 Test, test, test. Can everybody hear me? Okay, good. Welcome at the sound of the trumpets. Most of you know that means it's time to begin. Please put your hands together and welcome our host and presenter today from TheStockSwish.com. Please welcome Melissa Armo. Online Trader Central, welcome. My name is Melissa Armo and I own a company called TheStockSwish and today I'm going to talk about the strategy that I traded the market. And specifically the topic for tonight's webinar is how to make $20,000 a month day trading for a living. How can you do it? How can you put a plan of action forward to do this for 2016? So that's what we're going to talk about. Welcome. If you have questions, you can write it in the room. I'll read the question out loud and answer the question along as we go. Also, if you would like to email me afterwards, you can email me at Melissa at TheStockSwish.com and I'll respond to you or you can feel free to give me a call at 929-3200-GAP. I have tons of videos on YouTube, tons. You can go there. You can watch previous webinars, plays of the day and you can learn a little bit more about me watching some of my videos and the method that I do if you're interested after tonight. So the question is, and so many people I talk to, can this be done? Can you actually do this for a living? Can you actually day trade? Can you make money? Can you make $20,000 a month? Can you make $20,000 at all? The fact is that you can do it. The first step right now here today at 431 Eastern Time on January 23rd, the first thing you got to tell yourself is that you got to believe that you can do it. If you don't believe you can do it, then how do you think you're going to do it at all? Now whether you know how to trade or not is not even what we're talking about right now in this moment. The question is, do you believe that it is possible? Do you believe it's possible? Yes or no? So you have to believe it's possible. Going into this with a positive attitude, I don't care what happened to you before today, before you met me. I don't care what you did last year, stop thinking about the money you lost in the market, classes you've taken that you didn't make any money, whatever, okay? You cannot change the things that have happened in your past regardless. And the trades you've done, you've lost money, it's done, okay? What you have to do is decide if you're willing to move forward into your future, which is 2017, and do it. And you've got to have a positive attitude. You need more than that, but you absolutely have to have that. So are you ready to make 2017 a successful year for yourself? The answer is yes. Yes, of course you are. But the question is, are you going to? It's up to you. So we're going to talk about trading in the US stock market. This is a chart of the spy. The market is very, very, very, very, very, very bullish. Some stocks may brand new autumn highs today, Google. I mean, things are just flying, flying. And you say, well, when will it end? It's not looking to end anytime soon. So 2017 will be a very volatile year in the market where the market will have a lot of moves. And mostly, in my professional opinion, my prediction will be to the upside. Although many people are struggling with this and having a problem thinking about going long, why? Because the market's been up for so many years. It's been up for a while. However, it is still higher. So this will make for good, successful trading times for people like me and other people that know what to do. Because the market is going to have a lot of volatility. And volatility means profits if you know what things to trade, what stocks to trade. And also, if you've got to do the stock in the right direction, I mean, that's key. So let's talk about how can you trade the US stock market for a living? First of all, like I said, number one, you need to believe that it's possible. Second of all, what else do you need? You need a system to do it. Otherwise, you're not going to know what the heck to do. So one of the critical ingredients to be successful in the market is to have a trading system. Without this, you will get up every day and you will not know what to do or when, or you will just watch the news or watch TV or go into random training rooms or look at stuff online or people's tweets. And you will take whatever things you see out there, not knowing anything about it, not knowing why the people are calling the trades or saying these things and not having any conviction in what you're doing. I don't do that. In fact, I very often block out everything, including the television and the internet when I trade. Tons of people fail all the time trading because they have no system whatsoever to follow daily. So this is very key. And I have one system and it is the only one I follow. And it's the only thing I do and it's the only thing I teach because it's the only thing I know and it's the only thing I'm good at. And it's based on shorting stocks to gap in the first 30 minutes of every trading day. So my real niche in what I do, if you come and learn and trade with me, my niche is that I only do one thing and I do it very well. And I only ever will because it works. So there's no reason for me to do anything else. And I believe that one of the critical ingredients also to be successful is that you got to be good at one thing and you will never get good at one thing if you don't focus on it and get good at it. And if you're doing too many different things it's hard to get good at too many different things. And also it's very, very rare. Most people are not good at five different trading strategies. And I mean extremely good. I mean so good that you're better than anybody else. And in reference to trading gaps and being able to predict where stock will go in a gap, I believe that there's no one that's better than this than me. And that's the reason you come and you learn from me. And if you don't believe me then you can talk to some of my students or watch any of the videos I have online in the trading room. All right go back and look at the market. I predicted the market would continue to make brand new all-time highs and I'm even predicting it now which it will. So it is about doing one thing and nothing else because that's how you get the focus, that's how you get the conviction, that's also how you get the confidence to plop on the money. When I go and I take a trade I'm not risking a dollar, I'm not risking two bucks, I'm risking real money. It's mine. And the money that I risk in the trades that I take which varies. The day trades could be a thousand bucks, could be 1500 some days if I really like something. And in some of the options I've risked way more. But when I'm risking money it is real money. It's money I could be doing something else with, okay? So I want it to work. I want the trade to work. I'm taking the trade not without any thought process. I'm taking the trade with a hundred percent conviction that I believe that the money that I put up to take the position will make me money. That it's a good investment. It's an investment that is a short-term investment in the sense that I'm in and I'm out quick. It's a day trading investment but it's still my own real money that I'm putting up to do it. And then it's an investment that I want to work quickly, okay? So I believe that the focus is key to this and not becoming a jack of all trades. So one strategy really I think is very important to make any money at all, okay? And $20,000 a month is a lot of money. Many people do make money trading. Some people have made and probably I'm sure in here have made this much in a month or even maybe in one trade if you did a good option trade or a couple day trades in a day. But the thing is to keep it up, to consistently keep it up, going, going, going and over the course of a calendar year you're making well over six figures. So how do you keep the consistency is the