 Gaps and she does a really really good job. She's been featured on CNBC I really enjoy having Melissa on and that's why I bring her on so often. So Melissa Let's go ahead and get you in here. How are you doing today? I can yeah, good Let me go ahead and make you the presenter. How are you doing this afternoon? Yep, I can see you and I can hear you let me turn off my camera and It's all you I mean Jeff welcome everyone beautiful day here in Manhattan, and I'm happy to be here today to talk to everybody about what I do which is trade the stock market So let's get going here. I'm here to talk to you today about gaps like Jeff said But particularly I'm here to talk to you about trading for a living So, you know when I started trading the reason that I started trading is I wanted a new career I was doing mortgages, and at the time it was 2007 2008 and the mortgage industry had started Collapsing right under my feet, and I did mortgages for 17 years and the industry changed And you know I was at a point where I really wanted to do something where I could make a lot of money and Lo and behold I found out about the stock market the interesting thing though about trading is you actually have to learn how To train before you can make money in the market It's not like you just go and you start a job Monday morning at 8 a.m And all of a sudden you're making money. It's a skill. It's a skill set So actually getting good at trading actually making money trading means that you need a certain skill set and more importantly You actually need a strategy that consistently works in the market to be successful So if you have any questions you can plop them in the room I'll see them as we go along here. You can also email me at Melissa the stock switch calm You can call me at 9 to 9 30 200 gap you can follow me on Twitter Facebook YouTube and Skype as Jeff said I appear on national television and I also have been putting YouTube videos actually I live in in New York Long Central Park I've been putting some park videos. I took a walk in the park today. I've been putting some nature videos on so My YouTube is quite interesting. It's about the stock market. It's about TV clips I have a nature video. So I try to make it fun And I also try to put on Twitter whenever I'm on TV as well here I was talking with Neil Kubuto about the economy, you know, the economy has been up down up down up down We saw the market have a rally on Friday into the holiday week Because we had some data out and again, it's going to be a very interesting Next six months why because the market started off pretty bullish this year We've been rallying we're up for the year so far and the QQQ is in the spy But the question is will it last will it last so coming into this coming week July 14th Which is this coming Friday is the beginning of earnings season earning season is important because it's the best time to make money Trading in the stock market. So I think where the market goes For the for the remaining part of the summer and into the fall is really going to depend on how earnings turn out Particularly the banks of the financials which have had a rough start to the year as we'll know some banks went under under this year And of course the banks have been rocked by interest rates rates continuing to go up So I think we're going to know a lot more Really in the next ten days once we see how some of these large banks report their earnings Getting into the beginning of this earnings season. So why are you here if you're here today to listen to me? It's probably because you want to be successful You want to be successful as a trader or maybe you're losing money training or maybe you're making money But you're not making enough money or maybe you know Maybe you've never traded at all and you don't know where to start or you need a trading strategy You're you know, you're trading but you just don't have a set thing to do every single solitary day that works consistently So that's what we're going to talk about here today And again, if you're going to be successful, you have to have a successful strategy And particularly if you want to do this for a living and whether it's part-time money or full-time money The whole idea about training is the stock market is only open from 9 30 to 4 and it's closed weekends Which is how I'm able to be with you here today, you know, when I had my mortgage job I worked seven days a week seven days a week In fact, I think the the end of the line for me was I had a customer call me actually on Christmas Day Christmas Day was with my family and I said, that's it. I've got to find a new career So I think everybody gets to that point where they realize they want to make a big change in their life a career change in their life And you know, we've seen that more and more even with the work at home scenarios that many careers were having now and really since COVID But even if you like your career and you like your job You can still make money on the side trading and it's part-time hours. You know, I trade the morning So I'm taking trades at 9 30 in the morning right into the open and the first half hour of the day And you can make a couple hundred dollars a day trading and you don't even have to sit there for six and a half hours But my system that I trade like I was saying earlier is based on gaps And you have to have a successful strategy in order to trade the market And again, a lot of people want to buy dips and while that can work in a bullish market when things turn It doesn't work and you can't buy every dip dip and make money even in a bullish market Even in a bullish stock, you saw that actually in the video. The video is a very very strong stock Probably one of the strongest stocks in the market right now. And if you bought every pullback in that you were not successful Okay, but that is something that I've been watching particularly going into earning season as well So I put the main results here in the room for an average risk of $2,800 per trade If you're in my live room in May and I have june's next with this type of risk trading equities Now for those of you who don't know what equity trading is it's when you take a trade on margin So you have to have a margin account in order to day trade So I run a live room every day and money through Friday and I call the trades live I call the entry the stop and the exit in the room if you had risk $2,800 per trade for the month of May you would have made $59,912 with me and in the month of June We had a good month in June too. You would have made $57,752 Now I took off this past week for July 4th. I'm back on Monday But overall the last two months have been very solid now those of you that don't know me. I focus on shorting I will go long. We did actually go long, but I'm mostly short And he may have said well wait a minute Melissa if the markets bullish Why are you shorting? Because short moves happen as a result of panic and panic comes in fast And you can make a lot of money shorting if you know how and what to short and when so I like the fast trades Particularly because I want to get in that quickly and then I don't have to worry about Economic data or any Fed reports or anything else that happens to come out that could mess up your trade So anyways to get these kinds of results. Okay, these good solid results. What do you need? You need a consistent strategy that works under any market condition bullish bearish Sideways, whatever you need a way to make the daily picks You need a way to enter and exit the trades and you need good money management. So I mean again I say this and it sounds very simplistic, but there are a lot of people that are trading that Don't have a set strategy and they also don't have good money management. What do I mean? They don't get out when they're up or they risk too much You should be risking the same amount of money in every single trade that you take So if you're risking $1,000 a train, it's got to be close to that in every trade Otherwise, you can't compare apples to apples because you could have five Winners where you're not risking the same amount where you're risking less and you get a one loser that could blow out the five winners So you've got to have a consistent amount that you risk on every single train in order to see consistent results to So for me, like I said, I focus every