 She's had a very successful career as a mortgage broker for 17 years and she gave it up in 2008 to pursue her love of training. She became a very successful trader after she developed her own system for trading that relies on capitalizing on the big moves that occur near the open of the stock market every day. She's built an international business that informs clients of how to trade successfully utilizing her system. Alright, Melissa, I can see your screen, so we should be all set. Testing, testing, can you hear me? I can hear that and clear? Wonderful, thanks so much. Thanks for having me, everyone. Thanks, Renee, for that nice introduction. And yes, for those of you that don't know me, my name is Melissa Armel and I own a company called the Stock Swoosh. And I focus on only one strategy in the market, which is stocks that are gapping. And that's what I'm going to talk about today. So I trade in the morning. That's all that I do and then I'm out. I'm usually out of my trades by 10 o'clock, 10, 15, and I don't do anything the rest of the afternoon. Occasionally I take an option trade, but I will tell you that I've found that less is more in the market, meaning the less trades you take, the more money that you can make and obviously then the less losses that you have. So we're going to talk today about making money consistently, and that is the key. And I found that the focus is on one thing for me to be profitable. And I think, again, when you're trading, it's not about being a jack of all trades. It's about being really, really, really good and very focused on one thing. It's about taking trades with size if you want to make more money. So obviously everyone wants to make more and more and more, but it really is about putting more size on in your trades once you get to that point when you get good at something. So that's what we're going to talk about today. So if you'd like more information, you can email me at melissa at thestockswish.com. But today we're going to talk about being a trader. You can trade the US stock market really from anywhere in the world. Half of my clients are out of the US, so it doesn't matter where you are. And I wanted to put up here at the beginning of the webinar before I start to talk into detail about gaps and what is a gap. For those of you that don't know, you're going to learn something here today. These were all the ticker symbols that I've done in the last two weeks. And I even put in today's, which was HBI. HBI was a short today. Yesterday was Crest. Wednesday was PBI. UA was Tuesday, which was a loser. And Monday was TPX. And then I have last week's trades on there too. So how do you make money trading being consistent? What does that mean? It means you have more winners than losers. If you have more winners than losers, you will make money. Whether or not you get out of the trade at the low of the day, if you're in a short or the high of the day, if you're in a long or you scalp it or you hold it down for a big move. The idea is not having that many losers. So in the last two weeks, Juniper was a loser. This was last Friday a week ago. And this week UA was a loser. So there were two losers in the last two weeks of all these trades. Okay? So if you had been trading with me, you would have made money. Why? Because there were more winners than losers. Again, this is common sense, but the thing is that many, many people are looking for this, you know, golden nugget kind of thing. You're looking for this magical answer. The magical answer is you can't lose that often. I mean, that's just, again, it's common sense. So how do you very often get consistent to pick winners, to do winners, into trades, to get into trades and get winners? You have to have a strategy that predicts the direction the stock is going to go. And that's what I do. I do stocks, okay? I trade the stock market. So my win ratio is, you know, right around 80%. Sometimes it's a little more than 80%. Sometimes it's a little less, but around here. So again, you'd be making money if you were consistently doing the picks that I have. So how do I get these trades? Let's just look at Apple. And the reason I have this up here, this was an option trade I called this week. This was a long. And this was not a day trade. And I don't have it on the stat list. It was an option that worked. But I want to go over it because I want to discuss with you what a gap is. Now, what is a gap? A stock gaps when the closing price of the previous day at four o'clock, which in this case was Apple here, okay? This was the night before and it closed here around 121-ish and change, okay? Then it had earnings. The earnings report came out in the nighttime, okay? Then it gapped up. So a gap is when the stock closes at a different price in the open. Now, in this case, it gapped up. You can look at fundamentals if you want. If you want to study and see and listen to the earnings reports to see what they said about Apple, you can do that. But that's not what I do. I'm looking for the gap to happen. So you wait for the gap. In this case here, the stock gapped up. So where did it open the following morning at 9.30 around 127-ish? The stock rallied on the day. Went to the dream target, which was 130, and it went over that on the live day. So Apple was a long. You could have done it as an option trade, which I called it for the REM, or you could have done it as a day trade. So in this case, you could have done two things, but the strategy itself to lend the consistency is the same, which is playing the gap. So you can do an option in the gap, or you could do a day trade in the gap. So all the gap is the difference between the close and open. And stocks can gap up, and they can also gap down. And we're going to look at some gap downs today as well, because for day trades, I prefer to short. But this was the call that I gave pre-market before 9.30. But she couldn't have taken this trade until after the open in Apple. So the stock gapped at night. I saw the gap. Then I predict that it's going to move higher on the live day. I actually gave out time in this out till next Santa next week, but the stock ran up through 130 on the live day. She could have done that as an option trade as a day trade. And one of my clients did that. Low of the day on the option trade was 25 cents. He bought it at 44 cents and doubled his money and sold it at 88. High in the day went well over one, as it turns out, because it went over the strike, which is rare but can happen. Why? Because of the power of the gap. And this is what we're going to talk about today. But I just want to show you here in dollars and cents, again, about making money. How do you