problem for many, many people. People make money trading. They have good days. They may make $1,000 on a Monday, a Tuesday, a Wednesday. They may make $5,000 one week but then next week they don't. They give it back or they lose or they'll make a little. The problem is how do you go from January 1st to December 31st in a calendar year like 2017 and actually say, wow, I actually did something here. I actually made money. It's the idea of the consistency and this is where many, many people fall short and I believe 150% that Nali doesn't have to do with the system itself. It has to do with getting good at one system and it has to do with the focus. Your mental attitude, you've got to have no matter what, which I talked about earlier and we'll talk about more at the end, but you still got to have the system and the focus. You do not need a general overall broad based view to make money. You don't. That's a misnomer. Tons of people have broad based knowledge about the market and they fail all the time. They have very basic general ideas about technical analysis, about how to read support and resistance, about moving averages, about candlesticks, about lots of things. But this does not help you make money. My system actually teaches you in the class who would actually learn how to make money and if you come to the training room with me, you would actually take the trades with me and you would actually be able to make money. That's what I do this differently. That's one of the reasons also that I make a requirement to be in the room. You've got to take the class because you've got to understand it to make money. You've got to be serious about making money and if you pay for my class, you are serious. The other thing is that I have the training room only open for a very short time of the day. I close the room out before 11 a.m. every day. I'm focused on doing it and we're done. We do the trades and we're done. We do it and we stop. I do not have the room open all day to four o'clock. I think it is a disaster for traders. I'm still focused on making money in the period of the time that I trained it that we do it and then we're done. We don't sit and lull a gag around and talk and jitter chatter and in fact the room is closed off. You cannot see other people's comments in the room and one of the reasons is to have the focus. People talk about politics and and and jibber jabber and have chats and things. The time to do that is not in the morning when you are supposed to be making money and if you come and trade with me that is exactly what you will focus on doing. You will not be there to make trader friends. You will be there to take my trades to do it with me to make the money or to learn something on the day. Okay. I am serious about what I do and that is the only way you're ever going to make this kind of money and I'm telling this right now because you got to go into it with the right expectation that you got to be serious and if you're not then there's a million other places you can go that are less serious that are cheaper than coming with me but you will never hit these numbers. You will never hit these goals because 20,000 dollars is a lot of money per month to consistently be able to do it. Okay. So becoming an expert in one thing really really really helps. So what do I do? Many of you here know me. Some of you don't. Some of you are now. I'm going to tell you right now I trade a strategy that's based on stocks gapping and stocks gap every day but not every gap is playable or what I would call predictable. Okay. Today's gap we're going to go over it with QCOM. It was predictable. I almost didn't do it because I usually don't always trade on a Monday but I raided it and it was good and we did it. So my gap system is powerful because it identifies fast moves like QCOM which we're going to talk about that occur in the first 30 minutes of the trading day and that's what I trade and also long-term moves that can be captured with swing trading or an option trading. So my system is based on stocks that are gapping and that's what you need to learn if you want to come with me. This is the focus. You won't need anything else. Why? Because you can day trade gaps. You can do swing trades and gaps. You can also do options trades and gaps. Now I don't do options every day. I do them when I see a good one but it's another way to make more money. So stocks and actually I think you I think you can make more than $20,000 a month just trading options with my system. After last year in 2016 I believe that that is 100% possible but we can talk about that in another webinar. Anyway stocks that gap in the morning have big moves and often a clear directional bias that gives traders an edge and you've got to know what that is. Where is it going? I make the prediction. So gaps happen every day in the market. Today QCOM was a news related gap. Sometimes they're an earnings gap. Sometimes it's a sector gap. Sometimes stocks gap with the market. It doesn't matter but you're looking for the gap. Stocks have post market and pre market moves that happen for various reasons. Like I said they could report reports from news out where the market is closed. Tomorrow morning BABA, Alibaba reports that has earnings in the morning pre market. The next morning when the market opens these stocks open at a price that is above or below when the close the night before and that's what a gap is which I'm going to show you in a minute on a chart. This means though that really from four o'clock eastern time when the stock closed until the next day in the morning at nine thirty when the market opens there was a change in price. This change in price of the stock itself or an ETF because you can do this with ETFs creates something to happen which is an event. The event is the gap. This could be a situation where investors or traders or people are going to do something in the stock. What are they going to do? They're either going to buy it. Are they going to short it? Are they going to sell it? Okay so these gaps are besting on a daily chart. Let's take a look at QCOM. QCOM was the one today. Here is what a gap is. Again this is a review for some of you it's for the new people. It's a daily chart. This is a daily chart of QCOM. Stock closed here. Friday 62 something whatever. Hot a big sell-off on Friday. Actually at late news most of the percentage of the sell-off of this bar here you can't tell it because of the daily app. If you go back and look at the one minute chart happened after 3.30 Eastern time. There was news out. Some kind of lawsuit thing with Apple whatever. So the stock fell hard. It followed through and continued this morning in a gap. So it closed on Friday at four o'clock at 62 something and opened this morning at 58 whatever. Okey-doke. So this is a gap. It's a difference from the close to the open. That's it. Okay so what do I do? Oh I get up in the morning and I look at this QCOM and I am predicting that the stock will go in a certain direction based on my rating system. It's a 26 point rating system. That is what you come and learn from me. If it rates 20 points or more then I know it will continue in the direction of the gap which in this case here it gap down so I'll be looking to short it. Or if it gapped up I'd rate it to go long. That did not happen. It gapped down. Now this could have not rated good. It might have rated less than 20 in which case then I would not have gone long it and I would not have shorted it. I wouldn't have done it. I would have done something else or nothing. Okay so it has to meet the criteria and it has to meet the system. Any questions so far? Now let's look at it. Stock closed here. Gapped down. Now we're in a one-minute chart. So the trains that I take in the morning when I trade between 9 30 and 10 I'm taking them very aggressively. You must know what you're doing when you trade in the one-minute chart. If you