 We're gonna get started. I'm gonna put the slide up if you want to chat you go down to two Individual user, then you choose Melissa Armo and you type If you want to do a test high in the chat You can try I'm gonna do a high Okay There we go So welcome everyone. Let's get started here. We're running a little bit late Okay, let some people in late if some more people come that's good We're gonna talk today about shorting stocks for winning trades and why is this an important topic because in this type of market Or quite frankly any type of market you need to know how to play to the downside now Why am I so pro shorting one of the reasons that I love to short ends because you can get fast moves in shorts Why just think about it again is a lot of this is just common sense when you think about it common sense If somebody is in a stock and somebody owns a stock and they are down down in the position Okay, because the market's falling or whatever the reason is whatever it happens to be people will panic People that own the stock will panic and then they will sell and So again that can happen like that because people panic very quickly very very quickly and Panic is a scary feeling people don't think You know through panicky stuff and you've seen that a lot of the market this year with stocks selling off So one of the reasons I love to short is because the moves happen fast The other reason that I love to short is because of the fact that again many people and again I don't know why this is many people that trade the market prefer to go long rather than short now Some people cannot afford to short they can't short in their account. They don't have a margin account They don't know how to do options which you would buy puts which is a short in the options account So sometimes people really just prefer to go long because it's all they know how to do and if they knew how to short They might actually love shorting So I find that shorting and knowing how to short and what stocks to short actually gives me a niche So I very often decide to get into things very very quickly Really Before things even fall Sometimes I take a trade. I'm down in the trade before it goes because I'm anticipating the move to the downside Okay, and we'll pull up the live charts in a little bit here We'll talk about some things as we get going here today If you have questions you can email me at elicitthestockswish.com You can call me at nine to nine thirty two hundred gap You can always follow me in Twitter Facebook YouTube or Skype when I'm on TV I always try to put my TV hits when I'm gonna be on TV on Facebook or Twitter and again I put lots of videos recording this today. It will be on YouTube later So again, I I was you know been talking about this market on TV as far as where we go Where do we go from here inflation? What's gonna happen? You know, why was 2022 such a bearish year and such a great year to short because the market fell off Because interest rates kept going up. What's the difference between 2023 really in 2022? 2023 started out with a rally like it was bullish. Well, we were gonna go we were gonna go We were gonna rally but then we did it and then all of a sudden we did it and now We've got banks collapsing and all kinds of things coming on and it's not gonna stop It's not gonna stop. They're probably gonna continue to raise interest rates despite what most people think The market's gonna continue to have sell-offs again, despite what what most people think we're running into a debt Silly limit is coming up in the next few weeks Again, this market is teetering the best way I could describe this market right now It's like teetering. It's like a teeter totter or it's teetering on the brink, you know So something big is coming up ahead. We don't know when We have no idea But it is okay. And so the best thing that you could do right now If you're not sure about the market, which direction the market's gonna go because we've been sideways for most of 2023 And we're now we're it's hard to believe we're halfway through May. It's May 15 So we're almost halfway through the year two weeks from now is a moral day Five months into the year and we haven't broken out and we're nowhere near the highs So we could be sideways the rest of 2023 in which case you have to know what to short when and what to do And what are even choices that you make that you want to go long? You need to know what to do you need to be able to choose individual trades that have nothing to do with the market Or you need to be reading the market extremely carefully and extremely cautiously Those of you that have been on my newsletter And those of you that have been in my marketing list know the year we had in 2022 again We had a big year Last year in 2022 like I said, we had a very good year to short We had An excellent year to short now this year we've shorted not as much as last year We did do a few longs this year like we went long apple it worked But again, we'd have had some really big shorts so far this year at the biggest short you've had so far this year I think has been paypal Where it's fallen and fallen off a cliff Even today paypal looks lower to me But this was the stats from last year 2022 in the live room This was the stats from the newsletter from last year again My risk is quite high because I've been doing this for for 15 years But the nice thing about doing options is that you can take one contract to position And I have to update this. I've just been so busy with everything That I didn't update through today's date, which is the 15th. This is through 414 a result so far this year 2023 in the room So whether you want to day trade or whether you want to do options either way We're doing shorts. Okay. We're mostly mostly shorting and I talked about this actually in a lecture I did last week I talked about this quite a lot where I said that nothing in life that it comes Without taking chances or risk and I think one of the issues the traders have is they start out trading And many people start trading the market They may take one class or sign up for one subscription service And it doesn't work and they lose money and then they come down and they become down in themselves When in reality, they probably started out trading initially with unrealistic expectations I think the biggest thing that I would say criticism of and this is a broad general spectrum of someone that's observed And come to many many webinars over the years where I lecture I hear the tail end of people talking before me and sometimes people talking after me in these webinar events that I go to Like I did last week People set unrealistic expectations for people in reference to what they can make and earn in the market The results that I just showed you were not without a good a really good risk So again, if you have the money to risk You know $2,800 a trade or $8,000 a trade you can you can get great results with this kind of chunk of money If you can't it doesn't mean you can't trade you just have to set your realistic expectations with the size of your account If you have a small account you should be doing one contract two contracts five contracts and an options trade If you have a day trade account If it's a prop account Or you have a