 Hello everyone, can you hear me? Go ahead Melissa. Welcome. Welcome everyone. Hello, can everybody hear me? Oops, there's the clock. Good afternoon everyone. Thank you very much. Can everyone see the screen and the arrow? Excuse me. Let me know. Kathy is it good? I'm going to lecture here today and if we have any questions when we're done, then I can about any specific stocks or the market. I can pull up my charts. We can see if anything's happening here tonight with the market overall. So welcome. My name is Melissa Armum for those of you that don't know me. I own a company called the Stock Swoosh. Started trading I guess 2008, so it's 10 years and started the business, which I've had for more than five years and I teach people my method in a class about once a month. So what I do is gaps. So we're going to talk here today about how you could earn 30 grand a month trading gaps. Now, obviously the amount of money and this is true in any type of trading you do, swing trading, option trading, day trading or anything that you do, the amount of money that you can potentially earn has to do with your risk. So in order to achieve these goals, you would have to trade an advanced risk. Common sense tells you that if you are taking trades and they're positive trades, if you risk less than an advanced risk, say you risk a beginner risk, you're still profitable. If you risk $100 a trade, you wouldn't make 30 grand a month, but you could still have a profitable month. And money is money and you build on that. So say you have a very small trading account and you cannot afford to risk $1,500 a trade, for example. Then you risk where you can afford and you build it up. And that is how you get to the point where you can risk $1,500 a trade and you can earn 30 grand a month. Now, this is common sense, but I've had some questions recently on this and several emails from people like, gosh, you know, maybe I need to do more explanations about that when I do webinars or things so people understand. To me, it's common sense, but people do like to see it all spelled out. And you shouldn't necessarily wait to trade until you can risk an advanced amount. I don't suggest that for anyone. If you're capable of doing that now, great. If you're not, the idea is to learn the method. And that is what I'm going to talk about today. And the method that I trade is gaps. So if you'd like more information, you can email me at Melissa at thestockswish.com or call me at 993200 gap. I am very busy, but you can call me and I will call you back when I get your voice mail, at least probably within 24, 48 hours. And email is probably the best way to reach me. You can also watch me on Fox Business Network and Fox News. I do television appearances and I talk about the market. So how can you earn this kind of money in the market or not only that, any money at all? You need a system. You need a system to follow. And not only that, you have to consistently follow it. Meaning you can't deviate from it. You can't do one thing one day and then another thing the next day. And then a different thing the next day. And then go back to the thing you did on Monday. You're never going to be consistent. It's the same thing with your risk. If you risk $100 of trade on Monday, you can't turn around and risk $500 of trade on Tuesday. Because what if the trades on Tuesday lose and the trades on Monday won? So the consistency has to be in the monetary risk, which is dollars and cents. It's not share quantity. It's not share quantity. It's dollars and cents risk and the consistency in the system, which means you do it every day, like riding a bike, you get up. Say you have an exercise program for those of you that exercise every day just for your health or whether to lose weight, you do 30 minutes of cardio every day, 30 minutes of cardio, 30 minutes of cardio, you do it. And all of a sudden, lo and behold, after several weeks or days or months, you see the results. Okay? Your body's in better shape. You feel better. And that's how it is with anything that you do, the consistency, even with trading. Okay? So the philosophy, though, behind my system is what? I'm following institutional money in the market. And I'll explain what this is in a minute. But there's only one thing. And one thing only that can move the direction of a stock or the market, the market overall and its money. And it's not a little bit of money. It's not just one trading room or two trading rooms. Even if you had a thousand people in a trading room, it's not a little bit of money. It's a lot of money or what I call power money in the market. So power money is in charge. Power money is in charge of the stock's direction or the overall market, which the overall market right now is bullish. Okay? Trends are set and moved by the power money people, of which there's a lot of in the market. So there's a lot of these people in the market. They are there. They are there full on with huge money invested. Okay? And by big money, power money, I mean what? Hedge funds, big professional traders, trading desks, banks, okay? That have professional trading desks. Millions and millions and millions and billions of dollars. And they're in the market, all right? And they're there and that's how I do what I do. So I can read what they're doing when they're buying stocks or selling stocks. And how do I do it? Not by looking at moving averages. Not by looking at support or resistance. Not by using any specific technical indicator. By looking at gaps. That's what I do. And I'm going to explain what a gap is in a minute. Now these are the results from August. I'm just going to quickly flip through these. I'm not going to spend a lot of time going over each one of these stocks. Ticker symbols. But I just want to show you here that there were days where there were trades where there was losses. You will not make money some days. Some days you will have to take a loss. But the idea of trading and being profitable or even hitting these numbers of 30 grand a month is that you're consistent where you have a set fixed risk. You don't over trade. So if one trade doesn't work, you can take a second trade. You could do two trades a day. When you're up for the first trade, you stop. Like GPS was a good day, $2,800. You stop. You don't keep trading, trading, trading all day. And I also focus on usually one ticker symbol a day. Again, it's the focus. It's a consistency. And it's having more wins than losses. You figure 10 trades. If you follow me in the trading room and you want to trade with me of every 10 trades, you've got to figure seven and a half are going to be winners. And about two, two and a half, three trades are going to be losers. So that's why when I trade, I use stops. I use limit order stops. It's a stop. I call it a hard stop. I put the stop in. What does that mean? It means if I have a stop at 56 bucks and the stock goes over $56, I'm hit out. And I take the loss. But that's how you have the consistency so that one trade doesn't kill five winning trades, for example, and completely run against you. And I'm going to look at an example here today as well. So how do you get these results? You've got to be consistent with your risk. You have to be consistent with your system. And you have to follow it to the letter and not deviate. You've got to have a consistent way to make money. You can't be doing different things all the time. Now, sometimes I have options. We do the day trades. That's consistent in the system. Okay. It's still gaps. The time frame varies when I'm doing a day trade, for example, or if I'm doing an option trade, because some option trades you will hold overnight. You might hold it overnight for one day. Maybe you were out of it by the end of the day at four o'clock. Maybe you hold it for three days. Maybe