 Testing 1-2, testing 1-2, Kathy let me know if you can hear me. Hello everyone again and welcome. The new folks that have just joined us will be starting promptly in just two minutes. Two minutes start time here at Online Crater Central. We want to welcome you to the presentation today. New folks that have just joined us. T1, T12 Race, Evan G just joined us. Prosperous Trader joined us. Leon and others. This is Online Crater Central. Thank you again everyone and welcome. We do appreciate your time and your participation here today. We'll be starting promptly in just two minutes. Your host, presenter, Melissa Armo. The title today, Make 100K Years Shorting Stocks in Just a Half an Hour a Day by Melissa Armo from thestocksquish.com. Thank you again everyone and welcome. Hello everyone again and welcome. This is Online Crater Central. I want to welcome you to today's presentation, which will be starting promptly in about less than a minute. So we're going to bring out the percussion section and then the trumpets as drummers are ready. And to the trumpets. And with that, ladies and gentlemen, the sound of the trumpets, you know that means it's time to begin. Please put your hands together and welcome our host and presenter today from thestocksquish.com. Thank you Kevin and thank you everyone at Online Trader Central. Welcome. My name is Melissa Armo and I own a company called the Stock Squish LLC. Thank you for joining me today. Today I'm going to talk about my favorite topic in the world, which is shorting stocks. I short stocks for a living. I'm a day trader. And you can short stocks for overnight, for swing trades, or for trades as well. But I love to short stocks as day trades because they happen very quickly. And we're going to talk about the reason why shorting stocks can be so profitable to be able to make this kind of money a year to be able to make $100,000 a year. So if you have any questions, you can feel free to email me at Melissa at thestockswish.com. You can also go to my website at www.thestockswish.com for more information. And as we go along today, if you have questions, you can just type it in the room. I'll see your question as we go along and then I can answer it in live time. I have a lot of videos on YouTube. I've done a lot of calls on the market. I saw how bullishly the market closed today in the QQQs and the spy. And if we have time at the end here, I can answer any questions about the market as well. So welcome. I have been shorting stocks in a bullish market ever since I created the system that I used to day trade. So can you short in a bullish market? The answer is yes. The reason is based on the quality of the pick. By pick, I mean the stock symbol that I'm choosing to trade. So whether you are in an environment that is bullish and an overall market environment I'm talking about, or an overall market environment that is bearish, it really has to do with the pick, with the stock itself. What I'm looking for if I'm shorting is weakness. And what I'm looking for if I'm buying something is strength. Because in order for something to fall, it has to get sold off. And in order for something to rally, it has to get bought. Now this is a chart here at the spy. This is from today. The market is getting bought. So the only way the market would have a look like this to it, because we're in a bullish market right now. We're not, by the way. And I talked about this in the last few webinars I've done here with All My Trader Central. But the market back here since the beginning of February the first day of the month has done nothing but rally. And so the market is getting bought. This is buying that's coming into the market. However, every day in here since the beginning of February, and every day Monday, Tuesday, Wednesday, Thursday, Friday, I look to short stocks. Now you can go long stocks of course, and you can go short for it to short. And that's what we're really going to be talking about today. We're going to be focusing today on shorting and making money trading shorting. It's something that I'm very good at. And I think that no matter what you do, specifically if you want to trade the market and make money, whether it's a small amount of money or a big amount of money, either way your goal is to be profitable and you have to have a focus in order to do that. Not just to do that once in a while. I'm talking about to do it consistently. I think a lot of people get hooked on the market. And the desire is there to make money trading like people will go and they will, they will have a good trade and they will make money on a trade. Faster money than they've ever made in their life with less amount of work. And then they will be what I call hooked the market will hook them into participating, participating on a regular basis. But that trade that maybe somebody did that made money that was easy, may not have been something that works consistently. The objective for anyone that wants to trade to be profitable is to be consistent. Otherwise, what ends up happening is over the course of time, you end up giving your money, your hard-earned money that you made and your regular job or saving to the market. So it's the objective is always to be consistent. It's to be consistently profitable. And I am consistently profitable because I focus mainly on shorts and on one specific strategy which we're going to talk about today. So if you can make $100,000 a year trading, you can do it as your full-time job. There's pretty much enough money to support most people, at least that live in the United States. I don't know where you live in the world. There's people here I know from other countries. But $100,000 a year is a good income. And the nice thing about it is that you can do it from home. Right now, it is probably about four degrees outside in New York City where I live. I have no desire to leave the house today. And it is very, very cold. And the entire river, the Hudson River that I see from my apartment is frozen solid. So I am very happy that I do a job where I work from home but I didn't have to go out of the house today. And as you can tell from my voice, actually, I've caught a cold just from going on the elevator. I've just been going on the elevator in my building because there's so many people that live in my building in Manhattan. Everybody's sick. Most people have to go out and have to go to work and have to get on the subway and there's germs everywhere, okay? I'm really lucky that I don't have to go out and traipse around in the snow and the ice and the cold and dry. So working from home is a convenience and it's a convenience in the winter if you live in the Northeast. The other nice thing is that you can do it from anywhere in the world. So you don't have to live in the United States to trade the U.S. stock