retail account that is not on margin where it is the 25,000 again, you should be doing 500 shares Less than a thousand shares Okay, so the reality is that you can achieve Huge goals once you know what to do Once you've built up your account Once you can take the size and once you can once you can withstand the risk In other words when I lose in a trade, of course, I still get mad. I still get angry. I still get upset Sometimes I still oh this was a crappy day But I go to bed at night and I get up the next day And I just have the amnesia and I just wipe it off with me and I get up the next day And I hit it and sometimes I hit it even harder than before if I have a bad day or a bad trade the previous day That is something that again is another quality that's unique to me But it's something I try to teach people because you have to have amnesia or you can't move forward You can't harbor old feelings about classes and losses you had in the market or even stocks that you've lost in And you don't like and just carry that with you forever and ever and ever and ever That's the kind of thing you need therapy for Nothing's going to do to help you get out of it except for just letting it go The only way you're going to move forward to be where you want to be in life and and achieve the success that you want And have the money that you want And achieve the success that you wanted the market is by looking at every single solitary day as a brand new day Where you have all the opportunity available to you all the chances of a lifetime And you can move forward in a positive direction and it's very very important to do that It's like, um, you know people that attempt to become professional actresses And actors of course, there's a lot of those people I live in Manhattan I live in New York There's so many people that are auditioning for dance for Broadway shows Everything I mean people go and they may go on tons hundreds and or even thousands of auditions And not get called back and not get the job and then all of a sudden Poof one is all it takes And then they're then they're hit and they're off to the races So again, you can't you can't let one thing in life let you down and you have to be willing to take risk But the point I want to make is that there's a difference between risk for risk sake and calculated risk So you're not throwing darts at a board and that's where my system the rating system that I developed over the course of three years Really counts because when I get up in the morning and decide to take a train I rate the gap and if I've rated it that it's going to go in my favor Which means in the direction of the gap. I'm only shorting bearish gaps. Okay, for example Then I know Okay, that it has a high percentage of working. Therefore. I feel like I'm taking calculated risk. Okay I'm not taking a 50 50 crapshoot like when you go to Atlantic City or something And again, if you understand the difference between risk for risk sake and calculated risk You'll be okay with taking risk because after all you have to take risk in order to make money Because if you don't put the risk on in the train, you're not going to make money in the first place Now we were talking about this in the training room this morning Because we were discussing The movements of the banks recently since friday Why because many of the banks fell friday then we open lower today many of the banks fell today And so we were talking about it. Are there other banks that are on the brink? Are there other banks just teeter tottering waiting to collapse regional banks small banks that could go under yet still First republic was the last one which jp morgan chase just bought You know for pennies on the dollar, whatever they ended up paying for it at the end of the day We may not be through this banking crisis Other banks may go under and when that happens that's going to affect. Guess what the overall market It will affect the banking sector and i've said it before and i'll say it again You will not have the market at brand new all-time highs without the financials and quite frankly for 2023 I would scratch off the financials as anything that anyone should be even looking at To make any kind of significant move to the upside and therefore what should your expectation be for the market for the rest of the year So do you see what i'm saying? The range boundness of this year could continue people have been finding it frustrating um, and so I know people again in the hedge fund industry people are just you know Closing their accounts people are just sitting on the sidelines going into cash stopping taking positions not trading Again, that's not necessarily good for the market But it just shows you when hedge funds don't want to take positions big positions in any stock Upside or downside then there's uncertainty all around all around in everything that's going on right now in the market So can you do well during these times the answer is yes You can but you have to be selective you have to know what to do and you have to be smart And I you know again, it's not about how many hours you sit behind the desk and train You know you you just have to be really really good. It's like throwing a dart at a board I'm trying to hit a bullseye every day That is my goal. You have to be smart. Don't waste your time for me It's about the morning getting in the trades in the morning and and using my structure and having to plan in place I'm a very structured person. Some people have this as a personality. Some people don't If you're a structured person like me and you kind of are structured all the time with your regular life You exercise you get up a certain time of the day you go to bed a certain time you eat meals at a certain time If you're structured like that You'll probably have that structure in your trading or you should be easily be able to transfer that structure into your trading If you're someone that is not structured in life, let me tell you you better get structured with your trading habits count preparation counts time of the day counts Assessing your risk and sticking to a set risk per trade counts. All of these things help again having a structure will help you make it feel less like you are Gambling which far too many people do And one of the nice things I think about trading is you can work from home Which of course I do and it's very convenient very convenient And and actually it's a luxury to be able to work from home even since covid It really really is but you can make your own hours trading if you're doing options You can put the trade on in the morning You can put a sell order if it hits it's a limit order It cancels before four o'clock if it doesn't hit you're still in the trade for the next day So you don't have to sit and babysit the options all day If you don't want to you could put an order to sell it at 50 percent if it hits if it doesn't you're in it If you're in day trades when you trade in the morning between 9 30 and 10 a.m eastern time That's it. Bling bam boom. We're in and out and done or we don't do anything That's it. So trading is not full-time hours Which again is very positive because you can make a lot of money in a very short period of time Which is you know right now time is money