waited until after 10 o'clock to short this stock the stock has already dropped three dollars. You're missed 80% of the move. That's not what I do but that is what many, many day traders do. They wait till after 10 o'clock to see the trend of the stock and then they get in or they get in late or they do a flip or reversal. Okay I'm looking to get in in the setup before 10 and I'm looking also to try to get out before 10. Now as it turns out I could have held this longer. I didn't okay because I only have one goal every day to make money but as it turns out this I could have made more in. So the stock I shorted it and it dropped. Boom. Do you see how this continued? It actually went to what I call the dream target. Now let's go over the trade. Entry 56.99 stop 57.60. Boom. You're in. Okay and I use stops or hard stops for limit orders so the trade doesn't work then I would lose money and some trades don't work but I have a stop. The stop is a protection. The stop is like the insurance. It's the insurance that tells me Melissa I'm not going to lose any more than whatever I risked. In this case here the share size was 1500 shares. Now I want to exit with 55.94. I'll go back and show you it kept dropping. This went down to 53 something. I could have held this longer but I didn't but I was up over 1500 bucks. That's a day to me. I'm happy with that. It could have backed up and then I would have waited for it to drop again as it turns out it never went anywhere near my entry but I'm happy with this and again this is about the cycle of getting it seen and doing it out in and out in and out in and out. Okay now I'm going to go over something here. Someone emailed me about buying power requirements the other day. I think it was was Doug. Oh yeah I think it was Doug. Anyways he said well how much do money do you need to make this kind of money in buying power? If you have a retail trading account they will give you a leverage of four to one. If you have a prop account they'll probably give you leverage of 10 to one so I don't know where you trade proper retail. If you want more information on this you can email me okay there's all kinds of stuff online about it but you would have needed 85,000 a little bit more in buying power. This isn't cash it's buying power. So for example if you have a prop account what would you have needed 10 to one you would have needed over $8,500 $8,500 to take this position here with 1,500 shares at this stock because it wasn't cheap or if you had a retail account how much would you have needed you would have divided this by four except a retail account requires 25,000 so you would have needed 25,000 even though the BP would have covered this more than that. Does that make sense and does anyone under does everyone understand that and if you don't you can ask me so what if you didn't have this much in buying power then you could take a thousand shares then you could take 500 shares you have you take whatever share size you can afford all right and that is what you do but I'm saying that if your goal is to make a thousand dollars a day and you're up your goal then you get out of the tree if it starts to back up I do have targets just to go to the target it went to every target I said it went to the dream target but my goal every day is to get in and get out between 9 30 and 10 now I will show you where it went it went all the way down here 54 something you could have held it so you literally the same exact trade if you had done it you could have made another two dollars on this I could have made another three grand in this trade I could have made over $4,500 today in this stock in one day and $4,500 in one day I could have made in this trade I got out with this profit but I could have made $4,500 so I could have made my goal for the week basically in this trade do you understand that people so you know it is very very doable it's it's about getting it and doing it and seeing it and not only that getting the right pick if you know if you go along the stock today you lose if you went along anywhere the stock today you know it was ridiculous because look at what the stock did okay I'm sure somebody in the world did go along the stock today thinking it would bounce and probably what somebody did was try to buy it in here and here and here and probably tried to buy it three times it got stopped out every time and then finally bought it and made some little money in here at a bouncy poo but the fact is that that's not what you want to do you want to train with this selling action that's coming into the stock which came into the stock in the gap and when it rated good it confirmed it sometimes you get a stock that gaps down and that's it it actually flips the selling action does not continue into the day into 930 and it flips and it rallies people call it a gap fill but I don't play that action because that action is not going to give me this kind of move like this did here today with the ease of it with the entry and where I'm getting in something and immediately up and then I have a target and get out you need to be able to predict that it's going to go and follow through on the day and what does that my reigning system tells me that that's how I know some days and why some days I do not short stocks that gap down they don't rate well because I can predict that the selling action came into the gap but will not follow through in the life day and this is a crucial piece of coming and learning with me and many times people even trade gaps they don't understand this they do not get it okay I'm going to keep going here but ask me questions if you don't get what I'm saying gaps are a very specialized strategy it's something that I'm extremely good at I'm extremely good at trading them seeing them predicting them and teaching them and if you want to get good at something you can come and learn this with me if you want to do other strategies fine but I'm telling you if you want to get good and you want to make money you only need one thing and there's so much volatility momentum and moves that happen these stocks and so quickly why would you want to do anything else and because the fact that you can trade and make money in 30 minutes or less than an hour is is it's extremely uh it's extremely uh you know what's the word uh inviting interesting it it's it's something that many people really probably would wish that they could do because many many people trade different strategies they've got to wait long for them to set up they've got to be in the trades for hours for them to go there's an ease of doing this after you learn it which is that you're in and you're out and even the days that they don't work you're out quickly it stops you out quickly you're not you're not waiting in a down trade all day okay there's something very attractive about being able to make 1500 bucks or even $4,500 which you would have had to stay in that a little bit longer past 10 but not that much longer to be able to make thousands of dollars in a very short time frame okay so if you want to make money in the market you really have to think and act like a professional which i absolutely do and whether you trade part-time or full-time it doesn't matter meaning if this is your full-time job you're still is part-time hours okay so professionals have strategies specialized focus and reasons for taking trades so what are some of the benefits of doing this like i said it's the focus on the quality you've got to get the quality here is another one actually hes this just recently happened there's been a there's been a lot of nice sell-offs uh so far this year it's been a good start to the year for the shorts which is very interesting because the market has broke out to new highs already since the calendar year started in 2017 and somebody asked me the other day can you make money shoring a bullish market yes the market has hit new highs and we've