 We will be starting promptly in now just about two minutes. So thank you again, everyone. Galahad is here with us. Dusty and everyone. Bill from Huntington, West Virginia. I believe that is WV West Virginia. Gab and others. This is online at Trader Central. We start promptly in now just about one minute. Mountain Girl just joined us. Mountain Girl. I love the nicknames. Thank you so much, everyone. We will be starting soon. And with that, ladies and gentlemen, the sound of the trumpets, you know what that means? It's time to begin. Please put your hands together and welcome our host and presenter today from thesockswush.com. Please welcome. Sounds like there's an echo here with the arrow. The action for today is to briefly talk for a few minutes here about some things that have to do with the mind. Then I'm going to give you my information if you want to contact me and the cyber special. Then after that, I'm going to pull up my charts and then we're going to just talk the rest of the hour about some trades and the market and then any questions that anyone wants to ask me. I think this is the easiest way to do it. So I can get through this beginning piece and then we're going to flip to the charts. Just so you know, that's the plan of action for today. So for those of you that don't know me, I own a company called the Stockswush. And if you'd like more information, you can email me at Melissa at thesockswush.com. And I urge you to go and follow me on YouTube. You can Google YouTube and go under Stockswush. I put tons of videos on there. Webinars, plays of the day, market reviews, lots of things on there. And then you would automatically get any update I would do in the market. Email to directly if you actually are following me on YouTube. Now, I'm doing a free trading room access tomorrow. If you want to come to the free trading room tomorrow, you just click on this link. If you don't know the information or remember it, this will be taped in online tonight. Or you can email me at Melissa at thesockswush.com to get access to the room tomorrow. I start the rope in the room at 8.30. I usually don't start talking to between 9 and 9.30-ish. So I'm going to give trading room access to everybody that came here tonight. And again, you can email me or Kathy if you don't remember this link. The lecture really today is about the fact that trading is fun and easy. And the interesting thing is that many of you may say, oh, what is she talking about? Or whatever. It is easy and it is fun making money very quickly in the strategy I trade. Now, when I started out, I added to the trading was fun and easy. And guess what? Then I started losing because I didn't know what to do. And then I realized that the days that I made money, it was easy. And of course, it was fun to make money. And the days that I lost, it was hard. And as I started to piece together the strategy that I now trade, I will tell you that there is a direct correlation to the way that your mind works of seeing things that are easy and fun and seeing things that are not. 8.30 a.m. Eastern time. Someone just asked. That's the time. So the topic for today, I'm going to talk about briefly here before we get into the charts and the Q&A and the market is that there is a direct correlation between your ability to be able to be successful in the market and make money and your mindset. Thinking that it is fun and easy. Now, just work with me here. Even if you're trading now and you don't know what you're doing and you've been losing, I want you to just set that aside for a minute and think about what I'm saying here. And then you'll be able to go back and even logically understand where you're at with your trading now. Now, this is a trade I did last week in HPQ. I didn't even get filled at the right price in this. I got filled late. And I actually didn't even hold this to the full on target. And I made over $4,000 in 10 minutes in this trade last week. This was Wednesday the day before Thanksgiving. When you think about it and you say you think, gosh, what's the first thing that pops up in your head? Do you think making $4,000 is 10 minutes is hard or do you think it's easy? You might think, gosh, that's hard. It's impossible. There's no way I can do that. You might think to yourself. Or you might think that is easy. How does your mind look at it? This is very, very important. Okay. For me, I feel that this is easy. Why? Because I knew that this was a good trade. It was a short HPQ. And once I bring up the charts, we're going to talk more about this. It was a stock that had earnings and it got. But I saw it before I even took the trade. And in my mind, it was going to play out easily. And guess what? It's exactly what it did. Okay. And then I made a lot of money very quickly. I drew these circles here to show you that it is about having the focus. One of the most important pieces of trading that I think people miss out on, and I'm talking about day trading, because that's what I do, is that they're all over the place. They don't know what to focus on. Longs or shorts or different different strategies. One of the things that I teach in my class, because I personally do it, and I think this is a very valuable piece of the puzzle that people just miss out. And one of the reasons they lose as day traders is that they're not focused enough on one thing. It's actually easy to be focused on one thing. It's harder to be looking at 25 different stocks at once at the same time. All I do is I get up and I look at one thing. So, you can see the correlation of the easiness part of that. Okay. Now, if I was... Okay, pretend this is your brain. So this is you. You get up in the morning, it's a Monday, and your brain is going looking at this thing, and then it does it. Then you get up on Tuesday, and you're looking at something completely different. I'm talking about a different strategy, a different directional bias, something different completely all together. Then Wednesday, you're doing something else. Thursday, you're going long. Friday, you're going short. One day, you're doing a breakout. One day, you're doing a gap. One day, you're doing a climatic. Do you see how every day you get up and your brain is like, wait a minute, what are we focusing on today? I forget. Well, you don't really have a focus. Do you see here? And your results will be reflective of this, so you won't have the consistent results. Whether it's $1,000 a day or $500 a day or whatever. Because you'll be like, am I going long? Am I going short? Am I doing this? Am I doing that? Where's the market? Am I doing this? I don't even know anymore. And this is confusing for your mind. Whereas this is what I do. So this is me. I get up. I say I'm looking for this based on my system, and I get it. Boom. And I focus on the dot and I make the money. Then I have another trade. Tuesday, I see it. It works. Good. Boom. Done. Make the money. Wednesday. See it? Do it. Same thing as every other day. Boom. Make the money. Thursday. Do it. It doesn't work. I lose. And the black dot there is the loss of the day. But Friday I get up, I look at the same thing. And then it works. So do you see here every day I'm getting up and looking for the same thing and the same thing and the same thing and the same thing. And even if one of them doesn't work, I'm not stressed out