you hold it for a week. So the only difference between doing options and day trades, and we're all going to look at some option trades here today, is the time frame. But again, system is the same, which we're looking at gaps. All right. So if you want to consistently, though, make a lot of money in the market, you have to follow institutions. That's my belief system. This is the foundation of my program. So in order to bind that belief system, you could sit there right now and say, hmm, is what she's saying? Does this make any sense? It does make sense. And it goes back to the philosophy of what I said earlier in the beginning. I said, because this is big money, and big money controls what's happening. So say you had five little traders and one big trader. One big trader can wipe out five little traders. So again, this makes sense because big money is in control. It's like, who's in control of a chart? Who's controlling the chart? Is it the bulls or the bears? And this all to me is common sense. And very often when people are trading, they don't use any common sense. They think that they do because we're looking at indicators or the reading fundamentals or something. But they think, well, Apple has a new iPhone coming out. Therefore, the stock's going to go sky high or whatever. No, that doesn't mean anything at all. The iPhone may flop. You can't predict what something's going to happen based on fundamentals. The only thing that you can look at that you know of is what's happening right now in this like moment in a chart in the price. And in any given day, most stocks are just trading whatever trading trend that they're in. Some stocks are in uptrends with the same trend of the market. Some stocks are in downtrends and the markets in an uptrend so they're against the market. So how do you know how to trade any given stock in any given day? Do you trade it with the market? Do you trade it in the trend? What do you do? Well, I don't worry about any of that. I'm just looking at what a stock is doing in a gap, okay? And that to me is what makes sense. Now, this is an overall chart in the market. I put this from last week. It's a spy. And I'm going to show you here what a gap is in this chart because I keep saying gap and some of you know and some of you don't. But a gap happens. It's a difference between the close and the open. So this US stock market closes at four o'clock Eastern time. Here was a spy. It closed here back way beginning of the year, okay? Closed at a certain number and opened down here the next day down. Open at a different number. A gap is a difference between the close and the open. Then it closed down here. Then it opened down here. So this is the close and this is the open, okay? So on these two particular days, the market sold off very fast and very quick and very deep. So you could have shorted the market here and made money. Now, overall, the market here is holding an uptrend and holding it quite well. And here's a bigger chart even though this is very squished. You can see here the overall uptrend of the spy. We look very, very strong. We're holding. But you said, well, how can you make any money with looking at this at all? Well, for example, if you had gone long, many of the bullish gaps in the market, one which was right in here. This was actually the day before the election, I think it was. The market had gapped up. I think it was November 7th. If you had gone long in here, I'm going to take it all the way across. You see where we are at the price point of the market was around 210. If you went long here the day after the election, around 215, okay? You would be up. Look how much money you would be up. High in here where we got previously got last week. We made a brand new autumn high in the spy was 291.70 something, 78, I think. Almost set up to 292. So if you bought the market at 210 and we ran up to 291, that's profitable. If you would have done as a swing trade, as an option trade, obviously you would have day traded many of the bullish gaps in the market, which you would have had to go long. But you could have made money if you had known that the market was higher. You could have made a lot of money. And actually, guess what? A lot of people did. A lot of people did. And a lot of people are still in the market long, okay? Now, you say, who are these people? These are the people that control the market, that move the market when they step in and they buy the market up and they move it up and move it in a big way, which this is what this is, okay? This is a big move for anything. We're happening to look at the overall market here in the spy, but if you looked at any chart that was strong, I could hook up Apple, Microsoft, Amazon, any of those things, and they're not cheap price points, but it doesn't even matter. The point is that to move a stock this much in this period of time takes money. There's only one way something can move up. It has to get bought. Now, when something falls, it's being sold off. So you'd have to be long the position and you'd sell it and you dump it, and that might move a stock too. But if you have a position and something and you sell it tomorrow, you're probably not going to move it. But if you're a Goldman Sachs and you own something, whatever ABC stock, and you for whatever reason want to sell your position in it or a portion of your position in it, say you own 2 million shares of ABC stock and you want to get out of it, who knows why, whatever reason. It doesn't matter. You want to dump it, you dump it, and you would move the stock. So Goldman Sachs might move a stock if it dumped 2 million shares in a position that they own. Now, all of this can happen on the live day or all of this can happen in the post market or the pre market and then create what is called a gap. Okay. And that is what I look for. So what if you could predict where stock will go before it goes there? Well, you might be rich or you would be getting to be rich or you could become rich because it's pretty good information to know that, just like the election. We said, well, I could never, I would never have guessed that Trump would have won. And if I had known and could looked into Crystal Ball, would I have known the market would have done what it did? If I had known that he was going to win, well, that would have been great to know, wouldn't it? Well, nobody knew what Trump was going to win. Nobody knew what the market was going to do after the election either. But you could have read the chart and that is what we do know how to do. And that is what we can do. We can't look into Crystal Ball and determine who's going to win an election. All right? Nor could we predict if a stock or the market is going to gap or where it's going to gap at all. But we can predict after, after it gaps. That is what you would learn from me. What it's going to do when you see the gap, which you can predict. You can't predict where it's going to gap. Okay? Like Apple has earnings out whatever date. Gala had us see you here tonight. Google it. Look it up. Wednesday earnings for Apple. October something. Apple looks great. The chart looks great. Somebody asked about Apple today in the trading room. Apple has earnings out. Gala has going to look at the date. I don't know where Apple will gap on those earnings when they report in October. I have no idea. But I know that it will move. Okay. And that after it has the move after it has the gap, then I will look at it and then I will use the system that I created to rate the gap based on technical analysis of a daily chart, which is what I look like. Look at what I do as technical analysis. I will rate the gap using my 26 point rating system and then I will determine if Apple will move up on their earnings gap or if it will move down. In other words, will