 Hello everyone again and welcome. We'll be starting promptly in about one minute here at online trader central. Melissa Arbol of the Stockswish is here with us. We'll be starting promptly on time and you can see Melissa already has her first slide up there. I agree with money and the freedom. So again thank you everyone and welcome. To all the new folks that just joined us you are in the 530 session here at online trader central. Again to everyone who has just joined us we close one event to start another one. We do want to thank each everyone of you for your time and your participation here today. To the new folks that have just joined us, Melissa Arbol is your host and presenter today and the topic as you can see the slide is up there at career with money and freedom. Melissa Arbol is your host and presenter again this is online trader central and with that it's exactly 530. So if you would please let's let's begin percussion. Are you ready? Okay and with that ladies and gentlemen please put your hands together and welcome our host and presenter today from the Stockswish.com. Thank you so much Kevin. Welcome, welcome everyone. My name is Melissa Armo and I own a company called the Stockswish LLC. Thank you so much everyone for being here today. Today's topic and the lecture I'm going to discuss today is called a career with money and freedom and guess what that is? Of course it is going to be trading. This is the career that we're going to talk about today because after all I myself am a trader. If you'd like more information you can feel free to email me at melissa at thestockswish.com and you can go to Twitter, Facebook, YouTube, LinkedIn, Pinterest or Skype and add me to any one of these places. So let's get going here today. You know it's December 9th 2013. It's hard to believe the year is almost over but it's almost 2014 and the end of the year is really a very good time for evaluating your career path. Specifically if you are in a career that you're not happy with it's a good time to think about this and make some changes. So right now think about the things that I'm saying and if you have a notepad you know write this down ask yourself do you have a career you love? Yes or no? Do you have freedom in your career? Yes or no? Obviously the ideal answer would be yes. Do you run your job or does your job run you? You know for a long long time about 17 years actually before I started trading I did mortgages and I really felt like by the time I was ready to get out of that industry that it was running me, it was running my whole life and it wasn't the type of career I wanted to do forever and then I found out about the market and the great thing about the market is it also offers a chance for advancement. So think about the job you're doing right now. Does it actually offer you a chance to get promoted to make more? Will you make more money next year in your job than you did this year or will you make less? You know a lot of companies nowadays are expecting more from people and giving them less. They're not paying them over time. They're not offering them normal cost of living raises. Do you have a job that pays you what you are worth? And think about this, this is important. You know and also not only that it's important to think in your mind what are you worth? Like what do you think you're worth to be paid per hour for the work that you do? This is very important. When I used to do mortgages I always was thinking that when I was pricing my loans how long was it going to take me to work on this job file? It's the same thing when I trade. How long am I going to be in this trade? Is this worth it? And do you find yourself exhausted at the end of each week because you just work flat out too many hours? This is the problem for a lot of people and it's unfortunate but this is the world we live in right now and this is why it's time to do some evaluation. And last but not least do you enjoy what you do every day? I actually do enjoy what I do every day now for living which is trading. I like it a lot. So I'm going to talk to you about this here today. Ask yourself what is your dream career? Does it involve freedom? Something where you could do it and you can control your own time if you want to take a day off, if you want to take a vacation, if you don't want to work 40 hours a week. For a lot of people this is your dream career. This type of thing. You can go to the beach and go on vacation, do whatever you want. For some people a dream career really means just a job that has a high income potential where you have a great amount of money that you can make each year. For some people this is a dream job and also for some it's just doing something that they enjoy. Something that's fun and for me it's actually a combination of all of these things and not only that I have time for leisure when I trade and if you choose to become a trader you too will have time to do other things, things in the afternoon, things in the weekends. This is not the type of job where you're working seven days a week or even six days a week. You're not expected to work over time as a trader. It's not possible. The market is only open from 9.30 to 4. So what kind of career can offer all of these items and more? It's trading. Trading the market. I clipped a chart here of the QQQs from today and you can see the nice bullish move the market's had here for pretty much this whole calendar year of 2013. So why trade? Well because trading is a career that can offer you financial freedom fulfillment and not only that happiness. Why? Because you're not working like a dog to make money and you're working for yourself. You can have the life you want if you are willing to learn something new and develop the skills to become successful in new industry and I want to highlight this word skill because training successfully and being a quality trader, being a good trader, a profitable trader is learning a skill. That's all that it is. It's really just as simple as that. It's learning a skill, mastering that skill and then you turn it into cash. So training is a career that can offer you money, freedom and a chance for advancement and I find it fun and I'm making it fun for a lot of people and it's actually fun to teach too. So if you learn how to trade the market you can be your own boss and work from home which is great for a lot of people nowadays specifically if they have kids or a spouse with a different type of hour or job schedule. You can set your own schedule and work just a short time of day for a comfortable income. There is a trading strategy that I personally trade and I teach it that sets up very quickly in the morning and the strategy is gaps. Gaps not only work fast but they also offer a good risk to reward payout and here's the whole point of this in reference to having a career because this is important because you need a sustainable trading method if you want trading to be your career. Now some people here might want to trade as a part-time job or a part-time income and that's fine. You can parlay your career right now and do trading part-time and then eventually go full-time but it is very very important that you have a sustainable trading method if you really want to do this for consistent income that you can say yes this is my career. So what do you need? You need number one you have to have a strategy that's reliable, it's got a set up often and it has to have a good risk to reward payout. So why? Why trade? Because the setups in the profit happen fast that gives you the rest of the day to go about your business and not have to work until four o'clock. Also you can go do other things, have time for leisure, have the weekends off and you can work from home and this is very convenient for a lot of people. Again specifically if they have children or other responsibilities or things they have to do working from home is very convenient for people and also you don't have to commute or any of those other hassles