about it. The hard part about trading for people is the stress that relates to the brain, which translates into the losses of the money part of it. So when you're focused on one thing, it makes it easier for your brain. You never lose that much, because you're not all over the place doing a million different things. Okay? And you're very focused. You just go um. And then if it doesn't work out one day, you're like, alright, fine, whatever. And you don't get stressed out about it. The focus helps your mind be more relaxed, which helps you concentrate on the right thing to do so you don't make mistakes and lose more haphazardly. So how do you make it easy for yourself? It's about the replication. It's about the repetition, the replication. You're learning how to do it and then you're repeating it over and over and over and over and over again without hesitation. All human beings have memories. Okay? You have a memory and I have a memory. These are stored in our subconscious and our conscious minds. They're stored in our brains. And when we have stress in our brain, we make incorrect decisions, specifically about money. Okay? Instead of relying on the information, which is the information that's in the chart, which is something you would learn from me in the class. And you're seeing it right there live, too. But then you're stressed out and you make an incorrect decision about what you're supposed to do because you're stressed. Have you ever noticed when you're down you tend to lose more? A lot of people do. And when you're up, you tend to make more. And when you're down, you're stressed and unhappy. And when you're up, you're happy and relaxed. There is a correlation to that. And the correlation is back to this. It's in the focus because if you have a system, you just get up and you do it. And if it doesn't work, it doesn't stress you out. Okay? It was a correlation to that. Knowing what to do, having the focus, making the money and feeling happy rather than being all over the place. It's kind of like the saying, I'm sure everybody's heard of this, have you ever heard the rich keep getting richer and the poor keep getting poorer? Why is that? Because the rich have money and they're happy that they have money and they're not as stressed. When I think about making millions of dollars, I think about the idea of making millions of dollars to bring less stress into my own personal life and the people that I love. So that I can provide for the people that I love and myself not to be stressed out. That I wouldn't be able to have all that I need to provide for myself. So that's where the idea of having wealth means the less stress. Of course, it's great to buy luxurious things. No one likes to do that more than me. I live in Manhattan. But it's really about the idea of being able to provide where you don't have to worry about paying your actual bills to feed and clothe and house yourself. And so this, the rich keep getting rich and poor keep getting poorer. Philosophy really has to do with the fact that people that are wealthy tend not to be as stressed about things as people that are poor. So there's a direct correlation there. And you can use this to help you do better with your trading and you got to get control of your mind. But it has to do with the power of memory. And this is the reason why the information that I teach in my class works so well. The information contained in the seminar that I teach, a class I teach because I'm going to tell you about in a minute before we flip to the charts it works because of the pattern repetition. Once you learn it, you get up every day and you look for it. Monday, Tuesday, Wednesday, Thursday, Friday. And that pattern repetition that I discovered that I teach in my golden gap system that is what creates the opportunity for you to take action trade and make money with the information. And you have to do it without hesitation and without fear and with the focus. And when you start to understand this and I mean truly, really believe and understand this, you'll be amazed at how magical it is and how often it works. And you will see that it is possible to become a successful trader and not only that to make money trading and to do it with ease and have fun doing it and not be stressed. If you had money to burn and you weren't concerned about money trading would be a lot more fun for you and you probably would trade better. Everyone says, well, you know that's not reality. No, that's not. You got to use your own money to trade and set up an account. So then you got to get your head on right. There's no getting around that. You have to have your brain focused on the right things to do. And a lot of it has to do with staying true to the information and making it easy for yourself by just doing the same thing every day so that you're not stressed. And so you don't get up and say, I don't know what I'm supposed to do today. And then it doesn't work and then you lose more. You got to look at the same thing and know that money Tuesday, Wednesday, Thursday, Friday you're going to get all the good ones that there is. And if one doesn't work it's not a big deal. So this is really about self empowerment that I teach. Now I want to go over the information for the class before we go to the charts because we're not going to come back to these slides when we're done. We're just going to talk the rest of the time. The class I teach is a two-day class. It is this weekend December 5th and 6th. It's a full two-day course on how to strategically find and place stocks at our professional bearish gaps. The class tuition is $39.99 and retakes are free. The class is also online. I am offering a sale through tomorrow, 7 o'clock Eastern time, Tuesday, the day after Cyber Monday I'm giving people from tonight to sign up till tomorrow where I'm offering 25% off which I've never done. So if you want to sign up for the class you save almost $1,000 but you've got to sign up by tomorrow December 1st and I'm not making any exceptions past that date. The class, like I said, is this weekend and you can retake it as many times for free. So if you want to sign up now and you can't even do it this weekend, you can take it in January. At least you get the discount of $1,000 off because I never offer a percentage off of my classes because you can make $4,000 in one trade like I just showed you. Now, before we get off this just if you want to write this down this is a link for tomorrow. 