institutions buy more into the earnings or will they sell it and dump it? And that is what is the valuable information because you can't predict where it's going to go until after it gaps. But that gap itself at the moment when something gaps is something that's very, very important. And this is why. Because gaps are made with institutions. So becoming a successful trader and investor requires becoming a specialist and defining where the institutions are buying or selling to stop because that's how you're going to make money. Learning advanced technical analysis is required because that's how you're going to figure it out. Okay. What does it mean? It means reading price action in charts. Comprehending how to read, define and trade with this power will have a huge positive impact on your profitability as a trader. Is the difference between losing money and making money? Okay. This is giving more consistent when you learn how to read the footprints of institutions trading in the market. Most people, if you've ever traded, if you've ever traded at all, or if you haven't, if you try it, if you try it in the next week, just not knowing anything, there's a 50-50 chance you can take trades and make money even if you didn't know squat. Okay. So anybody that's ever traded has probably made money in some trade here or there. But it doesn't mean you knew what to do. Okay. The law of averages and the odds are that even if you didn't know what's a thing and you traded for a whole month, some of the days of that month, you would make money. But it doesn't mean you would be profitable at the end of the month. You wouldn't be up. You'd probably have way more losing days. You'd have gains. But the fact that you saw that you could make money is what sucks people into the market. But the caveat is that you won't see the money at the end up where you have more by the 30th of the end of the month or the 31st or whatever that you would by the first unless you have more profitable trades than negative trades. Okay. But the lure of the market is that most people trade. They take a trade. They make money on any given day. And then they realize, oh my God, I can make money from the market. And then people get sucked in. But then they never really understand or conceptually that they have to have a level of consistency which requires a system to do it in order to get ahead. The only way you're going to get ahead is if you're up more than you're down, which means you have to have more winning trades than losing trades. It doesn't mean that you have to have 100% winning trades. That's impossible. Not even the big trading deaths have 100% winning trades. Do you think that the trading deaths at these large hedge funds never take losses? Hell no. They take losses. They take losses sometimes. Everybody has to learn how to take a loss sometimes. The difference between a good trader and a bad trader is that you will cut your losses when you realize that something doesn't work and you will get over it. And you will get over it quickly. And so that's one of the reasons why I use stops in my system. And that's something that I teach in the class as well. Now let's talk about, again, institutional money. They step in and make a footprint. And the footprint is the gap. So what does it look like? This is a chart way back from the middle of August. This was Macy's. This was a beautiful move. Way bigger than I ever could have anticipated in the stock. Got out too early in this, actually. Stock closed the night before up here at 4 o'clock at 42 something. Boom. Open in the morning. Again, this is 4 o'clock. This is 9.30. So this stock gap down. It opened at a price lower. Stock price opened here. This is, again, in the morning run 39-ish. Now it fell all day. So we shorted this one. If you shorted it, you were up. Stock fell, fell, fell, fell, fell. Broke 35. So you look at this, you say, wow. Who is in control of that particular day? The bears. So the bears were in control of Macy's. So in that case there, you would have wanted to do what? Short. If you had gone long the stock in here, you would have lost. So the institutional money control in Macy's on the day this was a 15, was what? The bears. So this is what I'm looking for. But I'm looking to predict. Not if Macy's is going to gap down. I'm looking to predict after I see the gap down, and I use my method to see, hey, wait a minute, are they going to buy this thing up on the day? Because they gap down to support. This is an 8-perimovement average. This is a 20-perimovement average. This is a 50. So I'm trying to look and I'm trying to say, wait a minute, is this going to hold on support, get bought, or is it going to drop and sell off? That is what it did. But anyways, I predicted in the pre-market, before this opens, before 9.30, using my system what it's going to do. And then I wait to the live day, and when it sets up, I take a trade. And that's how I do it. So if you'd come and learn my system, you would learn how to do that too. To know that Macy's was a short, not a long, which it obviously was, you can see it. Now after the fact, like I said, it's very easy to see it. But to know how to know, to look into the future and say, this is going to drop like a brick. That is the experience, the skill. That's what you'd learn from me. Now this was Apple. Apple had an amazing move in the month of August. I'm going to show you a bullish gap. There's bearish gaps and bullish gaps. This stock closed here, gap up. Closed here, again, 4 o'clock. Boom. Gapped up at 9.30, rally. So this was the first day of the month in August. Literally, Apple rallied almost every single solitary day in August. It was crazy. All right. So the low of this bullish gap on August 1st held in Apple actually has still held. Take it over. So this stock had a nice, beautiful lift over the $200 price point and took off like a rocket. Almost got up 2 to 30. Forget what the final high was in this. I have to go back and look from last week. This had a really nice move. This stock got bought. So institutions bought it, bought it up. This was like an 8 point plus move here overnight from 4 to 9.30 in the morning. And what you would do is predict, is this going to hold? Is it going to get bought further? Or is it going to drop? Do I want to short it or do I want to buy it? And obviously you use the system to determine this is a good buy. You want to make money going long it. Again, however you would have done it. As a day trade, as a swing trade, as an option. Gallahad is telling us Apple earnings expect October 31st through November 5th. That's not a specific date. When is Halloween? October 31st is Halloween. Is that on a Monday? There. That's from Gallahad. That doesn't give us an exact date. So we figured last week of October 1st, is the 31st of Monday? Well, we got a while then. We got more than a month. So it's probably going to be that week. So we'll have to keep out for it. But again, the point of the Apple was that I don't know if it's going to gap up or down. And we obviously don't even know the exact date yet. So we'll have to look for that on the board. And it's getting back to what I was saying. It's about a commitment. A commitment that happens where you have, you have big money comes in. And it says, we are committed to buying whatever, Tesla, Macy's, Target, whatever stock, they believe in it and they want to buy it based on whatever. The reasons that they want to buy stocks have nothing to do with the reasons that we want to buy stocks. So that's something that's very, very important. So you see the gap that they're making. The reason that they're buying it has nothing to do with the reason why you would buy it. Because they're buying it for things that we don't even know about. They have whole teams of people that