It's important for people to be doing other things people have families They have other responsibilities. Some people have full-time jobs They'd like they want to trade on the side for extra money. That's okay For me trading became a dream job when the mortgage industry collapsed And I had to find another line of work because I was working so many hours And the industry was changing and it was working harder and harder and harder and harder And it just didn't matter at the end of the day. It didn't really matter because It didn't matter how hard I worked banks didn't want to prove loans That was in 2007 and 2008 when the mortgage industry was collapsing Now the banking industry seems to be collapsing. So these are very interesting times But everything I do is based on technical analysis. I call it advanced technical analysis Why because I'm looking at the technicals in a chart in a daily chart I'm looking at the gap and I tell people all the time if you do not know how to read charts If you don't use technical analysis, then you're basically trading blind If if you are just looking at the fundamentals even in this type of market like I said It's been choppy You're getting eaten up because something could have great earnings in fall something could have terrible earnings in rally And again people are looking at the market and they say, oh my god, this is fabulous the unemployment rate so low Oh, that's so great. And they want to go on the market really What I mean look at the backdrop of what's going on and the numbers are only as good as the people that are putting out the numbers anyways There's a lot of people that left the workforce since covid some of those numbers are skewed and slanted and you know again unemployment is a is a um You know a a number that doesn't start to show you really what the effects are It's a lagging indicator. So if things change you wouldn't you might not know it until several months in advance And things could be turning and changing unlike interest rates, which again Every time the fed has a meeting and it goes up right away But it's all about institutional money for me and that is one of the things that's been very difficult for this market Like I said, people are not coming in and buying and then they're not coming in really and selling like a hot cake either But if you're looking for Anything anything at all to make money you have to look for institutional money in the market and for me I'm preferred like I said to short, which is what we're going to talk about today. So this was paypal Paypal we did um, this was really the play of the week We did the paypal and it continued and I actually think that paypal also is lower So this is a chart actually from the 10th since the 10th. This has continued And in fact, let me just I'm going to stop this and pull up the current paypal Just hang on one second. I'm just going to stop this and pull up my chart to show you The paypal right now Um, can everybody see The cues let me put out the paypal Can everyone see a chart of paypal Actually, it's still loading It is still loading Wow, this is slow. Okay, there it is Casey paypal So again, we were just talking about shorting and why I like to short First of all, all everything I do is based on the gap. So paypal closed. This is five eight I'm going back to last week Paypal closed at 75 52 boom open in the morning here at 69 53 paypal gap down fell off a cliff fell off a cliff here Rallied here failed to go anywhere fell off a cliff on friday. This is five twelve Lowest 61 31 then paypal sat on its butt today Didn't do anything at all Paypal is lower. Okay So again What is going on in paypal? Paypal is getting sold off paypal. We are shorting. So you have shorts and paypal too So again institutional money is doing. What would the paypal? Selling shorting everything to the downside nothing to the upside So again, I get up in the morning. Actually, I think this gap was at night I think that gap was at night that I saw it And I got up in the morning and I rated the gap in the paypal And it rated for me to short So then we shorted it and we did a put and we did a day trade and it went And really the process I'm trying to determine where paypal is going to go for me Is something that I teach in my class. It's something that I go through It's a process where I will go through the points in the morning to determine the directional bias That I think paypal is going to take So again paypal could have rallying filled the gap, but it didn't that is a way that some people play gaps It is not reliable or as consistent as what I do, which is why I do not do it So I'm never going long a gap down and I'm never shorting the gap up Okay Anyways paypal is a good example. Let me just click back to the slide here paypal is a good example of a short And a a good short And so I just wanted to show you that that was the gap of the week last week So this was the trade that we did we entered at 6505 now I took 6,000 shares of this. This is a big position Now, how do you figure out the cost of your position? You always take your share quantity times The stock price you can divide it by four if you have a retail margin account And if you don't want to do that, guess what you would do you would buy a put So you could have done the 65 puts for whatever in paypal I actually called a higher strike Put in paypal. I called a 70 dollar put in paypal. It was a really big trade Anyways, the exit and this was 6340 the profit and this was 9,900 So this was actually the day the second day the second day of the trade We did this we did a put Derek is asking how do you do this with an option? You could do a put in this if you want to You could do a put So instead of doing the short on margin Which we did in the room. I do both Again, that was the second day here, but you could have done a put the second day So you could have bought a put Could have bought a put for the rex expiration of 512 or for 519, which is this Friday So again, this was the gap of the week because you could have done every single solitary thing in this if you wanted You could have done a swing trade in paypal. You could have done a day trade in paypal both days You could have done several different strikes and options So the whole idea and the process of rating the gap is guess what If you find a good gap you can play it however you want So the again the structure is my rating system my rating system tells me I can take this gap That I can look to enter this gap How I choose to take the trade as an option day trade a swing trade is up to me But again, the whole concept and idea of it is you're going with the gap in the direction of the gap We're doing weekly options for options, Derek And again, anybody has any questions you can Type it in the room and I can't answer it as we go along So again, it's the whole purpose of doing what of actually being able to predict Quite frankly that paypal will fall because that's how you're going to make money If you're going long paypal here, you're down. If you're going long paypal here, you're losing too So the genius of my system and the reason you would come to learn and take my class from me is that you would Be able to predict like me when you get up in the bed and you