8 30 you can be in the room free live access. Now, I'm going to bring up the charts. While I'm doing that does anyone, I have the pointer off, does anyone want to ask me if they have anything, any specific stocks for the market they want to talk about before I go over my things and I'll write them down. Actually, let's go over HPQ first. And while I'm doing that everybody can write in the room any specific stocks or the market questions they want to have in there. Because the rest of the time I'm going to devote to talking about trades I did. Can you see it? Okay. Trains I did and what I was going to talk about in case we didn't have a lot of questions and the rest of the time is the market and any questions anybody has. So if you have specific questions about the market or stocks anything, anything you want me to look at long shorts, whatever, I'll bring up the chart in your questions here a lot. So you can put them in the room while I'm going over the HPQ because as I said this was the one that the most recent one from Wednesday. Now I can see everybody's questions in the room. No one else can see the questions but I can. So you just plop them in there and I'll look at them. So remember I showed you that trade of the P&L. So this was Wednesday the 25th. So the stock actually closed in the 24th at $14.64. Do you see the square up there in the top corner? That's the closing price of the stock at the 4 o'clock at the bell on the Tuesday. Then nothing happened here and the stock actually had earnings in the morning and the earnings were reported and then it opened at $13.17. Rallied up to $13.27 was the high and dropped and broke and it was a short. So you see this candlestick here the red depicts that the stock price went down in the day look at the massive vine that came into it down here and I shorted this and that's where I made that money. Now if I had held it longer I actually would have made more but it was a day before holiday and it did go to the first target but it was a beautiful, beautiful short. So what I do is in my class I teach people how to find that HPQ was a short that day so that I just take the trade and get very quickly out. It's the focus because you only need one trade like this a day. If you're making $4,000 every day you don't really need to do anything else. $4,000 is enough for people to make in a week and pay their bills. So you have to be focus and again getting back to the focus it's the ease of it knowing I'm just going to do this and it's fun. If it works I'm going to money really quickly and it's easy I focus on it it works. The system tells me it's good. Now what if it hadn't worked it did but what if it didn't well then it still would have been easy because I just would have been out and that's it I would have taken one loss so if you take five trades a week you're going to make money because if it doesn't work it's not a big deal as long as you follow the system and this is what makes it easy for people. You're looking for the same thing every day but it's in a different stock every day but you're looking in the market and what I do is I scan so I get up in the morning and I go through this thing here. I like to focus on the shorts I do teach a bullish class but I focus on the shorts so over here we have the losses in the NASDAQ and the New York exchange over here so there's 40 stocks I can look at scanning in the morning these are these are from the day but in the morning when I get up at a bed at six seven o'clock in the morning eight o'clock whatever time you want to look at them all these ticker symbols here I'm going through and I'm looking boom boom boom and I'm scanning them to see if anything is gapping because again my strategy is based on gaps what is a gap it just means when the stock closes at one price at four and then opens a different price the next day for example today HPQ closed at 1251 I don't know where it's going to open tomorrow but probably not going to open exactly at 1251 does it mean it's a gap by short tomorrow no not necessarily but if it does gap you could rate it so I rate things each day and things gap for many reasons some things gap for the earnings some things gap for news some things gap because Kramer talks about it and then it gaps you never know okay all right I will look at those those ones for those people that asked me about a couple stocks now let's go back and see where the actual trade was on the 25th so what I do is is a day trader I look at the daily chart with my system and that's what I teach in the class how do you know HPQ is a short see if it's gapping you find it on the list then you rate it per system I have a 26 point rating system I'm not looking for a perfect score I'm looking for 20 or more so I give a cushion if it rates 20 or more I say it's good going in the direction of the gap so if it's gapping up and rates 20 or more it's a long if it's gapping down and ranks 20 or more it's a short so that's what tells me HPQ is a good one then what do I do then after that then I wait for the market to open I do not take a position for your post market you could here I'm going to show you on the day of the HPQ all of this was at night and then do you see in the morning a bazillion people were in this this is all in the morning there was a lot of volume that was in the stock here in the morning these were trades but I'm not in here I'm rating the gap so I actually had a lot of volume in it before it opened I forget how much exactly but it was a good amount and then I wait for the stock to actually open and I shorted it I shorted it right here at 931 and then boom and then I was out and it did go a little bit more as I said but I was in this right here and then I was out of the trade literally in 10 minutes and that is easy so the part of the ease also of what I teach is the fact that I'm not under the gun that along when you're in a trade you're at risk even if you're up because it could go against you now I put in a stop put in a hard stop here but the great thing about what I do that makes it so easy is I'm in and I'm out I'm in and I'm out I chunk it out yeah it's just so easy just take it in out boom boom you can get in the whole thing and get all out into the first drop now you can lower the stop to try to get down more you still would have gotten taken out here but I didn't do that I actually just take a took it and boom I took the whole thing and I usually don't lower my stops unless I'm concerned about something like the market rallying against me but this just you're just in it and you're right out so how do you do this you would look in the morning or at night sometimes things gap at night to try to see what this HPQ was doing and again it pops up in the list then you can look at any of these Lulu was one the gap today we can talk about next so the ease is that I'm looking for the same thing over and over and over again which is the 26 points I teach in the system that I wait, that I'm expecting to short it that it sets up in the class if it sets up I take it put the stop, get the drop and I'm out, that's it what if it doesn't work I get stopped out boom, that's it, we're done end of story and even when I get stopped out it's painless really because of the fact that it happens so quickly of course I don't like to lose money but I'm just saying you can't fight you can't fight the stock you cannot fight these things you can't do it so you make it easy for yourself by just saying it worked or it didn't and if you have a system that works you will make money because of the five days you should either make money every day or at least four of the five and maybe one day you won't trade like today I didn't do any trades on a Monday it was slow it was a day after holly weekend so some days you may not trade that's another thing too, you make it easy for yourself it's like what was there to do today nothing, nothing in the morning was there to do today so you don't trade you make it easy for yourself somebody doesn't meet the criteria you're just not doing anything, that's it you can't move these stocks, you can't fight them even if you take the size I do you can't move them nothing's going to move these stocks other than real huge