become profitable? You may take good trades, but also you got to book the profits. In this case here, if you had risked 44 cents, which is, you know, he did 40 contracts, which equates to 4,000 shares. The cost of the position he did was not cheap. You don't have to do this much. But it was 1,760 bucks. Selling it at 88 was the right thing to do. Why? Because he doubled his money. So his profit was the same as he risked in one day. If every day you trade, you can flip around your profit that way, you will make money as long as you keep your losers low, meaning not that many. There are 20 trading days in a month of your day trader. Give or take holidays and things. And some days you will get up and you will not see a pick. I have a system that we'll talk about at the end where I'm rating the gap, but some days nothing meets the criteria. And in which case what do you do those days you don't trade. But if something tells you it's a long or tells you it's a short in the gap itself, which in Apple's case it was a long, and in this case here you would buy the call, or you could have gone long the stock as a day trader. It really is about making good choices when you want to trade. When you're risking your money and 1,700 bucks isn't anything to sneeze at, that was his decision to risk that much and it worked out. But any amount of money you risk, 200, 300, 400, 1,000 dollars in a trade, you have to have 100% conviction that it's going to work. That doesn't mean that it will always work, okay? It means that you believe in the system that you have, whatever your system is, in this case for me it's my system based on gaps, and you know that a certain percentage you're going to be losers and a certain percentage you're going to be winners. And you know that you're going to have more winners than losers and as a result you're profitable and that's a consistency. And if you know that you won't go off the deep end. What do I mean? It means you won't take, you know, 10 trains in one day and blow up your account. Because if you lose in one day, which this week UA was the loser, you won't train from 9.30 to 4.00 o'clock losing, losing, losing, losing, because you'll get up the next day and say, you know what, I'll get it the next day. I'll get it on Wednesday, I'll get it on Thursday, I'll get it on Friday, because you have conviction in the system. You can't over train, you can't do that. And not only that, you can't be pigish about targets. So Gibson did the right thing, although I will tell you he could have made more because it went over the strike. You have to chunk it out. Now I have a question here. This was the day of the earnings after the gap. It had the earnings at night. Sometimes a stock will have earnings at night, in which case Apple did. Sometimes it will have it in the morning. These earnings reported the night of the 31st. So when the gap occurred, it was on the 1st. So I made the call to the people in the room in the morning, pre-market, after the gap had happened, but the gap actually happened at night. See that? Someone asked when was the trade called? It was called in the pre-market, after the gap, but the gap really happened at night. It was after the earnings. But you can't take options in these things until after they open, after 9.30, which I suggest people to trade in the live day. Now you can do post and pre-market trades, not options, but actual equity positions if you want to. But you can't really manage them as well as you can during the live day because you don't have as much volume. So that's up to you. But for the option trades, you've got to wait until they open. So just what I'm talking about here is about being consistent. So the whole theme of today's talk is not only am I going to talk about gaps in my system, I'm really going to talk about this idea about being consistent. Many, many people that I talk to do have some basic understanding of charts, of technical analysis, which is the way that I trade. Some people have fundamentals, that's fine too. But a lot of people say, well, I'll have a good day and then I'll have a bad day. And then I'll have three good days and then I'll have a terrible month after that. You have to get a hold of what you're doing right or wrong and figure it out. But I will tell you, if you don't get the direction right, it will be really hard for you to make money. Like let's just go back to Apple for a second in this chart. If you shorted Apple, which I know absolutely we had a shot of a doubt that some traders did, why? Because some traders don't know how to read gaps and they will see that the stock capped up seven bucks or six and a half dollars or whatever overnight. And they will fame the gap. They will think that Apple is going to fall and fill the gap. That's not what happened. That's not what I predicted what happened. What I predicted what happened did. That it would rally. I never knew it would get to 130 on the day which it did and went over it. But you have to get the direction right. If you shorted this, you lost money. And traders did. Traders did because they don't know how to read this thing. They say, oh my lanta. They say this is a huge move. Six dollars plus that happened overnight on the earnings. This is going to fill the gap. It's going to drop. It's going to fall. It's too big. It's too much. It can never hold itself. And yet it does. How does it do it? Why does it do it? Look at the volume bar down here. This is the volume here. This depicts the volume at the bottom. And you can see the fatness of the bars. It's a candlestick. This was a big move for Apple. Although it's had other days where it's had bigger moves. But this is still a big move. If you look from the close to the actual high of the day, guess what? That's a monster move. If the stock closes at 121-ish and the high of the day was 130-50-ish or something like that, which it was, the stock actually had almost a $10 move. If you look at it from 4 o'clock eastern time, I'm counting the post-market into the pre-market and then into the following day at 4. So in 24 hours, the stock had a $10 move. That's Jimongous people. Okay? And yet it did it. How did it do it? Why did it do it? And how can you predict it? Well, I have a system to predict it, but why did it do it? I don't know. Whatever they said in the report and why doesn't matter, it got bought. But you say, well, how do you know and what made it do it? Money. Huge amounts of institutional money and fund money that came in and decided to buy the stock. Again, I don't look at the fundamentals, but when I see the chart because I train based on technical analysis, I'm predicting that that gap will gap up and