 Testing, testing, let me know if everybody can hear me. Hello, it's Melissa. Let me know if you can hear me. I have a little bit of a cold here, feeling slightly under the weather, but surviving. Not my normal loud, boisterous self today. A little bit of a too much over-the-counter cold medication, but if I sound stuffy, I apologize. Welcome. Well, thanks so much for having me here today. Thank you, Eric, for hosting this webinar. Everyone should see a slide here that's white and red, and I see everyone's questions. If you ask a question during the webinar, as we're going through, I will say it out loud, and then I will answer it out loud too. And just going to be very relaxed today and talk about the method that I day train. So today, I'm going to talk about trading on the side of institutional money and gaps. And for those of you that don't know me, my name is Melissa Armo, and I day trade the U.S. stock market. So specifically, we're going to talk about gaps in the U.S. market. Now, a lot of people ask me, well, can you use this for other markets or other types of trading methodologies? You can use my method for anything where something's gapping. So the reason that I like to trade stocks or ETFs, but I mostly trade stocks, is because the U.S. market has a close of four o'clock Eastern time and an open at 9.30. Like right now, the market's closed. And there are stocks that are gapping tonight. And so this is what I do. So we're going to talk about that today and why trading gaps actually can be very profitable as a day trading method. If you're interested in more information, you can feel free to call me here, email me after the webinar. So let's get started. Open up your mind. Open up your mind today to learn something that maybe you never heard of before or don't know, even if you can pick up just a piece of information. I know a lot of people give a lot of webinars. And before I figured out my own method, I did go to a lot of webinars myself at a lot of different places. And I always found one piece or nugget of information that I could use to help me with my trading or maybe even pull together something that I was working on for myself with my own method. Or maybe you don't have a method in your trading right now and you really need something and you might be interested in doing what I do, in which case you can reach out to me at the end. But really, if you're not making money, okay, that's the reason that you trade. I mean, to be 100% blunt and very practical, trading is fun. But the only reason really to do it is to make money. And I find that I talk to a lot of people that are trading and they're losing, but they don't change what they're doing. I mean, it's common sense if you continue doing the same actions, you can only expect the same results. So if you're not getting the results that you want trading, if you're not making money, then something's wrong. Whether it's your mental attitude, whether it's the system that you're using, whether it's the time of the day that you're trading, we'll talk more about this today. I only trade usually between 930 and 10 when I'm entering my trades. I trade in that morning period. If a stock doesn't set up by 10 am Eastern time, then I'm not taking it. Okay. So there could be a lot of things that you could look at if you're not profitable. But if you want to be more successful in the market, or really in life, okay, which I find trading really can help you, then you've got a learning training system that will bring about the financial results that you're looking for. And what I say about life is that when you go down this road as to become a trader, to become a successful trader, you end up learning a lot about yourself. I know a lot of places out there have these big trading communities. My trading room that I run every day is closed off. So you can't see comments from other people. And the reason I do that is to focus myself, because I'm running the room myself, but I don't want a lot of distractions or chitter chatter in the room. But really, when you look at it, trading is an individual activity. It's something that you're doing yourself. You're pressing the buttons. You're risking your own money. You're responsible for your own choices. When you make money or when you lose money, no one really cares but you. And that's the truth. So as you go through this process to become a trader, if you really go down the road and you're serious about it, which I was, it's an individual process. It's something that you're doing on your own. And you learn a lot about yourself. I learned a lot about myself in the three years that I created my system that I'm going to talk about a little bit tonight and what I teach in my class and what I do every day and what I now teach other people. I learned, I learned really, I'd say the most important thing that I learned about myself before I get into this is that I feel like if I persevere through challenges in life that I can overcome them no matter what comes my way. Because when I started trading, I lost a lot of money. And I lost a lot of money until I figured this out. And I never knew if I really would make it and I persevered. And of course I did. So, and I never thought I'd be teaching people, never in my life when I decided I wanted to trade. So, what I really learned about myself was that when hard times come, if you push through it, everything will be okay if you keep the faith and if you persevere. I think a lot of people give up. I think a lot of people give up and yet they keep trading. And that's the whole point here I'm trying to make before we get started. The mental attitude is important. So take an honest look at yourself and if you're not making money then you got to change what you're doing. So, let's talk about practical matters here about trading, okay? In order to be consistent with whatever method you're doing, you need a proper focus. So, I only do one thing every day. And even mostly in one direction, which I go to the short side and someone wrote that in there earlier, I really do mostly short into the open, more than even go long. Although I'm not opposed to going long, but I do prefer to short. So, if you've been dreaming of being successful for the market for years, but the success has eluded you, you got to stop and consider why. It's time to think about going to a new level and understanding and having a better comprehension and overall wider perspective of what makes individual success possible for a trader or investor in the stock market. And