had huge shallows and some stocks since the beginning of the year and it's only january 23rd so here was another one stock closed here gap down boom stock closed up here at 61 something gap down here to what 59 something or wherever it opened sold off heart again another big move what do you need you just get the move you get in you get out now this one here had a had an entry that i did not get you could have shorted this here and it collapsed okay i did the later one it was literally just collapsed on top of itself but i did watch it i did get it let's take a look at it entry 5799 stop 6010 share size what 1500 shares you don't have to take a million share size of this okay exit again this was not the low of the day in this it was the first drop moved down or the second drop moved down out wherever you want to get out although it did keep going 1215 bucks these are the things that you learn to do with me you will learn how to take the entries you will learn how to get in you will learn to get out and actually it's not that hard to get out when you're up money again you get out if you're up your goal for the day you get out what do you don't even have to think you're you should just be instinctual oh boom do you're in you're out you see the money you take it you see the money you take it it doesn't really even matter if it keeps going so many traders are trying to make back losses from the last five years in a week or a day or a month that's ridiculous that's absolutely absurd it's ridiculous you will make back the losses from your past history eventually in the market if you learn a good system which mine is and you come and trade with me you can do it but you're not going to make it back in a day and it's ridiculous to think that you can okay it's about chunking it out over time and just moving forward you move forward you start to do it you move forward you don't you don't question it you don't you don't you know you don't second guess yourself you don't say oh shoulda woulda coulda you don't be a piggy about the targets okay any questions at all about anything so far i'm talking about i'm going to go over another nice one here this is oracle this was back from december but it's a great example of what a big big sell-off a sell-off that happened in the stock a sell-off that happened in a stock that gapped and this was an earnings gap stock closed here the night before a gap down again what do you do you get up in the morning you look at the stock and using my system you rate it you rate it and what did it do high in here is 40 20 something or 40 or whatever it was in the morning low in here was what 38 something again you see the sell-off this is a big move for the stock here was a nice big sell-off here another jimunga sell-off do you see how this also followed through and continued so you could have done a swing trade in this you could have done an option trade in this okay this is what you're looking for every day you get in you get out boom boom all right this one again same thing you got to get it you got to know to watch oracle if you don't know to watch it how are you getting it how are you getting this move here's the move if you wait till after 10 o'clock then you you're getting a smidgen of a little bitty you're getting a couple pennies you're scalping it or you're getting stopped out because you want more and you can't and you it doesn't give anymore this is what it's giving and this is what you got to see and if you don't know to watch this beforehand in the pre-market then you'll never get in at the right time because you got to get in in the first couple minutes now i don't always get in the first couple of minutes but i get in when as soon as it sets up but i have to be in by 10 o'clock or i'm just not going to do it anyways another nice big sell-off in oracle entry 39.95 stop 40.20 when you size your risk we talked about this in the trading room today it must be equal or close to equal for every trade you take that's another important thing okay you can't risk 500 dollars one day 200 dollars the next day and thousand bars the next day they all have to be similar risks and rey agrees with me so share size in this was more than 1500 why because the stop is smaller the stop here is 25 cents price point also was smaller which is fine anyways share size 5000 eggs at 39.25 boom look at the profit you would have made of this and this again is not the low of the day it went to 38 something okay so there you have it again you know if your goal for the week is five grand and you can make 3000 4000 in one trade what do you have to do the rest of the week look for quality or do nothing and be careful i mean the the market gives at least one solid good quality trade like this a week it usually gives three approximately maybe one day you do nothing maybe one day you lose it i'm telling you you could even do two things sometimes in the room with me i might watch two but it's my personal preference to only do one one because i like to focus on one thing it's easier for me and two because i'm running the live trading room is i'm trading at the same time and that's a lot to do which is trade myself and watch and talk and answer questions but i will tell you that if you are on your own and you're doing your own thing you can do as many gaps as you want to so why do i like to short is having this conversation with someone that was in the trial today with omar i like to short and he said i like to short too i like to short because of the panic okay panic comes into a stock when it gaps down and the bottom line is that when that happens you will get what people deciding to sell and when people are in a panic mode the panic mode brings in the more of the panic you really kind of saw that in qcon today so i never thought the stock would go to 53 dollars in some change today but i'm not surprised it did why a the gap was good to the downside and b there was tons of panic in it so it's panic panic panic the panic bills in itself it's kind of like a like something rolling down a hill like a ball rolling down the hill like a snowball like a snowball rolling down the hill and it's it's getting momentum and it's getting more snow and the ball is getting bigger as it or as it rolls down the hill and by the time it gets down it's going faster and it's getting bigger and then the momentum is the larger it gets it gets bigger you understand what i'm saying it's kind of like that it's like a big snowball that you push down a hill and the snow adds up to it and then it also the the it goes keeps going faster the bigger it gets Okay, you understand? So that is has stocks at really too with panic and why I believe you can make a lot of money to the downside. If you're gonna be a day trader, you gotta learn how to short. I know people like to go long, but you gotta learn how to short and a lot of people short and they don't know what they're doing or don't short, right? But you really can make money doing this. You just have to pick the right things. And again, I address this. You can make money shorty in a bullish market. Does anyone have any questions as we're going along here? Just let me know. So how do you find which stock to trade? You rate them. So what I do, my system is a rating system. It's a 26 point rating system. It's a checklist. I get up in the morning, I rate the gap. I have a worksheet, I do it. I rate it. If it rates over 20 points, I short it to the downside. If it gaps up and it rates over 20, to the long side, I do it. Although I prefer to look at shorts first as I told you. If I don't see any good shorts, I'll look at the longs. Every once in a while, there is a good long and I will do it, okay? But I still rate it. You don't have to have a perfect score, but you do have to have 20. That's the benchmark. But 20 things is still a lot. So I'm giving it a six point cushion. The same, Melissa. It looks like your actual