 Hello, everyone. Welcome. This is Kevin with Online Trader Central. Melissa Armol with The Stock Squish and Lee Jones with FifthTrade.com are here with us today. They're both here, and we will be starting promptly in just three minutes, three minutes to start time. Again, Melissa Armol and Lee Jones. Melissa is with TheSockSquish.com and Lee Jones is with FifthTrade.com. So thank you again, everyone, and we welcome. This is Online Trader Central. I want to welcome Mr. Kevin with Online Trader Central. We want to welcome each and every one of you to the presentation today. Today we're fortunate indeed to have two folks with us, Melissa Armol with The Stock Squish and Lee Jones with FifthTrade.com. They're both here to present, and they will introduce themselves in the appropriate order. But now we want to welcome each and every one of you. Please welcome our host and presenter today, Melissa Armol. Thank you, Kevin, and welcome. Welcome, everyone. My name is Melissa Armol, and I own a company called The Stock Squish. And I'm here today also with another lady. Look at that. Two female traders are going to be doing the lecture today. How fantastic is that? Her name is Lee Jones, and she owns a company called FifthTrade. So today is going to be about sharing some of our secrets. I'm going to share a secret with you. Lee is going to share a secret with you. It's going to be a very interesting lecture and timely, too, specifically because of what the market did today. So welcome. If you'd like more information, you can go to my website, www.thesdocswish.com. And if you'd like more information, you can also email me at Melissa at the stocksswish.com. When we're done with the lecture today, we'll answer questions. You can plop in the room questions as we go along. And if we are running short with time, we'll get to all the questions at the end. So first of all, I'd like to talk a little bit about my experience in Lee's experience. I actually am a live trader. I'm an equities trader. I own a company, but I trade daily money through Friday when the markets open in the morning. And I've been training for over five years. Lee is the owner of her company, too, FifthTrade. She's actually an options trader, different from what I do, but similar. She'll explain when she gets on today. She's had a lot of experience over 15 years trading options and trading the market. So I'm going to get some really good information today from both me and her about trading. This is what I look like. This is my picture. Meet Melissa. I'm an equities trader. Everyone always asks me, do you really trade live? And the answer is yes. I run a live trading room and I call out the trades that I do in the room every day, which is fantastic. Lots of fun, very exciting. And this is Lee. She's an options trader. She also has a call of her own trade. She does an email list that she sends out, and she's going to talk about that more later, too, but this is Lee. This is what she looks like as well. Again, two female traders who are doing this for a living. There's not a lot of women that are actually trading in the market successfully for a living. And so it's very unique to meet up with ladies who do this. And I think it adds a lot of excitement when you see people from different places doing different things and yet still doing them in their own way successfully. So can you make a living as a trader? The answer is yes. And what do I mean by making a living? We were having discussion the other day. Making a living means that you're making enough money training the market to pay your bills, your food, your utility bills, your rent, or your housing payment, your car payment, your credit cards, those kinds of things. The great thing about trading the market is not only can you make a living doing this, if you really want to, and learn how to do it right, you can also get extremely wealthy trading the market. Now, that takes experience and time to build yourself up to get to that point. When I started trading, my dream was actually to become extremely wealthy trading the market. My dream was not to just do this for a living. Now, everybody has different dreams, but when I decided I wanted to do this, my dream was because I wanted to become a millionaire. That was my dream. I wanted to make a lot of money. I wasn't just looking to make a living when I did this. Now, I run into a lot of people and they want to do this just for a living. That's great. That's 100% realistic because I think a lot of people out there have different goals and sometimes they're very reasonable. People don't even know it. They don't even know how reasonable their goals are, and we're going to talk about that more today. So, me and Lee are two completely different types of traders who both trade the market daily for a living. We have similar styles, but use different mediums. I'm an equities trader and Lee is an options trader, but we both trade the NASDAQ and the New York Exchange. So, how can you become successful as an equities trader? I'm going to talk about that today. And how can you become successful as an options trader? Lee is going to talk about that today when she gets on a little bit here. One of the key ingredients behind every career trader is that they have secrets, and they are secrets. I mean, this is why you want to meet up with someone that's doing well because they'll tell you things that you might not learn from someone that wasn't doing well. These secrets help assist them in making successful trades on a consistent basis, and really that's what it's about. It's about the consistency. There's a lot of people that are in the market trading, putting their money into the market, whether it's every day or on a weekly basis or a monthly basis or a yearly basis, and it could be something just leaving like an IRA or 401k, or it could be something like an overnight trade or even a day trade, but it's maintaining the consistency that a lot of people struggle with. And this is what sets some people apart that do very, very well and some people that don't because they can't seem to grab hold of that thing, that one thing, that key ingredient that would make them be consistent, consistently successful to the profit. So many successful traders have things they do well, and very well. I mean, even Excel at, you can call them secrets, you can call them edges, you can call them whatever you want. It is something special, something special that sets a successful trader apart from the rest, meaning everybody else is trying to make it. And let's face it, that's a lot of the people that's most of the people. This edge can come from a skill set based on knowledge or experience, trading, trading live, and not just experience trading live, but making money live, because there's a feeling, there's a passion, there's an excitement, there's a conviction that goes along with that. It's something that almost can't, can't be taught, you've got to feel it. I can tell you what to do, I can teach you the knowledge, but you, you alone, when you take the trades and make money, Monday, Tuesday, Wednesday, Thursday, Friday, that's how you're gonna build up the conviction and know that something works and that you've got it, and that you feel it, and that you're doing it and you believe, you believe the market can pay you, that yes, my goodness, I can actually do this for a living and quit my day job. So you've got to get to that point. How do you get to that point? Well, a lot of people make money in the market, but just not consistently. It's the consistency that many traders lack, and they really, really lack it. I mean, people go in yo-yos. Why do they lack it? Well, one