for me, I'm a trader. Okay, I'm not investor. I'm not holding these stocks that I'm trading for years and years. And at the towards the end here, we'll talk about buying power a little bit about how to take the positions. But making money as a trader, it's not impossible. It's not. Okay, even though people think it is, it's not. But it's challenging for many people because they don't have a good system and they don't have a focus. And what happens is, if you start to trade and you're losing money doing something, then you think that it's not going to work as far as pulling money out of the market and then you lose focus and jump to another thing and another thing and another thing and another thing. And as a result, you're, you've tried, you know, 10 different types of systems, none of them work. And then you don't have a focus at all. You don't understand the importance of a focus. So for me, I have a good system. I have an average of about an 80% win ratio right now. I've been tracking it all year. I have a video of this on YouTube online. I have to update the last week. But I will tell you that when I have a losing day, when I have a day when a trade doesn't work, I don't feel like quitting or switching systems or making up a new system because I have conviction. What I do have been doing it a long time. Now, you know, obviously if you haven't been training for a long time, you'll say, well, how can I have conviction? If something doesn't work, you have to give it an ample period of time. Now, what is that? It's not forever. I'll tell you that. But it doesn't mean you go into trading a system and quit after a week or after a month. A, you got to learn it. B, it's good to have a mentor. If you don't, it's very hard to learn a system. A lot of people have these trading DVDs and books and things out there. When you don't have a mentor or someone to go to or trading room, or someone's given the calls like me, it makes it very difficult to know if you're even looking at the system or doing it right or learning it correctly. But you also have to give it a chance. Okay. That doesn't mean forever. And I don't even think it means a year, but you got to give something a good couple of months period. I'd say three to six months while you're doing something and learning it right and following someone to get it right, to get it down. And then you can move forward and be consistent. So now what is the practical, again, reason for why I trade gaps? Because I'm looking at what institutions are doing when they're moving stocks. Now, what I mean by institutions, I mean banks, large traders, hedge funds, okay, they move stocks. And what they do is they create gaps. So they're really like the footprints of money in the market. They come in, they will sell big positions, they will buy big positions, or they will short positions in stocks. Excuse me. Yeah, this was yesterday. This was IBM. So IBM gap down. Now, for example, who was in charge of this here? The stock closed the night before, I made this really small, so you could see all the candlesticks. But the stock closed the night before here, around 170 something at four o'clock. Then in the morning, it gap down and open $8 plus underwear closed, okay. So this is what it did. So this is what I look at. And I look at it in the morning, okay. So this was a gap down. So the gap down itself was bearish because it lost value. Now, what you have to figure out is how are you going to play it on the day, as a day trader, or maybe as an option or swing trade? Are you going to short it? Or are you going to go long it? We all know that the gap is gapping down. Oh, Aleve says I does good calls on my trades. So thank you, Elaine. I think you've been in the room for a few trials. Now, here's Google. Google is bullish, gapped up. This was a couple days ago, boom, gapped up, closed here, gapped up, rally, had a big move, actually gapped up today, had a move up, not as big as this day, but it's the follow through. So this gapped up here four days ago has followed through higher ever since. So in here, you have the institutions buying Google, and here you have them selling the IBM. Because you did have follow through here on the day, I did this as a day trade as a short, this moved down on the day, and this moved up on the day, and this moved up on the day two, and you also could have done this as a couple of day move as an option. So it's commitment. It's the commitment of the power of money that's coming into the stocks. And I play stocks with volume. I mean, I play stocks that move. They've got to have several hundred thousand shares on a day. I'm not doing what they call low float stocks or penny stocks or cheapy, cheapy stocks. Okay, I'm doing things that move anywhere from, you know, $5 to, you know, 65 is a mid range for me, but I will trade stuff that's $100 price point or even something like Costco because I'm used to playing them. They're easy to trade, even though they're a little bit more expensive, but they have volume and they're being traded by institutions and they're usually companies that everybody knows. Okay. And when these companies, when these banks, when these hedge funds go and decide to buy a stock, for example, like Google or Costco or Amazon or whatever, okay, they have reasons for doing it. And their reasons are not my reasons. Okay. They do all the research and it's not something that's done in a moment's time. Now an earnings report may happen. There may be a call like at five o'clock Eastern time, you know, one night, like Netflix came out on Monday night. It had earnings gapped up and then fell on the day. But the reasons that funds would buy or sell Netflix have nothing to do with the reasons that we do stocks. I do not look at fundamentals. Even if we did look at fundamentals, there would be nowhere near the reasons that these other large funds or banks would decide to take positions in stocks. They know things that we don't know and will never know. Okay. And they buy and sell research reports from each other and also companies that analyze this stuff that do this for a living. That's what they do. Okay. Stock analysts and they decide to buy or sell positions in these different companies. So all I'm looking for is to see what they're doing with it. And then when I see the gap, I predicting where it's going to, where they're going to take it. Okay. As a day tree. So how do you make money doing this? If you can predict it before the move happens, you predict it before the move happens and you take