market. You can live anywhere. Now, depending on your time zone, you may have to calculate the time of the day you sit down and train. The U.S. stock market opens at 9.30 Eastern time and closes at 4. I don't trade until the close. I'm looking to trade in the morning time, which is what we're going to talk about today and focus on as well. But you can be anywhere in the world and trade it. As long as you have a computer and an internet connection and a brokerage account where you can actually take a position an equity position in the market, you can trade anywhere in the world and it doesn't matter where you are or where you live. So you could go on vacation. You could live in the U.S. and go on vacation in a foreign country and still trade on vacation. Of course, I don't know why you'd want to trade on vacation, but if you would want to, you could essentially. And it only takes a few hours a week. Again, I like to focus in the morning, which was what we're going to talk about today. How can you make $100,000 a year trading? The first thing I want you to ask yourself if you're here is to be honest with yourself and ask yourself what is your mindset. In the last week or so, I realized this, that a lot of people's mindset in reference to trading, I don't care if it's day trading or swing trading or court trading. If you have ever placed a live trade in the market, a lot of people's mindset is fairly negative. So if you are embarking on this road, on this path to be successful trading, then I want you to be honest with yourself. You can write it down in a piece of paper next to you now or you could just think about it in your mind. What is your mindset if you had to be honest with yourself? What do you really think about trading and what do you really think about the market? If you can't be honest with yourself, you're going to go through some mental battles so the best thing you can do is just be honest with yourself. It really has to do with what you believe and if you want to move forward from trading if you're not profitable or if you're just break-even to being profitable, you have to do what I call a reset. You have to reset your brain. I talk about this a lot in my class, in my main class. I actually talk about the brain and how it works. Your brain is something that you have control over. You actually can program it. In fact, your brain is so powerful that not only can you program it correctly to be successful in reference to trading, you can do it with other things as well like if you want to even lose weight. Our brains have something called a set weight for our bodies physically as far as our weight goes. In other words, if you've ever gained weight and you've gained weight and you've been at that weight for a really long time, I don't know if you've ever noticed this or if you've tried to lose the weight then, it's hard then for your body to lose weight even if you exercise and diet because your brain weight then, your set mind weight then has changed and you need to reset it. You can do this. It takes knowing how to do it. It's the same thing with being successful. So let's just say you started out and no one is born and successfully trades the market. You're not born one day and start to trade and are successful. Most people, what happens is they start to trade and they lose money. They're learned by the market. Like I said, they have some good trades but ultimately they're down. Then they get a negative mindset. You've got to get out of that. You have to actually reset it and I'm teaching people to do this. It's extremely important because otherwise you're not going to be able to go forward because your brain and your mind is so powerful and the belief system that exists for most traders is that trading is hard but I'm here to tell you if you know what to do it's actually easy. If you believe it's hard, it will be hard for you and therefore you will have a challenge within yourself to reset your brain and move forward to do it easily, effortlessly and successfully. Again, we're so powerful as human beings or minds or brains are so powerful. You actually many times are working against yourself. Your goal might be you want to make money in the market but then in your mind you're working against yourself feeling like it's hard or challenging or feeling negative. This is something I could talk about a long time from way more than an hour. It is something that I go into detail about in my gap class which is very unusual to talk about the trading class but I find that it is very significant if you want to be successful and this is not just in the market but I find that it has a big, big piece of what to do with people in the market because what happens is people start out and they may start out making money but then they fall down and then they're losing and then they get into that pattern in their mind and they have to do a reset and we can talk about this more at the end here Ultimately though, success in the market is about skill. It's really not about luck. Every once in a while I get a trade and it goes to the dream target really quickly but I wouldn't even call that luck. It was skill that I happened to take the trade and be in the right stock at the right time for it to go to the target with me in it. Okay, so even that really I wouldn't consider luck. It's really about skill. To be successful as a trader it is not about luck, it is a skill based career. To be able to make $100,000 working from your house, you know that's skill. All highly paid careers are skill based. Physicians, musicians, attorneys all these people have skills, okay and they make good money. You need to have the right skills and knowledge in order to succeed. The interesting thing about trading is that people either one don't realize how important the right knowledge and skill set is before they risk money in a trade. Like people will take a trade just on a whim or even watching something on a television show or getting a tip on the internet or just going into a trading room trial at some place where they don't even know anybody and they don't know the strategy that our system and the people do and they'll just risk money in a whim. Or number two, they think they have the right knowledge but really don't. This is what I have encountered speaking to a lot of people that have traded the market. They think they have the right knowledge that they know a lot about trading but the fact is that they really don't and how do I know they don't because they're not making money. So are you specific enough with what you're doing? It's like the market, the stock market, the U.S. stock market is this vast ocean and if you're not specific enough with what you're doing then it's going to be challenging for you to be profitable on a consistent basis. This idea of flipping