal research on the companies that you want to go and open up an account with And I would also practice, like I said in a demo, if you've never traded before, before you press the button As far as, you know, what is better for you, you have to look at your time How much time do you have to vote to trading? I trade my day trades in the morning between 9.30 and 10 If you can't be in the live room then, well then you can't day trade with me If you want to do options, like I said, you could have a regular job, do anything You don't have to sit at your desk all day, show really how to trade or what to trade Or what methodology to use my gap system really depends on your own schedule And how much time you have to devote to trading Obviously the amount of money that you have cash determines the size of your positions And you can be more flexible if you have more money So for example, say you have an account where you have $30,000 in it You could take two or three or four or five contracts in an option for example So you could take four, you could take four spies, get the drop, you're in a putt Get out of two, hold the other two, same thing with Boeing You could divvy up your position, if you could take more than one contract Then you can have the flexibility of doing that Okay, book some, get the drop, hold a little more, get the second drop Okay, so that's another idea Let's talk about options here now, since we were just talking about that This is Facebook, we talked about the gap, it happened, seems like a million years ago But it's only a month ago when the earnings collapsed I'm calling it a beginner risk, but I'm using an average of $1,000 here for this For the risk, actually I don't know why this is advanced risk, this should say beginner So the risk is $1140, $1140, cost is $380, three contracts, risk is $1140, sold at $12 Profit $2,460, which is a 216% return on investment Let's take a look at the trade It was Thursday, the 13th, now let's go find it We were in, that was January, hold on here I really have to go back, I called the 330 puts So I basically called it at the strike there, it was a little bit under it So this was all the way back in January, actually before the earnings The expiration date was 121, so what did it do? It dropped, now this is one example Again, if you got out of this trade it doesn't look like much This was over 200% here, but if you take it over you can see where it fell into 310 Now I do not hold stuff into the very, very, very, very last day of expiration unless I'm down in the trade If I'm down, like the trade is bust, not worthless, then I'll hold into the last day of expiration Because I have nothing to lose, I can't lose anymore, I'm already down It could come back the last day In this case here, I would get out of it before the last day But I just want to show you that this did go further the last day Again, I don't think that you should necessarily hold the last day, particularly if you are up a good amount, which you were in this trade But this little tiny, tiny, tiny, tiny, tiny thing here, again, finding the bullseye was a very profitable trade It was a very profitable trade, but it was not even looks like much to you This you may be like, oh that I can see, we did this here, boom It was a nice trade, and it even went further It went down to 300 the last day It would have been up the last day the most, but again it doesn't make sense to hold it Anyways, nice trade So this is an option if you want to do it You get the newsletters emailed to you, time this went out was 10.17 Not much to the trades I send in the pre-market, but sometimes I'll send them a little bit later Netflix, what do we do with this one? We did, oh the same day, same time, 5.20 Let's go look at 1.13 Netflix So close to your gap down, boom, called the putts This is an exit here Now I'm going to show you what happened after this, let's just talk about the trade that was the real trade So the 5.20 puts, an exit on Thursday, the 20th was profitable One contract costs 13.50, profit was 1,050, return investment 70% Now why do I have this number here, what is this whole thing here? I did not hold this trade into the earnings I want to show you that if you did, you could have made what you could have made The actual, actual, actual close on the Friday of the last day of the earnings Of the option strike price of the 5.20 puts in Netflix that I had called A real trade that I did not hold it the last day And I'll explain why in a minute, it was 1.25 So you could have reached 13.50 and made $11,150 I did not hold it the last day Why? Because the earnings were Thursday 9th to 20th It could have flipped around and the trade was profitable It wasn't 100% but I got done telling you, I think anything over 50% is a good trade It would have been gambling to hold it into the earnings in a profitable trade It would have risked the amount I had at risk, I would have risked the profit too If the stock would have gapped up to 6.50, the trade would have lost It wouldn't have had no more time left and it would have never gone back down there anywhere To 5.20 because if it had gapped up, it would have been too far away So if you held that though into the last day, you could have made a ridiculous amount Whatever the return on investment is, 1,000% or something But this does show you though, the power of the gap And the power really of even earnings reports in reference to doing options But it's your gambling if you're holding a trade that you're up in Now there are times when I have held trades into the earnings, why? Not this one here, why? Because