the trade in the open and that's it. Okay. Now it doesn't mean that every trade is going to work. Some trades don't work. We're going to look at a chart of target in here. And a little bit target worked as a longer term trade, but not as a day trade. But like I said, for the most part, you know, over 80% of my trades do work out. But this is really in my opinion, one of the only ways that you can make money as a day trader because you've got to get stuff that moves. And institutional money is really in charge of stocks and it's in charge of the market. And it's one of the reasons why the market's higher. I've been predicting the market higher to make new highs for the last four years or more ever since I started the business. And many people didn't believe me because I thought the market was extended. Even in 2016, people were very convinced that the market was extended and was going to pull back. The market is higher. In fact, I think it's creating a whole new level that will last for a very long time. I'm not going to get into that now, but bottom line is that institutions have been buying the market up. They made a massive aggressive move ever since the election in November 2016 in the U.S. And there really seems to be no looking back right now. So if you're in long-term investments, you're really getting paid. If you've got 401Ks, you're making money doing nothing lately, you know, looking at them. So it's an optimistic and positive time for the U.S. stock market. But that doesn't mean that some stocks aren't going to take a little tumbling, like IBM would happen this other day. So what I do is look to see, just as a day trade, what this thing is going to do. Now this was a bad, bad gap for the stock. So this stock could even continue as a swing trade, this IBM. But what I do is I look at it and I see what are institutions doing in this thing here. Are they going to continue to sell it off? Because we already have to sell it off in the gap. Like I said, it lost eight bucks or plus. But you've got to get continuation on the day. If you don't, you can't short it. Okay, so we already have the gap down, but it's got to keep going. Otherwise I can't short it and make money. If it flips and rallies, I can't make money shorting it, even though it lost eight bucks overnight. Okay, and Terry has a comment. Anticipation of the quarter report the next day. Yes, that's what you have. That's many, many times. That's why stocks are gapping from quarterly earnings reports. And right now we're in second quarter reports. Now, here's another example. This is a one minute chart. This was last week. This was peer stock close to your gap down. Now, again, I'm a day trader. So on a one minute chart, you can see here the sell off the stock had on the day. So this gap rated good per my system to be a good short. The high in here was close to seven bucks. And this ran down in the first few minutes here, like 60 cents. This is all you need to make money. You could short this in here and take it out. You can short this in here and you can take it out. So whatever you do with this in here, it has to be a short. You won't make money going long peer. And this was a big move for the stock. So institutions sold it. They sold it into the open and they sold it in the gap. Now this looks different than IBM because here's the day before this is four o'clock. Excuse me when the stock closed. So it closed up here at 724. This isn't a big gap down like the IBM. So again, how do you know? How do you know it's going to keep going down? I've developed a system to determine yes or no for this or long or short. But anyways, see this looks very different than the IBM for the gap, but it still sold off and it still had a big move. And it still did it in the first half hour of the day down here is the time. So this is between 930 and 10. So if you want to become an expert, you have to have focus on something. So this is what I've decided to focus on doing. And really how it all came about is that I made a lot of money one day in a gap years and years ago. Now I didn't know what I was doing at the time, but I did make like five grand. And I didn't even risk that much that day that I made that money. And I made a lot of money in a gap. And it was to the short side. And then I realized that there was something to gaps because they have a lot of momentum and I don't like to be in trades all day. So you can trade all day if you want to, but I don't. I don't trade all day. I usually do one trade and I'm done maybe two at the most. And I'm usually done within the first hour. So there are times when stocks reset up again, but I usually don't do late trades every once in a while. I do, but I've really become very consistent in trading into the open. It's a skill set that I've developed over the last eight years. And if you want to come and trade with me, you can learn how to do it. Most of the moves of that stocks make on the daily chart happen within the first 30 minutes, 60 minutes of the day, I'd say 80% of the move a stock makes. And this is whether it's to the upside of the downside. It doesn't matter if it's a long or short. And stocks that gap happen, the most of the move happened in the first half of the hour of the day. So if you go back and look at 20, 30 charts of stocks that are gapping, a lot of them will set the low of the day by 10 o'clock if their shorts or set the high of the day by 10 o'clock in longs. Now it's rare that they would keep going. But even if they do, it's not some massive move that happens after it could continue a little bit, but not worth playing all day. So if you've got your money in for the day, and your goal for the day is 500 bucks or 400 bucks or $1,000 or whatever your goal is, if you're in your goal and you can get in and get out, then you take your money and run. Because no matter what, no matter how good you are at trading, and I'm very experienced, until you're out, it's never over to the fat lady sinks. So I could be of money in the trade. And if I don't get out of it when I'm up, I'm always at risk. I mean, I'm always at risk. So you have to learn also how to book profits. So why are you here? You might be here because you're trying to learn something new about a different method. But it's also really having the focus. So even if you don't take anything away, what I'm saying about gaps or have any interest in it, no matter what strategy you do, I think in order to make money consistently, you have to focus on one thing. Because one strategy and even one trade