single day on gaps So for those of you that don't know what a gap is a gap is a difference between the clothes in the open simple But can you trade every gap that happens in the market? No now a lot of people do gap fills I don't do that fills I'm actually looking to take the gap in the direction of the gap. So if I see a bullish gap up I'm not gonna go long if it rates for my system if I say a bearish gap down I'm looking to short based on my system You can't go long every gap up and you can't also short every gap up and vice versa Now most stocks gap in any every single day and also the market. So like when I said the market I mean the QQQ's the diamonds, which is the DIA ETF of the Dow or the spy SPY which is ETF for the SMP So I will train you overall market sometimes and nowadays you can actually take daily options in the market They have daily option expirations. That's not something I'm doing I'm doing the weekly options when I trade them, but you can you can you could actually day trade the market ETFs as options now and get in and Get out quickly Someone is asking about capital No, these trades here the results that I just showed you were in the live room. They were trades on margin You do not trade options on margin options trades You have to have the cash whatever you pay for the cash We will talk about options in a little bit here But on a margin trade you have to have a margin account, which means in a retail broker You need more than 25,000 you can open up an account at a prop broker Most places require a minimum of 5,000 and you can get 10 to 1 margin at a retail place You need 41 margin options trades are based on cash Whatever you risk per the amount risk is what you is what you have at risk. So it has nothing to do with necessarily Well, I shouldn't say that because sometimes usually the cost of the stock as far as price per share Equates with the option, but then again I say this and then I'm looking at the spy options and some of the QQQ's options And I think they're very reasonably priced, but typically if you have an expensive stock something like Divinia You might have an expensive option, but it's still cheaper to trade options Then it is more so than to do margin trades. Okay So I do do options too But the live room is equity trades what I'm calling the equity trades the options trades are newsletter trades And we are going to go over some of them as well In fact when I go over the last week of options trades that I called on the newsletter But that is a subscription service that is not the live room Did I answer that question I think so okay, so let's get back to talking about gaps again You do not need a general overall broad-based view to make money in the market You can read all the books in the world. It's not going to help you make money Okay, and tons of people have a lot of information about the market and they fail Okay, because they don't focus on one thing for me It is all about the focus of one thing and even one trade per day And I'm looking for institutional money in the price patterns and gaps So what do you need you have to have charts you have to have charts You have to have live data you have to have pre-market data and post-market data And you have to be able to see the gap Okay, because again you can have as much knowledge as you want But if it's a general overall broad-based view of knowledge, it's not really going to help you make money It's pinpointing the right thing to do and if you find it and you get it the time you write And this is for day trades or options You need to get the time you write before the big move comes in then you can make money So anyways, what is a gap? Let's take a look at it. This was the biggest trade of the week It was Nike this I did a put-in. Okay, and we'll talk about the options call in this later But let's just go over. What is a gap? Okay, so Nike closed here gap down So a gap is a difference between the close and the open so the stock closed here at This particular day. Okay. It was the 29th and Then it opened at 930 US stock market opens at 930 of the next day at a different price Show it open lower. Okay, so in this case here, it was a gap down and then it fell Now I'm just gonna go back in here. I did not play this but this was a gap up Okay, stock closed here gaped up So it closed at one price at four o'clock and open at a different price at 930 and rally So actually you could have gone on this I didn't on this particular day, but you could have this we bought puts in and it fell and you could have day Traded this to you could have shorted this as a day trade and you could have done this as a swing trade Okay, so this is a gap. This is a gap down. This is a gap up Okay, and actually you could have played those both. Here's another example of a gap. This was by do we did this too Stock closed here gap down fell So again by do closed at one price at four and open at 930 lower at a lower price point This is a daily chart. Okay So you could have shorted this you could assure is a day train and you could have bought a put Got in got out. So it fell the stock price fell on that particular day Anyways, the number one key ingredient to becoming successful as a trader is having a specific system and strategy that can offer you reliable and consistent Profits on a regular basis trading success and financial success in the market is by pure design. It is not by accident What does it take to be successful? It takes having a niche So for me my niche is gaps and it's actually the fast trains and Shorting, okay, so those are the things that I specifically have a niche in that I'm trading on the on the day trades on the stats that I showed you earlier The trains I do on the room. I'm trading on the one minute chart on the one minute chart So I am in and out on the one minute chart most day traders are not trading the one minute chart They're waiting till after 10 o'clock to see what the market's doing or the stock to take a trade I'm usually in and out in five minutes 10 minutes 15 minutes very very quickly. Okay Again, let's go over what a gap is a stock gaps in the closing price is different than the opening price Very simple. So gaps happen every day in the market are all gaps playable or what I call predictable No, you need a correct way to find the best gap and you have to know what direction to play it So that is what is the crux? You know what of what I figure out of the morning and I'm figuring all of this out in the pre market So I know what I want to do I know what I want to do Nike or Mu or whatever I want to train Way before the stock market even opens because I get up in the morning I rate the gap using a checklist if you come and take my class I teach a class once a month on my method This is what you will learn from me. You will learn how I make the picks Okay So I go through it early whenever I get up 6 a.m. 7 a.m. In the morning and again Sometimes I see late gappers, but I usually know way ahead of time what I want to trade in the morning So there are some people that are trading options with me They do not come in the day trading room, but they're trading options with me They get the trades for the options newsletter to their email. They have a full-time job They're not in the room and when they get the trade that put the trade on and they let it right out They put a seller order as soon as they buy it. I'm just buying puts and selling them and I'm buying calls and selling them I'm not doing complicated option strategies. My option strategies is based on my gap strategy. It's based on trading momentum It's based on trading momentum to the upside in which case I would go long or buy a call Or it's based on training to the downside in which case I would buy a put like in Nike where the stock price is falling Okay, so if you want to trade on this side, which I suggest for people until they decide This is something they really want to do full-time. You can do that But I suggest doing it in reference to focus hidden options if you're doing something where you can't be in the live room every day But success or failure if you're trading has everything to do with the quality or system And I'm never amazed whenever I do lectures or webinars or whenever people email me or they ask me questions Or they call me in the phone and I have a conversation with someone and I get