I was down I had nothing to lose, I was already down in the trade I did not go in my favor, it could work in my favor in the earnings In which case sometimes that occurs and therefore then I get out But the reality is when you have something like this, it's already up The trade was already, ready, ready, up You gotta get out of it But it was an exit Thursday Thursday the 20th, so it was a week before I called it Okay But this just goes to show you how much money you can make doing options if you really want to Let's talk about the SPI Okay, we did some SPIs 113, same day We did the 471 SPIs, cost 340, 3 contracts is 1,020 Wrists sold at 24, this is a huge trade So again, I'm averaging a risk here of 1,060, 180, 606% What happened? Same day I called it We're going back to January Take it up There's the guy So here we are It was around roughly the strike at the 471 Then we did this And then we did this Now here we are again This is the 20th of January Beautiful trade It dropped down here It fell under 450, that's how it was so profitable You would have made more I don't know what it was that day So this is the exit the day before You couldn't have screwed this trade up It was just up, up, up, up, up, up every day And if you hauled it the last day you could have made more I don't know what it was, I didn't look that up I looked up Netflix because that size of the gap was so big I really wanted to see what the price of the option was I did not look this up But if you take it over here it broke 440 At least 30 points through it Even with any cushion in here Again, not suggesting anyone should ever do that But this was a huge return in investment to even exit it Before the last day Because of the fact the trade was up every day And just fell straight down We were talking about momentum We were talking about selling Here it is, boom But again, fell the last day too I get these questions People are like, well is that the maximum, maximum, maximum exit? No, there's many trades I get out And the trades still keep going That's not the point of trading My job is to find the best gap Then I take the direction in the correct direction of the gap Then I get very good entries And then I look to make money Whether you get out early in the middle Wherever you get out with profit You have more choices If you're in early to hold Or split the position or whatever you want to do It's impossible I think To make is your goal to have a perfect, perfect, perfect exit Why sometimes we do have perfect exits I'm going to go back to that one here Now that I'm thinking about this This was a low of a day exit in here That day we did it We had a low of a day exit This was a low of a day in here I didn't know that at the time But it was So sometimes I will have a perfect exit But I did it in Netflix And I did it in The Spy So you do the best you can So you need good money management Goals per day, per week, per month Goals should be based on the risk unit Whatever it's going to be And you can't change it all the time You can't do 5,000 on Amazon and 1,000 in Spy No, because if Amazon loses You have to take five trades just to come back Even in a good win in the one You have to be consistent with your risk You have to look at it by weekly goals And monthly goals So that's what I would do If you have a question about that You can always ask me Getting back to what we were talking about earlier You can make your own choices to make more money You're not going to change the price of goods and services You're not going to change world events You're not going to change what's happening with politics Either that people are making decisions What's happening with the world events You can't change any of those things But you are in charge of your own life And you are in charge of your own money And you can decide if you want to do something different too But it's going to take work Nobody's going to throw anything into your lap And I think people have got a little Little used to that Especially people that got the stimulus In the last two years You know, look at that as a bonus as a gift That's not real life But it's not something that's going to Consistently come to people Just think of it every day You're going to go work hard at your job That is what it is And if you want to get involved with trading You're going to have to do the work too It doesn't mean you're going to work hard Every day forever It means you're going to work hard to learn it Or you're going to work hard to get the hang of it Or there's a cost involved It's just paying the cost It's hard work for people Because a lot of times it takes people To wrap their head around paying for something When they don't know how much money They're going to make Or how it's going to work And they don't even know what they're doing That's part of what it is That's part of what trading is taking risks When I put a trade on And I'm taking the risk I fully believe that I'm going to win in every trade While I don't I believe that I will But it's part of taking risks You put the risk on That's why I use a stop So I call the stops in the live room If you're in the room And you put the stop in If it gets stopped out The trade loosens This is what part of taking risk is I could have lost in any one of these trades I talked to you about here today I didn't I didn't But I could have That's part of what trading is And I think a lot of people want to trade And they're interested in trading But they really are not honest with themselves About their ability to be able to take risks If you have to do that And I say If you