follow through. And that's what it did. How did it move like that? Institutional buying. You will never have a move like that in $10 and 24 hours in a stock like this at this price point without institutions buying it and they did buy it. And what I'm saying is that to be consistent to make money, if you short this, you lose. If you buy it, you're up. And by the way, you're up very easily just like Gibson, he doubled his money very quickly. And whether you did a day trade an option trade, it wouldn't matter. You would have easily made money going along that stop and you would have been hurt that day if you tried to short it to fade that gap or fill the gap or fill that space which a lot of people do. And traders don't know how to trade gaps very often but I figured it out. It did take me about three years to figure it out but you can make a lot of money trading gaps because they move like that. They do move like that. They move up like that. They move down like that. They have big, big moves within the span of sometimes an hour, half an hour or even 24 hours. But getting back to what I was saying you don't make money hand over fish by trading all day. You have your goal. You're realistic about it and you base it off your share size quantity and the amount of money you can risk and then as you get better over time you increase the size. So instead of doing Apple plus three other trains which may or may not have worked you do Apple and you do it with the size and actually Gibson did because 40 contracts which is 4,000 shares of that stock actually was not a small trade that was a good sized trade. If you have a move of 50 cents with 1,000 shares what would you make if you got it in the right direction? In the case if you had gotten Apple with 1,000 shares and got 50 cents which would move way more than 50 cents you would have made what? 500 bucks, okay? If you had the exact same trade went long Apple this is a day trade if you went long on as a day trade and had 2,500 shares Apple moved as I told you 3.5 bucks on the day from the low to the high. So you could have gotten 50 cents out of that of course you could have. That wouldn't have been insane it wouldn't have been a dream number it would have been very realistic and you could have captured a 50 cents move in Apple on that day this week and made $1,250. What if you had 5,000 shares and got 50 cents? That's it. Again, low was 127 high was 130,50 3.5 bucks all you needed was a smidgen of that 50 cents and you could have made $2,500. So do you see here has to do with the share size and your risk. Now what if you got a buck if you got a buck you got 30% of the move less than that and that still is a good trade and it was very realistic. You could have made $1,000 taking 1,000 shares and $2,500 making 2,500 you could have made 5 grand. You could have made 5 grand if you took that trade and got a dollar in Apple you could have made $5,000 if you could have afforded to take 5,000 shares which I'm sure some of you in here could have. So it is about capturing that move the quick move the fast move that happens usually in the 30 minute period usually into the open usually between 9.30 and 10 or 10 and 10.30 when the money is coming in and it's solidifying it's actually solidifying the gap actually I don't have the 1 minute chart of Apple in here but we'll look at some 1 minute charts and some other charts it's when the institutions come in whether they go long or sell it again we're talking about Apple right now and it went long but we're going to talk about some shorts they solidify the position in that beginning period which means they're going to sell the stock and dump it or they're going to hold it like they held Apple in the air and go long in and buy it okay any questions by anyone about anything so far okay I'm going to keep going so again idea of consistency is what? having money management and stops I do your stops you don't need stops and options because you'll only lose the amount in your risk there is no stop in that it's whatever you risk if the trade goes bust and you don't get out or it doesn't work you lose a whole amount of it when you're up money management is when you take a trade like a day trade with me I use stops I use limit orders and I put the stop in and if the trade doesn't work then I'm out okay but it really is about quality not quantity for numbers of trades so again you have to make more money by having more wins and then you have less losers and as time goes on then you'll feel more confident in yourself too to do what? to not feel pressured when you have a lost day like you when it was a loss on Tuesday you won't feel pressured to do anything else sometimes we put so much pressure on ourselves to be profitable every day you give yourself a break no system is 100% and if anyone tells you that that's baloney okay as a trader you must accept as this that some days you will lose it's funny everyone's in a blue moon if I have a loss and I'm upset I still call my mom and I say oh gosh you know this didn't work today or whatever I'm upset and she says Melissa you know this you know this about this why do we have this discussion we've had it before you decided to do this thing you know this is what it is okay I don't think that anyone ever gets to the point where they feel like excited about a loss what I'm telling you is you have to understand that that's part of the business but you also must be very serious about the system you decide to trade meaning that you have conviction in it and confidence in it that when you take the loss and something when it doesn't work that you know that the next day and then the next day and the next day you're going to be able to win and someone asked me in a webinar like a week ago or so well what do you do if you have a loss and you feel upset how do you get over it you get back on the wagon the very next day and you take a good trade and you make money and that's how you do it now let's look at the ones from this week so again now we're going to talk about bearish gaps what do I mean when a stock gap's down so here was TPX this was on the Monday stock closed here the night before boom gap down do you see this here it was up here around 63 gap down here to what 46 and change stock closed at 4 o'clock gap down here at 930 boom dropped look at the volume look at the volume of this so the stock sold off hard on the live day it sold off if you had shorted this you would have made money if you had gone long this you would have lost money you would have easily made money if you shorted it okay so what you are looking to do is predict in the morning in the pre market before 930 because this doesn't