is all you need to make money. Okay, now let's talk about what is a gap. Excuse me. For those of you that don't know what a gap is, this is a very basic, but I'm going to review it. A stock gaps when the opening price today is different than the closing price of yesterday's trading. A gap is a break in price action from one day to the next. Here, IBM. A gap is a break. So when it closes here four o'clock, boom, it opens down here at a different price at 930. That's it. That's a gap. There's no percentage. I don't look at that at all. This could, you know, people always say, is it 25% or 30? No, I just, I'm seeing the gap. Okay, then I have a method to determine if it's a long or short, but it could be anything because I showed you the peer and only gap down 25 cents. So that's all it is. From the close to the open, it's a different price. It's a break. And the reason they have huge opportunity to make money as one individual is because they move and have momentum, because power and money moves them. So what I do is I find the gaps and you could find them in any scanner, okay, in the post and pre market. You can rate them at night if you want. I have a checklist. I rate them. I don't play anything unless I've qualified it. The checklist tells me what to look for in this price if it's a long or short. And gaps happen every day. That's one nice thing too. It's not like you get up and you don't have any gaps to look at. Now, whether they're good or not, you don't know, you don't know till you get up in the morning or you look at night, but you do have them every day. And what you're looking for is the power of money. Now, Google is a great example. Google had a gap down here. Okay, this was back in the beginning of the year. So the stock gap down closed here, opened here, and you could have shorted it for the day. But long term, the power of money was up. This didn't even last barely a week. I mean, barely. In fact, a gap up here, gap over the gap down. And the stock has taken off. It's taken off ever since. And then it made a new high. So who's in charge of this? It's the bulls. Excuse me. Like I said, for the day, you could have done a day trade short. But in the longer term picture, this is in charge of who? Who is the power of money in this? It's the bulls. And this is a gap down that happened here that didn't even work. And I want to show you this because it had a big green bar. So the stock closed here and a gap down and it got bought and it flipped. And actually here was a gap down here. Again, within a week, it's a goner. Gaps down, boop, boop, flips. This stock keeps getting bought every time. And even this guy here, we're not over this bar yet. This will trade over it. This could happen in a matter of days. It could happen tomorrow. It could happen next week. So the checklist tells you where the big money is going to go, because that's how you get it right. Just like anything else. I mean, if you're a trader, I don't scalp. I'm looking for a dollar moving something or 50 cents or more than a dollar, depending on the price point. Something like Google would be more than a buck. But you can't make money if you're in the wrong direction. It's just and it's scary if you're in the wrong direction actually. You have to be in the right direction. Something's rallying. You have to be long. Something's falling. You have to be short. So let's here take a look here at the IBM play. Again, this was a day trade. So this is a one minute chart. The stock closed here and gap down. Boom. Rallyed. You can short it. Dropped. Rallyed. All in here, the stock is trying to go higher and it can't do it. And it looks like it might, but it's not. And I'm short the stock. So if you're looking at this to play it on an intraday at the one minute thinking this is doing a series of higher highs and lower lows and you're playing the intraday, you might be long IBM from the gap down. And like I said, it did gap down a lot, but I'm shorted. So I'm shorting it the whole time in here. And then it broke. And I have my stop at 55. So I didn't get taken out and this little guy went, do I use stops? They protect you because this could have not worked, but it did. Anyways, this was really expert trading the other day because I'm sure that some people were long the stock because on the one minute chart, it looked like it was lifting even the moving averages here. This is a 20. This is an eight. This is a 50. We're starting to scoop. And this period in here, I'm in it. So I was already in it before 10. This was the day I was trading a little bit later. It didn't break till after. But it did work. And it had a big move. So the shorted it at 160.179 had 2000 shares. And the exit price was 160.10. But it actually went a little bit farther. It actually did break 160. And it was an amazing trade. If you had 2000 shares of this, you could have made $3,380. Now, this is a good size for this. It was an expensive stock. But even if it only took 500 shares of this, it was a $1.69 move. So here, again, is what I look for every day, this kind of thing. And the case here, I was in it over here because I thought this was going to happen earlier. It didn't. But I stayed with the trade and the stop kept me in and it went. So I'm using this to tell me what to do. This I'm getting in it and I have the stop. But this is directing me, which is the daily. Many day traders also are focused so much on this one minute that they might think this is a long, but it's a short. So I use the daily to direct me. I use the one minute to take the entry with the stop. But the directional bias that might go long or short, I'm choosing the daily chart. And that's one of the reasons for my success. Now, a lot of day traders are only looking at this. And then you see this and it can be confusing. I'm sure there were people in the trading room yesterday that were like, because it did go over the high. But it worked. So it's very, very important to have a focus on what? Why are you doing anything? I'm doing the short in the IBM because of the daily chart. My rating system tells me the daily chart means that the institutional money is going to sell it off. Now, whether it sells off in the longer term or not, I don't care if I'm in and out on the day, which I was here. But the point is that I'm using the daily to direct me as if I was going with the people that are removing the stock on the day in the gap. Any questions about this? I actually do think that this is one that is actually probably lower in the overall. I did not