reason is that people have no idea how to read directional bias correctly. I've talked about this before. It's so simple, but it really is a heavy, heavy subject, because this is why people aren't consistent. I know how to read directional bias very well. It's one of the secrets, okay, that I had that gives me an edge. So what is the secret of Melissa's, which is me, it's correctly reading directional bias. Whether stock is going to go up in the day, whether stock is going to go down in the day, whether there's absolutely going to be nothing to do in the stock at all, and it's a new play or what I call a nothing play. You don't do anything. I called this gap up on Netflix actually before it even did it. My video is on YouTube, and then it gapped up and it held. And then I kept calling the numbers for where it was going to go to. And a lot of people probably didn't see this. Why? Because of the fact that it did have this huge red sell-up bar that happened back here in the earnings last year in October. Try to get over the highs here. Couldn't do it. This is the end of 2013. And also had a few gap downs. I mean, the stock actually got down a few times before it made this gap here, which happened in January on the earnings that came out in January. The follow-through, however, didn't happen until here. Right in here where the stock rallied up here and made new highs. This is an amazing chart actually that I've called well ever since the beginning of 2013. And I'm calling the directional bias in this. It's higher. It's higher this year. It's continuing to make new highs and it will. How can I see this? How do I know how to do this ahead of time? And in the live moment, because I know how to read directional bias. Here's another one here. This was CLV. This was back just in the end of January. It was actually a gap up. It was a gap up on the 200-prime moving average. And I said it's not good. It's not going to work. It's going to fail. It's going to fail. Don't buy it. It failed miserably and actually could have shorted it. Now, I didn't do this. It's not something I do. I don't do failures, but I call this as a failure to alert people in the trading room not to buy it. And actually someone shorted it. Because sometimes people do play the failures that I call. But again, looks like a good gap. Gapping up. Gapping up overall of this here. Gapping up to the support. Gapping up on the 200. But I called it as a failure. Why? I read directional bias well. Another one here is Apple. I could go on and on and on about Apple, but I did call that Apple would do something very significant in the earnings that happened this past quarter for Apple in January. It was last week. And Apple gapped down. And I wasn't surprised. Why? Because Apple is in a downtrend. The gap down confirmed the downtrend in Apple. Apple is lower and is going to continue lower. And again, I have numbers for this as well. But this is a secret of mine. How I'm reading this, reading this, knowing, knowing what the overall trend is, which is to the downside, knowing that it's going to continue what you did in the gap, and seeing that this is going to continue, even though this is trying, trying desperately, really trying here just since Friday, but it's not going to cut it. And actually today's confirmation even continued and followed through to the downside more. So how do I know how to pinpoint directional bias accurately? And this is key because, you know, you want to be accurate because you don't want to take along and then kill it and take a loss and then have to short something. And the worst thing you could do is take a trade in one direction, kill it, take it in another direction, go back and forth like this. I never, ever, ever trade like that. It's a mess. It's a mess for your mind. It's a mess for your account. It's a waste of commissions. You've got to know what you're doing, know the direction before you take the trade. Either works or it doesn't. And that's it. Okay. This none of this going back and forth. Oh, let me buy it. Oh, it's not working as along. Oh, let me short it. Oh, it's not working as a short. Oh, let me buy it again. And all of a sudden you just take four trades and you did three things in a different direction and what's your end result going to be? Losses. Okay. You have to know the directions before you take the trade. Have a conviction. Know the reason why you're looking at the directional bias that way. It must be accurate and you take it. And that's the way to do it. Now, I'm going to talk today about the spy. And the reason I'm going to talk about this is because it happened today. It was a great call that I made. And I think there's a couple of things here that I want to address about trading as well that I just was thinking about today. You plan everything that you know, which is what I know when I trade the class that I teach, okay, which I'm going to talk about in a little bit, which is how to read directional bias and gaps. You plan. You have all the information. You've got all the knowledge. You have the work. You do it in the morning before the market opens. You know what you're looking at to trade. You know the direction. You want something to go and you have it all planned. But in the live, live moment, as a real live trader, you must see things when they happen if they set up differently than you planned. So what am I talking about here? When I got up this morning at around eight o'clock and looked at the market, the market was gapping up. Okay, it was a bullish gap. It's like right around here. I said, oh, interesting. We're going to follow through today and I read the gap in real live time. Now, by the time before the open, look what the market did. It actually was not gapping up anymore. It was actually gapping down. Here was the close of Friday and here's the opening today. Now it wasn't a big gap down, but it was a gap down. What is a gap? A gap is when the closing price from yesterday is different from the opening price today. This doesn't look significant, but it was significant. And in real life time, I saw that. I saw the failure to go higher here plus the gap down in the morning and called a short in the market to a huge target today, which you'd actually went to and surpassed. And I called it very early and you could have taken advantage of the trade and we're going to go over it here today. Now, I want to talk about this whole spy, the whole market here. We are still in an uptrend. I love to short. It's my thing. I like to do it. I like to do it more than anything else, but the market's still in an uptrend. My call for this year is still intact as of right now, despite this activity today, but in the longer term in 2014, we're going to stay in the uptrend unless otherwise noted, or I see a change in the price action here that would make me see otherwise. But for now, my overall bias to the market is that it's going to continue and fall through in the uptrend this year, 2014. And we're still in an uptrend now, despite the deep fall-off we've had in the last two weeks here, which is deep. Now, I was looking for the market to fall in here last week harder. Okay? And there was an area in here. This is an area here where the market comes down to support, comes down to support, rallies comes down to support, made the big bottom you tell this is in a December rally, gapped up, came in held, tried to go higher here, this is the beginning of this year, gapped down, gapped down, had a hard fall held, did a double bottom, did a triple bottom. This is actually quadruple bottom here, really. But I kept looking here for the market to fall. Why? First of all, I felt the heaviness in