to know people I'm surprised how many people risk money in the market and they don't have a system at all They just they don't even have a system at all They say something to me which is which when they describe it to me is an entry It's not a strategy or a system. So there's a difference So I have a system that allows me to make the pit then I have a way I enter that pit There's a difference. Okay, I can't take an entry even the way that I take them in every single thing the trades It has to be a good gap or what I call a golden gap that rates per my system Okay, because you can't short everything and you can't go long everything and again Even if you get it right with the market and again, who's to say what the market does for the next six months? A lot of people are very very very very bullish right now While the market could continue and it's getting close to the highs and we could go over the highs and rally That may not happen And if it does not a lot of people are gonna get pummeled that keep buying dips because the next buy the dipper May fail in the market So anyways what I'm looking for is The reigning system to tell me what to do where and when and so that's what I figure out all the work is done in the morning So I make it easy for myself if I find something that rates good that I watch it on the open And then I do it if I don't then I don't do anything that day. Okay, so let's take a look at Baidu again. We were looking at this here. This is the daily chart. So again Baidu closed here gap down fell This was June 29th I should forget the reason for this guy. I don't remember now It was like two weeks ago, but anyways it fell and it rated good So we did a short in this we did a day trade in this So this was a trade on margin You would need a margin account to take this trade if you wanted to do it and again I call this trade live in the marum the entry was 136 55. This is an advanced trader risk What do I mean? It's anything over a thousand fifty hundred dollars. I consider advanced trader the risk here with this is 2850 this is my average risk. I didn't add in this actually was close to the price I doubled up on size. This is a this is a sophisticated technique But I do this and I call it in the room if you want to do it where I see a second set up where I know It's gonna go so I added and then it did it dropped and we got we got like a dollar 50 out of it So it actually kept going though. So this was a good trade again A dollar or more is a good trade even in something like Baidu over a hundred dollars price per square I mean a price per share 136 56 exit was 135 05 profit was $9,060 now getting back to margins So if you wanted to take that say for example thousand shares just to make it easy if the stock price was you know 136 5 you would have needed how much buying power you would have needed a hundred thirty six thousand five hundred dollars in buying power Does that mean you would have needed a hundred thirty six thousand five hundred dollars in cash? No, if you had a prop account you would have needed ten to one So like 136 50 if you have a margin account where you need four to one You would have needed like a little over 34,000 So again the cost of something is not the same as the cash you need to take a trade And if you don't have a margin account or you have a retirement account and you can't do day trades Then guess what you can buy a put again. I do do puts too I do puts and I buy calls But I'm just showing her to hear an example that I called in the room But you could have not done this if you didn't want to you could have what I put or you could have done both Or you could have done this okay So anyways here was the call so we were talking about the one-minute chart stock close here gap down drop rallying Boom, we shorted it add in got the drop out done Kept going you can see down here where it actually and I think it actually I went to 133 and change So I had I had what I thought was a good exit in this at 135 and something I was up a lot, but it actually ended up coming all the way down and ran down another dollar plus So again, this is a fast trade time of the day and the open is 9 30 and You see the trade fell off a planet in the first 30 minutes of the day So again, you do not have to sit all the day and watch and wait for setups And you do not have to wait to make money what I was saying about institutional money and getting momentum move This is what I'm talking about That's it do out done. I call it chunking it out This makes day trading so much easier if you can figure it out and find this to play it in and out very very quickly Because otherwise you are scalping if you're not getting to move like that to be able to make this type of profits Any questions here about this or buy do So getting back to institutional money Gaps are created with large institutional money. That's what makes the gap. What do I mean by institutional money? I mean large hedge funds banks big professional traders with size volume everything Everything we do is with volume every stock that we trade everyone We're talking about in here today is a stock or familiar with our company that you know Or you may even know the products that they sell or buy them yourself as a consumer 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 so that's what I'm looking at doing in the morning So the 26 point rating system pinpoints the direction of the footprints of institutional money in Gaps and that is what you would come and learn from me That is what I teach in the class. Okay, how to know that buying you would fall Before the stock market even opens how to know to short it on the one-minute chart. Okay So gaps are an event they create a sense of urgency Specifically shorting and that's why I love to short. It's very very quick. It's panic That's an action is being forced by participants in the stock This is why gap trading is incredibly powerful Trading golden gaps is a powerful and profitable way to trade because we're trading on the side of power money By having a formula to rate and qualify the gap you get confirmation and conviction that the large institutional money is on your side And then you play it and so that's it. That's how it all comes down And so you're looking for that in the morning So what we learn from me a way to pick the best gap to play each day You only need one trade a day to make money you can trade gaps as day trades are using options and Also, you need a way to enter it and you need a way to exit it so again Just going million million said oh the markets rallying today. I'm gonna go long this you can't do that with everything You've got to hone it down what you want to do get in as early as you can Before the big move happens. Otherwise, it's too late and you're chasing it and then you're missing the move and again Or you're taking too much risk. Okay? So you want the volume you want the early entry the entry is the confirmation the raining system tells you What's gonna go and where is it's gonna work? So we're gonna go over this was the trades for this week Now I'm showing you a beginner trader results I risk more than a thousand dollars per trade But I'm doing this because this is a good amount that anybody that's training could risk You can risk less if you want, but I'm using an average of a thousand dollars per train This was a trades from that expired on Friday. These were options trades for this week There were six trades one loser zero break evens and five winners So the win ratio for the past week in the options newsletter the options that we did was 83% So if you risk a thousand dollars in every trade on average, we're gonna go over them here You could have made nine thousand two hundred fifteen dollars this past week on the trades called in the options newsletter Average return investment was a hundred fifty two percent that includes the one loser So this is an average week There are some weeks that I do more than six options trades some that I do 10 or 15 It depends how busy we are, but this was a particularly, you know average week to show six again There's five days in a week. I don't necessarily do a trade every day on the options newsletter I may have one day I do nothing that I may have another day where I do three trades with the day trades I am trying to get one trade a day when I'm in the live room when