look at how this closed today, but this could have another move down for a larger move down. But I like to do the day trades. So you can see here how, I mean, this is enough money for some people to last all week, but I look every day to trade. So really the key to making money, to the tune of a couple thousand dollars in the trade, is power money. So think about what you're doing. And this is, I think in the morning before I trade, I have it all processed. I have it all set up. This is the one I like. This is the top pick. It's IBM. I don't get in before it sets up, before the open. I don't get in before 930, but I think until actually about what I'm doing. I don't think on the fly. I don't wait and scan between 930 and 10 to fly what to do later. I don't look what the market is doing to determine what I'm doing or not. I look at the stock itself, and I have it all figured out before 930. When I'm not in the trade and no money is at risk, and I can process my thoughts, and I go with my system, and I have it all thought out, and I'm more relaxed. Now in the moment when I'm taking the trade, I have to pay attention. But I know what I'm doing beforehand, and that does take some of the stress off of it. Alina is saying about today. Yes, there were two today. Verizon and eBay. I actually didn't put these in here, but if I have time I can do videos later. But eBay was a good one today. Again, the quick move down. So what I do is look at a rating system that pinpoints where the money is going to go, and that's how I figure it out. Now earlier I mentioned this target. This looked great, but it actually was a loser for me for the day trade. So look how what it did. It rated good for my system, but it failed. And then I called it as an option, and then it was a huge sell-off. So this is where I said, you know, eight out of 10 trades will work, two may fail. This was a failure as a day trade, but it's still, the control was to the downside. The institutions were still controlling it to the downside. And I knew that because it gap rated well. And then when it opened the next day, I quick called it as a put. So this was a short as an option, and if you did it, and you could have made way more than what you lost in the day as a day trader in this one. And the rating system told me that, but it didn't work this day. So you will have sometimes ones that don't work, that you can watch for continuation if they turn around and flip. And target was one of them. And it really had a nice big move. The stock is still lower. This is today. It's barely lifting at all. And the market had a decent rally today. So this had one little tiny move up today with the rally in the market. This is really stock is lower. So many saying 162.44. Which, what are you talking about there, Terry? You can write your question in. You lost me. Anyways, the whole point of what I do is looking at price action and gaps, and then predicting where the money is going to go. I like to do the day trades first. But sometimes I will do an option if like in the target, if the thing doesn't work as a day trade, but I know the gap rates well. And then you can get the follow through after the fact. Okay, but you've got to have conviction to make money no matter what you do. And I don't care if you're risking $100 or $1,000. It's still your own money that you're risking. Okay, so you got to get it right. But I really definitely do something very unique, but it's not with most of the crowd. And I was telling you one of the reasons is I'm going with a daily chart. I'm not looking and making decisions about whether to go long or short of stock by the intraday charts, which is very unique, even though I'm a day trader, even though I could be in something for five minutes or three minutes or two minutes or 30 seconds, even though it could be in something out very quickly, the decision for the directional way I'm taking the trade longer short is with the daily. And that gives me an edge because institutions are not making decisions to buy or sell stocks on intraday charts. Okay, going back to the commitment, excuse me, if they want to sell IBM and dump their stock in it, then they're out for the moment. The chances of them turning around and dumping, you know, dumping 2 million shares, okay, and then turning around and buying back 2 million shares that day or the next day is very unlikely. You know what I'm saying? Because it really takes a lot of commitment. When these places, these funds, these institutions, when they take positions in stocks, it's a big commitment. It's a lot of money. They take big size, okay, and there's risk involved, and there's a decision behind it. It's a thoughtful decision behind it. It's not a quick decision. And there's the commitment level that will usually have the follow through with it. So you've got to be in the right direction. So you have to know what to look for. And this is one of the reasons I'm looking at the daily. And the other thing that gives me the edge of what I do is figuring out before the open. So I'm looking at the direction of bias in the pre-market. Now here was the IBM. This is actually the post-market at night. At 4 o'clock, the stock had the earnings, it gapped down, it fell hard. This was, I don't even know what day it is. I don't know if it was Tuesday night. Yeah, I guess it was Tuesday night. Yesterday was Wednesday. So Tuesday night, this did it. Here's in the morning. And then here's the open. And then this is the move that I was in in the morning. This was in the pre-market in the morning. So rating the gap in here in the morning. Or you could have done it at night. It got better as the morning went on. And actually found more. IBM closed today at 162.44. Let's just look at that here. Let's just look at the daily. It didn't go over the high of this. I can't see what the high is here. Here. It didn't. It didn't go over the high. So it's still lower. If we rally today in this held in here, it's still good. Looks like if that's where it closed it is. So we'll have to watch it. But thanks for clarifying what you meant by 162. Here it is. Let's look at it here. 162.44. That's where it closed today. So look at it. What do you think? It's weak as all ghetto. It's lower. Because of market rally today. Market had a nice move today. Market should fall through higher tomorrow. So this is where this closed today. It's still weak. Now here is the T.S.C.O. This was two weeks ago, I guess, before the holiday. Another one fell off the planet. Stock is a daily chart. Stock