open until 930 okay this is the stock you predict the direction and then you're ready to go you wait to the open and then you can do either an option or a day trade in it okay to take a day training position so in this case here I predicted was a short and it was now here's the one minute chart this is what you're looking for in the 30 minutes and this is also part of the consistency you're looking for this do you see this here it's like a triangle this is a pivot see the triangle here it goes up and then down so if you're shorting which I prefer to do I love to short and panic happens quickly and stops when they sell off and it goes very very fast the moves this is the triangle you're looking to capture this drop but how would you know you must predict that this is going to be a short before 930 okay I don't have the pre market here but here's the open if you can do that you watch it you wait you take it you short it you put the stop you're in you get the drop so the consistency is not only in having the winners but predicting the direction and then watching it you only need one a day okay that also helps you and then you watch it and you take it and you've got to get the direction right and you want to get this flush here's a sell off boom short it boom you're in drops whether you get out here here here here or even here it doesn't matter you're up okay entry in this one here share size 1,500 I'm using an advanced risk for all of these it doesn't mean you have to risk this much just so you know but $1,200 would have been the risk on 1,500 shares this is not the low of the day we'll go back and look at the daily chart but again you're getting that first morning move where it goes boom total profit over two grand how many minutes would it have taken to make this again this is not the low of the day look where the stock went the stock ended up going to 43 and breaking that too you actually could have made another $2 on this you could have made another $2 on this same stock now again that's not what I do I trade the morning I like to get in and out in 30 minutes but I'm just showing you the potential for these things to do and other stuff because you could do the day trade then you could do an option and you could do a swing trade anyways here's the move boom boom goes the target you're out like I said though it did drop $2 after that so you see it push back so you would have been up in here you know a good amount of money and then you would have given some back into the push and then it dropped again so I don't like to do this thing here I just like to take it and get out so I'm looking to get in and get out in the 30 minute period but you got to know what to watch and you're on the other direction to take it so I'm predicting where the stock will go in the live day after it gaps and that's what I do and why does it matter how is it even worthwhile to do because you get big moves that's what I mean that's what I'm showing you like an apple it had a gap and then it had a big move this had a gap and then it had a big move on any normal given day this is a stock trading beforehand back for the last two months or so the stock hand moves but could you have predicted any of the length of the body of the bar or the targets or the volume or anything in these days no, not really because there's nothing that's really going on in here that's telling you anything that's special this is special it's a gap it's an event that happens in a daily chart that's made by institutional money it will either follow through in the gap in the live day or it won't and I have a method to predict that because if it doesn't tell me it's going to follow through that I don't do it alright but the point is that it's an event that happens in a chart that's significant it could be news related it could be earnings like with apple it could have something to do with the election it could be somebody's talking about something on CNBC you never know you never know but the point is you see the gap and then you predict it then you wait then you take it then you do it and then you're out and you do that over and over and over again so the consistency is finding it finding it picking and taking it getting in getting out within the same time period only doing one trade do it do it do it do it do it do it okay and that's how you make the money let's look at the next one here any questions this was the one that was a bust so what happened here you ain't closed in gap down open rally so the stock closed here 25-ish opened down here around 18-something high of the day was like 20-ish so this was not a good short it was a loser but I want to show you what did it do it did follow through it did do it then but it didn't do it on the day that I did it and so the thing is sometimes I will watch something and I will like it and I will do it and I will take the loss but then the next day it works so this did work as a short the next day and the following day and it broke and then it broke the low the day of the gap but again I like to do the day trains you can follow through and watch them there were some variations for swings and for options this was in the long run in the bigger picture good short but on the live day it was a bust now I want to show you the one-minute chart on this closed here gap down it set up it set up actually it went a little little teeny weeny there would have been no reason for me to get out and I didn't but I did take it and was up and I had time to kill it but there was no reason for me to get out of it I was only up like 15 cents or something like that really some people in the room dig it out of it here anyways a base base base and it popped and it went over the high and then it never worked it didn't work at all but I wanted to show you here how it did after so this was a loss so the entry here in 1969 again if you are doing an advanced size okay you would have taken 3,000 shares you would have risked what 1,200 bucks so you would have lost you would have lost on the stream so that did not work and this is what I'm telling you sometimes something will not work so if you make money on Monday and you're up and you take the loss on the Tuesday and you're down you would have still been up for the week going into what going into Wednesday Wednesday was just a ridiculous move in this thing here I had numbers written down for this I usually figure out resistance targets everything thought it could go to the stock open high of the day it was like $1,500 or something the low in the day was $1,240 I think again this is a massive sell off how can you make money trading gaps as a strategy because you have huge institutional