sometimes are involved when you have a job you have to get to. Like today the weather was really terrible this morning I live in the east coast we had a snowstorm last night in ice this morning didn't affect me from trading got up this morning traded did my thing didn't have to worry about getting out and defroshing the car any of those things at all or you know commuting anywhere I just continue to do my thing I can work from home don't have to worry about the snow. So the other benefit of trading is that you can become good over time and start to actually invest money to save for the future in long term positions in trades and we're going to look at some of those longer term moves today as well so this is just an added benefit. You know when you get to a point in your life and for some people this comes you know at the age of 30 for some it's the age of 40 for some it doesn't come to the age of 50 60 or even 70 but whenever that is when you get to a point where you want to rely on yourself it's a point of realization that your life is your own creation not someone else's but yours and this is a great thing about trading. When you start to acknowledge your own personal power and your ability for personal growth and to learn something new and make more money you'll be amazed at how things come together things start working and flowing in your life and how much your life can change for the better sometimes it's just about opening up our eyes and seeing the possibilities for our own life and that we can actually do something different we can actually learn a completely new skill whether you're a trader now and you don't know how to trade the strategy I do and you learn that as a new skill or whether you don't trade at the market at all and you want to learn a completely new type of different career ultimately it's about job security and this is very important in today's economy why because today's world is not the same as 25 years ago or 10 years ago even five years ago before the bank bailout people are not at jobs anymore for this length of time five 10 15 20 years what we think is a secure job today may be gone tomorrow we can be great employees productive outgoing hardworking I may not even matter to our employer in the end if the company can't keep you on and there's nothing to do with you if the company has poor management they might fail and there's absolutely nothing to do with you or your own work ethic or your own skills or your industry might fail for example this is what's happened with the banking industry and again it has nothing to do with you you are a skilled intelligent person with a great mind and you can work for yourself in the market if you learn how you can create your own job security and by the by you have to do this I mean you've got to this is it this is it okay creating your own sense of security it's the only way you can ever feel 100 secure you can create your own opportunity by taking it upon yourself to learn how to trade the market and make money trading this is about personal responsibility and sometimes this is about taking it upon yourself to learn something new so one quality strategy is all you need to become successful as a trader if you want to do this as a career that's really all that you need I'm only actually doing one strategy and not only that I'm only trading it in one direction I short stocks I never buy stocks so I do one strategy and I actually only do it in one direction why because that's all you need and I've proven that one quality strategy is all you need to learn to pay yourself an irregular basis in the market knowing one good strategy you can replicate over and over for profits can change your trading world and it will if you're not doing something that's profitable right now and if you're all over the place and not having a focus at all it's very important to get focused having one powerful strategy that pays you will open up your eyes to the true profit potential the market and not only that to your own personal power to be able to do something to be able to do something to create your own life the market can offer your real-life long career if you have a strategy that makes money consistently and what strategy can offer you these things it's called professional gaps and this is what I do but the real tactical name is actually called professional gaps a professional gap for those of you that don't know I'm going to go over the definition here this is a strategy it's called a professional gap it is really a gap that moves in the direction of the gap so if a stock is gapping down that means that the stock is going to continue going down if the stock is gapping up that means the stock is going to continue rallying up it is called a professional gap because professional traders and investors are making and creating the gap and holding the gap and creating the momentum in the gap and this is where the consistency and not only that the profit lies in this type of strategy in the case of a bullish gap professionals I mean hedge fund managers banks people with large money positions they are buying the stock okay and therefore the stock moves higher on the trading day in the case of bearish gaps professionals are shorting the stock therefore the stock moves lower in the day so I am trading a gap with the move of the actual price of the gap based on reading what institutions and professionals are doing and this is why this strategy is so powerful to do as a career strategy because it's something that happens consistently and it's also something that you're doing with the professionals and therefore you're going to get large moves with good momentum so what I do the strategy the system I teach and I trade I named it I called it the golden gap system and the reason is because it's like finding gold when I see these things set up in market but really golden gaps are just professional gaps that I find and pick and rate and they're called golden gaps because they have a high odds what I mean a high odds of working on the day in the correct direction of the gap with a large momentum move and if you've ever traded before you know it's about putting the odds in your favor when you're picking what things to trade each day it's all about high probability and this is what gives you an edge and my system gives me an edge because I'm putting the odds in my favor anything that can put the odds in your favor to trade will give you an edge and the golden gap system gives you an edge because it uses a rating or scoring system to pick the stock to trade it reads the price of the gap and using technical analysis on a very advanced level pin points which stock to trade that day and in what direction the high probability is in the quality and detail in the rating system for example I look at 26 points okay when I'm looking at a gap in the morning per my system it has to get 20 or more and 26 points is an enormous amount of detail to look at to determine and rate a stock it takes about five to 10 minutes to rate one gap if you're new and it takes less than five minutes once you become experienced with the system so it sounds like 26 things that's a lot but it's really not because once you get good at it you can do it in less than five minutes and at the beginning when you're new it's going to take you a little bit more time so this is a professional bearish gap system this is the way that I trade this is a methodology I trade again in one strategy one direction as a career I'm doing this as a career the purpose of the system is to help you evaluate which gap to trade each morning using a checklist that I'm doing this to put the odds and the probabilities in my favor why because there's thousands of stocks every day to pick from to trade if you don't have a way to narrow things down your odds of success are not high you have got to narrow down what stock symbols you like each day and why are you picking them and how are you taking the setups and that's really the