roll out of the bed in the morning And you see paypal here at whatever time you wake up 8 a.m 8 30s 7 o'clock in the morning That you rate the gap and can predict that paypal will in fact look something similar to this by the end of the day And that's the whole point Now the second day, you know, it was just gravy to do it continued. So here was the first trade So I sent this at at 9 21 within the 10 minutes or 9 minutes before the open it kept falling It was through the strike even by the time the market opened I called the 70 Puts that expired last friday And I called them on the night So that was the first day The cost of this was really really reasonable $2.25 is you know one contract that means would cost $225 And again, these are the weaklings and I got out of this At 650 which I thought was a good sell point, but it absolutely kept going So you could have made more So 17 grand in two days is really really really a lot of money and 189 return investment Now this is an advanced trader risk. What about someone that can only risk around a thousand You could take 5 11 25 again could have held it more, but this is phenomenal profit And you flipped your trade around almost twice 21 25 This is taking it one day getting out the next taking it one day getting out the next And anybody can do that and you actually do not need a margin account to do this You can take and train options on a cash account You could have taken one contract and almost doubled your money, which would have been great With the weekly options do I feel safe with five days until expiration or 10 days until expiration? I'm doing the weeklies So that means that I'm I'm doing the one that expires that week But I'm not going to take a trade on a friday that expires on a friday if that would that's what you mean I don't know what you mean by 10 days I'm doing the weeklies. I'm not doing every two weeks If I take a trade on a friday morning, I'm taking it for the following friday To give myself The cushion because not every trade that I take goes the same day. I'm in some trades right now That I actually did that are down But I just took them so it's not a big deal But they have plenty of time So not every trade goes the same day that I take the train I have to build a cushion if you've trade options, you know that there's something called time value Yes, it's got to go within the time period But I'm not going to be so tight with it That I'm taking it on the expiration of the day Which which again now they have the qqqs and the spy have daily expirations I am not calling those and I am not doing those You have no time if you you don't have any time at all if something moves against you They have economic data news somebody speaks in the administration Then you could lose in a trade and it could end up working the next day and I don't want to that's just silly So I'm not doing the daily expirations I answer your question. Okay, good Anyways getting back to what I was saying It is all about figuring out the specific strategy to do In the morning I rate the gap. That's what I go with however I do it and and again from teaching people For as long as I have been teaching people now Which is You know 11 years 11 years You know, I found that People just Are all over the place. I mean People really are all over the place with things that they do that they trade and I will give myself All the credit in the world for sticking with one thing You know, I when I first started trading I didn't know what I was doing and I and I thought that I did but I didn't And then I got into shorting because I made a lot of money one day in shorting and it wasn't a gap And then I said, oh my god, I love this. I can't believe how much money I made so fast And I thought I had it figured out but I didn't and then it took me three years, but I did Understand that I only needed one thing in order to make money and I really only needed one trade a day Now there are times I do more than one trade a day. However You really only do need one And so, you know, I don't have the trading room open every day from 9 30 to 4 Because people tend to give money back as you trade in the afternoon. It doesn't make any sense And again, I'm I will stack some options trades together if I am reading the market in this particular direction For example, and I feel the market's going to go up or the market's going to go down in one direction I may stack calls or stack puts And if I am reading the market to go a certain way But in general I find that teaching people for 11 years people do not stick with one thing That is part that adds to the confusion of people and then you add on top of that people's fear of taking risk And you can see why people struggle so much trying to make money in the market They hear somebody say something on tv. They go into a chat room They go into a free trading room trial They go into a webinar one person says one thing another person says another thing and they don't know who to believe And so the people are confused. They're wishy-washy about what they do. I'm not I'm all in every trade that I take and I may lose full throttle. I may just stop out I may take an option on a monday. It may bust out by friday. It may never go right But I believe in every trade I take And so I and I never second guess it. I never second guess it even if I'm down in it I don't second guess it why because I utilize my strategy and I know my strategy works more than It does not Therefore the conviction that I have in what I do the confidence quite frankly that I have in my golden gap strategy Allows me to let the trade play out Win or lose and that's exactly what I do Um, do you stagger your exit? It's a winning trades to recover your initial investment what No, what do you mean? Like if you risk $5,000 in a train I don't understand what you mean if you risk $5,000 in a train And you take two contracts. You're saying to get out of one To recover part to book something and then hold the other contract or something or is that what you're saying? If you have a couple of contracts, is that what you mean? Walter has a question. I didn't understand what he meant. Is that what you mean? If you take six contracts of something and it goes in your direction And you want to get out at three contracts at 50% And then you have three more contracts on you have less risk on and you can let those three Right out to a bigger target. You can do that. I don't do that Again for me I'm kind of all in or I'm all out because the reality is like if I have to look at the chart And I have to be focused on the trade and I have to pay attention to what's going on Then I figure that I'm just all in it, but you can do Whatever you want that is not you that is not a Stock swish rule That is my personality. My personality is that is how I trade So that is if that is not your personality that you don't have to do that And again, some people kill trades that are down 50 in the options newsletter I don't do that because I believe in the gap and I don't want to miss it if it goes But anyways, that's my personality That's not any kind of rule. So you can you can do that if you want to Okay, the money manager rules are on you how you feel How you feel that you are feel comfortable