are scared and you're in the trade Then you need to cut it back Cut your risk back Do less trades Do one trade a day or something If you feel yourself being nervous or jittery About what you're doing If you lack conviction in what you're doing You probably know the strategy at all Or your risk is too great So back it off Because the best thing you can do for yourself Is to trade comfortably Comfortably, comfortably Not nervous You don't want to be a nervous nail When you're in trades You can feel that right now With people in the market You absolutely can I'm not trading like that But I can see it When I'm watching how the market moves Today was a great example of that Again, we'll see where we close When I pull up the charts here in a bit The success or failure has everything to do With the quality of your system And if you don't have one Then you need one So again, we talked about How to become successful day trading And again, I don't care if you do options Or day trades You've got to have a good system to do it And it's just not something That's going to fall into your lap You have to learn it It takes having a niche For me, it's gaps And specifically Specifically for me It is shorting But everything is based on Reading institutional money That's in the stock And in the market So if you kind of learn from me You would learn a 26-point ratings checklist That 10 points the direction of the gap It's the footprints of institutional money In the gaps That's how I made the call on VA That was just a really good call All the strikes that we did in that Just went boom boom boom And even as I was calling them People were emailing me I mean, they were shocked And every trade worked And people were shocked how everyone worked You've got to look at what's happening Because the people that control the market Are the people that have the money Let's look at CVX So yesterday I don't have this chart In from today But I know what it did Yesterday I called calls in CVX It popped up today It gapped up today It worked, it ran right up I called the 160 calls today Yesterday And then I called the 170 calls today They both worked They both worked We can look at this chart Again, momentum Momentum One, two, three Four, five, six, seven Today was the eighth day It ran up here Flew over 172 I don't know where it closed It doesn't matter So we played it It worked So this was a long We did calls Okay What do I mean by institutional money? This is getting bought This is getting bought This is getting bought I mean, full stop It's, you know, again This is an oil stock What do I mean by institutional money? Facebook Facebook has been selling off Okay And again, started here Fell off a cliff Even though we did this prior to Again, I don't know where this closed today But this has broke so many numbers So many numbers 300, 200 So how do I figure all of this out? Before we get in the position I read it Gaps are an event It creates a sense of urgency Hurry up It could be buying, it could be selling Again, I prefer to short But I will go long I went long the CVX And action is being forced By participants at the stock People are already in it And that is why gap trading Is incredibly powerful So trading is, you know Trading gas Specifically, I called my class And the way that I rate them I called them golden gas Because it's like finding gold in the market To find something to do That has such a big move And to happen so quickly But the fact is It's trading with power of money That's how you can make money You've got to make good choices When you trade I do not find that trading All over the place And doing a million different things Is a way to make it in this business You have to have a solid system If you don't That's probably why you're losing If you're losing Or maybe you're risking too much Or maybe you're over trading Or maybe you're buying the dip And that's not working this year But I don't think you would ever Work as something to consistently do And consider yourself lucky If you did it last year And it worked Some of the stocks are still holding Some of the moves Of people were in the swing trades Well that last, I don't know To ask me where I think We're going to be On June 1st Is asking a million things It's a lot easier for me to tell you Where we're going to go In five minutes to take a trade And get out Or tomorrow morning And take a trade And get out That initiatives to tell you Where we're going to be Three months from now That is neither my concern We are active, active, active traders We are chunking it out Like I said We are pulling money out This is income trading This isn't long-term investing It's very difficult to see It's like saying Well who do you think is Going to win the election in 2024 I have no idea I don't even know who's running Is Russia going to take over Ukraine Is high No matter what they say About not being one to be involved With NATO The probability is still high That Ukraine will fall to Russia And what will that mean For the rest of the world Nobody knows Nobody knows So you can only control And predict the things That are in your universe And the short-term Really is a way to make money And you're going to go back To the same thing About chunking it out So the system If you want to come And learn from me My system is How do you make money In the market You're going to trade Golden gaps You're what to trade I'm brady I'm on 26 I don't need a perfect score 20 is good I get them early in the morning You saw some of those options We're early too Sometimes I call them In the pre-market We can't trade options Till