 Good afternoon everyone. This is Melissa with the stockswish.com and welcome. I thought I would do a trend review, an overall review of this chart of FIO. And the reason I'm choosing FIO is because FIO really is the golden gap here for the last month or so. This this has been paying me to the downside on moves that you wouldn't even think you could do because I had so much conviction and really had such good entries in this several times in the last month. It's just one of these gaps that is paid and paid and paid not just on the gap but then on the follow-through. And I thought I would do a review of this, a trend review of this today to point out several things about how important is to follow the trend in a chart and to read the trend correctly, which many people don't do well. I do a class on the trends and I'm actually doing that this coming week, November 13th and 14th. And I'm doing the entries class the following week. And this is the last time I'm doing these two classes in November. FIO is a great example. We're having the correct entry and having the correct read on trend can make all the difference in the world in making good money in something or not really getting much of anything out of it at all, particularly with this stock. Let's go back to here. Let's go back to May. So I remember this gap. I remember playing it. I made money in this to the downside here. A nice move in this and was quickly out. This was back in May. It actually flipped and went green on the day. So the bearish gap had a move in it. I had a great exit on it, made money to the downside. It was a bearish gap. And then it turned and flipped on the day. Who knows why it doesn't matter. It really doesn't matter at all. But it did work out nicely as a short. In fact, I think the way this even played out was a rallied up first and then it broke. So looking at this, you say, okay, fine. This bearish gap didn't close right on the day. And then you follow the chart all along and you look and see what it's doing. And it attempts to make an effort to get over the next level of resistance, which it does actually, for a short period of time here. And then guess what it gaps again. Did this gap here, beautiful gap, rallies up and then this huge monster bar comes out of nowhere. Now this is a really, really, really big green bar. This is almost a $3 green bar for this stock. And after this, it ran up here to $1550. Now if you look at this, it appears to the naked eye that the trend in this is not down anymore or that it could possibly be reversing. Why? Because this really is a big bar. It's a huge bar. But this didn't change the trend of the stock. It is not changing the trend. The stock is still in a downtrend. And even for the short period, it's still in a downtrend. What I look at something like this, this day here and this day here when these days are green, what I see is there is some short covering that's going on in the stock. Why? Because do you see the longer term this has been down? It's been down for a long time. And so people have been in this already as a short and they have target positions and they're exiting the target positions. So like the day that this happened here, the target for the long term core short in this might have been $15. And when it hit on through, then people let it drop and took their profits in the short. Same similar situation with this thing. When it got to the target and hit on through $11, that was the target people exited this. As it turns out, the stock is still in the downtrend and holding the downtrend is going to break again even now. Even now this is getting ready to break again in here. It's wiggling and jiggling some and it's going to continue to wiggle and jiggle. But do you see how you can't play against the trend of a stock, particularly for the longer term for overnights, for holds, for swing trading or for core trading. And I don't play against the trend of a stock even for day trading. I never trade against the trend. So if I see a gap that's failing, will I reverse the direction of the day? No, I won't. I won't do it. I think it's deadly to your trading profits and your overall read on things to go against what's happening in the trend. Like if you absolutely would have 100% conviction in what's happening in the chart, then you look to trade in that direction. You got to learn what that is and know it. I think a lot of people have difficulty determining or ascertaining what a real directional trend is. People just don't know how to do it right. They just don't. People are looking at pivots and they think if something has a higher high and a higher low in a series, it's in that trend. Or if it's in a lower high and a lower low in a series, it's in a downtrend. That's not the case. And FIO is a great example. FIO actually made a higher high here the day this bar happened and made a second higher high here, then made a lower high here and here too. So it actually was supported on this 50-permoving average. That's the green line. So for all intents and purposes, people might have been thinking that this was going to turn around or might have been thinking that it had turned around and that this was a start of something. But it really wasn't the start of anything. The stock was still in the downtrend and is still in downtrend. And the longer-term target on this short-term timeframe, I think it's realistic for it to get to $8 within a short timeframe. This could rally up to about here. I don't think it's going to get over $12. It could rally up to here. We'll have to see if this gets all the way up to $12 or not. It's going to take a little bit for it to get down to $8 if it rallies up to $12. But this could even break again on Monday. In fact, I'm going to be watching this every day next week to break again lower. It's going to hit down on $9 faster than $8. But this is a beautiful stock and I wouldn't be surprised if in a year from now this is at $5. So I have to keep following it and seeing. The beautiful thing about reading in trends is that you can read them in real time and make decisions and see how they turn out to be. It's just so important for people to be able to trade with the trend. I think the challenge that traders have is that they don't look at the trend correctly. They're looking in things in a way that is not correct. And the problem is when you read a lot of books, there's so many books out there about technical analysis, people are taught things about pivots and different ways to do reads on things that they think are right. And then they wonder why their trades don't hold or don't work. It's because some of the information just isn't accurate. You have to look at things in real-life time and how do I always make these decisions? How did I learn this stuff in the first place? Why am I