profit amount is much shorter than that risk to the stop. And which trade are you talking about? No, but let's go back. Wouldn't this require several wins to offset a stopout? Which trade do you want to talk about here? Ray. That's not true for any of these, but which one do you want to discuss? Is there one specifically? None of those is the case. Maybe we got to go back. Here, let's go back to the first one first. Ray is saying from the entry, okay? What was the amount? Here, this is going to be good for people. Ray is incorrect in his question because he probably doesn't understand, which is okay. So let's go over it. This will help other people. What is the actual risk and dollars and cents? Here, I'm going to quiz some of you people. You tell me and if you don't know, this is what you got to learn, okay? What is the actual amount of money that was risked in this trade? And how do you figure it out? Well, I'm going to tell you how to figure it out. You tell me. You take the amount of the stop minus the amount of the entry. Oops, it went up there. I don't know why that does that. Ray is saying 61 cents, okay? So, now Ray, what does that mean? 61 cents times 1500 shares. I'm talking to Ray, but other people can answer. Other people can answer this. Am I talking to only Ray? This is good for other people. Ray, what was the amount then in dollars and cents? If you take 61 cents times 1500 shares, ET is answering and he's correct, 915. So, do you see it's roughly around 1000. This is not an exact science. Could I have taken slightly more in this today? Yes. Does it matter? No. I mean, I'm taking these trades and I have split second decisions. I gotta take it. And I never know, to be honest with you, until the trade sets up exactly what the stop is. But you still have to be around the same amount, okay? Anyways, what is the profit? One, five, seven, five. So, Ray is saying that if do you think that that profit is smaller than the stop? That to me is not Ray. Now, it might be if you have a lot of losers, but I don't. If you have, you know, umpteen losers, then yes, but I don't. That's the whole point of why I'm saying here that my system is successful and the people in the room are doing well. I'm consistently picked the right stock to be doing. So, whether you make 1500 or whether you make 500 or whether you make 900 or whether you make 4,000, something which I could have in this today, it doesn't matter if I'm getting to pick right a lot. But I do have some trades that are losers absolutely. But this, to me, is not a small amount of profit for the amount risked. I'm not sure why you think that is. Does anyone think that that is? Cause I don't. Well, that's what I said to you. What, what, which one do you want to talk about here? Q com? No, which one was the other one you want to talk about? HES? Oracle, what one do you want to talk about? Ray is kind of talking about something called risk to reward, which we can talk about in another webinar or I can talk about at the end if we have time. That is a concept, not a concept that I created. It is something you need to be aware of. But by no means is it something that's so critical that it should take the place of your ability to be able to actually have a high, a high wind ratio accuracy rate where you're getting it right. In other words, I think what Ray is talking about, and I don't want to get too off target here, but I'm just going to address it cause he's asking. Let's say that you have a system that sets up, and I'm just gonna use this, this is not my system, but let's say you have a system that sets up, that works and you make five times the amount you risk in every time it sets up, but it doesn't set up that often. So you have to go through drawdowns in between the times you get the good trades, which you never know. High big numbers, big winners when they work, okay, but they don't work that often. Would you rather a system like that, or would you rather a system that consistently has winning trades? My trades do not go to like five hours every trade, no. And sometimes they do and I get out of them. I mean, this did keep going, I just got out of it. I got out of it because it was up and I made my goal for the day, why wouldn't I? That was the point. My win rate is over 70, 75%. Some months it's over 80, but I wanna give you an average and I'm gonna say 70 to 75% on a calendar year. There are some months when I'm doing extremely well and it might be even be higher than 90, but you gotta look at it as the entire year because the entire year I'd say it's probably 70 to 75%. I've had some people in the room that are trading with me that have tracked it and they said it's over 80. I think it fluctuates according to how well I'm trading and also how many good gaps I'm getting. So you do have to expect that will be a few days in the month that you will lose, but not that often. If you have a system, you need to have conviction in the system and confidence in it so that you know you gotta get up and be there every single day and take every single trade and risk the same amount or close to it. If you do that, you'll make money with my system, but you gotta be there every day and take the trades. You can't cherry pick the ones you're gonna do. Does that make sense? You follow the system, if it rates 20 points or more, you do it and you risk the same amount every trade you get and you do every one and you're there money through Friday. So yes, 80% is very good. So I mean, this to me to make a buck on anything, whether the stock was 61 cents or 51 cents or 82 cents to me is money, it's real money. If I could get a dollar in every stock and every trade I take every day, I would be in heaven. I don't get that, I'm looking for that, I like that, that's my goal, I don't get that every day. Some days I get in something, I get out and I made 50 cents but sometimes in their stocks they're cheaper than the Q-Com and 50 cents is enough. You know what I'm saying? Good questions. If there's another example you want me to look at though we can go back or any other questions. And you know what, I'm gonna say one more thing. Get your expectations in line with reality. Get your expectations in line with reality. And some of the people in the room last year had made a ridiculous amount of money doing some of my options trades. And some of the trades, people made five grand, some of the trades people made over $10,000 in, myself included in the options, not the day trades, the options we're talking about, some of them we made over 10. You gotta be realistic. Not every trade will be a massive winner. That's okay, hey, it's great when they are, it's amazing, okay? But the reality is that not everyone is. So get your expectations aligned with reality and guess what, the reality will be that you end up making money and then over time as you fix some of your mental attitudes, some of you that I've been losing, you'll find that it's easier for you to trade, you're more relaxed and you can take more risk and you can take more size and it's not so stressful for you. When you feel very stressed out about trading, it's hard to do it. And one of the reasons I'm good at doing what I do is because I'm doing it for so long and I also created my own system which helps. So I know it broke the back of my hand and I could fall asleep every night and trade in my sleep probably gaps. But you've gotta get to that point and how do you get to that point? You get to that point by being green, by making the money, by actually proving to yourself that the system works. And that's what you need to do and the only way you can do that is doing it. There are some people that take the trials with me and make money. The Omar was in the room today and texted me, he made over $500. That's amazing. He's not a student yet, he's gonna sign up but he was there in a trial and he just took Q-Con today and made 500 bucks. He took 500 