from thing to thing to thing really doesn't cut the mustard. It's like you can't be a jack of all trains and make money in the market consistently. You just can't. You have to become a master at doing one thing consistently and that's where you see the rewards and that's where you see the money. That's where you see the $100,000 a year. Now what do I mean by specific? Part of the equation of being specific is one strategy that you would focus on. Now the strategy that I happen to focus on is gaps. Here's a chart. This is a chart of CHI. This is a gap. The stock actually gapped on Friday. You can see this here. This is Thursday night. It closed at 3640 and opened the next morning here around 35 something. So the stock gap, this is the strategy that I would look to trade and play on. It also had a gap today. Today is Tuesday. The market was closed Monday. This was Friday. The stock closed here on Friday night and it gapped today on Tuesday. So what part of the being specific has to do with the strategy? Now also, which we're going to talk about and I said earlier is this idea of shorting. Because if you shorted CAG on Friday or you shorted CAG on Tuesday, you made money. Now, it is about the focus, as I was saying. One individual can trade the market successfully as a career with a dependable method. So the method is in the strategy, which I just talked about was gaps. In order to reap the rewards that the market has to offer, you need a quality system to follow. What are you going to trade every day and in what direction, for example? The central structure to trading results must be a strategy with a solid foundation that is based on accurately reading price action. The other powerful factor in being consistently profitable is having an edge. And this is what I'm going to talk about today. It's shorting. Because shorting gives a trader an edge. This is one of the reasons I'm very successful, actually. Now, I can read logs, but I prefer shorts. I prefer them because they move fast, which we're going to talk about. But I prefer them because it's something that not many people can do well. Many traders don't know how to short. And not only that, many traders won't. They won't even try to short. And even of the ones that do, many people that trade the market stink at it. They are terrible at it. So where does that leave you? Well, you know that now there's something out there that exists that you could do in the market that many people don't do well. Many people don't do, and they don't do well. So you say to yourself, well, maybe there's something here I could figure out. I could do this thing. Now, when I started trading, I didn't realize this. I'll just be honest with you. I didn't realize that many people didn't know how to short. In fact, it didn't really dawn on me. I'd say it was a couple of years after I was shorting that people weren't good at shorting. And actually, not until I really started my business, I've been trading for seven years. I only started the business two years ago. I've been shorting the whole time I've ever been trading. I've always loved to short. Not until I had the business that I realized that not hardly anybody even shorts. And actually, even in the last two weeks, my broker told me something about shorting that hardly anyone that's at their firm shorts. And I was flabbergasted. I said, oh, my Atlanta. I mean, it is really true that most of the people that trade the market don't know how to short or don't short or don't know how to do it or stink at it. So I really have an edge that I do this. And not only that, it's not just that I do it. It's that I'm really good at it. Okay. So when you have the market, let's go back to this picture here. You have a C. You have a C of all these things that are going on. We're going to talk about what a short is. But if you see the C and you're trying to catch a fish, okay, you have to be very specific. Otherwise you're not going to catch that fish. Okay. See the difference? And every day when you get up, like with this tag, you just got to get that one fish, that one tree, that one stop, that one short, that one move, because that's all you need. You just have to do it consistently. Every day that you get up at a bit. Every day, Monday, Tuesday, Wednesday, Thursday, Friday. Now let's talk here specifically about who shorts. Some insiders indicate that it takes a certain type of a person to short stocks. Many short sellers have been depicted as pessimists. I would consider myself that, but this is a definition from an Estopedia, who are rooting for a company's failure, but they've also been described as disciplined and confident in their judgment. Now this is a better way I would describe myself. I'm very confident in my judgment when I look at a stock to determine that it's going to fall. So when red comes into a stock, it's selling and shorting. Sellers are typically what? Wealthy, sophisticated investors? Yeah, I guess I would consider myself that. Hedge funds, I'm not a hedge fund. Hedge institutions, that's not me. A day trader. Well, that's me too. So when you have people that are shorting, they're one of these categories here. Hedge funds can short. And so can institutions. Short selling is the selling of a stock that the seller doesn't own. I'm explaining this in case you don't know what a short is. Again, many people don't understand this, so I'm just going to go over this. More specifically a short sale is a sale of a security that isn't owned by the seller. I don't own outright shares of CAG, for example, but it's promised to be delivered. When you short sell a stock, your broker will lend it to me. I go in and I press the button to short, and I am pre-barring it from the broker. This is how it works for anyone. The stock will come from the brokerage's own inventory from another one of the firm's customers or from another brokerage firm. The shares are sold and the proceeds are credited to your account. Sooner or later, though, you have to close the short, so it's called a buy to cover. So you take the short position and then you cover it. And then you return it to the broker. It's like I'm saying to Mr. Broker, I'm betting almost that if I short the stock and borrow it from you at a price of $10, I'm betting that the price drops. I'm going to buy it back to you at $9.50. And then I'll make the difference, which is $0.50. Okay, this is really how it works. It's a very simple concept. There's just a lot of people who don't understand it, even people that regularly trade the market. Then getting back here to the CAG, if you wanted to short CAG, you press the button in your short account. You have to have an account where you can short. How do you know that you're going to have to check with your broker or you set up an account with a broker that allows you