review the earnings reports, read through all this stuff, read stuff before the earnings, whatever, do the analysis. But if you think of it again, common sense, if you ran a hedge fund and you wanted to buy one million shares of Apple, well, you wouldn't buy one million shares of Apple on Friday and sell it on Monday. Do you know what I'm saying? So think these things through when you're doing it. A lot of it really makes sense. Again, about holding whatever position you're in, whether it's for the day or whether it's for the week, again, it depends on what type of trade you're taking, option swing or day trade that you want to see the profits. Gallaudet is saying November 1st, you think it is, from another site. Okay, well, that's good to know. That's good to know for Apple. Anyways, there's research reports out there that we don't have access to. We're not privy to that information, but we don't need it as day traders or as particular individual traders. You can trade with your own trading account from your own home in the comfort of your own home without having to have access to research reports or doing a lot of research on fundamentals at all. You can read the price. You can see when the gap's happening live. You can see it in the post market. You can see it in the pre-market and you can watch the stocks trade live because of electronic trading. You've got to have a live platform and live charts to trade, but it says close to real-life time is you're ever going to get. Again, these things are very fast. I mean, the internet is fast. You're within pennies or milliseconds of getting the positions and seeing the stocks and the price that they're at. So you're watching the flow of money, okay? And institutional money is in charge of the market and stocks all the time. A big flow of money going in a certain direction is really what moves the market and stocks. It also creates momentum and sets the trend in charts. When you're looking for institutional money, you're really reading the side of power in a stock and you want to be on the side of power in order for you to make money trading. Institutional money is in charge of the market and the stock at all times. And even if you think it's not, it is. What I'm saying is it's there. It's there. And to learn how to read it is a skill set. So that's why you say, I want to learn how she does this thing. I want to do it myself. That's why you take a class. You take a class to learn it. Now, I run a live trading room and I call the trades live in the room. You must be a student to be in my room and you can take my trades and calls just like the ones from August. But if you want to really get good at it, you have to learn it, which is a skill set. So how do you get good at doing anything? Again, if you play tennis, they're just as the U.S. open in New York. You would practice. You would practice every day for hours and hours and hours a day. You would practice reading charts. You would trade every day. You would take the class. You would read charts in your spare time, look over things, rate gaps. That's how you get good at anything, okay? Listen to me talk. Listen to me lecture. It's, again, the practice. That's how you gain the skill set. One of the reasons I'm very good at doing what I do is I've been doing this and nothing else for 10 years. So 10 years is a long time to just focus on gaps. So that's why I'm very good at this. So I don't do anything else. And those people say, well, you should do this thing. You should do that thing. You should do this thing. It really doesn't. You never get extremely good at something if you don't just focus on that one thing. And it is about becoming an expert. It's not becoming a jack of all trades in the market. Because, again, how do you make more money? Well, you just risk more. So if you get really good at something, you can risk more. And if you don't ever get really good at anything, it gets hard to risk a lot. And by a lot, I mean maybe several thousand dollars in a trade, okay? So I developed my own method. It's called golden gaps. What is a golden gap? It's a gap made by institutional money. And as I said earlier, what is a gap? A stock gap from 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. Almost everything gaps every day. So you say, well, Melissa, well, then how can I figure out what to do? If everything gaps every single day, which is the truth mostly, then how do you figure out which ones to do? What stocks to go along? What stocks to short? I'm looking for particular criteria in the chart. And I'm looking for that criteria in the pre-market. Now you can look at it in the post-market if you want to watch stocks gap after hours, over night, after four. I prefer to look for things in the morning. Sometimes I'll look at stuff that's happening at night, but I prefer to look at the morning. In fact, Gallaghera, if there's anything tonight, if you want me to look it up, I'll check if there's anything tonight, if you see something tonight. Anyways, we talked about this earlier. Macy's, what is a gap? Again, it's a difference between the close and the open. This trading action is trades going off. So the only way the stock could be at $42 at four and open at $39 at 9.30, the only way that can happen is somebody did something. So there were trains that happened here from after hours, because the market has a post-market, and before the open, because there's a pre-market, there's stuff that happened. Somebody did something. And it looks to me that it moved down. Now, whether it continues down in the day or rallies on the day, that's what you're going to learn from me. But you can see it. Again, you're not predicting this. You are predicting this. Because this is what you're going to play. You're not playing the post-market. You're not playing the pre-market. Now, I know there's people that do. There is people that do. I don't do that. I think it's too risky. But you're playing the day, the live day. Here's another one here. What's a gap? This is cake. Closed here the night before. This was way back in the beginning of August. Closed here around 56. Boom. Gap down in the morning around 50. So the stock gap down. Again, between 4 o'clock and 9.30. Also, this was a short. For those of you that don't know, I do prefer to short. And the only reason I prefer to short stocks versus go long stocks is simply because short moves happened very fast and often very swift and quick. And I don't like to be in trades law. So it's really just a personal preference. You can make money going long just as much as you can going short. I just prefer to short. Anyways, golden gaps have huge opportunity because they spot power money. And that power money is how you're going to get paid. So what do I do? I find the gaps, whether at night or in the morning, then I rate them. And I rate them using a checklist. Gaps have to be qualified. So if it doesn't mean my qualifications, if it doesn't meet my checklist, then I'm not going to do it. Then I just pass. The checklist tells you what to look for in the price of the stock. It tells you this stock is getting bought. It's going to follow through with the buying. This stock is getting sold off. It's going to follow through with the selling or whatever. Again, you're looking for institutional buying, institutional selling. But gaps happen all the time in the market. Like I said, almost every day, it's very rare that someone would close at 3202. I have four and then open at 930 at 3202. Very, very rare. However, there's some gaps really that are better than others and that's what we're looking for. You only need one trade a day. One trade a day. That's all that you need to make money as a day trader. Some gaps are nothing gaps and some gaps are very powerful displays of institutional money. Those