so good at trend reading and directional reading and entries and things is because I'm really good at reading gaps. And gaps tell you everything you need to know about a chart. And I teach this in detail in a trends class. So the other thing I wanted to talk about just was in reference to entries, too, this jiggy back here down on 10.25. Let's go back down to this one here. This was the follow-through day of the gap in the file. So, file, this is the second day of file. This is not the first day of the file. This is the second follow-through continuation move of file after the day of the gap. Here is a great reason why it's so important to focus on correct entries when you're day trading or swing trading or court trading, anything at all. And first of all, the swing trade entry, you could have been in it from the day of the gap to get it down. The entry, though, for a day trade, you're looking at numbers when you're trying to get these things and enter them correctly. And the correct entry and putting the stop at the right place has all the world and the difference to you being profitable or not profitable. Like, if you took this trade here, this is where the setup is for the... Well, you could have taken it right here, but you could have taken it some more in here. This is the second day of the gap in file or the follow-through day. If you took this here and weren't sure what to put the stop and put it too far away, like maybe you put it over 10, your stop would have been 25 cents or more here. If you know how to read the chart and where it should not back up against as far as the maximum resistance for it to continue follow-through on the day, this is an entry-day chart for an entry-to-entry in file. You would know exactly where to put it and then it couldn't go over this area here, which is exactly where the stop needs to be. So do you see how... If you don't know how to take the entry... First of all, you have to know how to take the entry right. Second of all, you also have to know how to position size yourself and where to put the stop. It's two things, the stop and the position sizing. Because if you position size yourself over here, yeah, you'll stay in the play, but you'll give back more money you need to and should know by now the play will fail where over here. So it's just one of these things, and again I teach this in the entries class, how to take the entry, where to put the stop, how to understand this overall look of things because it really makes a huge difference when you are trading. And entry-day trading as a day trader to be able to get the correct position size and entry. You would take so much less size where your stop was over 10 and your entry is 75, 74, then if you have a 6th cent stop versus a 30, 25 or 30 cent stop, it's like your stop is, you know, more than quadrupled if you put it up here where you think it needs to be, like if you think it needs to be over the whole number, which is incorrect. So it's just one of these things where if you put the stop over 10 and size yourself for that in this trade and you still make money, you made one risk unit. Whereas if you put the stop here and the risk is 6 cents and you're able to make 30 some cents, your risk unit is like 5. This is your profit. You make 5 times the amount in $1 versus $1 to $1. Lots of people trade and they take entries and they're happy if they make anything at all. They're happy if they make 1 to 1 or 2 to 1. I'm going to read all this. This is so detailed and intricate and I've done this so much on this file. Even back here, was it this day? I think it was the third. I've just called some great trades in this. And these moves don't look like much of anything at all. But the fact is it's had some beautiful entries. Why? Because the numbers are just spot on with this. So I'm going to be looking at this again next week. Not sure exactly what day it's going to do what, but I am going to be following it and it's going to be important to get this when it breaks down again whenever it is. I don't want to miss this guy. FIA has been a really good stock here for me to make money on in the last month. And I want to continue to follow up with it. It's had beautiful entries with great risk to reward even on days where it didn't go that far. And how do I know how to do this? Two things in combination. Reading the overall trend, which I teach in the trend class and then getting very exact specific entries in this class, it's so important if you want to make money in the market to learn how to trade well. Actually somebody emailed me why do they even have to learn how to trade at all to trade? Because you will lose money in the market if you don't learn how to trade. And even if you start out at the beginning and you find some success it will be short lived if you don't learn the right things to do. And the allure and the spark and the excitement, the passion and the excitement I have to trade, it sucks people in once they show them immediate profits to keep trading then and keep losing if they don't know what to do. You can do yourself a favor by learning the right thing to do. I'm practicing it and getting the right information and you have to discern and be in discernment with the people that you choose to learn from. And I truly believe that the people that come to me and learn from me and the people that I teach and take my class were meant to learn the information and apply it successfully in the market because I really in the last year just have never felt more conviction in my own ability to be able to trade aggressively and in a particular detailed manner. The fact that I'm teaching people how to do it successfully is truly very rewarding. It's just really rewarding. Talk about having a conviction in what I do. I've always had conviction in what I do but it has been magnified because I'm teaching people how to do it successfully in real-life time. So this is FIO the golden gap of the month. Nice, beautiful, fantastic moons in this with good payouts and risk to reward even though it really doesn't look like much. This has paid me all month and it's so important to learn how to read the trend and it's so important to learn how to take proper entries. So this is Melissa with the stockswish.com. Have a wonderful weekend everyone. If you're interested in the trends class or the entries classes the last classes I'm doing, these two last classes are November. I'm doing them in November next week in the following week. If you'd like more information or to sign up, these are the last classes for this calendar year 2013 for the trends class and the entries class. My email is Melissa at thestockswish.com This is FIO, beautiful golden gap for the month last month. If you'd like more information email me at Melissa at thestockswish.com Thanks everyone.