shares and he made 500 bucks, he did the call, he got in and he got out, okay? You know, sometimes you're in the trial, you make money. Okay, just doing what I say. But the reality is that you still have to do it over time to help your own head, your own mind about it. Okay, let's get back to the class here. So what else is the benefits of gaps? The fact that they set up a move so quickly and you can make money in just 30 minutes and get in and get out which is, like I said, it's very attractive to many, many people. Now here was one, Tiva. This is another one you could have done as a swing trade or an option trade. It fell, fell, fell, fell, fell. Do you see the stock closed here and got down? Now what did it do? It opened and did the same thing as all the ones I'm showing you. It also continued, again, could you have done this a second time? Yes, could you have made more money this and held it down? Yes, again, I have rules. The rules are trade in the morning and the out but this went much, much farther. Entry 3671, stop 3710, share size 3000. Again, how do you determine the risk? You take the stop minus the entry. Again, your position size will vary from the entry to the stop and every stock you trade. It does have to do a lot of times with the price points. I usually estimate it based on my familiarity with the stock, okay? And if I traded it before, if I haven't, I'll go back and look at past history to determine what I estimate the size to be. Exit a whole number, target, excuse me, and it did go past this. You could have made 2,130 bucks. In an ideal world, I'd love to make two grand every day. I don't, I'd love to. Maybe I will at some point this year if I increase my risk a little more but I tend to wanna get out. I tend to wanna get out very quick. So I don't like to hold these things down to see how this continued down. It actually broke 361 to 35 something. It's better for me and I really think it's better for the people that I'm in the room that I'm teaching to get in and get out quickly. Because it's never over to the fat lady sings and you're not out the money until you're actually out. And do you see here that this open drop fell and would have rallied all the way back? You would have had to wait, wait, wait and then it dropped. So for me, it's better, I'm very good at the entries. I'm very, very good not just picking the stock but taking the entry where I go right into the money. It goes right into the money when I take it. I'm almost immediately up. And those are one of the reasons to trade with me too but then it's not stressful. I'm up as soon as I take it and then I get out. So it doesn't matter really where you get out and that's the whole point. But usually what I found is when they don't work, if they don't go right into the money then they usually stop for me. So then it's a quick loss. The pain is fast and then that's it. And you shouldn't have big draw downs if you are not taking a lot of trades. You would have to do something insane. If there's only 20 trading days in a month and you're only doing one trade a day with me, how could you possibly dig yourself into a hole? It would be ridiculous. I only do one trade, I'm closing the room. I only do one trade a day and I'm closing the room by 11 o'clock and many days even before then. You have to think about what you're doing. You're not trading all day. One trade a day, one loss should never kill you. Anyways, this is another good one. GNC, close to your gap down. Boom, fell like a brick. Another one that you really actually was on the cheap side and you did not need a huge, huge, huge account to do it. All right, look at this. Boom, do you see this? It's a one minute chart. Stop close to your gap down, fell off a planet. Again, time of the day. Time of the day 9.30, time of the day in here 10.05. You could have held this one. I mean, again, another insane move. You could have held it, held it, held it. Look what it did, okay? Another one here. I didn't hold this. It went, it broke, it broke. I don't even know, did it break $9? I think it got close. I think it might have. I don't know what time it was. So I didn't get this whole move either. Does it matter? No. Entry 10.39, stop 10.80, share size 3,000. Exit 9.75, every time I call a trader, do a trader, the room does a trader, anything that we do, it doesn't matter if you don't get the whole move. Again, be realistic with your goals. Be realistic with your goals and you'll find that you achieve them and therefore your confidence is good and your conviction is good. And you just do the trades and you take them and you get in and you get out, okay? But you have to focus on what you're doing. You have to have it up. Many days I'm watching two things. Some days I don't get one and I watch another one and the other one goes. It's very rare that I would do two things in a day. Some days I plan on doing one and watch another one that I have to flip quick. You have to be conscious of what you're doing and very, very focused on one thing or two things and that's how you make money. So if you were in the room with me this day and you took 3,000 shares, you could have made $1,920 getting in and getting out and you didn't even follow this all the way down. It's about watching it, it's about the pick. It's about the rating system. It's about the 26 point rating system. That's how you get it. That's how you do it, all right? There have really been a lot of good shorts so far this month. I'm just looking at these now. I mean, after today I was just, I never thought that Q-com would go to that number today. I mean, really now that I'm sitting here talking about these ones, I mean, it has been a good month for shorts and based on the fact that market is ready to break out again, it's really interesting. It's very, very interesting. Somebody said to me, do you really think we're gonna get some good shorts this year in 2017 because the market's so bullish. Who's gonna sell stuff? Well, I said, of course people are gonna still sell stuff and I was absolutely right. I mean, look at the year. Look at the year so far and it's just gotten underway. Here was another one, Target. Look, closed here, gap down, boom. I haven't looked at this one lately. I'll have to go back and look to see where this ended up. I'm sure it probably continued as well. Another what? Another short. Again, one minute chart. Stop close to your gap down, boom. Look at the move. Do you see what I'm seeing here? Do you see this? You see it, you see it, you see it. Okay, but you gotta be watching it to get it. You gotta watch it, get it, do it. Again, nowhere near the low of the day I'm sitting in this, who cares? You get the move, you're out. Close to your target, you're out. Starts backing up, you're out. Share size here, 2,000. Little bit more of expensive, entry 67.53, stop 68.10. Again, look at this, 700 bucks. Well, I can live with that. I don't have a problem with $700. So again, it's about picking and getting it, picking and getting it, getting and getting it out, it's about making money. How many trades are called per day and average? One, two, maybe. One, today there was one. Cucom, that's it. I did call a second entry in Cucom, I didn't do it. I did call a second trading Cucom that I did not do it. It was an official room call, but I didn't do it because I saw it setting up again, but I was ready out and I didn't wanna do another one. I'm gonna go with them for the day, so why do it? If you have your goal in for the day, and you take another trade, what if it doesn't work? I don't like to do that. Some people do, some people do in their room, but I don't. That's not a rule, that's just me, but you can do whatever you want. But I usually call one trade a day. Sometimes I will call two trades in the pick that worked like Cucom if I see it setting up again. It's rare though that I would call something we all make money, and then I would go