Comfortable because if you if you can't stomach taking a trade on a monday That's down into the close of four o'clock And I'm going to bed at night with a trade. It's down that didn't even go the first day then then again You have to kill it if it's down 50 percent But see I'm okay with that So that is that is again understanding what's going on understanding the gap is experience I again believe it in my structure and my system itself But if you're the type of person that it's difficult for you to go to bed at night when you're down in something Every time you're down into four you could kill it and if it goes the right way in the next day You just miss it, you know But it is all about reading institutional money and price patterns and gaps And and I'm telling you as long as I've been doing it You don't have to do anything else because if your reason for doing this is to make money We'll make money it does not mean that every trade will work But it means more will work than won't so guess what you have to use some kind of common sense and money management If you have $10,000 and I call two trades on a monday You can't risk five thousand and one and five thousand and another Because what if both of those trades lose then you'd have no money left in your account So you have to think reasonable About what you're doing in reference to your risk never risk your whole account at all in any one given day or anything again, you have to Think about what you're doing And and the best thing I can say is really just using common sense But I also think it's important to see sequels for yourself. Where do you want to be by the end of 2023? How much money do you want to make trading? Do you want to even be trading at all? Is this even something you want to do? Is this something you want to do or not or is it like a hobby like meh? You're like meh if I do what I'm doing if I don't I don't again, you can't be like Wishy washy like You can't be like that and make money. It's too competitive out there. It's like saying again I'm going to use the example of new york. You want to audition for a Broadway show And you're like, well, I don't really have to practice that much You better practice your butt off Is what you better do if you want to make it if you want to get picked So again, it's you have to be like all in All in in your mind in invested learning understanding what you're going to do It doesn't mean you have to spend 24 hours a day seven days a week living and breathing the market It just means you have to you should take a class. You should understand what to do You have to get up early in the morning. You have to focus on your trades You have to get out when you're up. You have to pay attention to what's going on And again, it's a choppy market. You must pay attention to what is going on Success in the market though is about mastering the skill and that means You know, you have to be consistent and a lot of people like us that are not consistent from me The consistency is in my strategy and the focus of that and also in the beginning part of the day when I'm seeing the gap happening So my system I termed coin name the golden gap and it's a rating system that looks at 26 points of the daily chart of a stock So you've been following me for a while. You've heard me talk about this The rating system is a checklist The checklist tells you what to look for in the price of the stock And the points predict price direction correctly when a stock is gapping it may or may not go that same day Unfortunately, I wish every trade went the second I take it Sometimes I take a day trade and it goes right away Sometimes I take a day trade and I get stopped and then it goes the next day And I might already be doing something else the next day and and then I go back and I said crap Look at that. It took two days to go Sometimes I do an option and it goes the same day. I love that again paypal happened We had that in ba the other week Sometimes I'll take an option and it doesn't go the first day. It doesn't go the second day It doesn't even go the third day and it goes the fourth day You said, well, how can you make money if it doesn't go for a couple of days? Because we're playing momentum We're trading momentum So if the momentum comes in again, we're always playing momentum or we I prefer to the downside That's what we're talking about shorts and going fast But you could be I've been in trains that I took on monday that I was completely down in And went on friday and I made money now. How is that possible? Because on friday the day that I made the money in the train it gapped down And then it fell And again, this is one of the reasons that people are struggling right now with the market They're not seeing any consistency at all with support on the market They're not seeing consistency with resistance levels in the market They're not seeing consistency With with anything really quite frankly in the market And so people are struggling struggling with the trades because you do need the market actually In most stocks in any given day to trade unless it's a specific stock that's gapping Which is why I look for gaps, but you do need the market mostly to get the moves and stocks But anyways the points tell you where the money is flowing and why does this matter? So you know what direction to take the position for profit and again We're looking for a big move perform in the first 30 minutes of the day And I call this the money move you played that move you're in and out and done now I hold options longer. I don't get out of options in five minutes 10 minutes. You could Some people do you don't have to but you could but I'm looking for what I call a money move And you need momentum for that because that's where the money You have to be able to make money in trades when you get out That you actually can cover the trades that you lose into So you need a couple pay pals every month. Why? Because you're going to have some trades to lose So you need the pay pals to make money to get up and then also to cover the one loss or whatever Whatever that happens to be whatever trades lost. So that's why you need some big ones You would like very much if every trade wins that would be awesome, but unreasonable to expect It is unreasonable to expect and let's just let's just go over Let's just go over why for example Actually, no, I'm going to show you here. Hold on. I'm going to bring up something. I'm going to tell you when we did Hold on We did this Actually, this is we're talking about shorts today, but this was a long hold on I'm pulling up apple, but it's taking forever. I think this zoom is like such a data hog Just wait till this loads That takes forever. Look This is zoom. Oh my god. Can anybody see apple? Wow, look at how long this is taking Is everybody still there? Wow, that was forever. You are still there. Good Geez, I don't know if it's my internet. Okay apple. I'm gonna I want to Derek said and rewinding here I would like to win in every trade, but that's not that's unreasonable to expect. Yes. Why? Because sometimes things happen that absolutely absolutely no one can predict No one no one at all and there's times when something a hundred percent A thousand percent should have worked and they don't and