I'm trading When I'm in and out in the morning And again the difference between doing day trades and options is purely something that you can decide yourself personally I like doing both one of the reasons I like doing options is because I can hold for an overnight move I'm not doing that with my day trades and the day trade doesn't go when I'm in it before four o'clock I'm not holding it overnight as a swing trade. It would not be on margin It would be on or it would be two to one margin or in cash. I'll get out I'll kill it I'll kill it with a loss, but I focus on day trade in the morning quick So I like to do both again I like the fast moves for the day trades and I like to be able to hold over a night or get a larger move and an option Okay, and also options are easier to haul through wiggles and jiggles versus a day trade. All right So let's look at the first one. We did here We did the Tesla 240 putts. Okay, we shorted this so again the expiration date was Friday 7 7 I called this Monday in the morning on the 26th before the open Okay, so you would have bought the put Tesla if you were in the newsletter You would have gotten this to your email You don't do the trade until the market opens cost was 552 contracts again This is an average risk of $1,000 risk was 1100 sold at 10 profit was $900 return an investment 82% 82% so again, this was a solid trade and let's take a look at the chart in this case here This is again Tesla. What did it do? Stock closed here. This was on a Friday gap down on a Monday or no, I think that was Was that Tuesday? No, yeah, that was Monday Gap down rallying dropped So again this fell So we did a putt Because the price dropped was a gap down fell Take it over See how it went so again, I grabbed it to get it into the strike sometimes when I call it at I sometimes I'll call them at the money sometimes I'll call them away from the money and then the target is basically the strike Now CVS was another one that we did. This was the loser. This didn't go right this past week I don't know why there was something that wasn't right about the cost of it Actually, I realized after I did it, but it was a good gap 909 in the morning on Tuesday. I sent this out the 68 CVS puts it was a bust it cost 90 cents I thought that was strange. I felt like it should have cost more Anyways, I sold out of it on Thursday saved a little bit, but it was basically a bust it never went right So let's take a look at the chart what happened on this one. This just didn't go stock closed here gap down This is something that normally will have a big move You can see some of the red bars over here and even the green bars a big move here This just kind of went sideways the whole week So the second day, I thought it was gonna go and then and then it didn't so this just never went really profitable For me. So CVS was the loser The loser that week this past week Bito then we did the 135 strikes. I sent this out on Thursday the 29th again before the open So you can get ready and you know what to watch and you know what to do and again This is an options trade. We did the puts cost was 225, which was very reasonable five contracts was a risk of 11 25 Sold at 380 profit 775 dollars return an investment 69% So anyways, this goes in here stock close to your gap down dropped. Okay So anyways this in here Was a short You could have day traded it. You could have bought the put in it and Made money and again, I got fell into the strike and down So again momentum What's the momentum that's happening? Or what happened on the 29th and the buy deal it's sold off. It's sold off in the gap Okay Actually could have done this over here too, but I was off this past week So I didn't do anything with that the big winner for the week though that we did this past week The biggest one that we've had in a while was a night game We did the 109 puts a Nike that expired on Friday. You could have been in this to the last day I was not what you could have and it's crazy to say that but you could have so on Friday the 30th I saw this at 641 in the morning again with my system You can get up as early as you want you can do the night before if there's gaps the night before Which sometimes there is and particularly in earnings season there actually is gaps at night You could have rate the gap rate the gap at night rate the gap when you get up in the morning And then you know what you're doing like I know this was going to work three hours before the open Okay, so I sent the trade out to the list again. You can't do it to the open. This was the 109 Puts and Nike part of the reason is a good trade was the price was cheap And it fell just fell straight down like a brick So the cost was 75 cents 15 contracts again an average risk of a thousand eleven twenty five sold at 475 Profit was $6,000 return an investment 533% and so the reality is that will you have a trade go to a piggy target like this all the time? No, but you will have some trades go to piggy targets like this You will have some trades where you can risk a thousand dollars and make six grand in this this was an earnings trade So it was a good trade It was an earnings trade and we're getting into earnings season. We will have other trades like this again This gap rated extremely good It was one of the trains where I call it you can't screw this up You can't screw this up so this closed here gap down and just fall off the planet and here Here it was it actually was like at 104 on Friday the last day again I was out of it here, but you could have been in at the last day and still made money It was crazy absolutely absolutely crazy so a beautiful What sell off again panic sell off, but this was a very good guy So you should not hold every single trade to a monster target But there will be some gaps that rate extremely well that will continue down and you don't have to rush to get out of them And again the benefit of doing options that you can capture overnight moves to get this type of a move Okay, any questions here so far As I'm going through this then we did do one call again. We were mostly puts this week We did the 425 Davidia calls. This actually rallied on Friday. I did not see what this is worth I don't know if you could have get out of this with money Friday, but I got out of it before Friday But I called this on Friday 6 30 at 10 in the morning cost was $6 to contracts the risk was 1200 sold at 950 the profit was $700 return and investment was 58% So we have a ton of questions Melissa if you want some sure go ahead. Oh sure. Okay. Let's see Jim wanted to know if you're doing option trades. I think I think you've answered that one a little bit Yeah, so I was hoping you could talk more about your trade room like how much it costs and how it works It's a yeah Go ahead the live trading room is open at 9 a.m. In the morning if you want to join the trading room You must take my class so the class itself is a prerequisite to join the room after you take the classroom is $500 a month But you have to take the class first I am running a July 4 special still which is going on through tomorrow Which includes the trading room free with the class for the month of July normally It's $500 a month after the class the options newsletter. There's no prerequisites. You can sign up. That's a subscription service You do not have to take the class to get the options trades Volume or Herbert Herbert wants to know how does volume play into your gaps? It doesn't play any any point in my decision-making if that's what you mean It plays a point in where I'm not doing something if it doesn't have volume, so it's really just simple I'm not trading penny stocks. I'm not doing any options. I don't have any volume I just flat out will not trade anything that doesn't have enough volume because it's not going to move It's not being played with institutional money if it doesn't have any volume and therefore I'm not going to get a big move in it What percentage of gaps reverse from William? I don't play the Reversals so I don't know what percentage reverses. I'm not looking for that. I'm not looking for them to reverse I'm ice rating system is looking to rate it based on whether or not it's going to continue the gap that is being set in the Direction of that gap, so I have absolutely no idea what percentage reverse because I'm not playing those because to me