 Hello there everyone and welcome. This is Melissa Armo with the Stock Swoosh and I wanted to talk to you tonight about momentum. So a lot of people day trading, one of the reasons why I think people fail at day trading or doing options is because they take trades and they're small winners and they have big losers. So the losers are just losers and then when they get out of trades that are winners they're small. For example, someone could risk $500 and then make 100 bucks or they can make $500 and make $500. Which would you rather do? Obviously you'd rather turn your money over once. How can you do that? You've got to train specific stocks and specific days that allow for big moves and the big moves could be up or the big moves could be down, okay? So I am looking at the gap. I'm rating the gap. I do all that work in the pre-market. That is a system that I use to find to trade the direction of the gap but also I'm looking for a big move. I don't wanna play something if I don't think it's gonna have a big move. My intention is always to train a stock that has a large move. If I'm doing something, I don't wanna be bothered with it if it doesn't. If you get a large move in a stock you can make a lot of money. I don't care if you're risking one contract or 10 contracts. Same thing with equity trades, with day trades. Whether you take 100 shares or 1,000 shares you're gonna make a lot of money if you train something that moves big. I'm gonna show you this Tesla. Now we did this one. I called this in the newsletter. I have it in here. 9.48 in the morning, Friday, 8.5. I predicted Tesla would fall and drop and it did. I emailed the options people, the 900 strike and Tesla that expired 8.12. There it is, timestamp, boom. Send it out early. As you see over here, actually let's just look at where this was at. You can see here now today you could still be in the trade. Again, I think you could've got out Friday was a nice sell-out Friday but you could still be in the trade and you still be up. I'm just gonna go over here and this actually let me just blow this whole thing up. So this was where I called the trade. So you can see momentum again is where big move in the case this was a putt. So the momentum was what to the downside. Did we get it? Yes, you could've taken it here, got out. And again, you could've taken it here, still been in it and got pushed down. You could've made more. You'd be up more if you were in this today. And again, you've got a several days left. Today is Tuesday. So this expires Friday but you could've didn't got out here. Fast straight. Again, it's the idea of a big move, a large move. You could've made $50 through the strike in this. That's the whole point. In fact, the low of today, if you were in it today was 838. That's beautiful, beautiful. So again, how did I predict that this would fall? This is the genius of what I do in predicting using the Golden Gap rating system, quite frankly. This is a genius in the rating system but it also, again, the whole point of this is the momentum. Let me just squish this here. Actually, let me take all of this off. So I sent this trade out. Get one more bar in there. It was, so again, I sent this trade out in the first 15 minutes or so of the day. That's where I basically sent the trade out, predicted it would drop, predicted it would go, break 900, fall, continue lower. And that's exactly what it did. So the thing is that when you're looking to train, when you're looking to train, if you can trade stocks that have big moves, you're gonna make money whether you have a small risk or big risk. If you're trading stocks and you're basically scouting, little bit here, a little bit there, a little bit here, lost, lost, lost, you're gonna be down. In fact, you're gonna actually have more winners and losers if you don't make enough on the winners and actually still be upside down, to be honest with you. Like you'd have to have a 99.99999% win ratio. And even then, you may still lose if you're only making a little in the winners. Like risking $500 and making 100 or risking $500 and making 50 and then taking three trades risking 500 and have free losers for $1,500. So my point is that momentum trading is where it's at. It's how as one individual you can be successful. You may have a set size in your account that you've got to look at to risk. Fine, whatever it is, 100 shares, one contract, whatever. You want a big move. I don't care if you have a small account or a big account as far as what you do as long as you're choosing quality trades and quality stock picks that are gonna have big moves. You're gonna make money if you're doing it right. The problem is people are all over the place with their choices. They literally take trades like potshots, trading blindly, having no idea why they're doing something, literally no idea at all. You're seeing that a lot of the market and that's why the market's been so choppy the last few weeks too. If you have conviction, it'll help you trade. The point of taking the class and the Golden Gap course and learning is so that you understand why I call Tesla, why this is a good gap. How did I predict it would fall? How did I know it would? You know, I mean, you could say, well, I knew it would fall because I'm psychic or you could say, no, Melissa used a system, a system, an actual concrete system that you can learn in the Golden Gap course. That makes more sense, okay, than just saying that I'm psychic. The reality is that trading is something that you can learn and grasp, but if you are constantly constantly chopping at the bit, taking trades without knowing what you're doing, and again, just losing, losing, losing, little winner, tiny winner, tiny winner, tiny winner, you're gonna start to lose conviction in the fact that you could even make money doing this at all. And it's really, it's not difficult when you know what to do. I mean, I'm picking winners like this constantly, all the time, every day, every week. So this is early in the morning. I'm gonna show you the daily. I predicted that this would drop. It was roughly here. Just showing you the price. At the point that I called the trade, I predicted that the stock would drop a put as a short. It would sell off, have shorts come in, that's what it