moves and in the case of this it got sold off how do you make money you make money shorting selling action or you make money going long buying action and that's that's how the stock doesn't move or you're scalping for pennies and you can't really get anywhere with that you'll never make thousands and thousands of dollars in the day or the week or the year doing that unless you're taking massive size and you're and you're scalping literally like taking 20, 30,000 shares or something and scalping it for a couple pennies that would be very stressful to do bottom line is you want something to move and they do in gaps this was an event the stock closed the night before at 16 or 15 something it was and then it got down so here we have it boom and I have a system that rates it to determine if this is a long or short and I determined it was a short so the stock moved massive literally the first target was 1450 and if you get out the first target you you would have been doing nothing wrong but the stock literally just sold off for like two hours I just want to show you this here so here was the entry and you literally could have gotten out of this at the first target but if you held it I don't know you know if you would have but if you did again this is not something that I did or would have done because it just you know it just kept going and you never would have know it would kept going but this went to ridiculous number so from the entry up in here literally it was like 1489 the stock went to 1240 I mean you can't you can't fault yourself for getting out of this here in the morning again the way I like to trade is get the morning move and when they start to back up which this did in here you got to take it but the stock kept dropping so again this is a great example you're shorting selling action this is what selling action looks like but the entry was here right here at 931 right into the open here so if you don't take this you know where are you shorting it where are you getting it and then where are you getting the stock if you short this like in here around 1430 1420 your stock is way over here you know 80 cents a dollar you know if you want to risk good size you're risking a lot not knowing that it's going to go like it did you know you have to look at the actual chart and what is going on here previously in the bars to determine where you think this could go do you see though this is the biggest bar in the chart so you wouldn't be able to predict the low here but you would have predicted it would do something good something big something reasonable something that it normally does or greater why because of the gap because of the event in the chart okay so huge sell off here I have something I teach in my class it's called the stock swoosh this is this is like a new name it's like a super swoosh it just opened and collapsed so anyways if you shorted this at around 1490 1489 again, same risk should be your risk should be the same in all your trades this also helps with the consistency whether you get out of the target or not it doesn't matter but the amount of money that your risk should be the same or equal to in all the trades you take you can't risk $500 in one trade and $2,000 in another trade you won't have the same results because if one trade works and one trade doesn't then your results will be screwed you know skewed so the risk was 1200 bucks and except 1450 again this is if you have an advanced risk and got out the first target what would you have made you would have made $1,600 okay this is getting in here and getting out here but it collapsed okay so this one worked in the direction of the gap as I predicted now let's say then so you had the loser and the Tuesday say you did Wednesday you made money Thursday you get up you're ready to go guess what you got another good one you rate the gap the gap was crushed this was earnings close the night before I appeared 64 gap down to what 5650 again what happened here it doesn't matter people what matters is it's gapping and then I have a system where I rate the gap to predict where it's going to go this could have been along on to the support this is the 50 period moving average this is a 20 at one point in the morning in the pre-market it was sitting snuggles a bug in a rug on the 50 it didn't hold it it ended up opening here at 5650 rally touched it look at how it touched it and then it collapsed okay look at the volume down here's the volume the previous days even this day here which is a massive bar did not equal the volume on this day so here was this one this is a one minute chart previously was a daily that's how I'm predicting the gaps but I'm taking the entries on the one now open you could have hit it here you could have hit it here you gotta get in you're in boom look at how this open rallied look at how it open rallied again I have my stop up here some people are looking at this to go long on support to fill the gap and on support I'm shorting it I'm in it short I'm pennies from being stopped out and I guess I end up being right and guess what I am and it goes and drops and works so you're playing this move in here again between 930 and 10 930 and 10 did it go longer? yes this continued low on the day in here was around 54-ish I did not hold that that long at all you want to get that morning move you get in you get out you take the money and you run and you're done actually no here this is wrong it should be 56 I wrote the wrong number here although it did go to 55 let me have a question here go ahead how do I pick which gap to use there's hundreds and thousands of things that gap like in the morning of this day here with the crush there was tons and tons of gaps so I scan in the morning I look for everything I make a watch list in earnings season you have more gaps than not but bottom line is I will rate them I will rate the ones I find and then I will do the one that rates the highest I have a 26 point rating system and then whichever one rates the highest I do it's got to meet the criteria of 20 points or more if it's 17, 18, 19 I'm not going to do it if it's 20 or more then I'm looking to do it in the direction of the gap whether long or short so I find them on a scanner you can find them in yahoofinance.com you can print out the earnings calendar that will tell you about Apple and all the other ones like crush and then you can rate anything the gaps anything ups, downs, whatever but I focus on the shorts now going back here and this did go and break this but I meant 56 here for the exit because this was the first we took 2,000 shares and risked 11.60 and exited into the first drop into the dollar you would have made 97 cents