amounts of money so you have to have the focus and you can't fight them I was saying the stocks you picked difficult to short are you not enough shares to short no, I will tell you though that I pressed the button to get filled in this and the ECN that I picked okay, didn't fill me full and then I caught it and I said and then I quickly, quickly, quickly killed the rest of the position took another ECN and got it and then it dropped so I actually got this late but at least I got it because the ECN I picked didn't get me in so I have a couple different ECNs set up with hotkeys but as far as getting short access I would say I get if I trade a thousand stocks in a year I get 999 of them or 998 you can't short stocks as a day trader and you shouldn't be a day trader at all unless you traded a good broker that actually has access to shorts so it's like once in a blue moon and I don't get something but I had a lot of size in this so the first time I pressed it it didn't hit me with the ECN and then I got filled because I quickly killed it and then I grabbed it again with some different one so you have to have a couple different ECNs set up too so that should not be a problem no one is a day trader that I would teach or even myself is like looking to take 100,000 share lot position in something so no you should have no problem at all getting shares to short and HPQ was not a pre-borrow on Wednesday anyways alright does anyone have any other questions of this before I answer look at some of the stocks that some people are putting up Ray wants to know about JetBlue and we'll go back to HPQ if anybody has questions on that what's your question on this what do you want to know about this do you have a specific question or you just want to know what I think of this stock Ray is asking me about JetBlue do you have a specific question or you just want me to tell you what I think of it JetBlue is in an uptrend JetBlue is long JetBlue is not a short JetBlue will rally with the market when the market rallies what do you have a specific question about this here there's nothing wrong with this chart at all in fact this actually looks pretty darn good this day of this gap here when the market gap down it's barely gap down and boop the fact let's just look at it the date of the market gap down here the stock dropped like everything else on the planet but it didn't drop that much this actually held extremely strong now that I'm looking at this if you want my professional opinion here in my opinion this stock is very strong and held beautifully on the day that gap down in the market that's what I think and even though this gap down like everything else on the day of the 24th this could have been worse this could have been a lot worse it held really well well you have to have a strategy I don't know what your strategy is for buying this I don't just buy something out of no man's land you have to have a stop you have to have a target you have to have a stop even if you're doing a long term swing trade but actually if you're doing this for a long term swing trade you have to have a stop where's the target I mean the next target long term target is 3031 to make a new high with the market because a long term target on jet blue I don't know when it gets there I don't know when the next earnings are in this I don't know if it's ready reported for the end of this year if it's not going to report to the next quarter until 2016 I have no idea when the earnings are in this but my strategy I trade its gaps so I wouldn't buy anything in this until it gaps and it has to be a good gap that rates more than 20 points it would have to be a gap up because you're not buying gap downs you would wait and buy a gap up if it rated 20 points or more when it gaps it could gap for a lot of different reasons but right now this stock isn't gaffing it fell in the day with the market so if you're just buying this here today again I don't buy pullbacks you're just kind of buying it and where do you put the stop that's a $8 stop so I wouldn't do that wait until it gaps and it's a good gap and then you can buy it on the gap and then you'll know exactly where it's headed immediately because the problem is right now if you buy this it could come all the way down and you could be down before it goes up and that's the difference about buying pullbacks into support or buying gap ups for example if you're buying a pullback into support how do you know where to buy it well it's into support here it's holding but it could also come down to here's a level of support here's a level of support here's a level of support and the $200 moving average is $22 but also guess what this is a level of support at $21 something this is a level of support here at $18 something I could show you $25,000 levels of support in this $15 so where are you putting the stop if you're just buying it in a pullback it could pull all the way back down here and it's still long by the way if it pulls into here the thing I'm trying to say is you're going to be way down until you're up the nice thing about the strategy I trade whether it's bullish gaps or bearish gaps is you should be up whether you're day trading or swing trading or court trading almost immediately almost immediately you should be up in fact immediately you should be up even if it's an overnight trade you should be up immediately because the price of the entry counts the entry price counts so you don't suffer this is the whole thing I'm trying to tell you the craziness of the fun and easiest is this a good long yes where could it pull back to I have no idea because it won't be fun if it pulls all the way in if you buy this today at $24.73 knowing that it's a long because it is a long if you buy this today at $24.73 and it pulls all the way in to $22 you're going to be down $2.70 that will not be fun you'll get up every morning look at your account and cry and cry and cry and cry and cry and then it'll go all the way down to $20 and then you'll say I can't take it anymore I'm tired of being down in this and then the day that you do that within a week from that or the next day from that it'll gap up to $27 and then you'll cry again because you got out of it and you could have made money and you lost in it so the suffering that you put yourself through that people put themselves through and buying pullbacks or shorting resistance is insanity actually it's not a good entry point it's an emotional bias because you're not going to make money or be able to hold through it with the stress of it and the suffering that will come along because you can't predict the timing of something but with gaps you don't have to predict the timing it's gapping it's gapping the day you take it and therefore if it rates well you just take it boom you take it the day and then even if you're in it for a long term trade you'll know what it's going to go where it's going to be or where the next target is from the gap and the next entry is then much much better than buying into support because there's 27,000 levels of support in this chart and any chart are more than that until it breaks which this doesn't look like it's going to do but I'm just saying you're looking at it since it was $4 well if you bought it at $4 you're at money did you buy it at $4 I don't if you bought it at $4 you're up if you did