did, and then it did. And this was, again, the low on Friday was 8.56 and the close was 8.64. This was a nice trade Friday. But if you still were in it, and if you stayed in it, you could have made more. Low to day was 8.38. So again, momentum is what? A big fat bar, the direction you're taking it. The fatness in this was the big fat red bar to the downside. That's what we did a put, tip to tail, 9.13. Let's say 9.14, roughly to 8.46. You can see that's a fat bar even for something like Tessa. Take it over here. This is a green one. We didn't go long this. Again, high 8.95, low 8.37. That's a fat green bar. If you went long here, you would have made money too. So fat greens are good. Fat reds are good. This is nothing. This is bupkiss. You're not making any money here. Do you know what I'm saying? The tiny bars aren't gonna get you the profit you need to actually get ahead and make money day over day, week over week, month over month, year over year with trading. You've gotta cover your costs, which is the losses and any other fees that you may incur. Fees with a broker, platform fees, whatever. So when someone comes to me and they explain this thing that then the other thing I'm thinking to myself, they don't know how important it is to actually learn how to find picks like Tessa before the move happens. After the move at three o'clock on Friday, this is over, people. At noon, this is over. At two o'clock in the afternoon, it's done. You missed 85% of the move. You've gotta get the move early. Again, this trade was sent out. Some are sent out in the pre-market at 7 a.m. This was sent out early, 9.48. That's early. That's super duper early, okay? 18 minutes into the open. You catch these things at the right time, timing is important for options and day trades. Timing is important for everything in life. But I will tell you that the earlier you're in, the bigger the move you're gonna capture in it, the best you can get. This is the benefit of coming and being with me, being in the room, signing up for the newsletter to know all of this ahead of time. By the time you pull it up on your scanner and see Tessa's going, you are way past the point, paying too much for the trade, not making enough. And that's what a lot of traders do. They wait till after 10 o'clock or some even till after 11 to see what the market's doing or what the bar's doing in the day, if it's red or if it's green. You know, a lot of times, things reverse. We saw that even in this the second day. This was green before it went red. So if you're waiting till later in the day and see all the bar's green and gonna go long, you lost because it's reversed. That happens a lot too, okay? You can't trade Tesla every day and expect something to happen. You can't, we don't stick on one thing a day. I look for selective gaps per the rating system, using my system to pick the picks to find the momentum. The whole point my system works so well is one, the rating system is just, it is gold. That's why I call it the golden gap. Because the rating system tells me that Tesla is a good enough gap that it will follow through and sell off and drop that we could do it in any shape, way, or form we wanna do it. We could do it as a swing trade. We could do it as a day trade. We could do it as an option. But the other thing that's genius about my system is it pin points stocks that are gonna move big. That allows you as one individual to be able to make money trading. And when people tell me that they're losing, I have, you know, again, they could be using a system that doesn't work or they could be using a system that just has a lot of losers. It doesn't matter if the moves are big or not. It just, the system just flat out doesn't work that whatever they're using. But I'm telling you, when you have big winners, it really makes a huge difference in your P&L. It makes a huge difference in your confidence in your brain when you have a bad day or a bad trade or even a bad week, you will get over it easier, much easier financially and also mentally because you know that you can do this, then you know that you can make a lot of money in a trade. And again, you know, some of the Reddit stocks that have had big moves, some people have capitalized on those, but a lot of people have lost and they haven't gone the way they wanted to. They had a one day move here or there and that's it. You shouldn't have to wait forever for a big move to happen. The idea is to get it as soon as you can. As soon as you can get it to get it. That's how you're gonna make money. You gotta turn your money over and over and over and over and over again. I emailed someone today that took a long-term option out. It wasn't a trade I call. I said, my God, you're stuck in this thing now for weeks. Why? It's, first of all, it's not moving right and second of all, the money's stuck. So in other words, if he killed it, he'd lose or he lets it play out. To do things long-term right now is probably not the best decision in reference to active trading because things have been so sloppy with the market and chopping. If you can find something that has big moves with momentum, you're gonna see that you can do this. I'm teaching people actually how to do this. It is important to learn and don't forget momentum is important. If you take a trading, you wanna get out at 15 cents and you're so scared it's gonna go against you. Chances are you have no clue why you did the trade. No conviction at all. Have no business doing that trade or taking any risk. So think about what I'm saying. Momentum is extremely important when you're trading. Learning is key and having a system is key too but really train stocks that have big moves on the day that you do them. Even Tessa, while we had a beautiful bar here and today was a sizable bar as well, you need to not look at the same thing every single day because Tessa of the 200 plus trading days of year this trains is not gonna have a monster move every day. You wanna do it the days it's gonna have a big move and if you're looking at something 11, 12 or two, you're way too late, way too late. Have a great day everyone. If you're interested in learning more about my system or taking the golden gat course, email me and Melissa at thestockswish.com. Have a great day.