you would have made 1,940 bucks but you actually could have made again two dollars more in this exiting at 56 because it dropped down to 54 dropped two dollars after the morning exit but I really really really like to just get in and get out and just get in and get out I mean that is just what I like to do for me personally the way that I trade the way that I look at things my personality I don't have the patience to hold if you have something for like 2, 3 hours I just don't and also I find that when I trade the morning and I'm in and out quickly the market hasn't really set its tone until after 10 o'clock so usually the market will do something if it's really bullish or it tends to be bearish usually takes some time it takes some time for it to go and get going and really do something okay and that's why a lot of day traders actually don't even take any trades and look or scan until after 10 but the way that I do it the niche that I have the edge that I have is the prediction I'm making before 9.30 I'm not waiting until after 10 I'm not waiting to see what this is going to do I'm predicting this is going to drop boom let's get in and we do it and we're in and we're in it and we're out okay my edge is that I can predict the direction it's going to go after I see the gap I can see the gap at night I can see the gap in the morning of the pre market but I have to know when I'm watching and looking and make it the prediction before the open so that I have it set up and I'm watching and I'm there to do the trade right as it's going because this is what happens people this thing if it wants to get sold off which it did and how do I know it did because I saw it there it is it dropped it's not the first five minutes of the day and broke broke the loan fell and fell all day and closed red and dropped dropped like a brick another one that went to a target I didn't even have written down okay so if you got the direction right and shorted across you made money if you went long it you lost and some people did because they read this and didn't know what to do and think the stock has gap into support but it's not right it's not right and how do I know I have this system that I used to rate it it did take me like I said three years to figure it out what you have to focus on some kind of system you can't just say well it's into support I'm gonna buy it no it's a gap it's different it's not like a regular normal day where the stock is holding support or whatever anyways this was HBI what did this do well it closed here a gap down boom this was today's actually this had two drops in the morning quick it pushed back fast I missed the first exit I ended up getting out of it I could have made more I'll show you what this did anyways the one minute chart is here closed gap down I didn't get this it broke really really hard this is a buck some people in the room got it I didn't capture this it went so fast I didn't get it anyways it worked then it rallied back then I took it here then it dropped again I was in this and I didn't get out in here so this broke in here hit 19 something I waited, waited, waited waited, waited, waited waited I eventually ended up killing it in here so I could have made more if I'd gotten out but it bounced so fast I didn't but that's life but some people did get out here some people did get out here I don't know where the people that held it with me got out in fact I think it was still ended up working but I was out of it so this one I held a little bit longer today only because I missed the I missed the exit because of the bounce and sometimes it happens but not often anyways entering this was 1948 share size 2000 risk again 11 40 there about 1200 whatever this is not an exact science 1500 shares 2000 shares depending on the stop it could be 3000 or 4000 exit again I made what I made on this I missed the drop of the break into 19 1932 although it could it could go there before the close but I'm out total profit 340 bucks okay but it's profit so if you had done all of these you would have made approximately a thousand dollars a day and that is real money why? how no matter what you risked okay if you didn't risk an advance amount if you risked half the risk and all these trades you would have made 2500 that's still real money people you're still up and many people are losing and why why are these results so good forget the dollar signs it's profit it's one plus negative plus plus plus so it would be impossible for you to be down no matter 100 to 500 whatever your money is it would be impossible for you to be down in the week you'd be up if you had traded with me so the bottom line is that how is this possible because you gotta pick the winners how do you pick how do you pick the winners you determine the direction you determine the direction the stock's gonna move before it goes if you can determine and predict the direction the stock's gonna go before it goes you can make money you can make money doing swing trades option trades date trades I've been doing it for years on YouTube I predicted years ago that the market would continue higher make brand new all-time highs it has done it it has done it it's gonna continue to do it people are predicting the market's gonna crash or it's bearish or it's gonna fall or something it's not 2017 is gonna be a very bullish year it's been already and it's gonna continue and I'm making a prediction now I'm making an overall general big prediction based on my analysis of the QQQs and the spy and the market based on the gaps that I've read of the market the bearish gaps and the bullish gaps and I predicted this for the last few years it's on YouTube if you wanna go look at it at the time I remember no one believed me in fact the last time I think I was here it was March I think it was March 2014 or 2015 I was here with you guys I was here with market traders and I remember at that time I predicted what the spy would do and I think people were asking me no one believed me if I had been for years which I wasn't I wasn't I would have made so much money but I don't do overnight but I'm telling you you can make money training it is not the end the realm of possibility but you have to be able to predict predict it before it happens and you have to be able to predict it accurately you can't if you are short this market you lost okay if you belong you're up and and I'm telling you that people are going to short this market right now and they're going to get their hands you know their shirts handed to them or whatever they're going to people are what's going to happen is you're making a quick prediction will go on what's going to happen is people are going to