the market. Okay? Second of all, because we're in a bullish market, I'm looking for people to buy, buy back in to make them move up. And the activity that was going on in here was in power buying. So I didn't think we'd get the lift to make it through over and above ourselves. We didn't have a follow-through. One, two, three. We have no follow-through here. The market was choppy back and forth, back and forth. I was looking for a deeper pull-in. Okay. And I'm reading the directional bias. So I'm running in the short-term timeframe to trade in today because I'm a day trader, which I was looking for to break and fall like it did today to the downside, to a deeper area. But the overall trend of the market is still bullish. So again, you're planning, you're planning what you're doing today, and then you're looking at the overall bigger picture and you're seeing things. And you live in real time. If the market had followed through today bullish, so be it. It would have done its thing and I still would have done my trade, but it didn't. And this was a great call today because it had a really huge risk to reward. And I know that a lot of people saw the gap up in the market, saw the way the market was holding in here, one, two, three, four days, and thought it would today when it retested the area and probably tried to buy it down here at the retest. But how did I know it was going to break when it hit before it even broke? Because of the gap. Because of the fact that we gapped. And I loved to short gaps. I loved to short small gaps, big gaps, little gaps, teeny gaps, huge gaps, monster gaps. This really doesn't look like much, but it was real. And it's important to see this here today and even for the people that already did my class and trade with me because I got to point it out. This really was very significant. And this whole thing here was significant, actually the fact that we couldn't hold this. So no matter what you trade or how you trade, you've got to get the direction right. You've got to get the direction right or you're not going to make money. And nobody has time to waste getting in long and quitting, chilling the trade going short. You can't do that. It's just a waste. It's a broker's dream because they're making money off you just taking trades and churning and burning commissions. But it doesn't do you any good and it really totally diminishes your overall confidence and self-confidence and conviction, everything you feel about yourself to do this. And by golly, you've got to have confidence when you do this. You really have to have confidence when you do this. I can't have enough. In fact, I put some video on YouTube the other week and somebody tweeted something about this because I was talking myself up in the video. I can't do that enough. This stuff here is amazing when it works. It's amazing because I see it before it happens and I'm able to profit from it. It can be amazing for you too if you learn how to do it. This is the most fun thing I've ever done for a living. It is the most fun thing I've ever done for a living when you know what to do. It's the easiest money you can make. And not only that, you don't even have to do this all day long. I don't sit and trade until four o'clock every day. I trade in the morning I'm done. Now you could trade all day if you feel like it, but why? You don't even need to. And some of these trades like Netflix and Apple, you could just take one of these monster huge calls that I've made and just sit back and make money for the whole year and not even do anything and just be in the trade all year. You'd have to be in it for a longer term though overnight. You have to get directional bias right. It is so important. It's one of the number one reasons why people lose. And if you're not consistent, you're probably not consistent because you don't know how to redirection. I hate to say it. Everybody goes on and on and saying, well, it's, I know what I'm doing. It's just my discipline. Oh, I've got to get my discipline right. If I just, if I just have my discipline, I know I could do it. Probably not. It's probably that the thing that you're doing just doesn't darn where I'll work. So just figure something out so you can get better as a trader. You know, a lot of times traders blame themselves. Don't blame yourself. It's not your fault. Learn something that works. Okay. Don't go so psycho babbling on yourself that you feel like you got to go see a therapist. This isn't about that. You just got to learn what to do and get the knowledge and do it for Pete's Sakes. Okay. You've got to get the direction right in your trades. If you're not, then you got to learn how. If you're losing, you probably aren't getting the direction right in your trades. You've got to figure it out how to do this. You will make money more than you ever lose if you get the trade in the right direction. It doesn't even matter if you don't even hold it to the target. It doesn't even matter if you only take it and scalp it. You could take size and scalp it out. You could take it and hold it to a dream target. You could take it and hold it to four o'clock and walk away with the stop in and put an order in to take it out. You could do whatever you want. How? Why? How can you do this? You've got to get the direction right. So I'm an equities trader and Lee is an options trader and I'm going to talk about an equity trade today in the spine. Lee is going to talk about an option, but the point is it doesn't even matter whether you did an equity trade, whether you are a day trader, whether you're an options trader. It doesn't matter if and as long as you get the direction right. Okay. So you have to learn how to do that. And it's all about reading price. So if you want to trade, you need a plan and that means a strategic method to pick direction so that you know what you're doing when you get up in the morning and you have the plan of action and then you see the stock or the market on the live day and if you see it doing something that it's not supposed to be doing then you read it live like the market today. If you had thought the market was a long today and knew how to read price direction and gaps, you would have seen the bullish gap up this morning but then by the time the market opened seeing the gap down and you wouldn't have bought it. So then you wouldn't have lost money in the long and you would have shorted the market to make money to the downside. Having the plan of action but then seeing that something happens different in the live day. So I teach a class. It is a system. It's actually a system to rate gaps which is telling you what's going to happen the directional bias of the stock or the market on the day. It's a 26-point rating system. I actually go through 26 things for any stock that I look at and this is how I read the market too. You can do it with the market. The same thing. You could go through the rating system and rate the market. The purpose of the system is help you evaluate which gap to trade each morning using a checklist and again you could do this with the market. You could take my class and rate the gap in the market every single day and then you'd know what to do with the market. Then you'd know what direction the market's going to do and you know how to take your other trades your core trades or your day trades. So the 26-point checklist tells you what to look for. What am I looking for? It's in the price. It's in the price of the daily chart which tells you what it's going to do on the day. So the class is called the golden gap course. It teaches the strategy and how to trade gaps and again this teaches directional bias of the stock or the market