you say I have no idea why this didn't work And it should have worked and I'm going to go over the sample trade a minute explain something but Another another big boo boo that traders make is they constantly want a reason Why didn't this work? Why didn't it work? I must have done something wrong this No, sometimes things just don't work and guess what there is no explanation There is no explanation stop searching for an explanation. It's the name of the game It's you're playing the odds The odds are that some trades are not going to work and there is no reason so stop beating your head against the wall Okay, so we did apple This was a long okay Stop close to your gapped up. Boom. This actually was earnings seems like a long time ago five five It's two weeks ago. So we went long in the trading room. We actually did in the day trade room And we made money. I also called apple calls on the options newsletter And then I sort of you know It closed good. I was up I wasn't up a lot though and I said wait a minute. Did I pay too much for this or something? I got in it pretty quickly and I said no I mean this just didn't really go like didn't really get the juice in it And I said okay fine and I didn't get out And then It's like okay, this is gonna go it's gonna go it's gonna go at any second. It's gotta get to 175 It's gotta keep going like this, you know And then it fell here. I think the market fell that day and I'm like, okay, here's today. It's gonna go It's gonna go it's gonna go It's gonna get going and again I really I was down like this day, but it wasn't like crazy down any day But I was never crazy up like it just it just couldn't get the best way I could describe it If it couldn't get the juice and if you've ever traded options Again, how do you make money in options volatility momentum? It goes Options chain goes and that's when when the option you call it an option runs I say it runs. It's in this case. It would be running up instead of running down And I ended up getting out of it and making just a teeny weeny weeny bit of money The day before the expiration It should have gone bigger It made no sense that it didn't It just didn't and again, this is another thing you say wait a minute This is this should have been a 180 The day of the earnings or the day after or the day after did I lose in this trade? No Did I make a million dollars? No No, I didn't I got out of it with a little bit of money I didn't want to hold it into the last day because I said this is not right I can get out of this with something And I got out of it and it's just like it just again You say well, I'd love to make money in every trade But some trades you won't lie Because sometimes things don't make any sense. It made no sense why apple didn't go It never got the juice. It didn't didn't really get going And again, this is another telltale sign of what's going on with the market The perfect example here you have this huge stock that everybody loves and everybody wants to trade Nobody cared or it would have been at 180 in the last week and it and it didn't I just it couldn't It just tried and it couldn't Okay So so so stop looking for explanations and everything that doesn't work when you lose The fact that some trades lose is not something that should ever focus on you set your risk You take the trade and you don't worry about it And if you're worrying about it then you don't know what you're doing You absolutely do not understand why you're even taking the trade or you are so freaked out about money and losses that it's messing up your head So that's that's my two cents on that You have to get up and take every trade. I'm going to go back to the slide here a minute You have to get up and take every trade with an expectation that it's going to work Because if you don't expect your trade to work, I mean, how could you do it? So, you know, my expectation every time I take a trade, I believe it's going to work Does every trade I take work? No But I absolutely expect myself to do well every time And that mindset has helped me and that mindset will help you if you if you go into it like that way Like when I go on live television, so every hit I do is live they're not tape tits unless it's a holiday Sometimes I get called to be on fox on a holiday. We tape it, but I don't get to do any replays I can't say wait a minute. I didn't like what I said there. Can we redo it? They won't let me say that so it's basically live even when we do the tapings But most TV I do is live. There's no do over And every time I go on I say I'm going to do fabulous and then I do So you expect the best and you do the best that you can But if you don't expect yourself to do well You're you're you're working against yourself Before you even started Any questions any comments Anyway, success and large profits come from quality not quantity in the place and the more plays you have The potential for more losses. So again quality is key Everything like I said, I do is based on gaps. Why do they pay so well because they're based on momentum and they're based on Moving with institutional money and that's what makes the gap. We squeezed every penny out of apple. We could have there was no more to squeeze So again the professional gaps that happen and play out in stocks are formed by one thing and one thing only large institutional money Therefore you need a way that will help you pick the correct direction to play the gap And then confirm that the large money will flow with it And if you can do that, you're going to be able to do well And that's all that you need to do. That's all that you can expect of yourself That's all that you can expect. Okay Set the proper expectations for yourself with with what you can do So the philosophy behind the 26 point system is number one a high probability of directional bias for the entire day Preferably the first day, which doesn't always happen, but preferred I want big moves on the day Again big fat red bars because we're looking to short Early confirmation of my move as fast as I can between 9 30 and 10 if I can get it early early early Okay, and then precise entries with follow-through and a good risk to reward Now I did not update this Um But but I will but so far for the month of may we're off to a good start We're off to a good start. So let's go over a couple gaps here. These were day trades that we did CVS stock close to your gap down fell. This was may 3rd Again, this was a short that we did in the day trade room where I shorted it Yeah, I got out of this too early actually quite frankly In fact, I don't always have the best exit every day because I want to get out of my trades fast and book money But we entered it at 70 10. I added it 70 50 My average price was 70 30 ish and I exited 69 90 profit was 1600 dollars So in this case here, I could have held this longer It's continued down went and broke and I and I actually Could have could have held it longer. It went all the way down to 69 broke 69 But I could have made actually another dollar in this thing But I made money. I was happy. I was done. We did the spy then 5 4 Just want to show you here the gap Market close to your gap down fell boom 5 4 So this wasn't last week was week before two weeks ago Again, if you do not want