short this market somewhere I don't know where 230, 235 maybe they'll wait to 250 I don't know people are going to short the market at a certain level I'm talking about the spy and then it's not going to follow through and it's going to flip flip over make another new high okay and then people are going to say well this is it no this is the level this is it this is going to hold here and then people are going to short it again it's going to push over it and push over it push over it and this is what happens okay and then the volume keeps coming in in the direction higher because why how is it happening because buying is coming in because the people are buying the market the market will never be at these numbers the market is rallying every day since the election we've been higher we've had some red days in there but overall the price point since November we've been almost straight up vertical and the days that we didn't go straight out we just kind of sideline and based okay and we rested just to go higher again so I'm not saying we never pull in but I'm telling you we're not in a bearish market we're in a bullish market and look for it to continue and the volatility will continue because people are expecting the expectation is that something can't keep going wrong oh something can't keep going PBI can open at 15 and keep going into the close and drop to zero it almost did it went to 1240 I never could have predicted that but it did something can keep going in the direction and it will until it decides not to anymore which no one can predict when that is but you don't play it in the app as a direction you play it in the direction that tells you it's going based on the gap and those are the only days I trade things to get anyways it only takes a couple of hours to do this if you want to do it and if you want to be successful you have to have a strategy you have to have a strategy and you have to learn how to do it and I have a system I have a system that I do and I made an out in the morning I showed you some charts that went past that point but I typically don't hold them today I held that thing you know longer than I wanted to and I wish I would have got out in five minutes so it's really about that morning time period and that's what gives me an edge I do it I'm in I'm out and it's because of the institutional move that I'm looking for that the gap works does anyone have any questions about anything you've got to get that fast, fast push because that's how you get the profit and that profit when it comes in you want to get out many, many times when I'm taking a train it goes right into the money so whether you scalp it or hold it it's up to you you could almost take it and put the stop and break even even if you want to but you have to and it's really never over to the fat lady sings which means every trade you take you're at risk for the potential loss until you get out with the money and that's the fact and every time you take a trade you have to believe that it's going to work or you don't take it don't take crappy trades don't over-trade think about what you're doing and why okay it is very, very important to think think, think, think why would you short Apple because it's going to fill the gap that makes no sense it makes no sense do you understand what I'm saying like you have to think, think, think you have to think about what you're doing a lot of everything that I do is based on common sense common sense common sense okay what's happening here look at it think about it I just use the top 20 list the top 20 list which gives you 40 picks in the Nasdaq and the New York exchange you can get them on any pretty much any software for free I don't pay for a separate extra scan which you mean you can if you want to you could I find it's overlap so I don't have a separate scanner anyways what makes gaps profitable are the predictable moves the big moves the fast moves and like I said I like the fact they happen quick so my class my system is based on 26 points it's a checklist this is what you would learn from me if you want to come and be mentored by me I teach you the points it's based on the daily chart that predicts the direction the stock will go the purpose of the system is to help you evaluate which gap to trade each morning using a checklist this checklist tells you what to trade and when this system is so powerful and I created it it took me three years of my life but it identifies what an institution is going to do on the live day with that stock buy it or sell it okay and you can do these for options trades you can do these for long term trades this is a trade that another trade in Apple I stuck it in here because it was another Apple one it was an option trade that another student made over five grand and this was in October this was when Apple had a big move in October of 2016 some of these high flyers Google, Amazon, BABA, Facebook, Netflix some of the expensive stocks you can really do well in options if you get it right okay and they're very expensive to day trade but the success or failure of what you do has to do with your system the system must tell you that it is a quality long or short okay I'm looking for a specific time frame to do them and if you want to make money trading I'm telling you that you can if you have been losing then stop and consider what your strategy is are you losing because your strategy doesn't work is it a bust or are you losing because you are doing things that you shouldn't be doing like over trading holding to piggy targets not thinking about your sizing taking risk in something that you shouldn't be taking for example if you have a $5,000 prop account you shouldn't be risking $1,000 in a trade that's irresponsible okay any questions so far so what my checklist does is predict that it's going to have a big move like I showed you the ones here the early confirmation of the move between 9.30 and 10 precise entries will follow through and a good risk to reward target potential and that's important it doesn't mean that I hold everyone to the target because most of the time if it doesn't go to the target in the morning I'm out but you could you could hold some of these to the target if you want to you must have a plan of action to be successful and consistent for me it's my rating system I get up in the morning and I rate the gap every day I fill out the sheet or rate it then I pick one okay I had the right pick again I usually do H-B-I boom get it do it you're in you're out you have a goal every day does it mean that you make your goal every day no today obviously I made a couple hundred bucks that's not my goal every day but I made money on average