or any ETF. The course teaches a 26-point rating system to find the best stock to trade each day. The course teaches you how to read directional bias to trade the stock on the day. The course teaches you chart analysis and technical analysis on an advanced level and this is one of these secrets that I have. Looking at price in a very advanced way is a specialized area that is based on a skill set that I teach people. It's getting the knowledge to do this getting the knowledge to do it putting into practice and then getting the conviction yourself when you see the real profits in the money. So the class is called the golden gap course. It's a full two-day course on how to strategically find, pick, and play stocks that are professional bearish gaps. Retakes are free. The class is online and it's this weekend. If you're interested it's this weekend from nine o'clock to five o'clock Easter time February 8th and 9th. The cost of the class is 24.99 and if you're interested email me here at melissa at thestockswish.com. At the end of the class we're going to talk about a special that Lee and I are doing a combo special together as well. So let's go over the trade and the spy for today. Here again is the move that the spy made. The market actually had a very rare power trend day. One of my name bit power trend where the market sets up early in the morning and power trends all day in the in a certain direction. Today was to the downside. Market has had power trend updates in this chart. Today was to the downside. It actually hasn't had a whole lot of power trend down days. This was one back here actually just in the last month and then today was two and I knew when we broke this area that the bar would be bigger than the bar back here. In fact I even said it all in here. I said oh it's going to it's going to be a bigger day than this day. It just took a couple days for it to do it and you see the extension here and you know you got to take advantage of days when the market power trends. Whether it's long or short because you could almost take every setup. Every single setup in the market that had happened today. But here was what I saw the market do. Okay this is this is a spy in the open. The spy opened here, wiggled and jiggled, traded higher, tried to get over this area here, tried, tried and had to do it right away but didn't and failed. Here was actually the confirmation. This was an aggressive entry here if you wanted to do this. Actually this is more aggressive or here. Then when it broke and rallied up here, here was the short. Right in here. Stop. Very very tight here and you can see where it hit. Here is where all of this is happening. All the break in here. Here is where it goes all the way through. Now here let's go look at this in the daily. This is 177. That was that long bar happened before this. Now listen this is important. First of all I made the call before it even broke because I knew it would break if it touched it. But this is a gap down. You're in it. That red bar that happened. This is a one-minute chart. This red bar here is not the break on the daily. This is before it because this is the touchdown here. I'm sure people tried to buy this. They were stopped out almost immediately. One, two, three, four, five, six, seven, eight, nine. Within 10 minutes they were stopped out immediately. I'm sure people bought this thinking that this was going to pull. But this big red bar here happened before that. And also I saw this set up back in here which is why you know I call the trade but do you see why this is a sign of weakness. This is not a sign of strength. It came down to the support area but you don't buy this. And also the stock gap down. I mean the market gap down. I'm reading the spy. It's an ETF. You can read the same as a stock. Okay so look at this trade here. First target was $175. Second target was $174. It actually broke $174. This is no ads, no nothing. Just one trade here, the trade I called in morning at $9.56. Price of the spy if you wanted to short it was $177.71. Stop was over $177.85. It was a 14 cent risk. This is an advanced risk of $560 which means you would have shorted 4,000 shares of this. Exit at the first target in this trade. No ads, no nothing. It was $10,840. And I don't know if $10,840 pays your bills for the month but do you see how you can make a living doing this. This is plain, this is one trade. You risked $560. You didn't have to do that. You could have risked less. What if you only risked $250. Half of this you would have made over $5,000. Still a really nice trade. The risk to award in this trade whether you took 4,000 shares or 1,000 shares or 2,000 shares with a 14 cent stop is 19 Rs. 19 times the amount you risked you made in profit. This is a great trade. This is a great call. It was a great call not only because of the risk to reward but because I saw the market directional bias to break and I saw it four days before it did it. And this is what Lee can talk about. If you read directional bias the way I did you could have done an option of this. Seeing that it was going to do it. Seeing that the spy was going to get to $175. I've been talking about it for a week and it did it today. Exit at the second target was $174. You could have made almost $15,000. Risking $560. Risk to award is $2650 on the amount risked made in profit. Again, can $14,000 pay your bills in a month? I don't know. Okay. So in any event this is really, really the thing to do when you see a call and you see the target at hand. When I see a stock that is doing something significant or the market like today, I know where the target is and I know it's going to go there. Okay. So how do you learn how to do this? Reading directional bias. Reading the directional bias and knowing the price that it hits when it gaps and then seeing where it's going to go to with the target. Does everything go to the target every day? No, but lots of times things do. And as you see in this trade here, the market actually broke $174. It just ran out of day. I mean just flat out ran out of time. So it's one of these things where if you knew how to read directional bias in the spy of the day or in the last week or the last month, you could have day traded this, court traded this, swing traded this and been in this overnight all the way down to the number, which was $175 actually. And you could have just stayed in it to $174 because it just fell like a brick today. You could have done an options trade in this. So many different ways to do this, but it all comes down to this same, same focus. The major, major, major crux, which is the gap, which tells me the directional bias, which is why I'm a great trader. I'm a great trader because I trade gaps and gaps teach me how to take a trade in the right direction. How to read a trend of a stock or the chart or even the market and see these entries to do something like this. It's, you know, you can short the market at 12 o'clock, but isn't it better to short the market at 10 o'clock? You can short the market at 2 o'clock, but isn't it better to short it at 10 o'clock? Isn't it better to be able to take a trade where you make a 19R trade? Okay. That means for every one dollar you made 19. And if you held it to the, all the way to the load of the day, for like $1 you made 26. You don't even need to do this every day. You don't even need to do this every week. You have a trade like this. You have big days, two, three days a month, and you focus on what you're doing. Keep trading well, building your account, paying yourself. You're doing it. You're doing it. It's 100% possible. I mean, people go on and on and on and on and on. It's just what you have