to take a short position. And you would be betting that the stock price would go down from where you would enter it at the price point of the short. So if you are entering the stock, let's just say here at the high of the day, around 30, 40, 60, 34, 50 something, you're betting that the price is going to go down underneath where you got in, because that's the only way you're going to make money in a short. And that's what it is. That's all that it is. Now, what happens in shorts? What happens in a short action is fear and panic. So, getting back to what I was saying earlier about this idea of, hold on one second, it looks like I lost everybody. Can everybody hear me? I was talking there. I just realized that I lost connection. Let me know if you can hear me. No idea what happened. Let me know what the last thing is you heard me say. Yeah, that was weird. The last thing that I was talking about was fear and panic. Was that the last thing you heard me say? Let me know. Okay. Then it only happened for a split second. That was very unusual. But I told you we're having a storm. It might have been the internet here. Okay, good. At least I saw it. Just plop in the room. Everybody can hear me. Okay. What I was talking about was what happens in a short. What happens as a short is fear and panic comes in because it is selling action. Okay. So, you make money in a short position because of fear and panic that comes into the stock that creates selling. So, when red happens in a stock, and I'm just saying red, you can have your candlesticks. Let me go back here and look at these candlesticks. You can have these candlesticks set up to be black for bearish bars. I have them as red. It's the panic here because the stock price is going down. And there is a fear and panic going on. So, that's what creates the momentum in the short. It's fear and panic. The idea of making money to the short side is that you are sensing, okay, that the fear and panic is going to come in in the stock that you happen to pick to watch to know before it happens to take the short position because it doesn't benefit you if you take it after the fact. After CAG has gone $2 on the day, after you see all the fear come into the stock and the panic and the drop, you can't short it then. The move has happened. So, the idea is to find this, which is how you find the strategy tells you, which is the gap, that it's giving you the inclination. It's giving the clue. It's the clue that the fear and panic is going to come into the stock on the day. So, I have a strategy that I look at before 9.30. It tells me that XYZ stock pick, okay, is going to have panic and fear come into it today that is going to create selling action, which I'm going to short, that I'm going to get momentum on. Why? Because, again, of the rationalization of the fear and panic. Panic sets in fast. This is why I like to short. This is also why I have an edge of the market because these moves happen quickly. So, the edge comes from being able to spot that the move's going to happen before it does so that I can take the position before the move happens. You can't take a position after the move happens and make money. In reference to trading, this is day trading, swing trading, core trading, timing matters like a lot. Okay? You see this setting up right now actually in the market. The market's rallying and the market's higher and a lot of people have actually missed this move that's already been going on along the market because I thought the market was going to collapse or they thought the market was done moving higher but it wasn't and it's not still. Excuse me. But it doesn't help you if you see it too late. So, the idea of making money is you have to see it at the right timing. That's where the strategy helps. And the concept of shorting is good for the quick moves and if you're a day trader, you want quick moves. It's a lot less stressful actually to be able to take a position in the stock well, it doesn't even matter if you're a day trader even if you're a swing trader. If I take a position in the stock and it goes to the target quickly, that's a lot less stress and more fun than having to be in something for a long time. Yes, I have to know what to watch, I have to know what to look for but if I can get in the right thing before that move happens and make the money fast, it's a lot better than having to wait. Now, I'm not a patient person to begin with although I have gotten more patient now than I was even five years ago in my life but I will tell you that even still patients are no patients of your personality wouldn't you rather make money fast rather than have to sit for a long time? Of course you would, alright and this is the benefit of shorting as well because stocks tend to go to the targets and have moves quicker to the downside because of the panic because if somebody for example is long a stock and they were up money yesterday in the stock they get up out of bed today and they are actually well let's just say they're still up I'm not going to talk about crazy panic let's just say they're still up but they're not up as much as they were yesterday well that will make them happy and they will start to fear what if it keeps going against them what if they are not up as much even now by 12 o'clock noon or two o'clock in the afternoon and they say to themselves maybe I need to get out of this now and maybe I need to take my money in the stock position and they sell it now let me look at a question here Tim Kup is asking a question I'm going to read his question first and full because it's a long one and then I will answer it so you're naked in this train with unlimited risk why would you do that rather than use options where your risk is limited the fraction of the account size to get started is required for what you're doing first of all I'm not, I don't have any unlimited risk Tim Kup I use something called hard stops I'm going to show you that in some of the trade examples so I have a fixed risk it is not unlimited I am never taking a position without something called a stop I'm in the trade live on the day when the markets open so I can put a stop in it is a hard stop that means if it goes over the price I'm out of the trade with whatever loss that I decided to take at the position size I never take unlimited risk that would not make any sense now could you use options sure, sure you could I don't do that you could learn my system and do options I've never traded options I've only ever done straight equity trades but I do have people that have learned what I do so that's your thing if you like to do options if you prefer it, if you feel like that's better for you if it's more defined for you with your account size and things like that then yeah, you can do it for me I'm capable of doing it as a day