to short this on margin at 406 30 that when I call the trade in the room do the put Do the put We got a two dollar plus move on this. It really was a great call This was a huge play if it is a day tree And again one of the benefits of day trading on margin is you would have had to take a really big size Of the spy to make this kind of money in and out as fast as we did that day trade So sometimes day trades can be Very profitable because you could be very nimble with lots and lots of size if you got the buying powder taken Whereas options again, they don't go exactly and equate exactly But this did go fast If you did a put and actually you could have done the daily expiration that day You could have done the may 4th expiration the spy puts you could have done the 406s or 405s Actually because that fell down to 404 you could have the 404s Made money because I called it a 406 and changed We did peloton did not do an option in this we did a short Stock close your gap down dropped This is a day trade again on margin a rinky dinker But again, you can load up the size if you can take it We made 10 cents. It's something it's money Again, this doesn't move that much 40 cents is a big move for this stock It actually did continue. I could have had it. I could have made 10 cents more I think the low here is 735 Or 720 something So again, how do I use my system? I wait for the good ones. I rate them We're looking for high odds. That is the plus the philosophy is looking for institutional money looking for momentum Sometimes the momentum comes in ideally the first day. I take it sometimes the momentum takes a day or two 24 to 48 hours is ideal is ideal. Okay, but sometimes it happens at a couple days AMD was a good example here where the momentum came in pretty fast pretty quick. This was earnings. This was back may 3rd Stock close your gap down called an option fell And I got out It was the 82 puts This is was dirt cheap actually Cost was a buck 50. So you could have taken two contracts and risk 300 dollars Okay And you could have made 200 bucks basically so again It's it's just one of these things where you don't have to have a huge account Seven contracts you could have made 700 dollars It was 67 return on investment. That's money 50 return investment is money Again, we're playing the momentum if the momentum comes in you get the move out done boom It fell through 82 felled all the way down Hit down in here fell through 80 again. This is the tail But on the day this was all the way down here boom out done Whatever it is Went to the target. Okay And that is how you have to play them But how I've developed my system how I look at it how I make the picks for the day trades and the options is I have a formula to rate and qualify the gap And then I wait for the gap to set up get the confirmation and conviction that the large institutional money is on my side And then I play it gaps are an event and they create a sense of urgency quick hurry hurry Thus an action is being forced by participants of the stock This is why gap trade is incredibly powerful trading gaps is a powerful and profitable way to trade because you're trading the side of power Money hd is home depot and that has earnings tomorrow morning. There's nothing. I'm looking at tonight Tomorrow morning. I'll get up early I will go from my walk in central park then I will Come home and look at home depot. I don't know what home depot is going to do Home depot may gap up home depot may gap down home depot may do nothing But I doubt it home depot will probably have a move on earnings And it will gap and I will rate the gap tomorrow morning and I will determine where I'm gonna what I'm gonna do with it So again, I don't always always do everything that's gapping. It has to rate 20 points or more But my watch for tomorrow is hd And so therefore, okay, I'm going to look At it in the morning and most days there's lots to look at But the whole philosophy behind my golden gap system is to analyze a large time frame to make the trend decision on the directional bias for the gap All large traders of every kind look at large time frames and make decisions particularly institutional traders To make entry decisions and exit decisions based on a time frame the one minute chart Which is a high degree of focus and accuracy Using the daily chart to make the decision for the stock pick allows for accuracy in the direction And using the one minute chart allows for good risk to more trades with accuracy. So again, you have to try to get something Very very picky because there's thousands and thousands and thousands of stocks to train If you're not picky and or if you don't get something that's on its own without the market or read the market correctly It's going to be hard for you to get the momentum. It's going to be hard for you to make money We did ba. This was timed very well stock close to your gap down fell Anyways, this kept going 195s we did expired 512 225 was a cost sold at 470 In out boom This went more than 100 the day that I called it and an ideal world every trade would work like this So again, this was the 195 ba's Closed here gap down fell So again, this day here was the fourth It doesn't mean that i'm going to hold it forever. Okay If it goes the day that I call it even if it doesn't expire to the 12 You're up more than 100 you get out Okay, now this gap down and it fell And it fell fast if you had taken a small size or five contracts was 1125 profit was 1225. This is good profit This is good profit. This is a good trade So again, this was another one that had momentum what happened here a sell-off And we took advantage of it by doing this short. So I have a very very trained eye I just want to show you so I called this train 942 So at the time I called this at 942, you know, this is where ba is And then here's where it goes So i'm predicting that it's going to do this or something close to this When I make the trade So it is about you're really precision choosing the right thing a quality strategy also having to Good risk to wording sizing yourself correctly Because if a trade doesn't go right away as you're going to freak out if you have you oversized yourself You want to allow the trade a chance to work. You must allow the trade a chance to work It's about precision detail matters It can make a big difference if you make a lot of money It can make a big difference in anything. Do you ever get a haircut? I don't know how many women are here Did you ever get a haircut if you're a woman some there's all these different ways of I mean they they people love for some reason and I always say when I go to a new person when I go to a new hairdresser Right now. I'm trying to find a new hairdresser. I'm having a difficult time do not Thin out my hair, you know, like people want to go in and do something that's called Texturizing because I have a ton of hair. I love my hair. I don't want to texturize. I don't want to thin out I don't want any of that nutsiness again precision matters someone could could do one little thing and just mess up my haircut If you're a woman, you know this if you ever got your haircut So precision matters detail matters Okay Very little tiny things can make a big difference Um when you're trading very