not buy it at $4 then you could have bought it here's why I would have bought this if I was you which I'm not I'll tell you exactly where I would have bought this first I'll tell you where I would have bought it and then I'll find it here I mean this is it actually my eye goes right to it there's the buy in this you could have gone long the stock here not at $4 I'm so good at reading these gaps this is what you learn from me people here's the buy in this here's the long and jet blue that you could have been long this right in here there it is low of this is $14.20 has it even touched a boot of that no not even on the only day the low of the only day is $16 something that was the long position in this and a bullish gap right in there and if you went long this in here it was a good trade that's when the chart went from a downtrend into an uptrend again I teach this in the gap class long trade you would never have been down in this not in the day the market gap down and fell off a planet you would have been down here still been long the stock and up money and you would just be holding it until it breaks a new high and that's the next target but there were other targets in between like $20 would have been a target I don't know how long you would have been in it but there's the buy not at $4 you would have been buying a stock and a downtrend for a long-term trend which people do I don't do that but you could buy this for an overnight trade here it was last year it was a year ago it was a year ago it was 1128 a year ago right now today look at that what are the chances that was it you did buy it at $4 and you sold it you sold it right when I would have been buying it here's the momentum here's the momentum here's the lift let's just look at this Ray Ring brings up a good point if you bought it at $4 it's sloshing it's sloshing it's sloshing it's sloshing it's jiggling it's jiggling it's rallying but not really here's the momentum look at this here this is a great point do you see the moving averages actually help you there but I don't use these to trade I've got them on my charts but I don't really use them to trade but this really depicts what I'm trying to tell you this is making like a scoopy scoop but this is like it's like a vertical it's like vertical up to the sky this is the momentum that I can see in the what I can see in the price from the time and the point of the entry price that I would have gone long this it went where as you went long this and you were like do do do do do do do do you got out of it right before it took off and went woo do you see this and you can tell from this because this literally is almost like a vertical this is what a lot of people do so you made money and I'm happy you made money but I never would have bought it at $4 and you got out of it when I would have been getting in it to go long when all the momentum came in and all the profit was there because from $4 to 14 there was a $10 profit but from 14 to the most recent high which was 27 there's more profit and the potential for the stock to now make it get over the high as well over $30 and this was a good chart to be an example for and I should talk about this in the room for the people that have taken my class because this is a great example let me go back here to the questions Mrs. Wush that's a nice name do I have a gap system for ES S&P and any futures contracts if you learn my system you can apply it to anything that is gapping so you can use it for ETFs you would have to know how to do the future trade I'm not actually teaching you how to do a futures trade so specifically yourself would have to know how to take that trade as a futures trade or an options trade because you can do options and things as well and so you can do that same thing like here with the JetBlue like if it makes sense to do an option in this you can do an option in this for a long because it's a long but I'm saying to you that you'd have to know how to do the future you can apply it to the SPI ETF to do the future so the system is the same 26-point rating system and this is one system and you apply it for everything it's just the gaps in the market or any ETF or any stock of trades and you apply it and that's it how long you're in it is going to determine what your targets are because obviously the long term target in this is many many different targets for JetBlue versus a short term target for the day so that would be different but as far as the strategy it's just the gap and the 26-point rating system that is applicable but that's why it's good because you can use it for a lot of different things depending on how much money you want to risk and how long you want to be in the trade or how short you want to be in the trade which I like to be in them short when you're short the stock you won't be liable to pay the dividend no wouldn't you rather be long on the stock to collect the dividend well that you can be long a stock and collect the dividend but I'm in and out of it on the day before 4 o'clock so even if I go long something I get mailed to my home that says JetBlue now if I actually would actually buy it it would be different I'm training as a day trader this is what I do you can do whatever you want with my system but I'm saying what I do is I'm actually shorting the stock I'm saying I'm borrowing it for the day and giving it back so I'm actually it's a temporary thing therefore you don't actually collect any dividends at all even if you go long it that's a different philosophy of thinking that's more like investing you're thinking of an investor mentality by go I'm thinking of a trader mentality which is more fun and we're talking about the funness it's more fun because I get the money much much faster because you aren't going to make $4100 in a dividend in any stock or anything or anything on the planet in ten minutes in one day so you see the difference but you have to get it right how do you do it by having to focus and then doing it but you're thinking investor mentality you could do all of the above day trade, swing trade, core trade futures, options and collect the dividends and own the stock in anything but the strategy is the same in everything I do it's the gap and the gap has to rate 20 points or more for a point rating system whether it go long or short and I'm only going long up gaps that rate for the system and shorting down gaps to rate for the system and you see how my mind is like the circle circle, circle, circle, circle, circle, circle, circle okay, David I think I did answer the one question what is your average ROI per stock if you use the gap up or down strategy can you then apply it to an option yes you can apply it to an option that's what I was saying you can do that if you want to for example obviously something like Google it would make much much more sense to do an option if you saw something in Google and you wanted to do something with this then it would be to do the outright long position in this which this is a long I haven't looked at this for a while but it's just like a Google yeah so this is a long so this would be one where you'd be better to do an option and something like this target for this is a thousand dollars in the next 12 to 16 months of Google I just saw it there look at that some of these things that are just absolute monsters in the