whole philosophy behind my system this 26 point system it's to find stocks to trade that have a high probability of directional bias for the entire day things that have big moves on the day we're going to look at some examples here in a bit from last week early confirmation this is what I really really like I like the early confirmation of my bias and a move between 9 30 and 10 and I also am looking for precise entries with fall through in a good risk to reward and Kathy's putting some information there if anyone has any questions where we're going along please feel free to ask me I can answer questions as we're going along here today so I use a 26 point checklist and using this to trade creates a high probability of success if something does not rate 20 points or more I do not trade it if it rates 20 points or more I watch it to trade on the day and that's how I choose what to do every day you know ultimately the more often you make money in a consistent basis the more confidence you are building yourself and the more conviction you will have in your own ability to trade well one of the most valuable things that you've learned during the golden gap course is to have conviction in the golden gap strategy and this conviction will help you produce positive results and you've got to have these things staying positive might be a challenge for some traders but it is absolutely requirement for success this is a requirement for success for anyone anyone at all who wants to earn a high paying income at the stock market offers so how are you getting in there with these other people these other market participants how are you pressing the button how are you doing this and it doesn't matter if you're new and you're trading small size or obviously for trading larger size with more risk you've got to feel confident how are you going to do that my rating system when the stock ranks high it gives me confidence it gives me conviction it allows me to press the button take the risk and my trades there's no getting away from the fact that trading the market involves a risk and by the way the market is a place that will pay risk takers people who are willing to take risk but you have to do it with forethought and you have to take calculator risk how are you going to do that you've got to pick things that are good enough high odds of working and then you move forward so the whole philosophy behind this system is really I'm looking at a larger time frame okay I'm looking at a daily chart that's where I'm getting all the points to analyze a large time frame to make the trend decision on the directional bias for the gap all large traders of every kind look at large time frames to make decisions particularly institutional traders that's why this works so well because the points are on the daily and I'm trading and I want to be on the side with the professionals with the institutions and then I'm honing it down to get the risk to reward to make entry decisions and exit decisions based on a smaller time frame the one minute chart which has a high degree of focus and accuracy so using the daily chart to make the decision for the stock pick allows for accuracy in the direction whether long or short and using the one minute chart which is where I take trades and we're going to go over that here in a minute allows for good risk to reward trades and also with accuracy and this is very very important when you're getting into things because you want to know if it hits this number that it's going to go and if it goes beyond this member it's not going to work so how are you going to make a career out of trading golden gaps well you're going to get up each morning and look for them during quarterly earning seasons there are four earnings seasons in a year in the market usually I get three to five quality gaps per day or more to watch now that doesn't mean you have to take three to five per day I like to hone in on one or maybe two but they're there if you want to do multiple trades during non-earning season in between the earning seasons there's usually about a four to six week period in between each quarter there's three to five quality gaps per week to watch I get this question a lot so I thought I would put this in here a quality gap again is one that rates high enough to trade based on the 26 point rating system what does that mean 20 points or more so this is more than enough picks more than enough setups more than enough gaps and quality gaps okay per the system to make a living out of doing this in a calendar year more than enough you've got to focus on trades that have a good risk to reward so for every dollar you risk your goal should be to make three dollars a day to train not one to one or one to two but one to three then if something goes to a larger target you can make much more how you choose to money manage though is part of your overall money management plan as a trader this is again comes down to personal responsibility training is ultimately about making money and booking it on a consistent basis and keeping your losses small having solid profitable trains with good risk to reward on a regular basis will eventually help you take more size and this always has to be the goal I'm going to go over an example this in a minute some trades can make more than three dollars per trade on the higher end if the stock goes to a bigger target the payout could be eight to ten dollars per one dollar risk and that's wonderful when that happens so like I was saying trading with size how do you get to the point where you can do this and risk more where you've got to have confidence you got to have conviction you have to understand the system because really the only difference between a beginner trader intermediate trader and an advanced trader is size a trader cannot risk more money per trade and take size until they know how to accurately trade over a period of months how many months it depends how how quickly you pick up the skill of rating the gaps seeing the entry seeing them in live time I'm really really good with seeing entries in live time this is why I'm you know running the live trading room I see things I take it to I put the stop in I see you immediately I know when I see it trading with size really is the goal and one play with size can make your whole week two or three great plays a month can make your whole month and this is true I mean this is true and this is obviously the goal for everybody that wants to do this so like if you are a beginner and you want to take 200 shares great take what risk you can afford if this stock moves a dollar that's 200 profit that's good if you are an intermediate trader and you take 2000 shares if the stock moves a dollar you have 2000 profit this is great fantastic if you have 8000 shares this is an advanced trader of a stock that moves a dollar that's $8000 profit this is obviously the goal where you want to be the amount you choose your risk must be in accordance with your individual risk parameters which you set yourself and I always trade stocks with volume people always ask me how do you take this kind of position size and something Melissa I'm trading stocks with volume I have volume requirements and I'm not doing things that are thin in fact I passed on a on a stock today easy pw I called it I called it this morning I said it was going to work it was a nice gap it was going to drop I never traded it didn't take a trade in it it was way too thin it did not meet my volume requirements but it was a nice bearish move so I'm looking for stocks that have volume for me personally since I'm an advanced trader let's look here at something that happened last week and I clipped this uh just over the weekend but expr broke today expr broke today I went back and looked at the chart here right before the close uh expr booped up a little bit here this morning held under 20 the gaps intact from this and dropped and this isn't going to have a nice bearish move follow through for tomorrow