after the open But I get them When they set up in trigger And we go So it's about good choices And having a plan of action And chunking it out I think you could make I talked to a guy yesterday He said I'd be happy Making $800 a week I said okay And then I said How much money do you have This is how much you should risk This is what you're looking to do Take what you have And then back it off And figure out your goals from there That's how you're going to get Somewhere with it Instead of complaining And saying I wish I had this Or I'll wait till then Or whatever You know the future never comes Unless we create it We have to take actionable steps Like I said To be able to create The goals that we want And sometimes that means work The nice thing about trading is We don't trade on the weekends We got weekends off So you're going to work During the week In between your job doing options Or in the morning day trading For the first half hour The day But I'm the one that's Doing the work when I get up I take the gap for the options newsletter The newsletters are emailed To you in live time You don't take a class for that If you want to sign up For subscription You just sign up For the day trades I'm also doing the work Rating the gaps in the morning I get up super duper early And I'm the one That has the conviction The confidence But you should learn To get this yourself Because you will trade better You will trade better And people are consistently Worried in this type of market Because there's been fake outs Something fakes higher Something fakes lower Again, BA is a great example Of that as well But you do have to have money management We've been talking about this The whole time You have to set a risk It should be consistent You shouldn't be afraid To use stops either And again You have to have more Winning trades than losing trades You won't make it You just won't If you're losing more Than you're winning It's great to have Some big winners And we have had some of those this year But in general I'm just looking For consistent wins But every once in a while We get a big winner And then that's nice And it certainly makes up the difference Than to cover the two or three That we lose But it is about quality for me Whatever your goal is Whatever you want to earn And again, it depends where you live Depends what your lifestyle is Depends what you're doing If this is extra money If it's full time Whatever you want it to do And we did talk about this earlier The return on investment Versus return on risk It's different for options And day trades Okay, again Because if you look At some of my day trades You say, oh my god That's a thousand percent You know, return investment It's not really Because the cash that you need there But I can take a day trade And I can risk $2,000 And I can make six You know, I don't look at that as 300% I look at that as three to one I, you know, I risk $2,000 To make three times that That's how I look at it I look at it differently For my options If I put on $8,000 Risk in an option And I make eight That's 100% for me And I think that's a good trade Or whatever the amount is You want to risk, okay So I just look at them differently And I also look at my targets differently Because I will hold options longer Than I will hold my day trades And, you know, I like to be in and out fast Because you never know What the market's going to do in the day And stocks will go with the market Mostly on any given days And the market's been wild It's been really wild So making money overall Is about consistency And correct trade selection And then not over-trading Okay, we talked about that Not taking too much risk Chunking it out You want to increase the odds of your own success By looking what's happening With institutional money And not going with retail traders And even though everyone here is a retail trader I hate to say it But most retail traders do lose trading They do things that don't make any sense To be honest with you And I know this from teaching people now For over 10 years I try to teach people the best I can That want to come and learn from me into the class But if you don't want to learn And just want to sign up for the subscriptions That's up to you I think you will do better though If you learn But that's totally your choice You can just take the trades And there are people with me That are having success That have never taken the class But it is power money that I'm looking at And again, I rate the gap In the morning using the checklist This is what you learn in the class It's where is the money going Where are we going next That is extremely, extremely, extremely important Because if you can get in before the move happens That's where the profit is And where you get out is up to you You have ZZ You get out early You hold it It's up to you Just make sure you get out with money You know, you don't want to hold something too long But like the CVX is an example of that I mean To get in that yesterday And have that gap up today But I'm very deliberate on my choices I have conviction in what I'm doing I hear people call me They email me questions Even, you know, people have been clients for years It's a system I've been using Since I started trading Like I said, it took me three years to create it And I do think if people want to do this For a living I'm certainly here to help you Get a plan of action to do that As far as the shared quantity And size you're going to take It does have to do with your cash And as far as the broker You can go anywhere you want I have no affiliation with any broker You can make