to a completely different symbol and call something again. I'm not saying I never do that. I'm not saying I never do, but usually it's outside of the time frame. So if I'm scanning and looking at stuff and people want me to look at stuff at 10.30, I don't really feel like I wanna call something for people because I want people that are in the room with me to be successful, and I want them to keep the money that they made with me in the first trade. So why? I'm not pushing people to take trades in the room. In fact, I'm telling people to stop. Many, many people just wanna keep trading. Here was one with a nice, nice sell-off again that followed through from a previous campus months ago, A and F, but recently, it had another big move down. The stock is that I don't even know what now. Broke 15, broke everything. These things collapse over time. And one of the reasons, again, like I've been saying, the whole class is that it's the volatility. You saw the volatility today. Cucom, you saw it in HES, I mean, just huge volatility. So how much does it take to make this kind of money? It depends on the share size. So if you're looking for a dollar every day, you're not gonna get it, but many days you will. If you get 50 cents, that's good. If you take 1,000 shares, you can make 500 bucks. If it moves 50 cents, that's good. Today, like I said, Omar took 500 shares, he got a buck out of it. He made a little over 500, a little over a buck. So you can look at it, it is about the share size, but how do you take the quantity? 3,000 shares, 5,000, this is a lot in some of these things, even the cheap ones. It's a big position, because it may not work. But the bottom line is you take it because you believe in the system, you believe in the gap, and you're trading with me, and you trust my calls. So you can do this, and it only takes a little bit of time a week, and that means you have more time to do other things. So can you make $20,000 a month trading old and gaps? The answer is yes. Consistently, if you wanna do it, options, swing trades, or day trades, you must be serious about it. You must be serious about it, you must be realistic with your expectations, you must know how to rate the gaps. You probably should be in the room with me and take my calls at least at the beginning. I think it helps people make money, and I am offering the trading room free until the end of March for anyone that signs up for the class this weekend. That really will help people, it gives people all of the first quarter earning season, which we will have lots and lots of gaps to trade and many shorts to do. So you can make money doing this. It's about looking at it, it's about taking the trades and getting the calls and having a plan of action to move forward. You've gotta have a system to trade the market and it's important to have a good mentor. What is the reason? Why are these gaps so profitable that I'm trading? Because institutional buying and selling create the momentum and therefore it is very easy, it is very, very easy to make money when you are with the institutions. That is the reason that Q-Com was easy today to make money shorting, okay? You as an individual cannot move a stock anywhere near like that Q-Com move today. From the high of the day to the low of the day it was an insane move, okay? So $4 plus. You have to be with the institutions. It is absolutely right about getting the pick and I do that most days and also then it is about adding the size to trade and doing it and getting it in now quickly and correctly and with profit because it's all that matters. I can teach you how to do this. There are people that are doing very well with me, okay? And it's not even about the risk to reward. Ray asked about it, but it's not even about that. It's about getting the pick right more than you don't. If you do that you'll make money and if you wanna make more money then you just start taking more size. It is about the consistency of the pick and that's how you can become a profitable trader. I think it would be extremely emotionally hard to have a system that if it had high risk to reward results, to suffer through the downturns of drawdowns in an account. It would be emotionally draining for anyone even if financially you could do it and I would never want a system like that and I don't have it. I have a system that has a high success rate in the picks, I'm very good at seeing it and the reason is because I'm doing only this for eight years. I'm doing only this for a long time and I created the system myself but it's the institutional buying and selling that really, really makes the moves. I also have a heightened intuition. This intuition allows me to see things that many people don't and that is because I'm focused on one thing. I can look at a chart, my eyes go right to the gaps. It just happens naturally so I have an intuition about it. So the class I teach is called the Golden Gap System. It's a 26 point professional bearish gap rating system. That's what you'd learn in the class. You'd learn all the points, you'd learn how to take the entries, where to put the stops. The purpose of the system is to help you evaluate which gap to trade each morning using a checklist and this checklist tells you what to trade and when and the success or failure that what you do has to do with your system a lot but you also have the right attitude and you have to have the right structure in place so you would trade the system. You do it when they rate 20 points or more. You set up in the morning, take it on the one minute chart, you get in, you get out, you put the stop. You do it consistently. Money who's the one who throws you Friday. You risk the same dollar and cents amount, not share quantity because it will vary depending on the stop. As you saw today, some of the stops are 25 cents. Some of the stops are 50 cents or 60 cents or more. Sometimes a stop is a buck. Sometimes it's five cents or 10 cents. You don't know and I don't even know until they set up. I rough it, okay? So my checklist measures gaps by rating them at a daily chart to find stocks to trade that have a high probability to continue in the gap. Big moves, they gotta set up early and precise entries with follow through to good risk to reward potential. That's what you want but you may not get it every day but that is your goal. That is the reason you're taking it. You're taking it because you believe it's gonna go there, okay? So you've got to make good choices doing this. It does cost money for my class. My class is $5,000. But if you learn from me, you will learn how to make money. You can be in the room with me until the end of March for free and it's better than just losing money in the market and not knowing what to do. And many people do that. They do that because they swear to God they know how to do it because they know how to read support and resistance. But I find that people that come to me after they take the class realize that they did not know things that they think that they know, which is very interesting. The way that I trade is extremely unique and it's one of the reasons I'm successful as one woman and it's a reason that I'm successful as in my business doing it by myself. Because I'm the only one that trades and runs the room and teaches too. It probably will always be that way. So my class is the golden gap course. You can learn the strategy. It's earning season, it's a good time to make money. I mean, I just really, there've been so many things that have been selling off so hard and the market's been so bullish. So the class is this weekend, Saturday and Sunday, the 28th to the 29th from 9 a.m. to 5 p.m. the class is 49.99. It's full on, full on 16 hours. You get an hour lunch break and retakes are free. Retakes are free. So once you sign up for the class, the first time you can retake it in the future for any time for free. So if you miss part of the class during