expr broke through today but this was a move last week that I played so what I did was I'm showing trades from just the last three days of last week Wednesday Thursday Friday we're going to go over them and and I could show more uh but Kevin only gives me an hour to talk here so I thought it'd be a good example to just go over the current things here that have recently happened just to kind of give you an idea um how if you put a week together and a month together how things can flush out to be a real career so let's look at the expr this had a beautiful opening here this is a strategy I'm doing what is this is a gap actually let's go back here and look at the daily so the stock closed here the night before 24 75 this is the gap the gap means that the stock opened at a different price than it closed yesterday that's all that the gap is really then I reigned the expr I love this I was totally into this I love this move I love this gap I talked about it all morning long and it worked very nicely and when the stock opened here immediately it showed immediate weakness which was a great sign the entry here was at 940 you take the position the price to enter is $20 and 10 cents stop over 2030 this is an advanced risk on 2500 shares you can risk $500 exit's 1952 total profit this is at the first exit this is the first exit on this is $1,490 so this first exit on this trade was almost a 3R trade and that's it this happened in 20 minutes boom you're up almost 1500 bucks from here to here and it's a beautiful day and you could stop for the day or you could do another trade and your day is in by 10 o'clock this is really this type of move here right away as it happens in the morning into this period here into 10 o'clock reversal time you could trade every day from 930 to 10 do a setup if you get it get the move get out and just go on with your day again it's it's it's a great living once you learn how to do these setups now I want to point out something else eHPR went to the dream target I was talking earlier about the goal is 3Rs 3Rs within a short period of time usually in the morning but if you have time and if you don't mind holding to a target sometimes stocks and gaps do go to dream targets eHPR went to the dream target last week this is last Wednesday and if you wanted to hold this on down it went all the way down this is actually look at this look at the nice flush movement on this look this is just amazing this this is almost a vertical drop here and if you wanted to hold this to the dream target it got there entry would have been the same risk is the same if you didn't get out of anything nothing at all at the first move and held it all the way through and got out of the dream target which is basically by 1860 got within two pennies of it the risk to reward on this trade is 7.4 this is a great trade this is a fantastic trade and it would have taken you two and a half hours would take you a little bit longer than 20 minutes but again this is worth it sometimes to have these kinds of moves so this could be your whole week I mean this could have been your whole week here 3-4 grand a week that's making a living that's a career and specifically when this time frame now again you had to hold this to the dream target to do it but it was a great gap it rated highly per the golden gap rating system and I knew this was going to work okay and here's the move entries the same and like I said if you look at this chart here today this is lower now this will break a new low sometime in the next two weeks it's heading on down it's really a nice beautiful move so this was Wednesday all right so let's look at them what happened on Thursday Thursday this was last week this was Sol S O U S O L here's the move this was the gap here on Thursday that I did it doesn't look like much at all but it actually had a beautiful risk to reward trade here was the golden gap play for S O L entry right here again same time frame and look at the move had a perfect exit on this actually I got out here this was actually the low of the day actually had a perfect perfect entry and exit on this one here it could have gone longer this day it did not it went to the dream target the next day but I got out of this one here let's take a look at it entry time 940 price was 377 stop was over 383 on 8000 shares risk was 480 dollars again this is an advanced risk ace it was 358 total profit 1560 can you imagine having a career where every day when you hit it you're making 1500 dollars every day you just hit it 1500 every day you hit it 1500 some days you get three some days you make four I mean every day you hit it do you see how you can make a career out of doing this you keep your losses minimal you don't run away with yourself when things don't work you don't trade days there isn't anything good or you trade less size on those days and every day you get a three four hour trade you're hitting in this range you see you risk 500 dollars 1500 2000 every day you get three four hour trades I mean this these numbers start to add up and this is how you're doing this and paying yourself this trade here was a 3.2 hour trade again 20 minutes 20 minutes and this one here I had a perfect exit now what happened on this on the next day I actually did this Friday too day two was Friday I did trade this Friday would you believe that I got out of this too early I never thought this would go all the way down to three dollars on Friday I thought the target and this was 330 and actually it was the first target but this followed through and broke and actually broke three dollars you could have played this two days in a row and the dream target was hit through then on the second day here's I just clipped this chart I didn't put the entry examples but this was on Friday I played this I was in this like within the first two minutes of the day but I just didn't hold it all the way down to the break never thought this would run like this on the day but it had a beautiful beautiful move a nice bearish move on day two and went to the dream target so sometimes you will get stocks to go to dream target in the first day and sometimes you will get them to go to dream target on the second day you know again this is all about money management but particularly if I have a three hour trade-in I'd like to book it and I also like to be done quickly in the morning too this is a personal preference but you can trade and hold these things down in the afternoon if you want to too you would have had to be in this SOL pretty much all day to get it down here well it could have taken off here looks like around one o'clock let's hit hit on through three dollars Tim's asking a good question how do I scan for potential golden gaps from so many stocks excellent question Tim here's what I use I use this site which is free oops Kathy it's bumping it up there there that site is free okay this site is free and I also use my platform scanner which is free okay because I pay for my platform so I have a scanner that's in my platform I may as well just use it because it's free you can also use this service which I used to have but I canceled it actually because I found that I was getting everything from these other sites I'm giving you and you can also use this which is free so I use my platform mostly because I'm paying for the platform then I don't have to pay for a separate service but you can you know get a separate service if you want but I find that there was an overlap so then I ended up cancelling it because there's lots of other free sites there that I just gave you can find stocks that are gapping on and there are loads of them you're never going to be without needing to find any and okay go ahead bookie's asking a question how long do I average to hold my trains I I'd say I'd say 20 30 minutes is an average for me there's some days I'm out of a train in five minutes it's like so crazy rare that I'd be in a trade all day like I can just probably say it almost never happens if