are the ones you want to focus on. Like Apple, like Macy's, like Keek. One's are going to have the big moves because if you're playing something, say you take 2,000 shares, stock drops a dollar, you have 2,000 shares, but you short it, guess what? Boom, you're up 2 grand. So obviously you want somebody who's going to move a dollar 2 dollars, a lot, okay? Unless it's really, really a cheapy, cheapy stock, but we really don't play penny stocks at all. We don't typically trade stocks that are worth $3 or less. The most important gaps in the market are gaps that signify a change in direction or a bigger move in the same direction. And actually that's what's happening right now in the market. Understanding which gaps are meaningful and which gaps are not meaningful in the market will help you to know what to do and when a change is occurring. That's how you know when the power of money will flow to pay you. So this was a great call. So this was an option call I made last week. I think everybody should have been out of it, but it continued today in another gap down. This is Baba. Now, this was last week. This was on the 5th. So the stock gap down, closed tier gap down. So this, because of the price point, you could have done an option trade, although you could have day traded this. But anyways, it was an option trade I called in the option letter to buy a put. So that means you're shorting it. You could have got out of it here by the end of the day. You could have followed it through here. You could have still been in it. But anyways, the trade, if you took it on the one day and the 5th and got out of it, boom, on the 6th, okay, you made a really good amount of money just in the option. Although you could have day traded it here. You could have day traded it here. You wouldn't have day traded it here. Why? It didn't gap down. And you could have day traded it today. So this is what I'm talking about. And this is a very good example here where you can see all of the situation where the stock is falling, falling. I mean, you can count on one hand here and since the last two, three weeks, how many days the stock has sold off. So anyways, this was a call. I said to buy the 160 puts. I gave this so much time. So I mean, this is god only knows where this could go. But as a quick trade, it literally, this looks like it's heading to 150 if people are still in it. But as a quick trade here going back, actually the low today, I didn't see the low into the close, but it hit down to 155. So I gave a full month in this, but if you did this trade and got out the second day, it was a beautiful trade. So this is an advanced risk, but if you had risked six grand on this trade, you could have bought 20 contracts on the 5th. You actually could have done it for a much shorter time strike of the October. You could have done it and paid way less. Anyways, 20 contracts would have cost you around 5,500 bucks. Okay. Cost was $3. Actually, no, I'm sorry. The risk was 6,000. Cost was three bucks. 20 contracts, six grand. If you sold it for seven, your profit would have been what? $8,000. So that's a good trade. Okay. Because your profit was four. Okay. So you sold it for seven, made four, paid three. Again, how many did you get? Whatever you got. So if you bought one, it would have cost you $300. If you bought 10, it would have cost you $3,000. If you bought 20, it would have cost you $6,000. It's essentially 20 contracts and an option is 2,000 shares. So that's a lot. 2,000 shares of a stock at this price point is a lot, but you didn't have to buy that many. You could have bought one. You could have bought five. You could have bought whatever you could afford. It still was a profitable trade. So say for example, if you had spent 300 bucks, could have bought one, could have sold it for $700. You would have made $400. Risking what? 300. So that's a good trade. And that's it. That was only in a debt. You would have been up more if you'd held it to today. Although, you know, again, when something moves in your favor, this quickly, this much, through the strike, the strike was 160. It broke through the strike point. That's really the first target into the first number. And this hit through the first couple of targets. Anyways, this looks great. This is probably going to break 150 in the time I called that trade if anybody's still in it. So this is how you can use the system to make money if you cannot actively day trading the trading room every day. You can do options, but it's still the same system. Same system. Just a different way to take the trade and what's the benefit of doing options versus day trading? There's pros and cons to both. The pros of doing options with my system is you don't have to worry about margin of buying power for a trading account. You don't have to have a day trading account margin requirements either. And you don't have to worry about stops. Okay? You risk what you risk. If you spend 300 bucks, the most you're going to lose is 300 bucks. And you don't have to be active in the room money through Friday. But the benefits of day trading versus doing options is you can make thousands of dollars very quickly. You're active. You're going to get way more trades if you're doing the day trades because there's going to be trades every day, five days a week. Whereas option trades, I may not call an option trade every single solitary day. I mean, I won't. I don't. So the benefit of doing the day trades being an active day trader is there's way more trades to do. And you can maneuver yourself in and out very quickly. When you're doing an option, you have to throw the order out to get filled. You have to wait to get filled. And then the same thing when you're getting out, you have to put the order out to fill you. Whereas I can just go boom when I'm doing a day trade and just hit right out with a hotkey. So there's pros and cons to doing either one, whatever your schedule allows to trade your monetary risk, whatever you want to do. But it's just another way to make money. And this is a profitable way to make money. Because you can make a lot of money doing these if the options really move in your favor in a big, big way. Okay, okay. Any questions so far? All right, let's look at Apple. Now, you could have day traded this back here. The day we talked about that it gapped up here in the first. You could have day traded this many days in here. Or you could have done an option. I called a bunch of options in this, but we'll go over the most recent one. The most recent one was August 28th. I called the calls. So you'd be going long Apple. Strike was 220. This expired last Friday. Dream tag was 225. It went through that. So I called what? I called the trade here on the 28th. It went took off like a rocket. But I'm going to bring this up. Hold on. I think we're okay here with time. I'm just going to go back in time of pretend you didn't see this. Do you have anything tonight? Gala, how do you see anything tonight? Can everybody see the chart? Actually, let me look and see the time I did this one. Hang on here. Can everybody see the chart? So I called this here on the 28th at 9.43 in the morning. So like 13 minutes into the open, I called an option trade in Apple and that's what it did. It was a good call. So I saw that it would move up and that's what it did. So this was another option trade or you could have again gone long it. It was a small move here in the 28th. It made the pop here in the 29th. And then it had the bigger move in here. High was... No, we didn't quite get to 230. 