close here at 70 gap down to 67. Massive move. I didn't get this whole thing. But I got enough of it to make money. But it actually went to the dream target. Again, followed through. In fact, I think this had a third day in here. So here was the short in the morning, the day that it gapped. Boom. In it's short, stop, get the drop. This ended up going and breaking 65. But I tend to like to play in the morning. So I just did this one, but this continued down. So again, get in the trade, take your size, get out when you get the move. So I made 1,300 bucks on this. But as it turns out, I could have made a lot more. I didn't hold this all the way down. Dream target was 65. It actually went to 64.50 on the day. I didn't get that move. But I got the first morning move. But here you see where it went. If you played it into one o'clock, it went all the way down. So that is a good example of what? Selling action. This is selling action, people. You have institutions are selling it. They're dumping their long positions and the stock sells off. So when I take a trade in here, I'm predicting that this is going to happen. That it's going to get sold off. And I'm predicting it before the open. So I just wait till it opens and I take the trade and put the stock. And again, my focus, focus, focus is one or two things a day. Trade in the morning. Be out by 10 o'clock, 10.15, 10.30. So I have a focus on the downside, focus on the selling action, focus right into the open, focus on only one or two picks. And the reason I prefer to short, and this is just personal preferences, because you do get these long extended moves. You do get big moves and selling action. You do tend to get a lot of panic very quickly. Actually, peer, let me just go back, this, this, this kind of thing here is what I like about shorting. It just goes, you get total panic and very quick moves in shorts. I'm not saying that, you know, stocks don't rally, they do, but stocks tend to have fast, fast moves to the downside quickly. So it just means you make money faster, which I, which I like. The faster I can get in and out of the trade, the better I feel simply because then the less I'm at risk. It's probably also why I don't do that many over nights. And even if I do an overnight, it's an option. It's an option trade, which has a fixed risk. I, you know, to be a long term investor and I'm not saying there's anything wrong with it, excuse me, but you have to have a lot of money behind you. You have to be able to assume a lot of risk. You have to be able to stay through the wiggles and jiggles. I mean, that's why there's people like Warren Buffa that are very successful. He's got billions of dollars. No, I'm not in before the open, Terry, but I'm deciding before the open. So I did all the thinking and all the mental process beforehand. So I've made the decision when I'm doing before the open. This is good. I like it. We're doing it today. But then I take it after the open. But the intellectual thought and process and the, and the point, my methods, the point rating system I go through, I do all of that before the open, so that when the live day happens, all I have to do is watch it or one thing or two things. Like I said, I could watch two like today, but that's it. I don't have to think and think and think as it's a long or short. I just watch it. If it sets up, I do it. I put in stops that are limit orders and I give a cushion. So if I have a stop in, let's say at seven dollars, that's where the stop is. It's a limit order. Could I get filled past the seven? Sure. Sometimes you have slippage depending on the size of the stock you trade. But for the most part, I mean, I get filled. I get filled. I get filled in the close to the right price or the right price. I'm not taking 50,000 shares of something. I'm also trading liquid stocks, which helps a lot. And there are occasionally things that I do that have a spread, but I prefer to do tight spreads. But if I have something that has a spread, I'll price it in. So let's just say the spread is 20 cents, which is a big spread for me to do. But then I'll price in the stop and the spread. So instead of putting the stop at seven, I'll put the stop at 720. I use hotkeys for entries. And yes, I use limit orders for those two. But some people in the room use market orders. But that's up to them. But I use a hotkey. And the hotkeys are limit orders. I played around with the market orders. I don't like doing them. I've always used hotkeys and I've always used limit orders. But that's personal preference. It's not like you have to. Average percent of your stop loss. Well, that's what I'm saying. I'm averaging 87%. So that means for every 10 trades, you figure two were going to be losers. That's what you should figure. Now let's look here at the Kate. Kate was another one again. Big sell off right into the open. In fact, I was so on top of this guy. I actually took it in this bar. I actually jumped the gun on it a little bit, but that was okay. So I shorted it here. I was anticipating it breaking in this bar. It did. I got it in a little early, which was fine. It worked. And I got the stop in quick. And I got the draw. So the short of this was 1839. I was early though. I took 5000 shares exit 1795. It actually went a little bit more. But again, you know, when you're up, you get out. And this is real profit people. I mean, to have two good solid trades, excuse me, and make over five grand. That's it. That's a week. So again, I took this a little early. So you could have waited here. And then it dropped. This also, I will tell you, was the low of the day set the low of the day in the first five minutes. No reason to trade anymore. No reason to do anything else. Even if you only did, you know, 3000 shares or 2000 shares or whatever, you can make over 1000 bucks in this. There's no reason to do anything else. So I like this. I did not get in before the open. I knew this was the one. I figured it out before in the pre market. Boom. This rates good. We're doing it. It opens, take it, put the stop moves, you get out. IBM took a little bit longer, but I could have gotten out of IBM. I could have gotten out of IBM way earlier. I mean, I was up before it made that move over the high. I could have gotten out. I was up when it when it moved, but I wanted a bigger move. And I thought this is going to have a big move. It just took a little bit longer. But part of the reason for that is I think people were going long it, but the institutional money pushed that down. Now let's look here