 everyone and welcome. This is Melissa Armo with the Stock Swoosh and today I wanted to talk to you about the importance of looking at something, having a bias and sticking with that bias. So I did a webinar the other day and someone that was in the webinar wrote in the chat that they had gone along the market and shorted the market on that particular day on the same day. And the danger of doing that is that you're going to lose and consistently you will lose over the course of a year doing that. You can't really get any big moves doing that. You can't really get any momentum doing that. You're scalping and things turn against you very very quickly and you can't take any real size with that. You know again I like to trade with size but I've been training for 15 years. Even if you just started trading you still want to get a big move even if you would take for example 500 shares. When I say a big move in something like Apple I would say a dollar, two dollars, three dollars, more, something like this spy. Same thing. So when you're scalping you're trading for pennies and again if you're in and out in and out in and out in this different directions in the same stock or the market on the same day you basically have no conviction in the directional bias of that specific stock or chart or the market. We were talking about the market where we're talking about the spy and then also you are scalping where you have to click it in and click it out. And when I when I trade fast I'm trading momentum fast while I may get in and out quickly. Five minutes, ten minutes, fifty minutes, maybe even a half an hour. That's still fast. I'm looking for a move okay a move up big like we got today in Apple for example was in calls or a move to the downside like we got yesterday and buy you as a short okay. So you know you can trade fast with a momentum but when you're don't have the direction right or you're unsure of the direction you're trading it both ways that's uncertainty that's a 50-50 crapshoot those are not good odds. 50-50 is not good odds to benefit from the market moves and to make money doing this 50-50 is not good odds you need more than 50% odds. You need as high odds as you can get quite frankly. So you know one of the reasons I designed my 26 point rating system is because I'm trying to get as many points as I can to find the best stock to trade that day we got that for example yesterday in Baidu which we did as a day trade which we did as a short but anyways the person I did not know who the person was that he has not taken my class but he went short along the spy here on the same day. I mean first of all this wasn't a long setup here but theoretically if you went long here you went long because the market was strong it was on support and it rallied green. That was the better play if you played it there. There was no short play in here though today and there really was no long play in here though. There was nothing you do in the market this day basically we gap down we closed here gap down first we dropped then we rallied there were there was no play in the market whatsoever at all and that's the other thing I want to comment. It's dangerous to always trade the same stock every single day it's dangerous to always trade the market every day there's not a play every day in the market there's not a play every day in every stock okay like there was not a play every day in Apple. There's not. So we do different things different days because I'm looking for the best move the best momentum move okay anyways it is so dangerous to train without a bias and with the 50-50 odds when you don't have a strategy to trade that's typically what people do because they're not sure what to do they're unsure what to do they don't know what to do it's a question mark you know in their mind they take a trade long and they kill a quick if they're down then they flip it and go short or they take a trade short then they make a little money then they see it reversion and the quick take it and they go long it's a nightmare like I don't have that person doesn't have a headache every day like very stressful and really if you're trading with size it would be incredibly stressful I mean sometimes I have 5,000 shares of something incredibly stressful to have to get in and out in 5 cents or 10 cents just you know and be constantly worried about the direction if you're in it or not right 50-50 odds are not good odds to trade you must have high odds okay you can say better than 50 you can say 70 80 percent we really do actually do well with mostly shorting but I do go long but you know as far as the system that I look at you know I'm always looking at 20 points or more for the rating system so that I can get the odds of my favor that that particular stock is gonna work that day if I get the odds of my favor if it rates good and the setups there I'm gonna make money on the day and I do so I'm not shorting something like by do and then flip it around and going long it and actually I'm gonna I'm gonna show you this actually does a good example here today so by do gapped up today why gapped up at the market this was not a good long if you went long this today was a terrible idea could you have made money along sure it was this is not a good trade okay yesterday was a trade yesterday was assured by who is probably still lower in fact it is lower but again theoretically you could do you know different things in the same stock of one day but it doesn't mean it's a good trade and even if you make money doing in it Monday you'll lose money in it Tuesday Wednesday Thursday Friday and then you also like I said we'll have no conviction because 50 50 odds don't get you there you need to know what you're doing either by do was lower by do was higher by do was lower it's not both you know what I'm saying so actually this is a good example because this is a short that we did close to your gap down we shorted this yesterday I actually call it put in it you could have got out yesterday you could still be in it why because it's lower and this would have been a bad trade today to go along it but again you can't do the same thing every day you have to look around for the best trains the market doesn't do every day what you expected to do that's why you can't trade the market every day either okay and just like here and I'm just gonna pull this up people are probably went along the market this morning and then shorted it and they're going along the market again they're gonna and if it drops up into four they'll short it long short long short long short that is a disaster for your account and back in the day when everybody charged commissions it was a disaster for commissions because if you're making five cents or six cents on something and you had to pay commissions it was a disaster some people are still charged commissions most people are getting free commissions but in 2023 but it still is dangerous you never really get anywhere with any huge momentum you never really make the bank the money for the profit that you want and for example again we did Apple Apple was a hundred seventy five percent return investment trade this is not something you would have made that much money scalping so you know look for specific trades to do and how do I do that I use my ratings system you have to have a strategy that used to trade to make the picks every day do not go along the short the same stock or the market on the same day and that's the stock switch tip of the day have a great day everyone