trade and my risk is defined which we'll talk about so I do it the way that I've always done it actually but I do have people that have taken the class and they're doing it for options I don't even have people that ask me about doing this for futures too but that isn't something I'm doing either so there's a lot of uses for the information again it's the idea of shorting and you're shorting a momentum in the panic and you want to really become an expert as I was talking about earlier by taking advantage of what you see so this is me basically and this is a lot of people here don't understand how to short so you can have an edge doing this you have to stand out otherwise it's a see out there the market is just a big see it's a big see of money but you're never going to get a piece of it if you don't become an expert in something so even if you've been trading for 10 years 20 years 30 years longer than I'm alive it doesn't even matter you've got to learn how to become an expert you're never going to make money consistently trading it's one of these things where very early on I pinpointed that that fact that becoming really good at something was the way to go and like I said I just didn't realize at the time that I started trading how very few people short and how very few people are good at shorting that requires a certain skill set but I think as long as the market exists it will always be something that stands out as something you need because for some reason people don't understand it even though it's very easy to understand I think and also many people just don't like the idea of it but you can see here where I was describing about the fear and panic coming in where there's no hesitation there's no hesitation when you're in a long position and you are down ok or there shouldn't be actually if you're smart because you'll lose more probably but there is hesitation when you're going long like your friend might say you love this stock or he loves the stock and he tells you and you think about it for a day or two and then the stock price you watch and then it goes up and then you talk to your friend again and he already bought it and it's ran up a couple of dollars and he said why not buy it and then you buy it finally later like you thought about going long for a couple of days but it didn't take you a couple of days to think about solenoid at your long position if you were already in it and you were up and then you weren't up as much or if you were up and you were down see the difference and I'm using this example of a swing trade but the concept is the same even if you're in a day trade so getting back to this is a short it is when a stock goes down from selling action and shorting action but it is in a panic mode okay so you are again betting that the stock will fall in price that the panic will come in how can you tell it's going to happen in CAD because I'm looking for a gap this is the gap and gaps happen in many stocks but the strategy is what's going to pinpoint me if the panic is going to happen or not so I have a method to find the gap it is a 26 point rating system it is a professional bearish gap rating system the purpose of the system is to help you evaluate which gap to trade each morning using a checklist that's how you know whether or not you should short-cag or something else the philosophy behind the 26 points is to find stocks to trade that have number 1 a high probability of directional bias for the entire day number 2 big moves on the day number 3 early confirmation of my bias in the move between 9, 30 and 10 and number 4 precise entries with follow-through and a good risk to reward which we'll talk about today as well because that's how you're going to be able to make $100,000 a year you've got to have a good risk to reward in the setups and this goes back to what Tin Cup 2 is saying you do have to have a certain amount you're risking that's what risk to reward means you're looking for a certain amount you're risking and a certain payout so I use this 26 point checklist to trade that's how I know what to watch and the ultimate philosophy behind my system to trade is to analyze a large time frame which is a daily chart but I'm entering the stock on the one minute chart which I'm going to go over and show you today the one minute chart allows for high degree of focus and accuracy now this is for day trading you use the daily chart to make the decision for the stock pick and that's how you get the good risk to reward so why trade bearish gaps because of institutional money they make gaps this was QCOM now this is a 15 minute, this isn't a one minute chart but I just want to show you there's a gap back from the end of January but the stock could close the night before around 70 something and open the next morning here at around 65 some dollars do you see here at the panic now what created this institutional selling the stock fell $5 now I'm not in this in this this happens at night I'm in this once the day opens and on the live day the stock still fell more than $3 and you would short this if this rated per the 26 point rating system which it did okay and again here's an example of panic if you see this on your scanner at 11 o'clock or even here at 10.30 you miss this thing so the idea is to find QCOM in the morning before 9.30 so you can get in QCOM here so you can get this but it happens because of large institutional money TinCup is asking another question here I'll just answer and anyone else has any questions too you can find gaps a bazillion places TinCup to you can buy a scanner you can go online you could get them in your platform it's like there's almost every stock actually gaps every day and the market the market ETFs but not every gap that happens even to the downside is something that you could short just like not every up gap is something you could buy because tons of things got so how do you know to get this one that it's going to drop $3 a day okay that's how the reigning system comes into play the strategy is a gap but then you have to have a method to find the right stock to pick to short because they want all worked down some will gap down like QCOM could have gapped down $5 and got bought and didn't I rated it it was a good gap that rated for the 26 points but you wouldn't know that unless you rated it that's one of the reasons I created the reigning system because there were so many gapings that were gapping just even to the downside and they didn't all work to continue and then I had to figure out which ones were short some longs so it's really about precision and detail because it matters accuracy counts and trading in all fronts which is the quality strategy the good risk reward right entry correct size and proper exit being successful in the market takes detail on a certain level of precision