about buying power, because someone had mentioned this earlier or someone emailed me about it. I forget someday I'll just do a class on this, but this is very, very, very, very basic. Okay. But if you have a stock that's $20. Okay. I'm just, I'm just saying if it's $20 a share and you want to take 5,000 shares, you're going to need 100,000 buying power. So if you want to open up an account like at a place like Ameritrade or E-Trade, a retail account, you're going to need 25 grand in cash for that much buying power. If you go to prop account, you only need 5,000 cash. It's up to you. But this is for a position of 5,000 shares. You don't need to be taking 5,000 shares. I'm just showing you, if you want to trade like an advanced trader, this is what you need. But you don't need to be taking 5,000 share positions. You could take 1,000 share positions, 500 shares and still make money. If you divide all of these trade risks by four, you can still be profitable. So I think a lot of people put the car before the horse and they want to make a million dollars or whatever trading. You can get there, but start where you're at right now with the cash you have. If you've only got 2,500, you could open up a prop account. Now you're not going to be risking a thousand dollars in your trades. You should probably only risk 100 bucks. But if you can make 200 bucks, risking 100 bucks, it's 200 bucks you didn't have before yesterday. So it's still the idea that you can make money and you're not trading all day. You're not trading all day. You're only trading in the morning. And every once in a while, like I said, that TSCO went to some bigger number at one o'clock, but it doesn't bother me. If I now have my money in and I'm booked, excuse me, and I'm out, I did my job, that's all I can ask of myself. It's just, it's too much risk holding all day or waiting, waiting, waiting and trading like a million things. It's just people give money back in the afternoon. They just do. So really, I'm looking for the institutional move. I believe this is what helps you to be consistent. You're looking for the certain time of the day into the morning, okay, when all these traders are at their desk and they're deciding what to do as well. And they know if the stock had news, if it had earnings, they're not going to wait till noon to sell their position if the earnings were this morning at 7am, why would they wait till noon? They're going to dump it into the open. So that's it. So you get that move and you're done. So anyways, this is what I teach in my class, how to find these stocks, how to pick them, how to plan. And I do tend to like to go to the short side. So I teach a 26 point raise system. That's how I figured out. That's how I figured that IBM, it rated it well. And even though it lifted in the one minute chart in Shraday, I knew it was a short. And I do think that's still lower too. Even if it boops over the high of yesterday's high bar, I still think it's going to break. It was a serious gap in the chart. So my class teaches how to enter and exit the stock on the day in the one minute, you'll learn the entries with me, I teach six different entries. And I teach price analysis and technical analysis on an advanced level, which you would you would learn how to read a chart with me, you would learn how to read a correctly a day chart, a daily chart, which will really help your day trading. And then obviously, if you do longer term trades, like options and swing training helps you do because you should know how to read a day, a daily chart if you're in overnight. But most day traders do not understand how to read a daily chart correctly. They think something's an uptrend, it's at a downtrend or vice versa. So IBM is a great example of that. So I teach a solid strategy and how to trade gaps, reading the power of money, I teach supportive resistance, so you know how to take positions in the right direction. I teach a more proficient and advanced way to recharge focusing on technical analysis, because that's how I make my choices. And I teach you how to get conviction in trading, because you start to make money with me, you'll get your conviction back, that you can do it. Even if you've been losing for years, and that's important. It's just important. I mean, it doesn't make sense to keep doing this, doing this, doing this, if you're losing. So the main focus of time of the day for me is between 9.30 and 10. And it's really chunking it out. I mean, whatever your goals are, if your goals, $3,000 a week, you could make it in one trade, or you divvy it up over five days. If your goal's 10,000 a month, then you divide it's 2,500 bucks a week. You divide it up, okay? You don't have to have some huge home run trade. You could chunk it out every day in these moves that go for a couple minutes and be done. You don't have to hold something to the dream target. And you've got to limit your losses. I mean, that's very important too, because you won't meet your goals if you don't limit your losses. So I'm teaching people to trade themselves. Like I said earlier, it's an individual thing. You've got to empower yourself to do it. You'll learn from me. I'll help to mentor you, but you are the one that's doing it. So my class is a two-day course on how to strategically find pick-and-play stocks at our professional bearish gaps. Retakes are free. The class is online. You can be anywhere in the world and take it. It's online. I teach it live and you ask questions just like you're doing here. The class is April 29th and 30th next weekend from 9 to 5 Eastern time. The cost of the class is $49.99. If you want to sign up, you would email me for the registration papers. They're not on the website, but you can go to the website and read about the class. And I'm offering the wealth manifestation course, which is a trading psychology course for free. If you sign up for next weekend's class by Sunday, this is May 2nd during the week, noon to three. This is a good class. It really does help your mental processes. This is not about charts, but it's a trading psychology class which a lot of people enjoy and I'm offering this free if you sign up for the Gap class by Sunday. If there's anyone want me to go back to look at anything or anything at all. It's second quarter earnings season. There's tons of gaps, lots of things to do. If you want a trial of the training room, also you can email me here if you want a trial for next week to the room. Any questions? I forget what's tonight. I did look this morning, but I don't