for the week I'm up okay you have to chunk it out some days you're going to make more than you think some days you'll make less than you think but your idea is to win and to keep the losses small but one strategy is really all you need to be successful in the market so if you find what I've said interesting today you can reach out to me I'm very good at making predictions that a stock will go in the direction of gaps so you have to wait till it gaps I don't predict the gap I wait till it gaps and then I rate it and then I take it okay and it does cost money to come and take my class but in the end you lose money because if you don't know what you're doing you will lose money in the market and your money will be unlimited losses if you keep trading and not knowing what you're doing and many people do this and it's hard for them it's hard for them and I feel bad for people when I talk to them but I say to myself if people don't know what they're doing why are they trading you know getting ideas off the websites or the internet or television shows how do you know why that person is even calling the trade I have a live trading room but in order to have a full understanding to trade with me and my room if you want to trial to the room you can email me you can have a trial for the next week but in order to be in the room full time you need to understand what to do because you are risking your own money to do this it is realistic to make a living trading however you must be in a full on strategy system that consistently works and you have to have a plan of action for what you're doing it must be implemented daily and you've got to have your head on right if your head is screwed up and your head isn't on right and you don't understand why you're doing something or you don't have conviction in your system or you don't understand why things aren't working or what mistakes you've been making or you don't even believe that you can make money in the market then your head isn't on right and this does affect what you're doing I talk to people all the time who have been a hit over the head from losses in the market or taking classes and they didn't get their money's worth then maybe you need to take a break to have a positive and optimistic attitude to do this because you have to understand that some days like Juniper and UA the trades didn't work okay and if you're going to you know fall apart because one trade or one gap doesn't work then you're not cut out to do this it doesn't mean you don't say oh that sucks you know whatever of course it does but if you're making money the whole week and the whole month then who cares all right it's part of the it's part of the job I guess but it is a nice job if you can do it and work from home in New York and I have been you know working from my home for all the last eight years I've been trading which is great so if you're interested in my class you can email me it's called the Golden Gap course it's one strategy and it's a good time to train because there's a lot of stuff things are moving and things are even selling off even in the bullish market I mean nice sell-offs I mean I can't believe some of the targets that these things have gone to so the class is 49.99 retakes are free which means if you sign up for the class you can retake it anytime you want to for free after the first time and I'm offering a special for this webinar if you want to sign up for the class if you know you want to do it if you're interested in anything I had to say you can sign up by tomorrow an early bird special for the webinar I'm offering which you can have be in the trading room free to the end of June which is a great deal so you'd be in the room February March April May and June that's five months in the room you'd get all my calls like the ones in the last two weeks I went over the last week of calls in here and you take the trades and you do them but you do have to learn how to do the system to be in the room and that's part of taking it seriously if you make a commitment to spend $5,000 then you are committed to trading and making money and you're committed to be in the room and getting up every day and being there and I only have the room open from age 30 to 11 and I usually don't have my trades by 10, 10, 15 so I get up I do the prep I go over the gaps I write the gaps in the room I write the ratings and the picks and we do the trades and I call the trades live it's usually one maybe two things I'm watching I usually prefer to do only one and then we review the trade and we're done and we're out and that's it any questions from anyone about anything anything at all and if you're interested in more information email me if you want to trial for next week email me if you want to talk about any stocks you can email me too we have a few minutes here how's everyone doing happy Friday questions from anyone about anything at all thank you so much for having me market traders thanks for having me back thanks Renee good group of people here today we're keeping you busy the price for the class here I'll go back Nick asked 49.99 for the class and you'll get the room free to the end of June we do one strategy so I teach this one main class that's it I don't do anything other than gaps and I don't think I ever will because this works so I love it and I love the I love the fact that I'm done and out in 30 minutes if I want to be I mean if I want to be longer I can but again that's very rare so the system you know the timing of the system works for me personally it really works for me too you know my personality I just don't have a lot of patience so I love when something goes and drops like a break and I can get out of it right away any questions from anyone else you can email me at Melissa at thestockswish.com if you want to try out if you have questions about anything on my youtube site it's www.youtube you can put in the stock swish and look me up I have tons of tons of room videos in there of the trading room plays of the days other webinars and stuff and you can learn some more about what I do but trading gaps is fun it's exciting it's interesting I think trading the market is exciting right now it's an exciting time it was exciting before the election it's exciting after the election the market is very fresh but stocks that want to sell off are doing so and they're doing so at a rapid rate so all of that all of that heightened volatility makes for opportunity for traders to make money if they know what to do oh I just realized I have 2016 here I met 2017 I'm still in last year let's go back to the holidays alright have a good day everyone thanks for having me alright thanks for watching