I'm in something for an hour or more I've already booked something so you know I'm not holding the whole position for example like let's just go back to this guy here this ex pr if I had had or no the the soul here if I had decided to do this here if I had decided to hold this I would have never held the whole thing so I took the trade here in the morning got out into the drop if I had decided I was going to hold this to the target I would have never held the whole thing I just wouldn't have because I have I'm trading with too much size so me personally I would have gotten out of half here let it rally back lower the stop and then held the rest on through and I think that that's actually a good way to train for anyone with sizable positions it's it's just money management I got out of this whole thing though all right in the beginning here in the morning but if I had decided or believed or had 100% conviction that it was going to the dream target on the second day meaning three dollars I would have never held the whole position I would have taken half out and then I would have gotten the rest down into the number experience teaches you that when you're up a certain amount of money you do have to exit a portion of position because all of this is part of your trading plan and it's all part of your personality if you can stay in the whole thing until three o'clock great that is something that I typically don't do by the lunchtime period even if I see something's down into it I like to get out of something expr was done by like noon noonish around the lunchtime period never broke a new low after that uh sometimes these things you take all day like so well but for the most part I find things make the moves in the morning and even dream targets usually hit by lunch uh bookies asking another question let's go back and look at the daily he's saying do gaps ever I think you mean fill themselves is that what you mean bookie I think this is what you mean he I think bookies asking this is that what you mean do gaps ever fill themselves because you're saying clothes but I think this is what you mean right sometimes gaps do do things like that but not gaps that I play okay yeah that's what you mean bookies asking do gaps ever fill themselves like would this go up here and rally sometimes gaps do that yes is it a likelihood that I would rate it and over 20 points that it would do it no part of my rating system takes into account for things that are going on in the price in the daily chart and I don't have this happen to me often it's like so rare I can't even think of one actually I'm trying to think of one here you know what the only one I can think of in the last even six months holux holux failed as a as a bearish gap I don't I don't think it filled anything but I know it flipped around and rallied on the day whenever the high of the day and I never resorted it my rating system accounts for what's going on in the overall chart in the price and that's why I made up the system in first place bookie because I didn't want to be caught in things like that that fail what I mean fail fail on the day and flip around and go green I'm pinpointing the goodies the ones that are going to break and go like this like this the xpr here let me just go back to this quickly here this was so great and I know that people were trying to flip this thing why why would anyone try to flip this thing well let's look at the one minute if you didn't see and rate this gap the way I did you might have bought this in here why this came down and retested the low here at 935 reversal time and set up as a buy setup if you might have been a trader that bought this why didn't go over the high came down here held the low and did a buy setup and came up here and looked like it was about to blow okay blow where higher up and run up $5 and take everybody out including me it would have taken out but it did not do it and this is this is this is a great read to see the way that I did this was going to hold okay this is what I do this is what I'm going to doing this is why I have a rating system that that looks at so many different things but I know traders tried to buy things like this and it's a terrible buy and it's not a good buy and it's just not a buy at all why because it rated over 20 points and it's not going to go anywhere but down and overall looking at the daily chart of the xpr was very very damaging gap but I think a lot of traders miss the boat here they think that this is going to close like biggie said or filled it fill itself why because we're looking at this as a gap to support because do you see here that the stock gap down here approximately this area here stock came down ran into here made a pivot gapped up ran up here came down here ran up here ran up here up to $25 gap down here to the area prior support over here to the left but that's not what this is that's not what this is at all this is the wrong read if you're looking at this is a buy to support that's the wrong way to read it again uh support and resistance are very very important factors in how I choose to watch a stock to trade here's a good example to infy infy today was a bullish gap I do not go long but I saw the bullish cap and infy today and I said it was going to fail I said it was going to fail in fact I I just should have shorted it out of the game somebody asked me about it today in the room is along I said don't buy this don't buy it at all it's a short infy dropped five six dollars today how did I know that bullish cap was going to fail how did I know that because I understand support and resistance I understand overall chart reading directional trend I understand all those things because I know how to read gaps and gaps are the most important thing of price in a chart it tells you so much information and I think that's one of the benefits of doing my class if if you're somebody that uh doesn't want to day trade and you want to swing trade or court rate you you've got to be in these things in the right direction and things can gap against you all the time you're taking overnight positions how are you going to be able to make proper decisions to take things on or off when you see a gap happening chart you have to be able to read directional trend and if you don't know how to read directional trend you shouldn't be in an overnight at all and if you don't know how to read directional trend you actually shouldn't trade at all because this is how you're going to make money this looks like a gap to support a prior support back here in EXPR which by the way was it an uptrend prior to this gap EXPR wasn't an uptrend prior to this gap on this day here on December 3rd EXPR was officially in an uptrend and gap down to support and if you read it as an uptrend which it was here and thought to buy it on support here you got stopped out here it was not an uptrend anymore when why as in what moment as of the moment of the gap when the gap happened here in the fourth EXPR was no longer than in an uptrend it is now in a downtrend the downtrend is holding a brook again today and the stock is lower and so you cannot buy a stock that is in a downtrend booking why do i choose to trade gaps the way i trade why do i choose to trade gaps as a way to trade because they're very profitable because because of this guy right here because of this thing right here where there's nothing hanging on to it and it's just a disaster times 10 because of this because i can get momentum plays because of this because i can take an entry and something here with a 20 cent stop that can run a dollar and a half because of this because i can be done and made money by 10 o'clock if i really want to every day that i trade and get a gap because i don't have to work till four o'clock because i don't have to worry about the market because i can short stocks in a bullish market which i did this entire year this is the best trading year i've ever had in my life and the market was bullish the entire year