That's going against institutional money, and I don't want to do that I make more money playing with the gap again. You can't play every gap down Going back here to Nike. You can't play every gap down short just like you can't play every gap up long I'm qualifying that that's the genius in the system But I don't know how many or what percentage reverse because I'm not doing those Tammy wants to know if you have a recommended time frame for looking at charts You mean you mean You if you mean the daily chart the one minute or what time of the day in the morning Yeah, I think she was asking about time frame like like is it I do like a daily 60-minute minute. Yeah, the daily all the daily charts in here that I have in here, which you can get from Jeff Cool, and then last question and you can get back to it. Oh, actually, there's two Do you look at volume-weighted average price from William? No And do you are you looking for a significant gap and can you quantify that? No I can try to go back and see if like I mean these are all kind of little different ones here I'm trying to see if there's any these these all look actually kind of the same this week But but there's all do if you mean big or small or medium. I do them all if that's that there's no yeah, yeah, I Gotcha. Let's go. You're all caught up. You can you can proceed Everybody made money with this again if you wanted to take one contract you could have done that Again, you can take more risk than a thousand dollars I'm just showing you with an average of a thousand what you could have made with this So the Nivinia one I did and I got out of this I think 50% is good in an option But if I was I was aware of the holiday what happened with the Nivinia was I did it here Originally, I did in the 30th and I wanted it to pop that day It went but it didn't go really the way that I wanted it to go was up this day But it didn't go big then we had the holiday and then I had this move up here This was green at the high in here and I got out So I got out of the Nivinia here on this day, which was after the July 4th again. This was a call I don't know exactly how this ended up closing on Friday or where this closed on Friday This was above 425 on Friday again But I'm typically not holding something that I can get out of with profit before the last day because I think it's just too Risky it's just too risky to do that the other big trade we had was mew so I actually even did this late I did the 63 new puts it expired on Friday. This is another one You could have been in it to the last day and still made money in it, but I actually did this trade late I saw it late and that's why I did it late. I said, this is still gonna drop So let's just do it and then I did it was Friday around lunch But anyways, you could have gotten a much cheaper We could have paid half of this if you'd done it in the morning on that particular day But it still worked 12 contracts risk was 1080 sold at 240. This was getting out on Thursday This still felt the Friday to profit was 1800 which was a hundred sixty seven percent return of investment now again you I did here But actually I did it like I said around lunch so that's unusual for me I'm just saying I didn't see it till then but I knew was still gonna fall and then it did Do-do-do and it fell down actually this did fall Friday. There it is So again, this was you know two dollars plus through the strike on Friday But I think you got to get out of trades if you're up on them the Thursday before the expiration and I'm usually doing the weeklies So I'll usually do something out with a Friday expiration unless it's a holiday or short week Then I will do it out for two weeks, but it doesn't mean I'm holding the trade Like I said until the day of exploration the whole point of training whether you're doing a day trade or an option or whatever You're doing is to get the momentum and get out get the momentum and get out on the one minute What I'm doing a day trade I get the move in a one minute Boom and I'm out on and in an option I may get the move and if I do a put in a fat red bar and then I ends it or If I don't get a fat red Okay, then I am looking for a gap down a consecutive gap down the following day or another day the week that I'm in the Trade because again that's how you can get trades to be very profitable if you happen to be in them overnight and then it gaps in your Direction for example, say I'm just making this up. This didn't happen, but say you did On this particular day on Friday say you had done the 63 puts and new say you to get up Monday morning again This did not happen I'm just making this up to show an example because this does happen With some of the trades that it takes if you had gotten up Monday and it would have opened and gap down at 60 Well, you would have been up as soon as you woke up You would have been up a lot and what would you have done? You just get out. That's it done So that is one of the reasons why I also like doing options because you can make a lot Of money by capturing that overnight move by already being in the train, but you have to know what to look at to be in it Okay So anyways getting back to what we were talking about here about trading and everything you have to do get to this point You know, I come across this I've been teaching now people, you know for a long time 11 years I've had the stocks which business I've been training for 15, you know I've talked to people in all walks of life and all all over the place all over the world Very few people come to me that I've never traded before I think I've had like maybe less than five clients that have come to me in the time that I've taught people that I've never traded But most people have traded and again most people trade they don't really get anywhere with it And then as life goes on and they're trading in the years go by they find they kind of lose steam and the To to continue to proceed to trade everything that you want to do in life that's Fabulous big goal something where you can make a couple thousand dollars couple hundred dollars City a sitting home for an hour a day, you know, whatever whatever that is anything That's a fabulous fabulous goal that you have is a dream. It's gonna take work. It's gonna take work It's gonna take obstacles doesn't mean it's gonna be so much work for the rest of your life No, what I know how to trade now. Okay, it doesn't mean that every day is easy, but a lot of I mean I'm pretty much in a group. I'm gonna you know, I mean I just do my thing Occasionally I have a hard day, but then also the reward is some days. I have fabulous days like the Nike trade, okay? So, you know, but the bottom line is that every day for the most part is easy for me because I've been doing this for so long And I'm in a habit. I'm in a it's just like when you get up in the morning and you brush your teeth kind of thing So at the beginning when you're learning and there's a learning curve for everyone when people come to me The learning curve could be a day could be a week could be a month. I have no idea I don't know you but at the beginning there's a class involved to set up a trading account to pay for a class to go through The learning curve, but if that doesn't last forever The obstacles that you have to get to the point that you're at right now to get to the next point Which is success if you're not successful right now Whatever that takes is whatever it's gonna take and it is different for every single person. Okay My my journey is different than yours and everybody here has a story In fact, if I ever wrote a book someone said we ever you've write a book less I said no if I ever wrote a book it would be more of a motivational book And it might be like my story and like lots of people's stories that I've encountered over the years of their stories About trading because everyone has a story to get to that point point. The difference is that not everybody Actually achieved success and so what is the difference between someone that's achieved success and someone that hasn't achieved success? It's very simple if you quit you definitely will not make it and therefore you can't quit So if you get to the point where you're not actually even trying to learn something new and you're trading and you know that It's not working what you're doing But you don't want to spend any money