have a sudden I forget what was reporting tonight. Excuse me. Is anyone have questions about anything? About gaps in general? Any specific stocks? I think I answered everybody's question. You're welcome, Teri. Can't think of any questions. Was the cool presentation? Oh, thank you, Charlie. You know, I've been trading nothing but gaps for eight years and I made up my own system. I mean, I made it up. Even the stocks wish it's a catchy name. It's a great name, but it's a play I do in the market and I made it up. So it's what I do is very unique and I really don't do anything else. And I know there's a lot of places out there that teach a lot of different things and and and that's great. But I'm telling you, I'll never do anything else because this works and you really don't need to do anything else. It's the it's the focus that allows me to have the sixth sense. I don't think you get that you never get that edge that sixth sense that intuition. If you're doing too many things like, for example, Target. I shorted was was a was a was a short I looked at as a short I mean, I said my bias for Target is a short. The stock didn't work as a short as a day trade. But then I called it as a put and it was a huge moved down. So even when when I see something, I stay with the conviction and the focus of what I'm reading in the chart, even if the trade doesn't work out, knowing that it was good. And then either I could do something else in it later or not, but then that keeps me honed in. And you accept the loss for that day. And then you either do an option in it or you go off of it and do a different thing. But it keeps me focused. I never turn around and go long it. So I would never turn around and flip and go long Target because my bias was a short. And you stay with it because of the rating. And that's what helps me see things like the moves then down. Because I'm seeing it on the chart. I'm seeing really what the institutions are doing. I'm going to go back to this really quickly because this is such a great example of and Google to but this this really this really was because I think I think even people in the room were just like shocked what it did afterwards. There's it just the stay of this move. It had nothing more to give but I never flip and go long it. So this just this just this had a great move here to the downside in the gap. But then it was a rest period. And then they sold it off afterwards. It just had nothing more to give on the day. But they still sold it off and really hard. And I'm telling you this can happen. There's no 100%. That's why I put stops. But you know 80% is pretty darn good. I don't think you can get better than that. You've got to accept that some days things won't work. But I never flip them. And having that focus keeps me. I don't I don't then flip it and go in the opposite direction. And I don't look to do anything else. I know this works. You get up and you look at it. If it doesn't work you look at why. And for example this here it just had nothing more to give on the day. But then they really powered it down. So that's why I called the option. You think a lot of traders do not like to short stocks. You do short stocks but from people you talk to they're scared of going short. Really? This is see you're you're educating me now I mean because I never people don't like to short. Why? Why are people scared to short? You tell me. Is anybody in here scared to short? I talked to some people that that that don't understand shorting. But I've never said no one's ever said they're scared to short. Tell me why. All you'll follow the money long or short. Aleem says because they said the Trump rally is too strong. But that's the overall market direction. There's nothing to do with stocks. There's nothing to do with stocks. You still have to pick a good short. I'm not shorting everything in the world. I'm shorting stocks that gap down that rate well. That's it. I'm not shorting the world. Listen you can't go long the world either. You want to go long? Peer when imports? No. So Trump rally or no Trump rally. You still can't go long crap. You shouldn't buy crap. Okay so it's vice versa. The market could be great in the overall directional bias and all the optimism in the world and that's true. But you still can't buy everything in the world to make money. It's not all going to rally. So you buy stuff that's strong and you short stuff that's weak and that's how you make money. So it doesn't really matter. Many using trident retirement accounts you're not allowed. Well you can do you could buy a put if you can do an option in the trading account. That's one way to get around it. You can buy a put. Unlimited risk when short theoretically. Not when you put in a stop as a day trader. If you put a stop in as a day trade you don't have an unlimited risk. I mean you know you could say the same thing for the upside because the trade could fail. There's no difference if you're long. You could be in something long and the stock could sell off. If you don't have a stop in your risk your risk is unlimited. What's the difference? It's nothing's guaranteed. That's why I use stops even on the day trades. IDTI. I did not see that today. Aline but I'll look at it later. Good questions people. You'll have to somebody email me. One of the other reasons people are scared to short you'll have to tell me. Overall I'll tell you as a day trader you can get an edge if you learn how to short. You can. The moves happen quickly. You don't have to trade all day. I mean not a lot of people know how to short well or correctly. I do. I definitely think that gives me an edge too. I'm not shorting everything but you shouldn't go long everything either even if the overall directional bias of the market is bullish. You have to be choosy. You have to pick the right things to do. I don't care what direction you're doing them and you got to be thoughtful every day and that's part of the prep work so that when the live moment comes I'm not so stressed. Either sets up or it doesn't. Boom. Either works or doesn't. You know. Good participation here people. Good job. Thanks for having me Eric. Thank you everyone. If you're interested in more information you can always email me at Melissa at the stockswish.com. Here's my email again and any more input or information you can always email me. Love the conviction. Thank you. Yes you'll learn that from me too. You can probably learn that from me watching my YouTube videos. All right have a good night everyone. Thank you. You're welcome.