and all i did was short never did along this year i think it went long one time the market about a month ago i love trading gaps because there's just a million reasons time of the day quick um out of them good risk to reward don't have to worry about the market momentum that happens and seeing these kinds of things like this that nobody in the world that you know would know anything about gaps would know what to do because normal people that look at stuff that support and resistance would buy this normal people would look to buy this on the 200 this is the support the first target on this trade the day here back at 330 was a support area in soul i didn't buy it there i got out of my short but you know it broke even more hawaii how how did that happen how's it possible how can a three dollar stock have a move like this in two days because of the gap the stock closed up here four dollars and 50 cents next day it opened down here a 380 something this stock had a dollar move and lost half its value almost in basically two days this is the reason i like playing gaps only enter after the open yes booking i am not in the trade pre-market although i get up in the morning very very early see these gaps and i could take them pre-market sometimes they drop a dollar into themselves before i'm even short them but i never enter a trade to left the open rick d so you almost entirely do gap downs rather than gap ups i a hundred percent do a gap downs not almost it's a hundred percent i never never never never never do gap ups do i call them in the trading room yes do i tell people what i like when they ask me questions or if i don't like them yes i went along the market about a couple weeks ago when the market was in a bullish power uptrend and i just called the market and women hi in the afternoon one day but i haven't gone long any bullish gaps this whole year i just don't like going long this is nothing but a personal preference you could take my class and flip the points and the bullish gaps i have people that are doing that i have people that love to do longs and they take my class and flip the points to go long and you can do that and that's how i know how to read good up gaps am i doing them know why because i like shorts i like the selling that can happens in these shorts i like the type of catastrophe activity i like to be in these things early in the morning and i got to be honest with you bullish gaps don't have this kind of goings on immediately always in the morning like bearish gaps do there's a panic action that happens when the stock gaps down it's down it's a crushing blow to the stock price in longs people have to think about it should i buy it maybe should i buy it do i want to buy it yeah i think i want to buy it and then they set up in the momentum starts to come in like after 10 o'clock okay so for the shorts i can be done quicker faster selling and out and i'm just making money faster with the longs it's there's not a panic action there's nothing forced there's nothing forced to go long no one's forcing you to go long if you're long a stock and it gaps down and you're down money or you were up money and now you're not up as much you're forced to do something you're like crap i gotta get out of this thing what do i do i have to get out and then you get out so it's like with going long nobody cares should i go long maybe i should go long yeah i think i'll go long yeah i guess i'll go long and do you know what i'm saying so the shorts happen faster um yeah exactly exactly bookie all right let's go over the last one here which is a aeo aeo which poof this is a good call i made on friday the stock barely gapped at all it just happened to have earnings and i just love the chart again i love the chart i love the weakness in the chart here i love the just the total weakness in the chart here um and this was the move that aeo had here on friday and aeo still lower it just sat around like a dud today i watched it today but aeo was still still lower entry in this here was here this was on friday and it saw off a cliff what happened here what is this what's going on selling selling selling selling panic selling selling selling sell sell more get us out oh my gosh sell it okay this is actually an institution selling out of this position because it really didn't gap that much it set up really funky like and the long and short of it is that i hardly doubt any traders really even saw this or got this move in aeo on friday it was a weird configuration didn't really gap necessarily that much but i saw it before it happened why because i was watching it i like the weakness of the chart and this is pure unadulterated selling above institutions coming into this into this and it ran down more than it back price was 1592 stop it's nice and tight is another reason i like that's booking 1602 risk is 10 cents 10 cents 10 cents okay so you can take a 5000 share position and again this has volume eggs and in this 1480 total profit if you took this trade was an 11 hour trade 11 hour trade again 20 30 minutes 20 30 minutes $5600 in 20 30 minutes what if you did a trade like this twice a month could you make a living out of that as long as you kept yourself under control in between few small losses couple three-hour trains yes yes you can and you're making money and that all of a sudden one day you're risking more than $500 and and this is the kind of thing you got to be in the lookout for and you got to know how to read these charts you got to know how to read these price actions here and by the way this uh tested down in here 1465 today twice is going to break it i don't know why it didn't break it today it's slow as a snail uh but it will get on down here and break and fall like a brick this is going to break $14 it should do it in the next week i don't know what this is waiting for yes i do Tim is asking me if i have a live daily trading room i do it's for members only you need to take the golden gap course to become a member of the live trading room however uh you certainly can email me about that i call my trades i say take it here put the stop over here take it here put the stop over here it's exactly how i call the xpr it's exactly how i call it as so well it's exactly how i called the aio i said take it here put the stop over here boom i'm doing it live i'm doing it in front of people so let's just quickly look here weekly totals this is just over three days non-dream target non-dream target in the xpr this is not holy to the dream target 1450 solve 1520 an aio totals 85 70 so in three days if you did these three trades and you didn't hold this one of the dream target this one rolled over the dream target so it was easy to hold and this one i just had a good exit on three days over a grand so if you are not an advanced trader and let's just pretend you only risk 125 per trade if you did three trades you could have made over two grand in three days 2200 so advanced risk 500 per trade could result in this type of activity or profit in three days smaller risk 125 this is like beginner to meet intermediate 125 2200 25 dollars in three days okay and this is december by the way people this isn't even earning season okay this is not earning season now i'm looking for gaps i'm just looking for whatever i get on any given day so gaps are very useful tools why are they useful because you can play them as day trades and also swing trades 90% of the gaps i trade a fall through for swinging core trades why why how because the golden gap 26 point rating system is a very specific and detailed read on the price in a gap and when a stock rates over 20 points per the system the chart is damaged and selling continues to come into the chart to push the price down for further moves lower more selling and more shorting means more momentum for you to capitalize on the first day and beyond if you know how to find spot and rate the gap per the golden gap rating system infi today gapped up i called it as a failed bullish