which I have and you can learn from me because I trade on the one minute chart the one minute chart takes precision and detail matters it can make a difference and a lot of money one day are losing actually so you have to learn what to do and when to do it like for example if you did the QCOM at the wrong time even though it was a short you might have actually lost money shorting QCOM even though it was a short but if you took it too late so it's about having a trained eye this is where the skill set comes in where you are learning you're training your eye to look at a specific thing even if you have trained your eye for 20 years if you haven't trained your eye to read the right thing that matters you're probably not making money in the market a trained eye counts this is one of the reasons I've called the market extremely extremely well someone said in the room actually someone that's done my class I did my class a year ago that I'm I'm known for calling the market I didn't even realize I had gotten a reputation for that but I guess I have even with my own people that have already taken my class and are training with me to call the market as well as I've been calling it and the market is higher how have I been able to determine this all along even with the bearish month we had in December and January because I'm reading the price action in the gaps that are happening and specifically I'm an expert in shorting okay so when all the red bars were happening here and there were some bearish gaps in the spy I was able to determine through the 26 point reigning system if the selling action was enough to actually turn the market or it wasn't anything to be concerned about like that would change the market direction which it didn't and you know the market continued higher today now we have a couple other questions is your system more of reading price action or relying on indicators I don't rely on any indicators Michael so the answer is yes it's reading price action if there was one system where you could rely on an indicator for accuracy we would all have it and it wouldn't work we wouldn't work because we don't have it and the only reason that the only reason that the market is something that which high level of profitability for people that are successful at it is because there's a large majority of people that lose money in the market and then there's a small amount of people that win again to reset your brain does that mean that you're going to think you're going to be part of the category of losers or does it mean that you are going to be part of the category of winners like who are you are you a winner or are you a loser you need to know who you are that's why when I started trading I don't want to get too off topic here because I have a lot to go over yet when I started trading and I was losing at the beginning I was winning and then I didn't know what I was doing but it quickly turned for me and then I started losing money and then I felt like I was in a bizarro world because and it was like bizarro world that I was losing you have to know who you are and I knew I was a successful person and the very idea that I was losing money in the market made no sense to me okay know who you are are you a successful person or not it counts now let's get back to this focus on where the momentum is how do you know that how do you know the information and the skill set in your brain to know it now let's go over some trades here because tin cup was asking about trades with risk and things tin cup is asking again about why things got things got for lots of reasons earnings, news a CEO gets fired creamer talks about it on his show I mean like it could be anything tin cup too like anything actually that could make a gap the market could gap down and stocks would gap down with market like a lot of stocks actually gapped up on Friday with the market market gapped up Friday market didn't gap up today market gapped up Friday a lot of stocks gapped up with the market so there is like a whole plethora of reasons now let's talk here about cake you were saying about the day in the day trade tin cup too was let's talk about this first of all this is a one minute charts just so we know where we're at and the stock gapped now before 9.30 you're going to determine if you want to short cake you might want to go long it you don't you don't know you rate it for the 26 point system and you determine it's a good short so you take a short position in it you short it here and you put the stock it is a hard stop if cake goes over the stock you're out and you take the loss now it didn't and it went the price of the entry was 48.42 stop is over 48.85 risk is 43 cents so here's the risk show you have to size yourself I broke this down advanced risk is $645 the exit and this is not the low of the day it went another 25 some cents it's 46.75 this is a really nice move you could have made $2,500 this is real money people okay you would have had to risk $645 but this is a good solid train it's over three risk units almost four and it happened very quick why because of the panic do you see this here do do do do do so you are short the cake see this now some people and you can see this here some people might have wanted to buy cake the stock had a big rally in here this is a big rally right in the first 15 minutes of the day did not make a new low here started a rally again how do you know you can take the short and hold it through how do you know not to buy it here or here because of the rating system because there are some stocks that get down and rally and some people look for gaps to fill how do I know this won't fill I rate the gap per my system to look to short and I want to see the short move because I want to see the panic and the selling fast if the stock rates per the 26 point system if it doesn't then I'm not doing cake and in fact cake might be along then the only way I know cake is a shorter along is because of the rating system and the gap tells me that I rate the gap itself but a stock could gap down and rally I'm letting you know this it's the 26 points it tells me cake is going to be short or not and again I like to short that's just what I like to do this is momentum you see this in here this is a beautiful move in here do you see this the price in here and it did go down to 46.50 so the stock got a two dollar move in half an hour so you're looking for this every day now in reference to an intermediate position you're not advanced yet but you've been doing this for a little while you risk $258 you take the same trade you still make over a thousand bucks it's a great trade so you don't have to risk $5, $6, $700 $250 you could have risked in this trade it made over a thousand dollars it's a common day it's a good solid trade why because of the move because of