229.67 last week on the 5th. So anyways, you're looking for institutional buying in this case here if you're going long it. So I saw that the stock would do this. So I saw the stock would do this and then it did it. So it kind of is like magic. It's a... It kind of is like magic because I'm seen into the future. Now I'm not predicting... I didn't... I couldn't predict the stock was going to do that but then once I saw it, 13 minutes into the open, I said whoop! There it is. And it went poop! And there it goes. And that's all the money. That's the stock being bought and there it was being bought. So you can make money so easily if you're with institutions. You will lose if you're against them. The consistency has to be looking for the same thing over and over and over and over again. Like you're programming your mind when you're looking at a chart. It's like you're looking at a chart and I just see the picture and I see it. I see it and I see it. I see it and I see it and see it and see it. It's like I see the same thing over and over and over and over and over and over again. So I know when I see it, oh, this is going to happen. Oh, there's going to happen. Oh, there's going to happen again. And then it does. And that's how you build confidence in yourself and the system. So now it's gapping down. We'll look at that quickly before I bring the PowerPoint back. Gallagher's saying this is down tonight. Let's see if there's anything here remotely interesting whatsoever. So no. So no. Don't like anything about this because it doesn't have enough data. I was just going to say I have no idea what this is. The stock has not even been trading for barely a month. It's down. It's down, but I won't touch this because it looks like this open on August 2nd. I have no idea what this is, but I won't do something like that that doesn't have a trading history. But it's down. Yeah. Theoretically, you could rate it. Okay. So that was the Apple trade. So that trade, okay, price of the cost was $1.75. 30 contracts. Your risk would have been $52.50. Exit $8.50, which was way before it blew up there to $2.30. That was like the second day up. You could have made $20,250. Huge trade. Perfect entry. Perfect entry. The trade went bigger. You could have made more. This was not at the high of that option chain of the trade because the trade was running up till Friday, but I don't think it's a good idea necessarily to hold options trades in the last day of the expiration, but also the risk here was 30 contracts. But again, risk should be similar in every trade you take. So if you say, well, my option risk, I wanted to be $2,000, $3,000, $4,000, $5,000, or $500, whatever. If you want to risk more in the options, you can, but your option risk should be consistent of the amount you risk. Just like with every day trade that you do, the risk should be consistent. Okay. Huge trade went even further. I didn't even look up what the high of the option shade was. It was over nine. Probably was over 10. So the key to profits is power of money because you're getting the moves and you're getting them at the moment before all the selling comes in or all the buying comes in. You're getting it when that momentum comes in and you're getting it right with it. You're going with it. You're playing with it, not against it. And what's telling you that it's the gap, the 26 points. That's how I'm seeing it. I rate the gaps. I don't ever do anything at all until I rate the gap. Okay. In short, I'm rating the gap and that's how I'm doing the trades and making the calls and saying it's going to go here, here, and here. Okay. So it's about focusing on the right information, seeing when and where the power of money positions are getting in. It's like finding gold. It's like magic. Just like that Apple trade. Just like the Babylon trade because it predicts the power. I'm seeing that it's going to come in like that, whatever it is, the buying of the selling. But I'm not predicting the gap. I see the gap. And then I'm saying, oh my gosh, buying is going to come in. It's going to go up like a crazy person. And then it does. All right. Seeing gaps clearly in how they create trends, change trends and make the momentum is a very powerful way to trade. And you can use this information to enter trades yourself so that you can get paid along with the power of money. You're not going to move the stock. Those institutions are moving the stock. Okay. But you want to let them, it's like a wave. Okay. You're like, I was using this example today with Gallagher. The wave, you just get on when the wave's coming into the shore, you ride it. Ride it in. And it takes you, it just takes you right into the beach. Okay. You ride the wave in. The wave is the money. And but you've got to get the wave in the right direction of the money. Ride the wave of selling and be sure if you're, if you're in a short or ride the wave of buying. If the power is up, if the stock's moving higher, that's how you make money. And then it's not so stressful. And then you don't have to worry about scalping and you won't have them any losses because you're riding the wave and the wave is very powerful. Okay. And the wave wants to pay you. It's just that many people don't know how to read the wave before the wave, the wave comes. Okay. So here was another one. Shrip. Stock closed here and gap down. Boom. Tail was a short. So we shorted the tail here. This is a big move down. So you're shorting it out. Okay. This was trip. This was a 22 point rated gap. Entry of the gap was 49.98. Beautiful entry. Share quantity here, 2,000. Okay. This was again, early exit, but continue. 28.60. Beautiful, beautiful one. I'm going to go back and show you that tail. So this actually went farther. See the low in here went over to 48. So this is the move down in the trip. So you're shorting the tail and then you're out. Whatever your goal is for the day. So your goal for the day, if you're risking $1,000, you're trying to make $1,000. If you're risking $1,500, you're trying to make $1,500. If you risk $1,500 to make $3,000, well, obviously that's your goal for the day and you're up. Just because you're up, your goal doesn't mean you kill it, but you're watching, watching, watching. Boom. And I teach exit signs in the class as well. But the idea is that you are not going to let something reverse against you once your goal is in and your realistic goal should be one. Okay. But there will be many, many trades where you will make more than one. And that's also how you cover then the losses too. Anyways, very often in day training when we do the shorts, the moves are fast. The moves are fast. I usually trade between 9.30 and 10 a.m. I'm watching that time period. I want to get in and out by 10, 10, 15. That's my process. So I also have a timeframe that I'm focusing on. This isn't about the options. This is the day trades. I'm watching the time. I'm watching the clock. I'm always watching the clock. It's very important for me to make sure that I'm out before I think anything's going to reverse. And you know, every time that you're going in your day trading, you're looking to pull the money, boom. You just pull it out. You pull it out of the stock and you take it and you pull it out and you take it. It's not about holding, holding, holding to some massive move when you're day trading. Now options is different if you want to hold them. But no, if you do, you could be up a lot of money and then all of a sudden the next day you could be not up as much. For example, if that apple trade was over, but if you were in the Bamba, say for example, and you didn't get out today and you didn't get out last Thursday and tomorrow and you're up a lot of money today in Bamba, say if you were still in it because remember that still October, if it doesn't continue falling tomorrow, you wouldn't be up as much tomorrow or something. And then you'd say, oh crap, I should have got out yesterday. So, you know, that happens if you try to hold on to every trade or big target. I don't think that's the right idea. Like I