very small tiny things And without a good strategy, you will never make a dime in the market. You just won't You'll never make a dime. You'll never get there And again, you won't get there by sitting on the sidelines and watching and and and not having a strategy Which again, I think is a downside for a lot of people now How much money do you need to do this? You need enough money to have an options account Which is a minimum of 2,000 enough money to have a margin account, which is a minimum of 25,000 You need to take my class if you want to learn my system Again, you have to have a trading account. You do not need any special scanner The software that you need is you need to have live charts and you can get that on your broker and it should be for free So it's not like you're buying special software from me when you learn what I do in the class You will be able you will be doing it with a With a notepad and a pen and paper in your brain every day filling out a worksheet It's not something that you just buy any software And you must focus on the right information if you want to do it and for me It's I really have a plan about monkey money. I try to get out of trades when I'm up I don't kill things when I'm down. I let him write out But when I'm up, I do get out and again like I talked about earlier working from home is so convenient It's about getting the right rest of morning. Every single trade you take 50% is good I'm looking for 100% and everything I can get but I'm not going to look a gift horse in the mouth If I take ba and it goes huge Or even something like amd and it goes big and huge to the target the day that I take it. I'm out Whether it's 52% or 67% or whatever. I'm out Every time I take a train I book money then the money's in that account the next day the profit I made and the money that I used to take the trade. So you've got to book them Any questions here so far? I see some new people. I see some old people That have not taken my class Any questions from anyone About anything ask me Can feel free How are we doing? I look at targets I look at targets I look at targets and I don't have pronounce your name tam maji. Does that have pronounce it tam maji Did I do good? I look at targets Four of my options I look at targets for my day trades Now I have multiple targets So if I take a day and train and it goes to the target Fast I may say let's watch it. Watch it. Watch it. Let's try to hold it a little bit longer a little bit longer for the next target And then I get out of the next target But if it's taking a while to go taking a while to go taking a while to go then finally goes Again, then I'm just going to be out whether it gets to the target or not If it's having a problem and I'm up in the trade. I'm not gonna I'm not going to knock it out if it doesn't get to the target So I look for targets on the chart quite frankly And I have those on the options newsletter. Now if I made an option and say the option goes blows through the targets that I initially had figured out in the pre-market PayPal again is a good example It plows through the first one the second one boom boom boom Then I'm going to hold that trade a little bit longer because I'm going to say wow, this is going It looks great. It looks fabulous. It's really really good. It's going to keep going and I may hold that trade And basically I'm already up Now if I take a trade in a Monday and I have targets and I'm down in the trade It's nowhere near the targets. I'm down in the trade. I just took it It doesn't go Monday. It doesn't go Tuesday Wednesday. The trade is up I'm not going to hold that to a bigger target because I'm like wow, I was down in this trade for two or three days Now I'm finally positive in the trade You know, I've got to look to get out of this Because it took too long to get going. Does that make sense? So you have to you have to watch it What's going on how fast it takes to get there? So yes, I watch targets the speed it gets to the target or doesn't get to the target actually Will have something to do with me getting out when I make the decision of it And again, I do teach targets in the class We do review targets in the class and I do review something called exit signs in the class Again, that's complicated and that's what I teach in the class. It's something called exit signs But anyways getting back to talking about the future the past and where things are We live in a different society. It's just a different world that we live in right now than we used to live in before where things have changed So, you know, we live in a world where You know, you sort of have to rely on yourself and what's going on with your own life You can't really rely on Working at the same job forever You know, it'd be great if you could But things change, you know, the economy is changing too Any other questions here? Good question so far Learning how to trade before risking your money though is an important factor to becoming successful You need to empower yourself to do it and again, like I said earlier, nothing in life that is great comes without taking chances or risk So I teach my class as a 26 point rating system It's how I'm able to predict the move stop makes so accurately including the market The process is I followed this checklist and I've been doing this since I developed it for a long time now So it's hard to believe how long But it's like second nature to me now for until you learn it and you get it into your system You may take you practice, but you'll get it once you do the class if you sign up It doesn't take forever And I think a lot of the things I do are common sense So the golden gap system is a 26 point professional bearish gap rating system The purpose of the system is to help you evaluate which gap to trade each morning using a checklist This is a class in how to find pick and play professional bearish gaps Now I'm doing a special. I came up with this idea to do a central park special Through thursday may 18th. So the deadline to sign up for this weekend is thursday I ready if people signed up. I take a limited people every class to the class once a month do not wait Class is may 20th and 21st saturday and sunday 9 to 5 class wishes normally 69 99 I'm doing a central park special a thousand off the class And the trading room and options newsletter free through the end of 2023, which is a great deal There's a long time left in the year So you get all the options trades all the day trades and the class for 59 99 So this is a huge deal If you're interested in this you can email me at melissa the stock swish.com is going on through thursday Any questions anyone want me to look at anything at all Home depots tomorrow like I said if you want to watch it If you want to email me questions, you can email me here And again, some of you are new if you have questions you can email me some of you. I have seen before I don't know why some of you haven't signed up. You're clearly still interested and Some of you should sign up. Some of you could have been with me for years Any questions any comments? How's everybody doing? I appreciate everyone coming You can always email me questions I will see some of you later in the week Wonderful Thank you. Thank you for coming You're welcome