gap but infi prior to today actually i hadn't been tracking that chart got to the dream target for the swing and core trade it broke the number i actually have infi in the trends class and the next time i do that class i have to update it because i played a lot of gaps in infi i played gaps uh shorts on infi a million times this year i'm not in as an overnight but i'd even see that it went to the dream target and and that's how i kind of knew if you would break again today um my friend tom who's been follows me and does my trades actually did a lecture in the live trading room last week and he talked about iag how i called iag in january and it lost like a bazillion dollars since the end of this year i mean so these follow through uh gaps are just unbelievable and it's almost like too good to be true easy pw is another one of course i have losses booking what a silly question of course there's days i lose without a shot of a doubt there's days i lose how am i able to make money by the end of the week in the end of the month easy i don't let my losses get out of control okay i do not let my losses get out of control so if i i actually give myself like five or six full on trades a day but i never get anywhere near that number if i'm down two in a row or three something's wrong either things are working right or are the markets too bullish and i just stop you know you shouldn't be pushing the envelope every day that you trade you just can't do that you will have two or three days or maybe four a month where you will lose they should not be huge they shouldn't be stopout days you should be able to know yourself well enough which i do now that oh something's wrong here i don't have it this morning or something's not right this isn't working and then you just pull yourself back and you stop the worst thing you can do is let yourself get out of control the only way you're going to make money doing this is if you only have a few small lost days a month and that's where the money magic comes into the whole idea of trading so i wanted to plot this in here i'm teaching regular people people always say well i know you can do it melissa but what about me i'm teaching regular people regular regular everyday people and i'm a regular person too although i'm very good at what i do but normal regular people can learn how to trade the market i'm teaching regular people some of the people i'm teaching have a lot of money i will say that okay and some of them have not as much some people i'm teaching knew nothing before they met me nothing at all never traded the market and some have been stockbrokers or have traded the market for over 20 years and it is really very complimentary that i have had some of these people that have had made money from my calls and are are in my room i have people that are quite experienced that are in my room and learning from me and it is really very complimentary but they are regular people okay so whatever your experience level is currently if you are not having the success you want or not having any success at all with the market then it's time for you to step back and evaluate don't continue doing the same thing getting nowhere i know as traders i know a lot of people they tend to want to do that well you know it's not the right idea the end of the year calendar year is a good time it's a good time to reorganize and learn new information to become a more skilled and profitable trader and the time to do it is now trading is a great career because it offers money it offers personal freedom and not only that it offers an unlimited potential for growth and success going into 2014 i always think what what is my goals for the next year i see what i did this year i say okay now what's my goals for next year do i want to increase my risk for next year you're always moving ahead and looking ahead i mean what more can you want in a career there's really not much more you can want in a career so the golden gap course will help you find the stocks to trade in the market now i i put this in here because i think it's important what do you need to succeed besides the golden gap course what do you need to succeed i came up with this this year and i talked about this one day in the room i caught the four C's the four C's by the stocks which and what are they number one clarity absolute clarity you rate the gap there rates over 20 points you know you like it clarity i know what i'm doing on the day i'm looking for my gaps and rating my gaps and looking for over 20 points of looking for the setup in the first couple minutes of the day and i know i want to short this it's clarity knowing what to do number two confidence i believe in myself i believe that i can be successful i believe that i can be a winner i know that i can do it i believe that when i go into the market and trade that i will make money you have to be confident you have to have confidence in yourself number three conviction i put hearts here because to me conviction is my heart my passion i don't even remember doing this i don't think i taped the room that day it was the day of the xpr the whole room said i screamed when that trade broke because i actually had done three ads in that before it broke i was in that heavily um more so than i just put in there in this little example they said i screamed i screamed just ecstasy i don't remember doing it but to me conviction i must have because everybody talked about it but conviction to me is a passion it's a passion it's my heart my soul i have a hundred percent conviction this gap is going to work today i absolutely love this chart i know it's going to get down i absolutely want to do this thing i'm in a minute i'm in a minute go conviction is i believe i believe in my process i believe in my rating system i believe in myself i know i can do it i love making money i love the market it's it's it's my passion this is my soul it's conviction you got to have this and number four commitment commitment means taking classes learning the process going through it and being committed being committed enough to actually pay someone to learn i mean that is commitment there's a level of commitment that's involved when you take a trading course like mine the commitment is i am sane i want to learn this i want to get this right i believe that i can do it and and i believe in you you melissa and i believe in the market and i know that i can learn something from you to help me make money so the golden gap course is a complete system to use to train uh the course is called the golden gap course and it's this weekend it's the last class i'm doing for 2013 it's a full today course and how to strategically find pick and play socks that are professional bearish gaps it is an online class retakes are free you can be anywhere in the world and take this class anytime zone it's online you sign into the room it's from nine to five now i am doing a special bonus day for this end of the year to not only help get the people that are trading with me to become better and get them ramped up for 2014 but also for new people this is a this is the first time i've ever done this i'm doing a third day the cost of the class is 2499 if you're interested email me at melissa at the stockswish.com this december special end of the year class is a bonus day and what we're going to do is we're going to train live on the monday okay on the 16th and then we're going to go over gaps like e xpr sol all these ones i just talked about that have just happened in the last two months we're going to go back and we're going to go through point point point the ratings on these and see how they all set up and worked out we're going to go through real time gaps that happened recently this is something new i'm doing for the end of the year special it's going to help people to get ramped up for next year to see how these things are working in real live time it's above and beyond i'm giving an extra day of my time to teach three days for the same