on a class and you don't want to change what you're doing You're not gonna get anywhere. You're you're just stuck stuck in a rut Okay, you must continue to overcome the obstacles to get ahead to the next point and the sooner you do the sooner You're gonna get there, you know, and of course There's all these things involved with trading the mentality of at the risk amount of it I said listen risk less money if you're in that much fear, but the money situation risk a hundred dollars a hundred dollars The trade isn't gonna break anyone Okay, get to the point where you learn it so you can get out of the fear bubble because you're never gonna get ahead and be able to make thousands and thousands and thousands of dollars until you understand what to do and you have it down and Then also there's a trust factor You have to trust someone like me if you're coming and you're learning from me You have to trust me that a I know what I'm doing and be I'm gonna be here to help you I demand an email me the other day. He said I need some kind of reassurance I said what reinsurance do you want from me? The reassurance that I can give you is that if you need help that I will help you That is the reassurance I can give you because I'm not there pressing the buttons for you taking the trades You know, you're the one that's in your home and your office when you're doing it You must be responsible for the decisions that you make in the trades that you take But in order to become successful You have to be serious and that means learning from someone and taking direction this type of market and really any type of market I don't think you should trade alone I think having a mentor and someone to go to to ask questions to rely on that will be there from you is something that definitely sets Myself apart because you could pick up the phone and call me and I will answer the call or I will call you back That is unusual and I have that for people. They've been taking my class five years ago. It's not I will remember who you are, okay? Any questions? I'm watching the time here Jeff, but I know I started late. We do have we have more questions. Yeah Let's see. Does this process work better with certain types of stocks like growth versus value from William? Certain types of stocks It depends if it gaps and the gap rates good So no not necessarily if you're asking me if you'd rather do this sector or that sector again If the stock gaps and rates 20 per the 26 point rating system if it rates good I'll do it as long as it has volume and can be traded on on the open market even if it's spreading So it's not like I'm only doing the tech stocks or I'm only doing the financials or I'm only doing You know gold or something like that. I'm just telling you that I'm not trading penny stocks I'm typically not doing something at a dollar or two dollars. Well, I trade something at five dollars a share Maybe again, if it has volume, but other than that, there's no other you know set prerequisites Gotcha, Mike wants to know under what conditions do you add like you did in the first trade example? If it if it is if it for example, I might have the market with me So I know that it's going to go because I have the markets help to get it down if the markets falling for example Could be something like it sets up again Could be the time of the day So there's lots of factors that are involved with doing an ad like that It's basically just look at it like you're taking two trades So instead of taking one trade you're taking two trades because you're doubling up the risk So it's basically like you're just taking two trades and you could take two trades a day You should give yourself at least two trades a day even though sometimes I'm only doing one I mean I will allow myself two trades a day maybe three Cool, William would like to know if you can quantify the extent of the follow-through price move Can you quantify the extent of the fall through follow through price move is what it says So when you get into a trade, I think he's saying you know how far it's gonna go Do you have an idea of how far it's gonna go? Can you quantify as far as target the if I have a gap if I have a sliding scale So it's 20 points or more as a cutoff for me at 17 18 19 It's 50 50 chance of working or failing. So if I rate a gap I mean, I'm not I don't get a perfect score every time for my system if I rate a gap and it gets 25 points That's a great gap that gap's gonna go. It's gonna work. I'm gonna do is it a day trade I'm gonna do as an option you can hold it down So the the higher the rating the better the gap the bigger the move the bigger the target Mario wants to know If you do you have a how do you know how much to risk? Do you risk the same amount every time in terms of percent or do you risk more if you like the signal more? Is there do you is there kind of rules behind how much you're going to risk your risk? Should be different for every person because it's based on your cash Your risk show has to be based on your cash You can have $10,000 in a trading account and risk $5,000 on an option. I don't care how good it rates You have to look at how much money you have in cash at your broker to be able to determine your risk So for me, I risk an average of $2,800 $3,000 per trade in my day trades I'm risking more for my options, but we're not talking about advanced risk and options right now But that is based on the cash in your account if you're someone and you want to ask me Melissa I have this much money and what do you think I should be risking? I will I will tell you what I think but again I'm going to err in the side of conservative and caution if you're new and you had never traded my system before you just in the class It's only as $30,000 in a margin account and they want to do day trades I think you're fine risking $1,000 $1,500 at the most I wouldn't risk $3,000 which is 10% of your cash balance in In a day trade if you have 30 grand because if you take two trades and you're underwater Then you're gonna have to refund the account to get back over over 25,000 to keep your margin account intact. Make sense Mm-hmm. It does although you could risk half every time it just wouldn't be recommended I have found people that have less Smaller account solutions are less but people have smaller accounts And I don't know why this is because they swing for the fences They risk the farm so to speak people that have smaller accounts tend to be more aggressive and take more risk Than people that have larger accounts. I don't know why that is But I I don't know people just want to go hog wild But it should be the opposite people that have smaller accounts Should be more careful with their risk than somebody with a larger account because they don't have a big margin for error Um a couple people asking if we have gap scans in metastalk and it's an easy scan to put together So yeah, absolutely. Um, and then the last question that I see right here is What makes you like this strategy above other strategies? Yeah, I developed it myself. So I don't there's no other strategy that I do another strategy that I made up So I developed this specific strategy. This is the only one I know And so it's the only one that I do and luckily it works But it took me three years to figure it out when I started training. I took one class I didn't learn a million different strategies in that class I learned different ways to enter trades and I learned about technical analysis But it wasn't the strategy and soon after that I traded a gap It was a short and I said, oh my god, I can make a lot of money shorty and it was really really fast And I had I had a thousand shares or something and I think I made like $1,500 and I made it like in five minutes I said, wow, there's something to these gaps and there's something to shorty And that set me on the right course to actually go ahead and train But to me, I've never done anything else that's ever worked So this is why I do it and it took me three years to figure this out So it wasn't like, oh, I just woke up one day and figured this out It was a journey and a process to even figure out the 26 points But one of the reasons that I don't buy dips is I am not a long-term investment investor Okay, this is active trading if you come to me, you're going to learn how to make money You're in and out like I said chunking