to focus on. It is possible to make a living trading, but you do need to know what to do. And in order to know what to do, you got to learn it. It's just as simple as that. You've got to learn it. Consoles ask me a question. Consoles, you've been in my free trial trading room. I think you've asked me this 10 times. Consoles, I love you. I don't know who you are. You're a stranger to me. Gaps do not fill themselves. They don't fill themselves. I've answered this question before. You don't believe me, but I don't know what to say to you, Consoles. They don't, sweetheart. They do not. And they just don't. How do I know? Because I'm reading the price of the gap. I'm reading them and I'm trading them and I'm making money doing it. And so are there people too that I'm teaching? They don't. It's false. I know there's places out there that teach it. Let it go. Let it go. Learn what to do. You're so funny. So this was, here's the trade into the close. I mean, this is into three o'clock. So could you have done an options trade in the spy? Yes. Yes, you could have. You could have. So Lee is going to talk right now. And then when Lee's done, I'm going to come back and close up here, ask questions and talk about the special. But you know, here's a great example. I read this market coming in, a short-term polling, short-term polling, and then there'll be a place to buy, not yet, not yet. But you can do an options trade taking advantage of this or you could have if you knew how to read this direction and you could have taken it out today with profit. So I'm going to hand it over to Lee. Here you go. Can you guys hear me? I just want to double check before I move over and get started. Okay, great. Isn't she awesome? You know, in the amount of time that I'm on the list, you will not find anybody that has a better work ethic. She and I have been communicating after hours, weekends, it doesn't matter. We have a line, but trust me, we also know when we need to handle something and that's what we do. We try to make sure that we handle anybody that needs any kind of question or anything like that. Let me get, make sure my presentation is working and the list is a little more experienced at working with this. Kathy, if you're standby, I'm going to make sure that you just got to let me know that you can see this. Can you, can we see it? If we can see the presentation? Oh, we'll get moving. Okay, awesome. Okay, I am Lee Jones and yes, I like the list. I got tickled because she and I are taking pretty much the same trade. We both trade gaps and I love the fact that she has her 26 point system. I think that's very helpful for those of you that don't know how to read technical charts. I am going to pull up a chart momentarily because we both traded this by today, but I want to go through a few things and make sure new people understand what options are and that type thing. A lot of times in my room, you'll see us type ATAD right here at another trade another day. We get tickled because that's not a ticker symbol, but we know we can't catch all of it, but as day traders, we try to catch, you know, several trades per day. Now I'm much like Melissa, I don't enjoy seeing their trading in the afternoon, but when there's a lot of volatility in the market and it's bad weather outside, you may see me over there and I'll trade anything that moves. I live in Myrtle Beach, so in the summer, I'm going to be outside the beach. I'm not going to be sitting here reading charts after this. So we try to trade in the morning. I try to keep the best time to catch stock trade. We are time sensitive with our trade. I used to take students through the exchanges in Chicago. We would go through the CBO, we'd go through CME, and I'll try to show them there what the traders were doing at certain times in the morning because it's perfectly true. Once you learn what the market makers were doing, you look at this a lot differently. If you're a fisherman or you've ever been out with a fisherman, you know there's certain times that they will go fish. They don't even bother other times and that's pretty much the way we are. I am, as I said, Lee Jones. I've been trading for 15 years. When I started trading guys, online trading, retail trading was not consistent at that time. I had to call my brother. I actually started trading before that. I had to call my brother and pay $50 on the device to start for me. I would look at the newspaper and I had a problem I passed and I would map inter-day data. Now the newspaper and I tried to pick my trades. I called my broker $50 for him to put me in the trade and then when I was ready to sell $50 to get me out. There was no day trading that didn't exist. When each trade came on the scene, I was so excited because now I'm paying $29.95 from my commission and I thought it was hot stuff. I could go in and make my trade and put it on myself. I still love my broker but I could do it myself. Now I have brokeries, we have our discounted rates. My group has a discounted rate. We don't pay those types of commissions at all. So what I want you to understand is it's a matter of choosing options choosing trades that fit your style. Some people try their best to trade different strategies that don't work and I'm here to tell you if you don't have the system that works, you're going to fail and I don't know why people think if they continue with the same input they're going to have a different output. So what I like to do is day trade. I do trade from Melissa Mitchell's core trade. That's what I do as well. I have certain symbols that I trade as cores. I may hold them. If you can see right here, I rotate one to five in which means one to five nights. Okay, one to five nights. I do trade complex strategies but I prefer to stay with call to put because I enjoy getting in and getting out. I'll trade anything that moves. I guarantee you if you have a ticker symbol I trade you too and that's my line. I trade anything that moves. I do want to come back and chat with you just a moment and come back and talk about it again but Melissa and I kind of collaborated a little bit so we could come up with a budget class for you so we'll talk about that a little bit more but let me go over a few things about options that I think are interesting. Number one, I had a small account when I first started. I traveled. I am a by-trade. I have an ISO 9000 control set. Anybody that's in manufacturing aerospace lab on notice, you may know what that is but it is a quality standard so I'm a vast and stat person. I'm all about statistics. So I'm all about processes. In other words, I put input one, input two, input three and we should have that same output. Sounds right in theory but it doesn't work in the market. Why? Because you have too many variables. So I think I would like for you to look. If anything, look at your 2014 years. Look at 2013. Have you been a trader? What type of success did you have and how can you learn to improve the 2014? If you're a new trader, back up, take a deep breath and take 2014 to learn how to do that. My kid started learning how to do this in the third grade. She bought her first stock in the third grade. She had enough money, Home Depot, blessed parts, tanks one day and I heard it on the news because again online charting and all this was not not existing. I called my broker, bought my shares of Home Depot on the drop. At that time, you know, I didn't even know how to share it. My little girl had enough money to do one share of Home Depot. So when we booked out Home Depot and got our profits, she got our profits and she was hit from that point. She has traded before school. She's now in college and she will get