your charts look like mine In any place if you want But I do think it's important To put a plan of action in place before you trade And again, if you're trading this year And you're losing money In the last two and a half months You have to stop what you're doing And get a plan of action in place Just pull it in a book and say Number one, this is what I'm going to do next Number two, this is what I'm going to do next Number three, by April 1st I'm going to do this And that will help you do it If you decide you want to take the class You will learn my method It determines the high probability Directional bias for the entire day A big move We've got to get the big moves Early confirmation And precise entries With a good machine word And follow through For me, I think it's only one thing That I'll ever do because it's work So I just added size of the years That I've been trading I did start out doing auditions I started doing that about Seven years ago, almost eight And I never planned to teach people When I created my system Which is one of the reasons I think it works well I did it for me But I found there's lack of information Out there, back out So most of what's out there Is wrong or incorrect People are confused about gaps They don't understand how good they are And how much fun they are to train But it's really, really about picking The best gap to play each morning You only need one traded day to make money You don't have to trade all day And in fact, I close the trading room By 10, 15, 10, 30 every day So people are doing really well This year The truck driver I talked to About me, 35 grand in two weeks Doing options He did not tell me How much he's risking to trade And I didn't ask him But I mean, that kind of thing Is phenomenal When people are losing And then they start making money Their confidence really turns around I think what hurts traders is When they go two years, five years, 10 years Stories I've heard for 20 years People are trading and are losing I don't know how they keep going You can't keep doing the same thing That's losing You cannot It is just stupid to be honest with you And I ready to go over the information When my class is It's March 26 and 27 You can go to the website If you want more information You can email me If you want to trial for this week It's Melissa at thestockswush.com We already talked about this I want to bring the charts up here And I see we have an half an hour So again, here's the dates of the class Here's my email And then here's the special Sign up by Friday Get the trading referee to the end of the year The class is the end of the month And then the options newsletter Six months is a long time in the newsletter For 49.99 and 12 months for 69.99 This, the newsletters are emailed to you in live time Take the trade when you get it Targets are on the letter Now I think I have to stop Screen sharing to go to my charts Well, you know, I haven't talked to him I haven't talked to him I've been highlighting, which is very interesting I've been highlighting individual people In the emails And I have been highlighting Like what did they do for a living And when did they start trading And asking them to send pictures of me Which some of them have I have not asked the trucker for a picture Again, I think he might get in trouble If I said the company is working for now So I think his eventual goal is to retire From talking to him when he originally signed up And he hasn't done the big class yet But, you know, I have to follow up with him About doing the class in March But anyways, you know People share with me what they want to share with me But I have been highlighting different individuals Who have emailed me their success Just this year And it is interesting to hear what people's plans are Or how they are trading Or how much money they're making And what they're doing And it is wonderful to see that people are successful And it just goes to show you that you can do it But again, I am calling the trades So I've been calling a lot of good trades It doesn't mean that I'll never call another losing trade again We did lose last week I called Apple Puts, I will tell you They didn't work But we pretty much really Are not doing that many losing trades this year And the volatility is there too Which really helps Because obviously you make more When you get bigger moves How long it lasts, I do not know But we're certainly going to take advantage of it As long as it lasts I still have a great system Meaning we win more than we lose anyways But I think the benefit of this year is We've had some huge, huge moves Boeing is one of those moves And I showed you that one market trade Which was even weeks ago now When you take a trade And something drops And you're in a put And it drops 30, 40, 50 points I mean, come on One contract you're making bank I mean, you know, it's just But I will tell you that the cost Since, since January Since January through even now March, the cost of At the money options puts It's like doubled Like seriously Now again, I don't know Where we're going to go tomorrow in the market I may decide to go long tomorrow I don't know Or Monday or something I don't know But I have really noticed That the cost of trades we did Four weeks ago, six weeks ago Compared to today Has really shot up like a rocket And then that contributes to Again, all the volatility in the market Has contributed to the cost of things Rising even to trade At the money But you could do a strike away from it Okay, I think I have to stop this So let me just stop this here Email me if you want to trial for the week