it out This is not buying a dip is great Well and good if you're looking if you're saying if someone said to me, listen Do you think the market's going to make a new high? I say, yeah someday I can't tell you exactly when so why would I buy a call in the spy or the cues for, you know Some date in September, October and November even January 2024 If I don't know the market's higher in the next six months, it could be lower in the next six months We may not make new highs in the market till 2025 So long-term investing is not what I do and it's very different I would use a different strategy probably or have a different look on things for long-term investing But that being said, maybe I wouldn't maybe I wouldn't I'm in old cash in my actually my retirement I'm young but I did not buy the market at the beginning of this year or the end of last year And then I then I wondered if I missed the drop and I said to myself No, because there's a high probability or 50 50 probability that the market could drop again And I would be upset with myself as someone that professionally trades is even to see my retirement as young as I am Go down 25 30 percent I would be angry with myself to sit and watch that and that is exactly what's going to happen When people that went along the market even though you're up right now and even though we're up in the market of the year We could still fall and crash one of the things and I wrote talking points because I was I I I'm on news maxes coming week Two things that could screw up the market from making new highs number one Any conflict that could happen with a war that includes china, taiwan, russia, ukraine The u.s could get involved with and number two the fed with interest rates They're saying they're going to raise interest rates to have a point between now and the end of the year I wouldn't bet my life on it. I wouldn't bet my life on it because the fact is they may raise them more They may raise them more show two things that could affect the market and mean we don't continue higher and you have to be aware of that Is that everything for now for questions? Oh one more question. Um came in while you're talking How do you know how much the gap will be before the opening price? I I don't I see it in the pre-market. I don't know I I see it just like you do But that's why you have to have like again, you could talk to jeff about this jeff can do a little little Demo to show you pre-market candlesticks. Yeah, I don't I'm not predicting the gap is going to happen I'm seeing it seeing it on the chart and then I rate it. Does that make sense? Absolutely, and yeah, if you have real time you can absolutely plot pre-market data easily And then the last last question What is real estate versus trading in terms? What are the advantages? As of real estate versus trading in terms of making money Which would you prefer? Well I prefer working for myself when I was in real estate. I wasn't working for myself I was at the mercy of banks that would approve loans or not approve loans And I would never want to go back to that career. Look at the interest rate environment We're in right now people want to buy houses and rates have gone up Things cost more banks are getting stricter because they're going under and they're having all kinds of other Problems with defaults, but the reality is I work for myself Whether it's a stock switch business or if I decide to not do the business of the future and trade by myself The only person I'm responsible for is myself I would never want to go back to reporting to a boss I would never want to go back in the office again And I would not want my income to be dependent on someone else's decision And the problem is and one of the reasons I got frustrated with the mortgages in 2007 2008 I am plenty of customers that wanted to come to me wanted to buy houses. They were interested It was difficult to get banks to approve loans banks were not wanting to approve loans when they were starting to go under When mortgage companies were going under so, you know, you're having a similar situation now where banks are becoming It's harder to get loans approved and interest rates are higher and people qualify for less So it's a difficult industry I do not want to go back to that industry and luckily I will never have to working for yourself If you're a type A personality like I am is the best case scenario You have to be able to be at home and be responsible and be diligent and close the door in your office and just You know sit and train for a half an hour an hour a day with mortgages I was working seven days a week and I just never want to go back to that So let's let's get into it here now If we had any other questions you can let me know let me try to get through this because I'm watching the time I'm seeing it's a little after five. This was ccl We did a nice short in the ccl just showing you here stock close your gap down fell Okay, this was on the 26th. This was another day trade again We didn't add this was a lot cheaper though than by do 1445 shares were 5000 risk was 3250 Ad was 1480 told us shares was 10,000. That's a lot. I know but again This was a lot cheaper of a stock average price was 1462 eggs. It was 1395 I felt confident this would go to 14. We also did a put a put in ccl You could have bought the put or you could have done that short again You would have needed a margin account for this profit was $6,700 and again looking at this Just a you know the whole concept of being able to take Something like this in a one minute and they'll make over six grand and be in and out so quickly Is one of the reasons that I love to trade so anyways, here's the move again boom That's it. This is a one minute chart This is a one minute chart. You short it get the drop short it get the drop out Nice move and again, it was a gap So anyways, just trying to get through the rest of this here while i'm answering some of your questions You have to make good choices. You've got to find quality trades The whole point of doing this is to make money You do new good money management We talked a little bit about that as far as having small accounts of big accounts and how much you risk I use stops in my day trades I do not use stops in my options because my stop is essentially my risk So if I risk $7,000 in an option, I can't lose more than $7,000 The whole thing could go against me completely like cvs and i'm not going to lose more than that So I do use stops though for my day trades because it's a limit order stop It's going to hit me out. So I could get stopped I want to get stopped if it's not going to work and it's going to go against me because again We're taking trades of the one-minute chart and things move fast in the one minute and it's okay to take a stop It's like the insurance is protecting you from having unlimited losses You set your risk whether it's a thousand two thousand three thousand you set your risk and this putting the stop in Is setting it, you know not saying well, I'll kill it. No put the stop in But anyways getting back to training for a living Bottom line is you got to win more than you lose It's the only way to consistently make profits and then sometimes you will have a big winner You will have a big winner sometimes, but you have to win more than you lose. We do have losers Okay, so the big winners cover the losers and then the consistent winners mean you move ahead And that's how you chunk it out and you have to look at every day every day I get up on monday. I have no idea what i'm going to do monday or tuesday or wednesday or thursday or friday I get up in the morning and I scan and look for gaps and again That's something that you can talk to jeff about after i'm done talking here and he will help you Find ways to scan gaps, but it's the discipline behavior on trying to focus on what to do It's about quality not quantity When you're trading and so for me, I was always very focused on making money I was when I was doing mortgages too I wanted to make as much money as I could and for me it's based on my risk So i'm in a groove right now and obviously i'm running the room and i'm trading at the same time So that's a lot i'm able to handle it and do it. I have not upped my risk in a while I might the time to do a learning season if i'm going to I think once you get in a groove with trading and you're