up, trade a little bit and then head to school. So she's learned how to do this and I do teach young people. I teach high school and up but my kid learned how to do it and I highly suggest that you sit with your kids. I sit here with pictures in my office that grandchildren and children have drawn candle charts and they're four, five, six, 15 years old and I frame them and I hang them up because those little kids are learning how to read technical analysis and re-changing. So if they can do it, you can certainly do it. Now the beauty about options guys, let's just get you excited. Let's think about a store just a moment. Let's say we have this fictitious store and we have our Valentine's merchandise. We're going to price our Valentine's merchandise because we're in our prime right and we're on Valentine's days around the corner. What happens when Valentine's day is over and we still have much to go. We have one or two options that we can do. We can hold it, try to sell it next year or we can put it on sale and that's the way I look at it with my trading account. I look at my inventory. My trading account is my store. I look at my inventory, my stock, my holding, my flip because you know to be honest with you, it's no different than me having a hardware store and we have a snowstorm. What am I going to sell? I'm going to sell quickly. I'm going to move my snow item to the front of the store. So I'm going to look at the market that way. I look out at each day and think okay what should I move to the front of the store that I can rotate quickly. So I'm all about that. I'm all about compounding. One thing about options and the beauty of options is they settle in one day. Once I learned that, I was good because with stocks, we wait three days for those to settle unless you're on margin obviously. However, I prefer my brand new students, you know the stock market, I prefer them large. I don't let any of my new students trade on margin until they and myself agree they're ready. But the beauty of the options is they settle in one day. It's dollar rotation. So I can take the profits of that day, move it into the next day. Okay, so I'm going to talk about this. Melissa's in and out on the same day. So am I for the most part. I don't have time to hatch these things. I will put on trades for swings and long returns. I'll hatch those. But the income trades that I'm trying to trade for each day I want to get in, I want to get out. I want to get in in the afternoon or top in the morning. And that's been one of the best trades I've told you I would tell you a few secrets earlier and I'll show you that in a minute. But I want you to realize right here, if I was taking a particular trade and I risked $2,500 on that trade for a swing, as example, I make $100,000. The life span of that trade would be around 45 days. That's still not a bad day to start. That's not a bad return. But I like to take that same $2,500, make $500, and I'm in and out of that in one to seven hours. Sometimes it's one minute, sometimes it's 11 minutes, sometimes it's $110,000. But that's the way I like to trade. I like to move in and out. Now, Melissa talked about Netflix. And I put this in here specifically because she and I both trade as Netflix on that gap. Okay, so she's trading looking at it a certain way. I'm looking at it a certain way. Okay, we grabbed the same trade right at the open. We grabbed it right at the open. I call that a vitamin because I think everybody needs a vitamin extra. So I tried to pull one out right at the open. That's fast and furious. You've got to practice before you do that. But we went in at about, I would say 931 as this candle, this animal three-minute candle. This one is a 10 minutes. I could get the whole chart on for you. But I trade on three. There's one line. I can trade on one minute, but three minutes helps me get my entries better. And I can tell you right now that I went in and I was out with that trade in a matter of three or four minutes. And I did, if you look right here, $303.61. Here's the trade. Look down here at 10.22, 9.38, where we actually got our field. We got in $1.49. This rounded up to say it's $1.00. Okay, we got out at $5.10. So that up here is a difference of $3.51 per contract. Now with an option, you're controlling $102. With your brand new option, we need to back you up just a little bit. We wanted to show you what that is. But with an option, you will put on this trade, see this where it says $1.49, we'll say it's $1.50. I'm controlling 100 shares, so I put $150 on my trade. $150. My profit, and again, this is because it was a wonderful gap, my profit was $361 per contract. So if I bought one contract, I'd have added $150. I made it $361 for my $150 risk. If you did 10 contracts, you could do the math. If you did five contracts, if you did two, you did 20, that's like that. I think it's a matter of trading to your account funds. I work with a lot of people in starters, you know, we're trading a $500 we can't put 10 contracts in. So we have to take it sweet. But it was a beautiful trade. We turned around and equated it again. The next day, just like Melissa, once you've learned direction, you're pretty well ready to go. Same thing with Amazon. This was last week. Amazon changed on earnings. And like Melissa, we're looking for these gaps. We have to be careful with Amazon, because Amazon, like Netflix, is a Wall Street garden, and people love to buy it. They love to buy it on the biz. But please be careful with some of these. However, the drop on Amazon this time was a little bit more substantial. So we shorted it instead. So going down, we're going to watch it. If you can look right here, you see, down here, I have Amazon staying on business. And you have the last part of 365 to change to $31.38. Underneath that, you can see we did the February for Amazon. Right at the open, right here, we did the, this is actually our second phase. We shorted it at the beginning, and we saw the quick mount. We got in and these are three little cameras. So this trade was over in three, six, nine minutes. So you could have bought this option at $79.00 or $71.00. Because you could fold it under. And you could have sold it at $92.00. That's that. You make the difference between the $79.00 and the $92.00 to $100.00. So this was a stop at afternoon trade I wanted to show you. This is a live trade that I'll talk in Friday, because Melissa and I were talking about trying to have a few live trades for you to look at that are relevant. That's what we try to do because we're both relevant in day traders. You know, we have trades that happen every day. So I wanted to pull this one out. And this is actually Yahoo. And I wanted to pull up an option chain. Again, if you're new to options, please bear with me. It's worth learning. But as you can see, on Friday up here, January 30th at $155.00, I noticed that we've got this move up. I trade these particular averages. I trade particular numbers again on a mass person and our confirmation set up. Off we go. We bought the option right here. We bought the $35.00 call. And you can see the last site is $172.00. And that was me. I bought that at a $72.00. That translates into $172.00. So I risked $172.00 per contract. Okay. So if I did one contract, I'm going to send you $2.00. If I did 10 contracts, $1720.00. Okay. Within two or three minutes, because we didn't wait for this whole thing, on that big volume candle up there, we're ready to take it, because we're quick, countless of traders. You can see that it hit $189.00 or $100.00. I was out at $188.00. That's me, right there. I actually took that trade at $157.00 or $155.00. A two-minute trade, just