market are gonna run like the Dickens when the market makes a new hind really goes to the numbers these stocks and Google is one of them these leaders in the market are gonna really really they are just gonna just run to the moon it'll be like infinity beyond and Google will be one of those leaders into 2016 cause I just saw in here a 12 1250, 1200, 1000 these are targets for these stocks and this thing just split before and look at it it's already almost back to the number from before before the split I mean talk about money money money money money huge leader in the market so the rate of return happens to be let's go back quickly to the HPQ David is saying about the rate of return I'm looking at it again you're thinking investor mentality I'm in and I'm out the correct entry for this was to short it right here at 1310 stop was 1330 so I'm risking 20 cents 20 cents so if the stock moves and I'm just trying to make this easy if the stock moves 60 cents that means I make three times the amount where did it move well I got out of it here so actually it did move 60 cents here but if you stayed in it down here you actually could have made 80 cents I got out here so either way if you make 60 cents risking 20 cents it's a great trade if you make 80 cents risking 20 cents it's a great trade this is not an investor mentality because I'm not outright purchasing the stock I'm borrowing it based on leverage that you get from a broker wherever you trade as a day trader I'm in and I'm out quickly so I'm thinking the pennies the pennies of the difference I'm shorting it where I'm putting the stock I'm risking 20 pennies and then I size myself accordingly 5000 shares in 20 pennies is a thousand bucks risk 10,000 shares in 20 pennies is $2,000 risk and then you make the size so if the stock drops a dollar you have 5000 shares you make 5 grand if the stock drops $2 you have 5000 shares you make 10 grand how much did you risk a thousand bucks if the stock drops a dollar you make $10,000 and you risk a thousand bucks that means you made $10 for every dollar you risk you cannot you just this is completely there's just nothing like this what I do in the amount of time that I do it for the amount of money that you can make and it's about the pennies so it's not the investment investing anything in this for any length of time for anything I'm just taking the trade and I'm out and the I have a certain amount I could say I'm investing it but I look at it as this is the amount that I'm willing to risk I'm willing to put up I'm willing to put up boom the amount of the pennies the difference between the entry and the stock and in this case it's 20 cents why I liked it a lot because I had 8500 shares of this and that's basically all I got filled and then I just killed the rest because it dropped but I liked it a lot boom okay so it's not investor mentality it's a day trading mentality is your stop loss a call option no I'm putting in a hard stop it's a limit order I'm not doing options or puts you could actually again if you want to you still are using the same strategy it's the gap I don't know what this would have how this would have priced out I don't know maybe you would have made more than me on the day if you had done an option maybe you would have made less I don't know either way you have a set risk make sense okay let me just see here does that answer your question David so I'm looking for 3 does every trade go 3 no some go 1 some go 2 4 but I didn't say it all the way down to there okay hopefully that answers your question and anybody else ask me some more questions here of the ones that you have let me look at the ones from E. Nickoman he wants me to look at CMG here's another one here that again is very expensive boy you people like these very expensive stocks Chipotle let's look what's your question before I tell you what I think of it what is your question just outright what's your question in this what do you want to know E. Nickoman has a question about CMG what is your question and anybody else have questions about specific stocks or the market let me know and then we're going to talk about the market what do you want to do with this here are you in this are you not in this are you thinking about doing this E. Nickoman are you there I know you asked the question a while ago just scroll up yeah you're there what do you want to know about this another market leader another stock that's still strong another company that will rally and make a new high with the market as well I don't think this does it before the end of the year that's a stretch I don't see that happening it could it might I have no idea I don't know when the next earnings are out on this is this chart broken the answer is no is this still strong yes I don't know what you're doing with this could you have shorted this for some of these days could you have shorted this in here some of the days in here you could have shorted it it actually gapped down here I don't know what the reason was I don't know if this was the earnings it was back in October on the 21st but if you tried to short this here guess what you didn't make any money you lost it rallied on the day as a day trade and moved it down the next day but you could have followed this through here on the second day as a short but either way in the long-term picture it's not but as a day trade on the day if you did it as a swing trade you would have but look here again and gapped down here again and failed failed in the next day the gap down here on November 2 and if you shorted this as a day trade here you didn't make any money I didn't do this I'm not shorting a stock like this of a $600 strike price but either way if you shorted it here as a day trade you'd lost now I don't know what these gaps would have rated I didn't look at this but I will tell you that this is not a short in the longer term trend it's still a long sticky in here for this day but it's really actually I hate to tell you but it's not doing anything wrong there I just told you what I thought of it I think it's not doing anything wrong I think it's you know it's unfortunate it had that big red bar there I don't want to happen the day of this happening here it looks like a news thing or who knows but but if you're long and at a good price you're still at money if you shorted it you shouldn't be at money in it and I mean if you shorted it and you're up money I would take it out because I don't really see this doing anything drastically lower could it yes would I be surprised yes why because it's still in the up trend in the market strong and really this is a very popular company as well but you just have to watch the gaps right now there's nothing to do in this if you're already long it and you're profitable stay in it but if you were long it you could have taken it out here when it got down on this day and if you didn't you could have taken it out here on this day when it had the big day if you were up money and you could just get back in then so if you're not in it at all there's nothing to do with this right now there's no play in this at all but it's still in the up trend do I spend much time worrying about the entire markets direction no but I do look at the market every morning because of the fact that I'm running a live training room and I've gotten the habit of doing