said, Bamba, I said, I think it was last week, but if you held it, you would have made more. I say no picky targets. Common sense rules the day if you want to trade to make money and you can still make a lot. Not using common sense, you're not going to do very well. Yes, you may have some massive trades if you hold them extra long, but you might also lose if you hold them too long, wanting everyone to be massive. Okay. Kathy, did you need something? I just saw you right in the room. Tom, that was the Apple one here. We went over that. I don't know if you saw that. Here was the call. The morning of the 28th. I called a bunch of trades before this, but this is the most recent Apple for the, we're talking about. Recent trades here. Anyways, it's easy to press the button once you know what to look for, but you got to have conviction and part of that is learning it. So I teach my system. It's called the Golden Gap course. It's a 26 point reading system that teaches you what stocks to trade and how to read the direction of power money. This is very different and what I do is very unique. It's one of the reasons I'm successful and if you're going to go with a lot of other people, you're probably not going to be successful. Most day traders lose. Why? Again, a lot of day traders are looking for things where they think they're just going to press a button and buy on a support or short resistance and a moving average or something like that, and they think it's going to be that easy. And I'm not saying it's not easy. I'm saying it's easy once you learn how to do it, but learning how to do it takes work. You have to do the class. You have to understand the concepts. I'm trying to explain some of those concepts now, but you won't learn the 26 points unless you do my course. And then obviously listen to me every day in the room when I'm doing it. Many, many people want this instantaneous thing where they just look at one thing where two moving lines, two intersecting lines meet and they say, well, this is going to be a great buy. It's not like that. If it was like that, no one would ever lose in the market. People want things that they think are going to be like one thing. They just do it and that's the answer to their dreams. It's not that way. It's a process. And the process requires you using your mind and thinking and learning. But actually, I think learning is fun. I love analyzing charts. To me, it's fun. To me, analyzing charts is fun and predicting, making the cause and having these things work out like magic. I will never get bored or tired of that. That's fun. It's exciting. And obviously the money is exciting too, but you have to think outside of the box that you're going to be really, really also focused at something, which is another reason why people lose. They're not focused enough. They jump from thing to thing to thing. They never really get good at anything and I've gotten very good at what I do because I don't do anything else and I focus on nothing but this. So I've excelled at it. So if you want to get to this point, I'm not saying that it takes you 10 years because you're going to learn from me. So that's obviously going to shorten the learning curve but you're still going to have to practice it and you're still going to have to apply the information and gain the skills. But how do you do it? Doing it, doing it, doing it, doing it, doing it. And listening to me. Tom is asking about really quick reversals. Give me an example of a quick reversal here. I'll pull the chart back up. What do you mean by a quick reversal? Here's Apple. Give me an example of one of these days in here. What do you consider a quick reversal? If you're day trading and I'm in a day trading and it's dropping on a minute short if it drops boom, boom, boom, boom, boom and I'm up in it and it starts to reverse you can get out when you're up. If I'm not up in it at all and it reverses and I have to stop in, well I'm going to get stopped but the trade really didn't work then and it was a stop. So what do you mean by quick reversals? If you're in an options trade there's no necessarily quick reversal but in an options trade you can see you can watch your trade I mean you could walk away but if you're watching your options trade you're seeing if it's holding if the price is holding if the momentum is there you're seeing the direction the stock's trading and if it starts to reverse on the chart and in the option chain you can throw an order out if you're up and get out of it. I teach where I put stops in the class but I don't know if you're talking about options trades here but as far as anything at all reverses you always have time to get out so I'm not sure why you're concerned about that I mean I can get out of a trade as soon as I press a button on an inequity trade in a second as far as an options trade you have to put the order out if you want to get filled between the ask and the bid but if you see something is like here let's go over to this day here stay chart 9 4th no that was 9 5 say you were in this long you didn't get out of it you should have been out of it but say you didn't get out of it you would have been up here into the open on the this is what it made the high 2 2967 you say you're in the option Tom's worried about quick reversals well you would have been up you would have still been up here in this bar you would have been up so you would have seen this here the failure the failure to follow through you could you could you could just get out now you don't have to put in order between the ask and the bid just get out get out at worse price you're still getting out up so there's no there's no craziness you're up I mean you're gonna you're gonna be up at all you would have been up at all this day if you got now but I'm saying if you see this here then get out I don't know what's too fast for you to get out of this here if we're talking about an option trade you have plenty of time to get out of this if you were in this trade until this day if you did the trade here on the 28th you're up you're up you're up I mean I would be out of this trade but if you're still in it and you're still in it you're up and you're still in it you're up and you're still in here you're up you would still be up in this if you got out at four into floor o'clock what's there what's the rush you had five days to get out of this trade I don't know that's not fast at all you're talking about day trading if you're day trading a stock let's see what I can pull up here if you're day trading we do do day trades where we're in and out in five minutes I might make two grand in five minutes yeah I might sometimes I do that I don't think that's negative but you certainly have time to get out you got one minute to get out you got two minutes to get out you got three minutes to get out if you're up two grand in five minutes you might want to get out I guess that's the why you know if all you have to do is press your hot key and get out like it's not I mean you know day trading happens within minutes the answer is yes if you can't make a decision to get out of a trade in several minutes day trading is not for you if you can't make a decision to get out of a trade when you're up several thousand dollars or several hundred bucks depending on what you risk in several minutes then day trading is not for you then swing trading or option trading is for you if you need to think about something for an hour after you take the trade about where to get out of it that you can't you know situate your mind what to do with it then day trading is not for you day trading is where you will sometimes be in trades for five minutes six minutes ten minutes fifteen minutes thirty minutes whether you call it fast or slow that's day trading if you don't want to do that then option