 Hello there. My name is Melissa Armout. I own a company called the Stock Swoosh. Today, I'm going to talk about a topic, ways to make money with your cash. If you would like more information, you can email me at melissa at thestockswoosh.com or feel free to give me a call at 929-3200 gap. So we're going to compare today. I'm going to make two comparisons. One, day trading versus putting money in a certificate of deposit at a bank. This was Fred. It was a day trade that I did back at the end of June. And it was a short. I'm not going to get into particulars here about my trading methodology. However, I like to short stocks, which means I predict the stock price will drop, and I take the position. The stock price drops, and I make money in the drop, and then I exit the trade. So Fred, I predicted it would drop and price, shorted it here, and got out in here, made the money in a few minutes, just five minutes here. This is a one-minute chart. This is a chart of Fred. So here's 930. Here's the open. Here's 935. Take the trade, put the stop, get the drop. Boom, I'm out. Profit. If you want to make money with your cash, you can also put money in a bank. Current interest rate is 1.4% APY for a one-year certificate of deposit at a bank. And this varies. Actually, a five-year CD, if you can even believe it, is not much more than this. 2.35% currently as of July 6. So if you wanted to put your money in a CD and have it locked in for five years, you'd only earn 2.35%, which is absolutely crazy. In fact, it's almost embarrassing to the people at the bank when you ask them what their interest rates are. Not only for CDs, but money market savings accounts. When I ask at the bank, they never want to tell me. They want to skirt the issue. It's just the interest rates that you can earn at a bank right now are so, so low in 2017. So what are your options to take the money that you have and make it work for you? Option number one, day trade. One trade a day and make the money in a few minutes. So for example, Fred. Fred was a play of the day last week. Fred entry was you shorted the stock at $9.40. If you had shorted 5,000 shares of Fred at $9.40, it was a cost in buying power, which you would have needed margin in a day trading account of $47,000. That's not $47,000 cash. That's $47,000 in buying power to take the position. I'm gonna explain in a minute. With a proprietary day trading account, it's a 10 to one margin. So you would have needed $4,700 cash to trade 5,000 shares of Fred. That's effectively what you would have needed if you wanted to take that big of a position. You could have taken less. You could have taken 100 shares. But I'm using this as an example, okay? So the profit that you could have made in Fred, taking 5,000 shares shorting it and the exit that I called in the trading room to get in and get out, to enter it at 9.40 and get out of it at the target, which happened in five minutes. You could have made $2,150 in five minutes as a day trade. Now there's risk involved. Even though I put in stops, if the trade fails, I would lose money in this. I would not have lost $4,700. I would have lost my risk, which is a difference between the entry and the stop. Again, I'm not gonna get into the particulars of that now. However, I usually risk about $1,000 per trade, sometimes a little bit more. Right now, today, I'm talking about how to make your money work for you, though, taking the money that you have in an account and taking trades like the Fred and making it work for you to flip it around. Because in this case here, you could have taken $4,700 and almost made 50% of your money in that trade with the cash that you have to take the position with the buying power that's required. Now, option number two, you could have opened up a CD at a bank and waited a year. That's an option too, if you did the one-year CD. Option number two, you opened up a certificate of deposit at a bank for one year. Current one-year CD rates are 1.4% APY. You would need, though, $150,000 cash to be invested in a one-year CD to earn $2,100 at 1.4%, which is the current APY, and that's a good rate, actually, for a one-year CD right now. You would have, then, in one year, July 6th, 2018, $2,100. Most banks carry FDIC insurance, which is completely different than day trading firms. They involve risk, although some are civic insured, so that is the difference. But what is the difference of timing and cash investment is huge, it's massive. To take the trade in Fred, you would need $4,700 cash. To take the trade, to take the CD, to make $2,100, you would need $150,000 in cash. Big, huge difference, massive difference, and not only that, the timing. So the freight trade, you would have the money in five minutes and in the CD, you would have to wait a year. So taking the money that you have to make it work for you, what is the best case scenario? The cash needed to make $2,150 is only $4,700 in the day trade. And the cash needed to make $2,100 in a bank's CD is what? $150,000, okay? So the fact is that day trading can be very lucrative, which is one of the reasons I do it, besides the fact that I'm not in trades that long. So to me, I've been trading now for eight years, it's a very fast way to make a lot of money, to make thousands of dollars, which is exciting. The reason day trading though is so lucrative is that you can make $2,150 in five minutes instead of waiting a year, and you don't need $150,000 to do it. So why doesn't everyone day trade? Okay, this is the point. Why doesn't everyone day trade? Now, Fred was one example. Obviously, I trade different ticker symbols every day in the stock market, and the cost of those positions are wide ranging. I do not trade penny stocks, and I usually don't trade stocks that are around in buck. So the position size I take varies, although my risk is usually around $1,000, the cost of the stock varies, but this is a good example to show you just how you can take your money and how you can turn it around in the timing and how much you need. There's just really no comparison, even if I took a position in a more expensive stock and made a comparison apples to apples of the amount of money of the profit and the trade, and the amount of money and cash I needed to take the position, it would still be very comparable to this example because you do not eat as much money when you day tree, and you're in and you're out quickly, you're turning your cash around much faster than if you had invested money in a bank and something like a savings account or CD. So why doesn't everyone day tree? Well, people don't know how, that's why. Number one, a lot of people don't even know it exists. They think they have to be licensed or a stockbroker or go to school for years to know how to do it. Also, people that do know about day tree and they're aware of it, they don't know how to do it, they don't know where to start. They also can be very intimidated about day trading. There's lots of information out there on the internet that's free, that's incorrect and wrong. People get led down the wrong paths and then they don't understand it and they become dissuaded in doing it. But the fact is that it is something that you can do to make money, you just have to have a good system. If you have a good system, a winning system, a system to follow that is disciplined like mine because I usually look at one or two stock symbols a day and do one trade a day, two maybe, you can make money, but you have to know what you're doing. So you can learn how to make money day trading. It's just you have to have a good system. And the benefits, like I said, is that you can make the profits very quickly rather than waiting and sitting your money in a CD. So I teach a class, my class is called the Golden Gap Course. This is a full two-day course on how to strategically find pick-and-play stocks that are professional bearish gaps. The class is online. The next class is July 15th and 16th. The cost of the class is $4,999. It's from 9 a.m. to 5 p.m. Eastern time. The class is online. You can be anywhere in the world and take it. If you would like more information and you want to sign up, you can email me at melissa at thestockswish.com. I hope this lecture was helpful. A lot of people don't understand day trading. If you have more questions, you can certainly reach out to me. You can call me as I said or email me too. I'm running a July 4th trading room special for the holiday, expires on Sunday, July 9th. You can sign up for the Golden Gap Course by July 9th and receive the rest of 2017 free in the Stockswish Show Live Trading Room. This is a huge offer to help you make money right after the class. You learn the system, you learn my method, you learn how I do it, and then you can be in the trading room with me for free till the end of 2017 and you'll get my live calls. So this is a great offer. If you're interested, email me at melissa at thestockswish.com or if you have any questions or feel free to call me at 929-3200 gap. Thanks everyone and have a great day.