that and actually has helped me become a better trader because the market is very challenging to read it's one of the most challenging things to read is the QQQs and the spy charts because the market moves a lot and it gaps every day unlike stocks the market really seriously does gap every day and a lot of things move with it and it's very challenging to read in most people that even trade that are good traders get reading the market wrong I've become a better trader by the fact that I've chosen to look daily at the market the room forced me to do that not by choice of my own but it has improved my trading like a thousand percent so I'm glad I've done it and now it's not going away I'm just really good at reading the market it drops $70 because of the eco I scare a couple weeks ago well that's interesting well there we have the answer to that your question on MFRM which went down today because of me acquiring sleepies I didn't even look at this today because I didn't trade today but I'll look at it well it looks like this is gapping up this is gapping up right now this is not gapping down it's gapping up it looks like it closed tonight 49-33 and right now it's gapping up to 54 so this is not this is gapping up this is a bullish gap in MFRM I have to rate this you could you could rate this if you did my class you could rate this but you'd be rating this to go long actually this doesn't even look half bad here now this actually looks not half bad here I mean I'm not going to go through this because I don't have time I only have 10 more minutes to talk but this actually doesn't even really look half bad here it doesn't look half bad I mean I have to go through but this actually might rate well enough to go long tomorrow it actually doesn't look half bad at all kind of low volume which I don't really like should have the volume in it tomorrow on the live day I don't know what time you know I I don't know what time the volume would come in this or if it came in the pre-market this is really actually probably good I'd have to rate it and that's where I know the system tells me so it's no second guessing myself but off the cuff I buying this now it's a live gap the stock closed today at 49 something is gapping up to 54 and it does look like this is possibly a long tomorrow I don't know where this gaps in the morning I don't know the volume in it if you had taken my class you could rate it if it rates over 20 points you go long it and if it does work out as a long tomorrow I tell you it's going to run because there's some shorts trapped in that in there this one picks out winning trades regardless of market direction yes winning trades I'll conservatively say around 70-75% there's times when I feel like I'm on a roll and I'm over 80% but you know it's like anything else the market is cyclical okay I'm talking about just trading in general not the market itself but I'm saying there's times where it seems like we're just like it's boom boom boom boom boom boom boom boom And my win ratio is well over 80%. There's people in the room that track it. I don't. And then there's some months I might only have a 70%, 75% win ratio. But in an overall 20 trading days as a day trader that you trade per month, you should not lose that many. If you do, then you're not profitable. But I will tell you that if you have a system that works even 51% of the time or 50% of the time where you're making three risk units and the other 50% you lose one, that's a profitable system. I have way better odds than that, whether it's 70 or 71.2 or 85 and a half because of the money that I make of the amount that it moves in the trades that I take. Does this make sense? So if you lose in one trade, even half the time, one risk unit and the rest of the time you make three risk units or even two risk units, you are a profitable trader. The problem is people don't make money even that much in the market because they don't have a focus and they're all over the place. And on top of that, they are horrific with their sizing. So they'll take a trade like HPQ and they will risk $200. The trade's beautiful, falls up a planet, goes to the dream target right away. And they'll risk $200. Let's just say this moved a dollar to make it easy. So let's just say it moved a dollar, it almost did move a dollar here from the end trade. So let's just say they risked $200, it took a thousand shares and made a thousand bucks. Next trade might be Lulu, which did not work out in the morning today, did not rate per the system, it was 17, it wasn't 20. So I didn't do it, I didn't trade today. But if you had shorted Lulu today, you would have got stopped out. If you had shorted Lulu today, you would have had to retake it a bunch of times before it finally fell, which was later in the day, which I don't trade later in the day in the afternoon, I only trade the morning. But if you did the Lulu today, which you shouldn't have done because it didn't rate well, but let's just say you did Lulu, I don't even know where to put it. Let's just say you did it, let's just say you did it and you got stopped out. Okay, let's say you did Lulu and you got stopped out and you didn't risk $200, you risked a thousand. And then, and you should have only risked 200. So if you have one good trade and you make a thousand and one bad trade and you lose 200, you're up $800 still, profitable from two trades, one loser, one not loser. I'm talking about the 50-50 equation here to give you the example. But if you take Lulu and risk a thousand and you take HPQ and risk 200, then you're break even. You're still not even down actually. And that's really screwy sizing. Because if you had taken HPQ and risked a thousand and taken 5,000 shares in a trap to the dollar, you could have made five grand. And Lulu, if you lost and risked a thousand, you would have been down a thousand, you still would have been up four grand. So a lot of traders have to get their sizing right. But none of it matters if you don't have a system. None of it matters at all. That just exasperates. People miss sizing themselves, exasperates the already difficult time that people have because they don't have a focus, which is the point of the lecture. It's to make it fun and easy for yourself by having to focus, to simplify it, this whole trading thing. But even when you have the focus, you still have to size yourself right, because I'm not responsible for that you are. I teach you what to do, but you darn well got to do it. And it's really simple arithmetic. And all I can't believe that people don't know how to do arithmetic. I don't know what happens after we graduate high school. Nobody knows how to do math anymore, but you got to remember. And if you don't, then just buy a calculator, which is cheap. Let me just see here. There's something else I was gonna say. Oh, I wanted to talk quickly about the market. I wanted to talk quickly about the market here. Actually, let's look at the keys, because I didn't see how we closed today. And then if we have time, I'll look at the Netflix. And anybody else has any other questions? And just to quickly review, I'm doing a live trading room tomorrow. If you want the information, email me at melissathestockswish.com for the link, or it's gonna be in the webinar tonight, or you can email copy for it as well to come into the room tomorrow. I