trading is better for you or swing trading or long-term investing which you can still use gaps for all those things but day trading which is not these options trades which is the day trade here at the trip they are trades that you will be in and out of in minutes yes the options trades are longer holds the day trades are short both that's what I'm saying we went over both we did we did a day trade today and we did an option trade but the system is the same it's the golden gap system if your personality is such that you don't want to do quick trades then you would do the system for options apple was a hold that was the first day it didn't go it was up only up a baby amount here I'm going back to this quick and then I got to finish up because it's getting to the time apple entry was here not the exit this is where you're getting paid boom and it goes see so this was a hold overnight you were up a little bit here but this is the money so this was a hold same thing with baba this was a hold too you took it here again you could have gotten out of it here but I think this was a better exit here so this was a hold too now if you held it even longer you were up more but that's not what this what I showed you here but I didn't look what this was today I think this was a good exit last week that's what I was talking about about piggy targets but apple kept going too you gotta make a decision you gotta have money to say well this is good you're never gonna get out at something at the high of the day or the low of the day it's just not realistic anyways you have to have an edge this is you you're happy everything's great you're gorgeous you're making money you don't throw yourself into a temper tantrum if you have one loss you make good decisions you use common sense you go for it so I teach a class the class is called the golden gap course it's a 26 point reading system to find the best stock to trade each day the course also teaches you how to enter and exit the stock on the day the course teaches price analysis and technical analysis on an advanced level it teaches you one solid strategy to trade gaps effectively by reading the side of power and charts it teaches how to read support and resistance to take positions in the right direction it's a more proficient advanced way to read charts focusing on technical analysis and gaps it's the only thing that I do whether you do it for holds, for the options whether you do it for day trades, it's still gaps it teaches you how to get conviction in your trading and the market as a source of wealth by trading with the side of power for consistent profit if you're day trading, you're chunking it out now you could use the options to get bigger monies or you could chunk it out in options you could day trade the options if you want to or you could hold them again, mirror your personality with what works for you I think that's the best concept and again if you trade you can do it from home so empower yourself to trade how to do that through the information through the knowledge which helps your confidence and then making money which helps your confidence and until you gain that you listen to me, okay so I teach it in the golden gap course it's a full two-day course on how to strategically find pick-and-play stocks that are professional and push gaps the class is online, you could be anywhere in the world and take it so the class is this weekend, September 15th and 16th from 9 to 5 cost of the class is $54.99 if you're interested you can email me at Melissa at the stockswish.com to sign up, I'm running a birthday special for my birthday month in September so this is the last special for the year, I'm rolling out a brand new website with new pricing finally, new website a big special before the launch it's the trading room and the options letter free for one year, you get all my calls you get all the options letter calls and all the trading room calls you do the class this weekend and the deadline is Friday but I wouldn't wait because people already signed up if you want to sign up email me at Melissa at the stockswish.com I also teach a trends class this is a combo, it's long-term trends that's October 15th if you sign up for that you save $500 $59.99 for both again you get the room free for the year and the options letter free for the year as long as you sign up by Friday here's a little testimonial, okay Tom is saying I was just lecturing about that Tom the indicators you see in my charts are there, I do not make decisions based on those you might have signed in late I see you signed in like for something I do not make decisions based on indicators because if you're solely do that you will not make money if it was that easy to buy on support on an intersecting moving average no one would lose it's not that simple it's about looking at multiple things and that's why I have 26 things that I looked at if you want to try out the room this week email me at Melissa at the stockswish.com or info at the stockswish.com it's Tuesday through Friday that though we could have shorted as a day train I really didn't like it that much it didn't break to late we did nothing today I do suspect we will have a good week there's stuff out and I think we're going to get some volatility in the market which will move stocks so if you want to trial Tuesday through Friday email me if you want to sign up there's no set indicators that I use to make decisions don't live and die by them you won't see success I think you missed that part when I was talking does anyone have any questions at all if you want to trial email me do you want to sign up for the special for the class if you've been following me I'm telling you do it I'm not doing another one like this it's just not necessary I've been trying to do things to help people if you're ready get in before earning season it's going to be a good close to the year so far the year has been strong the trades I've caught in the last week for these options trades though have been unbelievable sometimes there's just some you don't know sometimes the market just dumps them into your lap but you got it know when you see them and then there stays like today we didn't do anything so you know you have to just you're like a you're like a shark and you're going out in the water when you see the bait when you see the food you take it you don't know when the next food's coming I do all of my analysis in the pre-market yes Tom yeah I saw you were late but I did actually record this and Gala had wants me to bring up another one really quickly Casey will look at this cat like you could look at any of these ones tonight I didn't like this other one he said because I didn't like the the period oh this is up a lot so like you could analyze this tonight this is up tonight I'm not going to do this I'm tired but here's the live got there you go so it was up at one twenty three fifty eight so I do my analysis before the market open it's 26 things and then I just see how many it gets let me just look at this here and see if I don't like this this is worth rating I mean this is this is like way too soon to say where it's going to be tomorrow morning it's 5 30 to the market opens like I wouldn't I usually I don't write things until the morning but you could write things at night you could write this right now I don't I don't know if this opens here tomorrow could be could be higher could be lower this is worth taking a peek at that tomorrow I'll tell you that I will rate that tomorrow morning wherever it is you can watch that and if you want to do a trial just email me I'll let you in the room for a trial thank you for letting us go over a little bit Kathy don't miss a special if you want to sign up questions email me too and that's all she wrote alright have a good night everyone thank you