 Hello there everyone and welcome. My name is Melissa Armo and I own the Stock Swoosh. Tonight I wanted to talk to you a little bit about gaps. Now I look at gaps every morning in the market. For those of you that don't know what a gap is, it's the difference between the close and the open. So the US market closes at 4 o'clock Eastern time and opens the next morning at 9 30. In that time frame, you have movement in stocks that happens in the post market after hours, after four and in the pre market before 9 30 in the morning. So what I specifically do my method, if you come and you want to learn my method and what I've been doing now for 10 years is I predict what stocks that are gapping are going to have moves in a certain direction up or down on that on the live day. Okay, no trading in the pre market, but I'm looking and analyzing the data in the pre market and I'm looking specifically for what moves stocks are going to do that are institutions. Now, what are institutions, big money, firms, funds, hedge funds, big professional traders, banks, institutional money in the market, moves stocks and creates gaps, that's what I'm looking for. Now someone had asked me at the time, they said, well, is every gap created by institutional money? No, no, you have just regular traders that sometimes will create a gap, but that's not what my system pinpoints what it looks for. I don't really want to trade with those people. I want to trade with the big money. Sometimes you see it at night. Sometimes you see it in the morning, you have to watch. I prefer to wait and do the ratings using my system in the pre market in the morning, but you can rate things at night depending on the times on that you're trading in. The nice thing about trading gaps is they have big moves on the live day because they're made with institutions. So what I'm looking for is the follow-through. I'm looking for follow-through of that gap movement from the post market and pre market into the live day and possibly for several days if an option trade sets up, which I would call an option of something that if I saw it would follow through for a big move in the day or even several days out. I again started trading in 2008, yeah 10 years now and looked at a lot of different strategies. There's a lot of things out there that you can use to trade, but I found very early on that you only need one thing to be successful and really getting good was the right thing for me to do and it's why I pinpoint people and say stay focused because I think it's the right thing for everyone to do to get good at one strategy. So when you're looking to decide what to do, you got to decide what strategy can make you the most money. The quickest, the fastest that you possibly could make it, well that means you got to get a good move in something. It's got to have a big move, preferred if it has volume for the big move to happen, and also you have to get it right more than you get it wrong. It's not to say that every trade I call in the trading room is a win. There are times where there are trades that just don't work out and sometimes there's not a reason, but you have to have a system that has a high high win ratio in order to be successful trading. Even if you're doing it on the side, even if it's not your full-time career or job, even if you're doing the side, you have to be successful because you have to move forward, you have to grow your account, you want to take the money, you have to keep the capital and having you want to grow it. And remember, trading isn't investing. It's you're in, you're out, you're in, you're out, you're in and you're out. Even if you're holding something overnight as an option, it's a quick trade for a couple of days, not months and months and years. Ideally, you'd be doing things where you're chunking it out with the money move. So when you're thinking about this, when you're trying to decide how you want to trade or what you want to do with trading, stay focused. And I really like gaps. I mean, I, like I said, I mean, I clicked on to them very early on and realized there was something there because of the momentum and because you can make a lot of money doing them and you can make a lot of money fast. And so that's one of the most amazing things about the system that I trade and teach and the uniqueness about what I do is I'm looking at it as an individual trader for the entries and a smaller time frame to take the entries to determine the risk and the size of the position sizes and for the stops and the targets. But I'm looking to see what big institutions are doing to move the stock. So I'm looking on a big time frame to determine the directional bias of a long and a short, what institutions are doing to it and taking the trades in a smaller time frame so that individuals like you can be able to take the trade with, you know, minimal risk. You put the stop and using margin. Now, for those of you that don't know what margin is, margin is you would open up an account with a broker and they will give you margin or it's called buying power. So you don't have to have, for example, the stock cost $20 a share. You don't have to have the total cash value of $20 a share. You could get margin. So you can buy more with less money. That's something that you need to talk to your broker, reach out to a broker about to find out more. Different brokers give different margins. It's definitely something that you should shop around, but that's one of the other appealing things about date trading. When you're in and out and flap a four or four o'clock, you can trade on margin versus investing. We really should have the whole cash position if you're going to hold something out for years, for example. So if you're interested in more information on how to trade gaps, if this sounds like something that's interesting to you and if you're interested on a system to focus on and someone to follow, which would be me in the trading room, you can email me at melissa at the stockswush.com. Thanks everyone. Have a great night.