price is normally two days so this is a full on tutorial here these three day class i'm giving it my all because i really want people to succeed and the people that are with me are allowed to retake the class for free as soon as you sign up for the class you can retake it anytime for free so i'm doing this as much for new people as for my current traders because i want them to have a good 2014 year so again on the right path to success with the golden gap course remember 2014 is almost here the time to have the life you want is now if not now when it seriously if not now when it is time for you to be happy now and you've got to empower yourself to trade if you want to do something to change your life think about this the market is serious business and it really can help you to have the life you want because there's so much money that's available in the market and you don't have to trade or take a lot of hours out of your day to do it all right thank you so much for coming let me ask you to answer a couple questions here and here's my email bookie has a question bookie it depends bookie's asking what's the minimum capital if you're a beginner trader i would not risk more than 30 to 50 dollars per train if you're an intermediate trader i risk between 100 and 150 and in advance obviously you can risk uh whatever you can stomach risk wise i'd say between three and five hundred the minimum capital trading requirement it depends on the broker that you use you are going to have to find a broker that will give you leverage to day trade and talk to them about the minimum capital required i am not a broker i'm an educational firm but i certainly can refer you to several brokers that i know um and that i have referred people to or have traded that personally myself to give you a couple options so you can email me and then i will refer you to some brokers and and that goes for anyone as well if you want to uh look into some different places you can certainly do that okay does anyone else have any questions about anything anything i said here today um anything about any of the trains anything about any of the thing uh the foresees i talked about at the end you know i mean i am really really really convinced more than ever that this idea of commitment and conviction and confidence and clarity you gotta have it you need it uh yes tim is asking about the pattern day trading if you go to a retail broker you need twenty five thousand or more if you go to a proprietary day trading firm then every proprietary day trading firm has different requirements some of them you can open up accounts for those little as twenty five hundred dollars you'd have to talk to each individual place they have their own requirements because you're basically trading their capital their funded capital they're giving you higher leverage more than the normal retail broker accounts and they all have different requirements and so you kind of have to talk to them yourself i always tell people reach out to people directly and ask the questions you need to the broker how much of the commissions what are the platform fees uh you know what is the buying power what should my daily stop loss be what is the capital requirement all of these things okay but that's secondary the first things first you gotta learn what to do and i i can send people a free demos if you're interested practice on a demo it doesn't cost you anything to be on the demo you're not risking any money at all you practice on a demo for for a couple of weeks get good on the demo and then after that you can look into different types of brokers whether you want to go retail or prop the cost of the course here it is it's 2499 is the class tuition fee i never do promotions on the golden gat course tim i am actually doing promotions for golden gat course students for the other classes i offer till the end of the year some discounts for the room and some of my other courses but not the golden gat class i'll never do a discounting cost for this in fact the price of the class has gone up this year so if you're serious about doing it uh that is a cost of the class but i'm doing this extra special bonus day if anyone's interested um i use this platform here and that's the data provider i use sterling okay they're very uh they're everybody has them i mean this everybody offers them another good platform is dos can use them as well excellent data provider i mean the main thing is that you're looking for when you're looking for a platform is speed of execution and good timing for actual seeing the price like when i'm trading i'm looking at a couple different things uh to actually check the price that i'm getting the accurate price what i'm seeing the setups so uh that's why i put this free stock charts dot com on here you can actually watch that in the morning and check that with your platform because this is free to see that you're getting the same price data feed to see that it's actually the same number okay and it's in real time but those are two good platforms there sterling and dos although there's tons of them i mean there's just a lot of different good platforms out there what you need is something that has accurate data and speed of execution to take positions in and off um no i mean i have uh live live as live can be i mean i use uh i have cable uh internet uh which is fast and you gotta have a good internet speed um you have to check all this stuff too i don't trade like ever on wi-fi or anything like i'm connected hardwired in on a on a computer and uh i use cable internet and all this stuff you know is part of getting set up you know getting set up and i have two monitors two two 24 inch monitors some people have a million monitors i find that two is more than enough and actually you could trade just with one i'm running the room so i have two but one is more than it's sufficient honestly and i know kevin is um is going to come on here soon but if anybody has any more questions here just email me just email me right here if anyone has any questions or if you're interested in the course it's going to be an exciting last class of the year because i'm doing that day three i've already got people signed up and i am i do really classes where i try to keep a limited number of people uh because i'm doing everything myself or i'm actually doing all the talking um and i don't want the classes to go to midnight so if you are seriously interested email me and i'll send you the papers to register to do it and uh i think it's going to be great you know uh i've really made an impact on some people's trading this year and i'm very proud of myself for doing that and that's why i wanted to talk about the fact that there's some regular regular people that i've taught and i can also send you referrals if you would like to talk to clients as well um i have never used them ever frank so i can't say i've never used that platform in my life i can only speak for the ones i only speak for places i've traded at or platforms i've used i'm only going to speak from experience experience and everything i'm doing and everybody i've worked with so you can get an honest reaction from me but i've never used that platform frank but i can send you you know uh some free demos to use to check something else out and if you're having issues with the platform you shouldn't you know yeah you're welcome okay great everyone have a wonderful evening email me if you would like more information have a safe drive home if anyone's driving home tonight i hear we're getting six inches of snow tomorrow as well here in the northeast so be careful and have a great evening anybody needs anything email me at melissa at thestockswish.com wonderful it was great thanks for coming out everyone tonight thanks for so much and if i don't see some of you happy holidays and for those of you that i will see before the holidays happy holidays anyways and i'll talk to everybody soon thank you so much online trader central have a good one