like to build this example for you. Okay. So if you see that we got it at $172.00, we sold it at $188.00, $16.00. They don't say what the lot, but it's $16.00 a profit per contract. Okay. If you did a 10-lot, that's $150.00 a profit. You did a 20-lot business. Okay. So I wanted to show you how quickly you can move some of these. So some of these are trades for daily and weekly income. I'm going to go back to the spy right there. Make sure I can get my spy on here. I think I'm going to be stuck there. I'll come back. There's really just one moment and I will try to come here until we see my spy chart. If we can see that, it's the same thing we traded today. We traded this block today. So we traded the spy $169.00 to it, meaning we felt like it was going down. So we put it, I told people, even way to remember that, we should put it in the trunk. Okay. Black, I'll go back to it and say where I am. I don't think that chart's going to pull up. But we did trade that up for that. And tell me when I saw it and tell me something that you're seeing. Thanks for bearing with me, darling. You want a second to get on? They'll set that up. Am I back on? Okay. Let me do that. Okay. Just one second. Sorry, darling. Thanks for your patience here. Okay. I wanted to show you a live chart, but since I'm not quite patient with this digital software, there we go. That spy we chose was the $169.00. We bought it before $80,000.00. Okay. We bought the kit because we thought it was going down. All right. We're buying it for $89.00. How much did we put on that trade? Remember, it sold $100.00 for $89.00 for my darling. We sold it about 30 or 33 minutes later for $1.50. Okay. So from $89.00 to $1.50, that's $0.61. That's $2.00. $1.50 is $0.00. No problem. No problem. Maybe it's $2.00. That's the market for trade prices for you every hour. They're out there. It's just a matter of who you choose to sit there. I know. I know when the institutional traders are trading and they go to watch and they are looking at other things. You want to kind of piggyback with them. But if you're a momentum trader, you like what you can do with the option because it's less risk, but it's a great reward. Now, people will always ask me, I don't understand how you can buy an option if the market's going down. But that's the beauty of the strategy, an option. Because if the market's going down or if the stock that you're looking at is going down, let's go back and look at Amazon again. Because we have this gap down on three-minute charts, I never do anything really aggressive that first three minutes. I will. Again, I'll try to get a feel. But it takes the market maybe 30 seconds or so before the option actually prays. So when you day trade options, you've got a little bit of what we call spread. So just like with the stock that I did in the end, you can see here with this Amazon, I have that spread $89.93. So I'm going to pay $93, which is my retail price. So understandably, these things move and they move fast. They move correlating with the other line. In other words, they move with the stock. So you've got to be able to ascertain which flight to choose, which month to choose, give yourself some time. I think most people make the state good options because they think every place they sit on is correct. And they jump in the play and they sit down, hold it, and hold it, and hold it. And then what you're going to do is option 5. Option 5. So you really don't want to play with them until you get to education and understand how to use them. But once you do, again, this is a great way to grow starter accounts. Most of my group trade the starter account. We all do. I do. I even trade a $500 starter account. And I'm a professional trader. I trade $37 account because I do manage trades as well. But I always have a starter account because it keeps my skills short. If I can take that $500 account and double it to $1,000, that's sweet. I don't try to do that during the open. I'm trying to make my income. But I'll find some trades here today. I'll go in and try to make some money to keep growing that account up. So it's great for starter accounts because, again, they will settle the next day when we're ready to go. So I think using that in conjunction with what Melissa does, I think you can see how you've got the beauty of the two to merge together. I think you can see how there's some good leverage here. To be honest with you, we don't have to have $25 to day trade options. I'll show you some how to do that. There are ways. It's all legal. There's ways to do that. That is a misconception. But, again, we don't have time to get into that. To be honest with you, we don't even have to have that for equity. But again, you've got to know what you're doing. You've got to have the right person. I know how to play against the rules and don't get into trouble. I get in trouble every now and new with good safe violations and things like that. I know how to do it and I know what to do. And I know legally that I can make some amount of trades until I can't get to the first side. And I do that. I stay within the rules and the regulations. I do exactly what the rules are. And that's how I grew my camp. I didn't have them. I had to grow it. I didn't have the money. I had to work and make every penny that I have. And therefore I'm very meticulous about what kind of trade I put on. I had to learn this. I had to get in there with a big boy to do this and I've been teaching it for a little over eight years and I've got a group that trades with me every day. They don't need me. They don't need me at all. But we trade together because we enjoy being together. We enjoy this. Melissa says this is one of the most fun things you'll ever do and they just make a living. So we do. We meet up. We try to make sure everybody knows each other because if you're going to be in a room with somebody, I need them to know what to look for. I need them to know that today we did doggone, G-O-G-O. We did the food on it. Look it up. It's February 19th. February 19th. February 19th. We bought it at about 30. It's about 30. We sold it at about 50 dollars. Okay. And you can go back and look at that. But it's just a beautiful way to trade. I'm going to stop talking here so I can come back and get it back over to Melissa because I think she wants to help answer some questions as well. Let me get back over here to you. Thank you for your time today, Gail. I certainly appreciate it and I do appreciate Melissa and it scales off. Melissa, back in. Wonderful. Great job, Lee. Very, very exciting. And if anyone has any questions for Lee, just plop him in the room there too. As I'm finishing up the lecture here, she can help answer some questions as well. I know Trace, she has a question there, Lee, if you want to answer his or her question in the room. So it's really about how to achieve your goals. And again, as I was saying earlier, everyone has different goals. You have to start training in a manner that you can have a plan of action to achieve your goals. Because if you start out, you know, hog wild, you may not give yourself a chance to reach your goals. You have to be very reasonable and have the goals in hand and know what you want to achieve. So ask yourself, where do you see yourself in a year? It's February 2014. It's very early. It's the beginning of the month, the beginning of the calendar year. In one year from now, what would you like to be doing? Would you like to be a full-time day trader? And options or equities that you're trading the market full-time from home, working from home instead of going to an office, and what do you have to do to make that happen? It's about how to become