happy with your risk and what you're making You can move forward and baby step it up it so you can start over the 500 dollars Then you could up it to 750 then you could up into a thousand again I'd rather see people learn the system and understand it than just go hog wild with their risk Even if they have the cash Right at waste, but it is about consistent Consistency okay in the train selection and the focus on what you're doing and having the right strategy So for me, it's about looking at the daily chart. I rate the gap in the morning with the checklist This is what I teach in the class. I'm looking for the price of the stock to read the correct direction daily That's telling me where the money is flowing again up or down And it matters it matters because if somebody is dumping a stock and you want to go along it To buy the dip you're not going to make any money You're going to lose and you can keep going on and keep going on and keep going on it But you're going to keep losing losing losing So again, you have to be with institutional money to make money In any stock or the market and you can short Against even a bullish market. So what do you need to make training work? You need a consistent strategy, which we've been talking about all day You need to stick with one thing until you get good at it. And for me, it's even one direction So I really stuck with nothing but shorts till I got really good at shorting and now I do longs too But I mean on my focus for me really is shorting buying puts and shorting Here are results for the year so far 2023. This is not not the options. This is in the day trade room Again, I was off for this past week because it was an average risk of $2,800 per trade. All these trades are on margin There's very few longs in here. Most of these trades are short since the beginning of the year And again looking at the stats for this year to be up over 332,000 with as bullish as the market was this year knowing that most of these trades were shorts You can tell I'm an expert in shorting What will happen if we fall in the second part of the year? Well, I then want to do the opposite and go long No, I'm still going to focus on shorting because I'm really fine Again, it's teaching people as long as I've been doing this and as aggressive as I am with getting in shorts Very quickly in the morning the first couple minutes of the day Most traders don't know how to short Most traders don't want to short most traders have no idea how to short or if they short They don't know what they're doing So you really will have an itch if you decide to focus on shorting whether you come to me or go with somebody else For some reason the idea of buying low and selling high and going long is something that more day traders more retail traders prefer to do But I'm telling you if you can make a lot of money shorting the moves go fast And if you learn how to do it right you can get that niche and then that sets your part From you know a lot of other people and then you can get into trades fast Like I said and get out very very quickly So you this is something you can do on the side It's something that you can do full time If you want to come and you want to learn from me I would be your mentor in the class and in the live trading room and then obviously you would learn my gap system I think it's important. We're halfway through the year. I can't even believe it. It's hard to believe Or here it is july the year is half over for 2023 But you need to make a plan of action if you want to be in a different place financially by january 1st Okay, so set goals for yourself set reasonable goals for yourself the next six months You want to be at this place? Okay, because if you don't set goals for yourself now And you just keep letting time go by and you just keep sticking in a rut You're never going to get anywhere and all of a sudden it's going to be the holidays And you're not where you want to be by the end of the year So if you want to come and learn from me number one, you would trade only gaps You would learn the system you would take the entries in the room Or you would do the options and the day trades too Whichever one you want to do for yourself and you create a money management plan for yourself to achieve your goals I say one to one So most trades you're going to be looking for if you risk a thousand you're looking to make a thousand I think that's a solid expectation to have when you're taking the trades What will you learn in the classroom me? You will learn a rating system to find gaps in the daily chart That have a high probability of directional bias for the entire trading day a big move of the day Early confirmation of the bias and the move between 9 30 and 10 am eastern time And precise entries with follow-through and a good risk to reward target potential And again, that's what i'm calling out in the room when i'm calling the trades That i'm telling you where the entry is and i'm also saying the targets and in the options newsletter I have the targets again. They go to your email. There's no prerequisites for that I have the targets in the letter So the class is called the golden gap course if you want to sign up the class is the end of July July 22nd and 23rd It is a 26 point professional bearish gap rating system The purpose of this system is to help you evaluate which gap to trade each morning using a checklist This checklist tells you what to trade when and in what direction the 26 point checklist predicts directional bias in a stock And so you'll learn the entries you'll learn the exits You'll learn how to read institutional positioning of the stocks You'll learn how to day trade gaps if this is something you want to do And i make the ratings for the options and then i'm entering the options as if it's a day trade But i'm just holding the options longer. So the class is july 22nd and 23rd 9 a.m to 5 p.m eastern time classes online. It could be anywhere in the world and take it again I live in new york, so i'm not doing live classes yet in new york I might that's something i thought about for the future But for now i'm doing online classes the class tuition is $69.99 If you want to sign up you can email me and as i was saying earlier I've been writing a july 4 special just happened to have the webinar today. This is over tomorrow though If you want to sign up You can sign up and get the trading room free for one year and the gap options news that are free for one year with the class The deadline for that though is tomorrow Any questions here Yes, uh real quickly, um, how my question is how long does it take to go through the 26 point process? Well, obviously, you know in in a minute, but I don't rush it I mean i'll sit down and with a cup of coffee in the morning and i'll take my time reading the gap I'll take you know 10 minutes looking at something if you're new It's probably going to take you about eight to 10 minutes looking at each stock Um, is volatility important with your strategy from david? Well, the volatility is the momentum So yeah, you've got to get volatility because that's the momentum. That's what you're playing on it Again volatility can be up or down But the whole point you make money trading volatility if you can spot it That is that is again the whole way you want to make money as an individual trader. Otherwise, you're trading for pennies I'm not trading for pennies. I'm trading for dollars. So volatility is good All right, uh, let's see, uh barrio wants to know do I get a replay of the to get a class? No, the class is live. You must be there in person But you can call me and email me if you have questions Uh mario wants to know if it's includes a uh platform like metastock. It doesn't include metastock No, you would have to go to jeff if you want charts and jeff is not a broker So you would have to fund an account at a broker if you want a referral you can email me But you can get charts from jeff and he can help you with scanning And finding the gaps and then you have to go to a broker to fund your account All right, that's the end of the questions Thank you melissa So again if you want to if you want to find out about that what a great opportunity Good freedom special if you would melissa at thestockswish.com Thanks for having me. Have a good night. All right. Thank you melissa. Thanks for coming. Thank you