the momentum because of the panic that came into the cake so here do you see here I have a stop in tin cup too this goes over that price boom you're going to lose $258 it's not unlimited it's fixed and even if you have slippage it's not going to be something crazy like if it would fill you with 88 or something it's not going to be something crazy so you don't trade with unlimited risk who have the stop in now how does the time of the day fit into it because the time of the day matters for getting the momentum that's how you're getting something that falls in a short that you're in that you're shorting $1, $2 into that morning move now here let's look at the CAG again this is a bigger chart here of the CAG but again this was one where you would get up in the morning this was on Friday and this was today and you'd be rating the gap to determine if CAG CAG could have rallied here this was Friday it didn't but how do you know the rating system tells you and then you determine that you can short it in the morning before 9.30 and you're looking to take the position this is the one minute chart in CAG you're shorting it here look at this boom and again look how fast this came in in 10 minutes do you see here the panic see this but if you are waiting for your scanner to come up you see this here after 10 o'clock but this all happened and if you know what to do when you learn into my system you'd watch the CAG you would have gotten this whole short and some of this little rinky dink move here it's all about the right pick now if you shorted this the entry was 35.33 again hard to stop it's 17 cents is the risk on 4,000 shares this is an advanced risk it's almost $700 eggs is 34.65 again this wasn't the low of the day of this I do teach eggs at rules and targets in the class profits almost 3 grand this is a really nice trade it's again a 4R trade but it happened in 12 minutes where can you make this kind of money like this this is do you see here this is the edge shorting look at this momentum move 12 minutes in the train you're out $3,000 if you risk 700 or 680 now what if you didn't want to risk that much intermediate trade it's the same trade $255 you still make over $1,000 in the same trade because you're getting the momentum and this isn't even a dollar but it's a good solid move okay in this stock so these kind of common days really gets you to the number where you're making like I said 6 figures a year and this is a risk of $255 this is not crazy and anyone that's day trading should be able to afford a risk like this once you learn my system and know what to do this is how you have days where you make comma days I call them there's a comma in the number now you could have played CAG again today CAG has shorted it this is a 5 minute chart not a 1 minute you could have shorted CAG here you were in this longer it still had a beautiful move this is you just got out of it at the target you entered it here got out of it at 34 which was the first target although it did go to the drain target today it did go down to 33.65 but if you shorted this here at 34.33 and exited the whole entire position at the first target you could have made $2,300 risking 630 bucks this is a 3R train you didn't even hold it all day but you actually could have this actually went to the full on target on the day if you risked 270 you could have made again almost $1,000 on this train it has to do with the exactness let's go back here of the entry the stop knowing where to take it and the exit but it did continue Nick Nick is asking me about commissions first of all if you are an active day trader Nick Nick you have to get with a good broker that is not going to eat up your profits and commissions if you're trading a certain number of share size per month you can get good commission rates if you're not I have no idea what you're paying but I mean there are places out there that charge ridiculous commissions no one should be actively trading at those places Nick Nick so if you're active and you're trading volume it doesn't eat up anything because you get better rates and you don't pay per like some places out there like $7.95 a trader $12.95 a trader something crazy I don't pay even remotely like that it's all volume based okay and the more volume trade the cheaper commissions are because the broker wants to keep you because you're active and brokers make money on volume volume volume volume volume that's how they get their rates down like the more volume that a broker has running through the brokerage firm the cheaper like the pennies because you know it's pennies that they're actually paying like when you're paying I don't want to get too off track here but when you're paying $7.95 like they're paying pennies so you know it's actually crazy so let's get back to this here how many gaps per week during each quarterly earnings season three to five quality gaps or more and during non earnings season there's three to five quality gaps per week a quality gap is one that rates high enough to trade based on the 26 point rating system so someone had asked me the other day about how many you know gaps you get there's some days you just you don't do any you don't get a good one you don't do it it's about the quality in the sea of the market you're trying to hone down and pick a good fish remember if you can't find any good fishes that day well then you're not going to you're not going to eat them you're not going to eat a fish that's half dead poisoned you're looking for quality and you need a plan for booking the money quickly which happens in the shorts to the downside so in order to make six figures you need the right business plan and the right risk to reward trades which equals the results now getting back to what I was saying what's a good risk to reward payout one to three in the low four to six in the mid and eight to ten in the high and you do get trades like this eight to ten in the high not every single day but you get them in the months time over the course of each month and each year you get them what this means is for every dollar you risk you should have a goal of a minimum of three does every trade get to a three-hour trade? no but many do and some get to higher and there should be a potential for even more if it goes to a dream target for example the CAG thirty four dollars was the target on that today low of the day I think in CAG today was thirty three sixty five inch okay it was a nine cents stop and the stock went like eighty cents so there and it was just just a trade okay but it was all about the entry all about the stop all about the right pick now if you want to make a hundred thousand dollars a year shorting gaps your risk unit should be about two fifty they get really good you could have it at two hundred you know you can get up to the point where you're