successful making money in the market. Because in the end, that's the goal. That's the goal for everyone. It's pulling the money out, getting the income, pulling it out every time you see an opportunity. Like Lee was saying, you know, it's capitalizing, capitalizing on the opportunity, like today in the market, the way the market fell, that power trend day. In order to short that, you were capitalizing on the opportunity that was there. They're present in the lifetime. So learn from people that are successful and doing it daily. And this sounds like something that a lot of people do. And yet, people really don't, I think, take it seriously enough. How important it is to learn how to trade. Because you can be back and forth for a long, long time, in fact, for an infinite amount of time. If you don't really buckle down and say, you know what, I got to get serious about this thing. I really want to do it. And the minute you get serious about it and decide you want to learn how to do it, you'll be amazing how quickly all of a sudden things come together for you. And you're making money. And you're doing it, like I said, it's easy and it's fun. So learn from real traders who will help you get there to kind of put the pieces of the puzzle together, like me and Lee. You're putting the pieces of the puzzle together, getting the directional bias, taking the trains, and you can do it as an equity or an option. I'm working on something right now with my friend Tom. It's called the millionaire map. I'm working on this and I'm setting it out where I'm going to be putting on my website. How can you get to a point where it takes you, you know, one to five years, I'm probably going to do a one to five year plan that you could trade the market and become a millionaire because it's very possible. And I know not everybody wants to trade the market and become millionaires. If some people just want to do it for a living, but you can make millions of dollars in the market. So I think it's good to have a goal out there, a plan of action to do it. And if your idea is to actually become a millionaire, this is a great way. So the Golden Gap course is a complete system to use to train. It will teach you how to make money in the market. It will teach you how to correctly read directional bias. And when you know how to read directional bias, you can profit from the market in many, many ways. You can do it for a living, for investments, or for the rest of your life to become wealthy. This is really, really what you want to do. It's up to you. You pick and choose what you want to do and set your own course. So the class is called the Golden Gap course. It's this weekend, February 8th and 9th. It's Saturday and Sunday from 9 o'clock to 5 o'clock Eastern time. The cost of the class is $24.99 US dollars. If you're interested in signing up, email me at Melissa at thestockswish.com. And we are doing a special with me and Lee. If you want to do the my class and her class together, her class is March 3rd. So my class is this coming weekend, her class is March 3rd. It's a package bundle deal for $29.99. This is a great deal, people. And this is really, really fantastic. You can do my gap class and Lee's options class for $29.99. So if you're interested in this, email me and we'll get you the information. Those are the days. So I have a question here. What time of the day are institutional traders active? Various times of the day, typically over lunch, they're not active. But the heaviest time of the day when institutional traders are looking at the market is in the early morning, which is when I'm taking my aggressive trades. If I don't take a trade between 9, 30 and 10, then I'm really not going to take a trade on the day. Those are the times when the institutional traders are looking at things. They're getting into the office, they're looking to stop pre-market and post-market, and they're taking positions on and off into the open. And that's why you see the volatility on the open. And it's very important to learn how to read that and trade it. And also, they're doing things pre-market because what is making the gaps when you see the gaps? What makes the gap in Apple? What makes the gap in Netflix? Large institutional money. So they're making those positions. They aren't buying it or selling it. And that's happening after hours, so pre-market and into the open. That's the heaviest, most active time. And that's why you have to learn how to read gaps. That's why you have to learn how to read that. You have to learn how to read that time, that opening time period of the day to profit from it, to get any, to make money. Good question. So your path to success is the Golden Gap class because it teaches you the directional bias and how to read technical charts very intricately. I'm also doing a special this month. If you do the Gap class this weekend of February 8th and 9th, I'm giving the wealth manifestation class for free. It's normally $399. This class is from 1 to 4 on February 25th. If you want to do this separately, it's $399. This is a trading psychology class. We really get your mind on straight and excited about trading. And talks a lot about how your brain acts in reference to your decision-making with trading. So this is a special offer for anyone that does the Gap course this weekend. New students February 8th and 9th, you'll receive the trading psychology class wealth manifestation for free. So you're actually saving $399. Plus the class offer with Lee, if you want to do that for $2999. So you get three classes. You actually get three classes for $2999. Lee's options class, the wealth manifestation class, and the two-day Gap course. This is really a great, great deal if you want to learn all this. It's just really sets you up ready to go, ready to go into the year and to set your goals and make all these things happen. So the time to learn is now, 2014 now. And if not now, when? If not now, when? I asked this question because there's a lot of people that say, well, I'll do it then. I'll do it then. I'll look into this then. If not now, when? It's not the time to put things off the time to do it is now. I want to put two pictures in here. This is where I live in New York. This is a view from my apartment. That's a George Washington bridge. And this is where Lee lives. And she was talking about a two-hour Myrtle Beach. Beautiful. So when you trade the market successfully for a living, you can live where you want to live. You can have the lifestyle you want to live, whether it's in New York or on the beach. It's a great, great career if you learn how to do it right. So make this year your best trading year yet. Thank you so much for coming everyone. Any questions? Let's look right here at the time, right at the time. Does anyone have any questions for me or Lee? Thank you so much. Thank you, Online Trader Central for having us. Here's my email if you're interested in the class or more information or the special. Three classes for $29.99. You can't beat that, everybody. Great way to start out the year. It's still early enough in the year to take advantage of this market and all these great directional moves that are happening and setting up. Thank you. Wonderful. Great job. An email with any questions. Thank you so much, Online Trader Central. Have a great night, everybody. Email me if you'd like more information at Melissa at thestockswish.com. Thank you so much, Lee. Have a great night, everybody. You're welcome. Thank you so much for your time and your participation. We really can take advantage of the offers from both Lee and Melissa. It is now 5.31. We do need to close, so thank you, everyone. Have a great day.