 Good afternoon, everyone, and welcome. I don't know why I'm getting this little tick down here at zero for this talk, but I wanted to look at the big here, and I think I'm gonna have to fix something here. Just hold on. Let's go back to, well, it kinda gets it off. All right, so here is a review of big. I wanted to do a review of big because I just wanted to review a trade. Someone had asked me exactly what is it that you do, and I just wanted to show an example of a trade. And this was a nice short here, back here, this was a gap, this was December 5th. And the stock is still lower, by the way. It's still lower, and so that's the other reason I thought I'd just take a look at this. But let's go back on a one-minute chart to the fifth. What I do is I get up in the morning, and sometimes I look at night. But usually it's in the morning where I look in the morning and I see where stock is gapping. So this stock was actually gapping. This won't happen at night. No, this was in the morning. So here it started gapping at eight o'clock. Stock gapped down, this is all in the pre-market. And here it is, here we have it's around 8.30. So we're here around this level 4561. Now how do I know it's gapping? Because over here, four o'clock Eastern time, when the stock market closes, the stock close at 47.96. So it closed at 47.96 and the morning started gapping. And it's trading, it's moving. And so it's all in this range. So I watch it then on the live day after I rate the gap. And I rate the gap to determine if it is a good, long or short, per my 26-point rating system. So big was a gap that I was looking to short. So that's what I do. And then I wait until the market open. I do not take positions post to pre-market. You could, but the problem is you can't really get the, you can't get the same fills. Even with stocks that are volume, like if you're pressing a button to take an exit and something you don't get like an immediate fill in post to pre-market. And even stocks with volume, you're, you can't put a stop in. So it's like a paper stop where you could take it out but what if you don't get it nearly filled out? So, you know, you just have more security, I think training on the live day as far as putting in a hard stop so your risk is defined. And also if you press a button to exit, you really should get filled in a reasonable amount of time. But that's not the case really in post to pre-market. And you have less participants and there's always more volume on the live day. So big was a nice short. And you could have done a lot of short entries in this big. You know, here was an entry short big. This is close to 10 o'clock. You wanna wait till 10 o'clock. Here was another entry to short big. So for example, if you wanted to short big here, you'd be getting in this at $44. You would take the short. You would short the stock. Okay, if you were a day trader, for example. And what does that mean? It means that you are borrowing the stock from your broker. You're saying, Mr. Broker, I want to temporarily borrow this stock. It's called a pre-borrow, you're borrowing it. And they're giving it to you. They take it out of your leverage that you have in your trading account. Whatever the position size, say you take 1,000 shares. Okay, so you're borrowing 1,000 shares to short big. You're not actually getting a stock certificate like mail, like where you're actually buying or something where you're gonna hold the stock for days or weeks or months or years. That's not what the state trading, this type of day trading is. This is day trading where you're in the trade. Right here, for example, at this time of the day in the morning at 9.42, let's say. 9.41, and you are in it. And then you are getting out of it. Let's say you got out of it down in here at 4104 or thereabouts, the stock moved $3 and you'd be getting out of it. And it's still only 10, 25 in the morning. So then the stock moves $3. Now, if you have 3,000 shares, I mean, if you have 1,000 shares and it moves $3, it's $3,000. So depending on how much leverage you have to borrow 1,000 shares of a $44 strike price of the stock depends on how much buying power you would need cash wise in your account to get it. And different brokers offer different leverage depending on the type of your account and you have to talk to a broker about that. Okay, so this is it, this is day trading. So you're not actually getting the stock certificate and holding it for days and weeks and months. So day trading is a way to take a position in something short term. And by short term, I mean very short term like it could be minutes, it could even be seconds. Someone asked me a while ago what's the shortest amount of time I've been to trade less than 60 seconds in one bar and out the same bar. That's not something I often do. Have I done it? Yes, yes I have done it. I remember one time it happened because I took a position like I can actually draw it where I like something open. I took the position and I had a decent size of it. The bar I took it in in the one minute bar where I shorted it had such a big move in the minute that I was in it that I saw what I was up in my P&L and I saw the clock, okay. And I saw the minute bar was gonna close before the minute the 60 seconds was up and then I get out of it. And that was the right thing to do because the move was way, way, way too big. It was more than a dollar and it happened in less than 60 seconds. I was in it and out of it in that timeframe. And that can happen but it can really mostly only happen in gaps which is what I do, I do gap trading. So here it is again, you can see it better here actually. Stock closed at 47.97. This is on the night before December 4th and it opened here the next morning at 44.48, December 5th at 9.30. So this is day trading if you want a day trade. You can go short stocks, you can go long stocks, you can, you know, hold things overnight if you want to but that is swing trading or court trading or investing and you can't put in a hard stop whereas in something like this big short, if you wanted to take a short in the big you could have shorted it and determine your risk. You could have said I only want to risk $50 or I want to only risk $500, whatever you could have decided it, your sizing, your position sizing, whether it's 100 shares or 1,000 shares or 2,000 shares, whatever, it's determined by the amount that you're risking and where you're putting the stop, okay? So it's risk to reward. And someone else asked me about this, about percentage of return day trading is really not like investing in the sense about how much cash you're outlaying in order to get a percentage of return over time. It's more about a risk unit meaning you have the risk unit which is defined and it should be similar, close to similar for every trade that you take so that your results are equal or close to equal as far as what you're risking and making and then you take it and you take the risk and it should be a dollar amount. So it's not on the buying power amount of costs that you're taking, it's the dollar amount. But you do need to have the buying power where we're following the account to be able to take the size position that you need for the dollar amount. Now this happens to be a $44 stock, this is an average price. I trade stocks all over the gamut but I do tend to really love actually to trade stocks that are within a price range of I'd say $5 to like even $65. I mean, those are, I mean, look at this move in the day this thing made. I mean, it's a $44 stock which isn't cheap, cheap, cheap but this isn't expensive. This is less than mid-range here for the US stock market costs wise. And the move in the day the high was $44.53 and the low was $39.94. Now I'm not saying you would have stayed in this to the low of the day but it should drop another dollar from the drop-off it had here in the morning and the stock didn't move $4.50 plus on the day and that's a huge massive move for the stock. That means the stock on the live given day moved more than 10% of its actual cost on the day that it lost in value and that's pretty, pretty big time people. So there it is. There it is for the new student who I talked to on the phone today who shall remain nameless for now. And if you're interested in learning how to day trade gaps and you're interested in learning how to day trade this is what I do, it's gaps. And you can email me at melissa at the stockswush.com. This is the lesson for tonight. This is just a trading lesson here I thought I would do. And if you have any questions email me at melissa at the stockswush.com. The next golden gap class is January 10th and 11th in 2015. Have a great night everyone.