the weekend, you can still do it the rest of it another time and you only have to pay for it once. And you can be anywhere in the world and take it to classes online, which is very convenient. And many of my clients actually are not in the U.S. It's very interesting actually. So if you would like to sign up, you could email me at melissa at thestockswish.com and the earning season special is that if you sign up for the golden gap course by Friday, January 27th, and you will receive the trading rate free to the end of March and the wealth manifestation class free, which I'll talk about in a little bit. This is a savings of 12.99 and it helps people. It will help get you up to speed, trading the room like the Q-Com today. Okay, for those of you in the trial this week, you may make money other days this week with me if you can follow me. If you can follow what I'm doing, which obviously Omar did, you can do it with me. If you're ready to know how to take entries and trades and you'll get my pick every day in the room. So the wealth class also will help you gain the confidence and conviction you need to be successful. And I think that this is as important as anything else, but you still have to have a good system to make money. I don't have the day yet for this class. I'll be deciding that by the end of January in the next two weeks. So look for the dates for this. It's a good class, it's a three hour course. I do it during the week. I talk about your brain, how your brain works with money, how you make decisions and it's a good class to talk about. And everything that I teach, everything that I do really has to do a lot with how your mind works. And again, that's one of the reasons for my success. I also teach a class which is called the Trends course. This is if you're interested in swing trading or even an option trading. I offer 50% off if you sign up for this with the Golden Gap course, okay? And this will save you money too. If you wanna do this class as well and you can learn how to look at long-term trends. All right? So that's another option for you. The trading room trial. If you want a trading room trial, you can email me for this too. You can be in the room if you want this week. You can email me tonight. I have no idea what we get this week. There was a big, big week in the market. Lots of things reporting. Babba is reporting tomorrow morning, as I said. I'd love to see what it does. And then Karen wants some information. Oops, does anyone have any questions or anything else they want me to go over? We're right here with the time. Good, good questions here today. I have a little bit of time to answer anything more if you want. How's everybody doing? Good? Thanks for your help, Karen. It's very interesting times that we're living in, people. Very interesting times. Erica said, okay, you've just been getting the trades too late? Well, I don't know what to say about that then, Eric. I know you're not a student of mine. I'm not sure where you learned to take the entries. So you're focusing on, oh, you are a student of mine then. Yeah, you're in the option letter. Oh, you're talking about the options. You're not doing the day trades yet, but you will soon. You're focusing only on shorts. Yes, I focus on shorts. If I don't see a good short time, then I will look to go long. I do go long sometimes as well, I'm very good at longs. I went long JPM the other week. You can go look at that. That video's online, it was a bullish gap up and had earnings, I went long in. I got in and out at a perfect entry of that. It ended up then falling in the afternoon. But I prefer to short. That day there was no good shorts. So I went long and a bullish gap. So I will go long and I do know how to go long. And actually the funny thing is that when I do go long, everyone really jumps all over it because it's rare that I like to go long. But if I see a bullish gap that I like and we go long, everybody's all over it because it's so rare that I would like one. So everybody usually knows it's a good one. But I do prefer to short, yes. No, I do longs too. I do longs too, but I prefer to short. If I'm only doing one trade a day, Tom, which is what I'm doing, that's what I'm saying. I'm gonna short first. If I don't see a short, then I'm gonna do a long. I'm only doing one trade a day. That's what I'm saying to you. So if I see a Q-con and it's a good short and I do it, then that's it, then I'm done. So if I'm only doing one trade a day, my pick first is a short. If I was doing two, three, four, five trades a day, you could do every gap that rates per my system. You could do as many trades as you want. Go for it, people. I have two monitors, okay. Some people have like eight. I mean, some people have systems that like would explode. I mean, I'm just very focused and again, I'm running the room and talking at the same time. That's not always easy PC. So for me doing one is good, but you could rate bullish gaps. Yes, you could. You could rate bearish gaps too, but because I'm only doing one, I go to the short side first, but if I don't see it, then I go to the long side. It's only because I'm liking to do one thing a day. And also I think the idea of doing one thing a day, you know, again, it reduces your losses. It reduces your losses. It reduces your losses if you're, many, many times when people have bad days when they're trading, I'll say one last thing, everybody go. It's because they start out the day maybe down and everybody has a trade that doesn't work. So they'll start out the day and they'll lose in the trade and they'll say, I gotta get back, I gotta get back, I gotta get back. Then they'll do one trade, another trade, another trade, and all of a sudden they're digging themselves a hole and all of a sudden it's 335. So you, that's a disaster. First of all, it's very stressful. You're all you're doing is racking up commissions and the chances of you coming back are what? And that's extremely good. The chances are slim to none. The time to make the money really is in the morning when the institutions are taking their positions on or off. I'm telling you this and it's true. Whether you learn my method or not, whether you trade gaps or not, I'm telling you, institutions take positions on or off into the morning period and that is the time. You have the most volatility in stocks period, end of story, boom, that's it. And that's why you can make money doing this if you learn from me because I know how to read that part in time of the day and many gap traders understand that. It's just, are they getting the right pick every day? Day traders in general wait till after 10 o'clock and they are not getting the same moves that I'm getting. So I don't know what side of the ball that you wanna be on. Personally, I like the idea of being prepared before the open and getting in and out quickly. But you have to decide if this fits your personality, if it fits your schedule, if it's your lifestyle, it's up to you. How do you get over losses when a trade loses? Here I'll answer one more quick question. Just having amnesia, doing something the rest of the day take out my mind off of it if somebody doesn't work and then getting up the next morning and making money. I mean, that's the easiest explanation I can give you, getting right back on the wagon. How do you get over it? Get back on the wagon. The sooner you get back on the wagon, the better you're gonna feel. You can't do anything, sometimes trades don't work. You get right back on that horsey. That's the best thing I can tell you. And the longer you wait to get in the horsey, sometimes it's not good. I'm telling you right now, the faster you get back on the horsey, the better off you're gonna be. All right, good question. Have a good night, everyone. Email me if you'd like a trial to the Trading Murphy. If you wanna sign up for the class, it's Melissa at thestockswish.com. All right, have a good day.