risking more over time but anyone that's brand brand new you should just start out with learning it you can increase your risk over time once you prove that you can do it and that you're seeing the gaps and you're seeing the entries what you can see here how even five hundred dollars a day ends up being over a hundred thousand dollars a year and three hundred dollars a day is seventy eight thousand dollars a year fifteen hundred dollars a week I mean that is so reasonable two thousand dollars a week is eight grand a month eight times twelve is ninety six that's basically a hundred grand a year two thousand dollars a week I mean if you are trading for twenty years day trading or ten years or five years or six years or three years or four years and you're not even making fifteen hundred dollars a week I don't care if you tell me you have all every indicator in the world every feminachi I don't care if you have taken twenty five classes you haven't learned how to trade you don't know how to do something that's going to make you money you can read all the charts in the world you can know everything back and forth about every type of indicator it doesn't mean a hell of beans if you aren't making money quite frankly there's only one reason that I do this there's only one reason that I ever sit down to trade yes I do like it yes it's fun yes I like working from home and all of that stuff but quite frankly there's only one reason I do it and that's to make money and if I didn't make money then I flat out wouldn't do it okay so if you are at a place that you have been doing this for a long time and you think you know everything you don't because you know if anything it's giving you an edge to really teach you how to make money and my class my system my strategy my method shorting stocks the way that I do it actually teaches people how to actually make money in the market that is why I have a successful business it is why I'm a successful trader so I can teach you how to make this kind of money shorting I am teaching people how to do it and I teach a class it's called the golden gap course the golden gap course teaches a twenty six point reigning system to find the best stock to trade each day it's just you how to enter and exit the trade on the day okay and that's how you make the money it teaches you support and resistance at an advanced level far beyond what any indicator would ever teach you because it is a skill based method and it teaches you how to trade in a very detailed manner so you become a good trader and what do I mean by good trader I mean someone that knows what to do has conviction can do it presses a button without fear takes the risk and makes money and that's what I mean by good trader someone can tell me they're a good trader but if they're not profitable then they're not a good trader to me okay a good trader is someone that knows how to trade and can actually make money in the market a good trader is someone you'd give your money to to make money for you so I use a twenty six point checklist I just go over it every morning the stocks I look at now someone also asked me is the class beginner advanced the class is advanced does that mean if you're a beginner I couldn't teach you no I can teach anyone will you have a little bit of a learning curve if you're a beginner sure sure you will but the class is advanced the cost of my class is three thousand dollars I wouldn't be charging three thousand dollars for a class that's not advanced information again you will learn things from me that you won't learn from anyone else and the way the person I am the way my mind thinks it's advanced in reading price action I have taught people that have never traded the market before that are brand new beginners don't even know how to read chart they've asked me a lot of questions I answer them they learn it's a good place to start if you come with me because you don't have any baggage in your head and I'm teaching you from the nuts and bolts from the ground up so either way whether you're a beginner advanced the class is worthwhile know though that there is more than one step in the ladder for most people's journey if you have been on this journey for a while and you're not making money there's no reason to feel bad about yourself like I said you just have to do the necessary things reset your mind frame learn something that's going to teach you how to make money a lot of people are on different ladders and they're on different paths I just want to see people be successful and that means that sometimes you have to change your thinking you can't be a jack of all trades and be successful with this and a master at none there's too many people to see the market trying to make it at some point you have to get on the right path if you really want to be serious about it so don't let anything stand in the way of your success it is really all about your mindset and you can reset your brain I'm teaching people how to do it and remember that working for yourself is a great thing so empower yourself today I teach a class and it's a complete system to use to trade it's called the golden gap course it's a full two-day course and have to strategically find pick-and-play socks that are professional bearish gaps retakes are free online and the class is online as well the class is this weekend, Saturday and Sunday February 21st and 22nd 9 a.m. to 5 p.m. Eastern time class of the class is 29.99 if you would like to sign up email me at Melissa at thestockswish.com remember your past success is the golden gap course and this is a great time to trade gaps because it's actually earning season right now it's the end of this month and all into March I also teach another class called the trends course this is going to be at the end of March March 24th and 25th from 12 to 4 this is how to read long-term trends and charts if you're doing over nights class of this class is 9.99 and I'm running a special if you want to do both classes you do the gap class this weekend for February and then you would do the trends class at the end of March and you could save $499 if you sign up for both at the same time the gap class and the trends class for one price which is $34.99 so if you're interested email me at Melissa at thestockswish.com it's still very early in 2015 you can still achieve the goals that you set for yourself this year think about the things that I said today about how your brain works and your mind works and I appreciate everyone listening to me today now my voice does not sound like my normal self but I'm going to get better very soon any questions email me at Melissa at thestockswish.com any questions here left over tonight? okay you're welcome email me if you have any other questions and thank you for coming everyone thanks tin cup I'm taking my vitamins