have no idea where we're gonna get, but you can come in and see. And if you're interested in the GAP class, again, it's this weekend. So the 25% off-side room on a special is running today and tomorrow, that's it. Save you almost $1,000, and that's great. And even if you can't do the class this weekend, you could sign up and do it in January. At least you'd get the 1,000 off. Now, let's look at the market. Is it unusual for you to have days where your system does not have a trade? No, it's not unusual at all. There are slow days in the market. There will be days between the Christmas holiday, between Christmas and New Year's that no one should be trading. Friday was a day not to trade, in my opinion, which was the Black Friday. And like today, I didn't do anything, a day after a holiday. So you don't know, but I will tell you, it's usually after or before holidays. But again, that's all part of having a system to make it easy for yourself. It's impossible to make money if the stocks aren't moving. There was a days last week, even on Monday of last week, of the Monday of the Thanksgiving holiday, people were already off all last week. Monday I looked at the market. I thought it was closed. It wasn't, but it looked like it wasn't even moving. You know, you can't really, I think it did finally move then and fell in the afternoon on the Monday, but you can't make money unless stuff moves. And you're not gonna have stuff move without volume and people in there. And if they're off on the holiday, then who's moving the market? No one. Anyways, let's go here and look at the queues. So the overall market trend is up, it's bullish. And we will make a new high in the QQ queues for the calendar year before the end of the year. Previous high was 115.42. So the next target in the QQ queues were almost there. 115.50 and then beyond. Will we make a brand new all-time high over 120.50 before the end of the calendar year in the queues that I'm not sure of. That really has to start getting its butt moving like now, this week. And I'm not sure so sure we can do that this week. So we will eventually get to that point, but we may not do it before the end of the calendar year or over 120. I don't know. We could have an end of the year rally into the end of the calendar year, a bullish Christmas rally or whatever you wanna call it. I don't know if we pull back again before we push over the area or if we rally over 115.150 this week and then just go straight up there or if we go over 115.150 and then pull back again before we push up again, but look for a bullish move between now and the end of the year in the market. There's nothing here that shows any signs of weakness. So all these stocks that some of you've been asking about that are very, very strong will go nicely or should go nicely with the market unless something happens with them. I'll look at Netflix. And does anyone else have any other questions about gaps or my class or the market or trading? Trading is not investing per se. You're investing your money when you take the trade, but it's for a short-term temporary period. That's it. What do you wanna know about Netflix? There's nothing wrong with this. Another day that had an anomaly day that literally went nowhere because to tell you the day that the market gap down, Netflix could have dropped all the way down to like $75 or $70 and gap down to something crazy. It did gap down. It did open at $88.75 and the day before it closed at 103, basically 104-ish. So this gap down 15 bucks on the day of the anomaly, but Netflix is a high flyer even at the price point since this did the split. And Netflix could have gone way more than that on the day of the anomaly. So another beautiful, beautiful, beautiful chart. We'll make a new hide from the end of the year in Netflix with the market. I just don't know when this has earnings out again or when it gaps again, but this is a long. And it's a good one. Good. This was good to do tonight. So this actually was very helpful. I got a lot of questions from some of the same people. If we do it again, some of you can ask more questions of some of the older people. But did you like doing this tonight? I felt it was more interactive. And hopefully you learned something. You didn't really learn anything specific about my strategy other than the fact that your takeaway from tonight is that if you have a system that you believe in and replicate day after day, it is much, much easier and more fun for you to trade and make money. You will find that you make money easier because you are less stressed. And it matters and plays a part in it. You'll never be able to take 8,500 shares of something like I did with HPQ if you're stressed out. Even if you have the money, you won't be able to if you're stressed out because you'd be too scared that it might not work. But if you have a system that you replicate every day, then and you believe works and know that works, whether it's 70% or 75% or 80% and you know that it works, you won't be stressed about taking the trade. And if it doesn't work, then you just take the one loss. And if it does and you're making two, three Rs. and you see how that adds up and that's how you become a profitable trader. And you really gotta get to that point. So if you're not at a place in your trading where you're profitable, consider taking my class, I'm running a great offer through tomorrow and then you learn how to trade before the end of the calendar year 2015 and you can go into 2016 then and start to trade a lot. You're welcome. I have 26 points, but I'm looking for 20 easy to figure out. Yes, it takes about three to five minutes when I'm rating the gap. If you're brand new, it might take you eight to 10 minutes per gap, but it takes about three to five. Randall's asking, but Randall, I don't rate everything on here. First of all, I usually just look at the shorts. So right there, I'm narrowing it down to 40, okay? And then I'll scan and go through all of these and some of these are just nothing or they're too cheap. Like I don't do penny stocks either. Like I looked at this ARO actually is running out this week. It's unfortunate. I won't trade this even if it gaps down as a penny stock. It's not even worth a dollar. It's sad. Sad actually, never has happened to this, but I don't, I don't, I also just take out things for volume, my volume requirements, Randall and price requirements. And so like I won't do this. So that automatically takes a lot out too. Kathy, can you put in the link how to join tomorrow? Ian Nickerman has a question. Thank you so much everyone for coming tonight. If you're interested in signing up for the Cyber Monday special, email Mia Melissa at thestockswitch.com 25% off, I've never done that before. So it's a good deal. It saves you almost $1,000 and you'll learn how to trade before the end of the calendar year. Come in the room tomorrow and we'll see what we get. Usually be focused on one thing. That's what I like to do. All right, have a good night everyone. You're welcome. Thank you so much everyone for your time and your participation here today. You can see email Melissa at thestockswitch.com. You have any additional questions? Thank you so much. Thank you for your Randall G. Your nice comment. Thank you for the nice presentation. Thank you everyone. Have a great day. Thank you.