 If you're supposed to just join us, let's see. There's J.P., Gail, Pal, and others. This is online at Trader Central. Welcome, Dave, A, Tom, Y5, five, and others. This is online at Trader Central. The host presents today, most of them are always here with us. We called, joined us earlier, again, Brandon, now. Ed, Jerry, C, well up. Trader Joe, R.C. Don, Java, Snow Pro, Rand, Arnold, if I'm not... Rand, Arnold, if I'm not... John, Patrick, U.K., Les, Mayette, and others. This is online at Trader Central. Welcome, KSFH. This is stolen up, Bob L.Hugh, and others. This is online at Trader Central. If you're supposed to just join us, welcome to today's presentation. Welcome, David is here. David Wang, Reggie, Jerry, and others. This is online at Trader Central. We'll start in just a couple of minutes. Thank you again, everyone, and welcome. And with that, ladies and gentlemen, this is exactly 430 Eastern Time here in the Boston area. The last person to join us is Joel. We welcome each and every one of you to the presentation today. Joel is online at Trader Central. He's proud to present our hosts who presented today from thestockswish.com. Please put your hands together. Thank you, Kevin. Thank you so much. Welcome, everyone. My name is Melissa Armo, and I own a company called the Stockswish LLC. So thank you so much, Kevin, and Online Trader Central for having me here today. Today's topic is going to be an interesting one for those of you that are trading right now or thinking about trading. We're going to talk about how to make a six-figure income working 30 minutes per day. And how can you do that? Well, trading the market. So that's going to be the topic today. If you would like more information, you can feel free to go to my website at www.thestockswish.com and email me at Melissa at thestockswish.com if you'd like more information after today's webinar. And feel free to go to Twitter, Facebook, YouTube, and I have a lot of videos of YouTube of trades I've done or market calls or past webinars you can look at as well. What can you make six figures a year? This isn't a million dollars. I'm only talking about over six figures a year, which is 100,000 and up. But in today's economy, you know, that's a good amount of money. And actually, there's lots of people who used to make this kind of money, middle-entry management jobs, people that used to have positions like this. When the economy kind of fell apart in the last few years, these positions have gone under. And so now people are looking for a way to make extra money and certainly to make a good income, a six-figure year income. Some people, this is, you know, depending on where you live in the United States or even in other places in the world, to make over six figures a year, US dollars, is a good enough income to support you and a family. So trading gaps in the stock market is how to do it. This is one way to be able to make six figures a year in 30 minutes a day. And I know that sounds like a very short time frame, but we're going to go over it. Here's an example of a trade that just happened last week. This was on the 8th. This was on Thursday. It was August 8th, and this is file. Okay? So this is a gap. The stock closed. The stock closed the night before. Here this is on the 7th. At night at 4 o'clock eastern time when the stock closed, it closed approximately under $15. And then the next morning it opened right here around 11 something it was. And had a nice move in the day. And this move happened in 30 minutes. It was done. All the profit that happened in here happened very quickly. Boom, right in the beginning part of the day. So there is a lot of money in the stock market. This symbol symbolizes money. I don't think this is actually something that anybody doesn't know that's here today. There is a lot of money in the stock market. Many people think it's something that ever ludes them. They can't figure out how to make it, what to make it, how to do it, what to do. I have a philosophy in the market. It's less is more. Less trades that you take, the more money you can make. The less time you're in a trade, the less time you're in the market, the more money you can make. The more strategies that do, the more quality you can do in the strategy that you do. And I actually only do one strategy. And not only that, I only do it in one direction. Okay? So there is a lot of money in the stock market to be made. And it is possible. You just have to learn how to do it correctly. And ultimately, the philosophy behind today's subject matter is about relying on yourself and no one else. When you get to a point where you want to rely on yourself, at a point of realization that your life is your own creation. You are the one in charge of your life. You and only you. When you start to acknowledge your own personal power and your ability for personal growth and to learn something new and make more money, you will be amazed at how things come together and how much your life can change for the better. Sometimes it's just about opening up our eyes and seeing the possibilities for our own life. Okay? Sometimes it's just about as much something as simple as that. Opening up your eyes and seeing the possibilities to create a better life for yourself. So imagine the possibilities for success. What could be in your future? What you could do to improve your overall financial future for yourself and your family? And how are you going to get there? Okay? It's very, very important to figure out how you're going to get there. You can't just have it on a whim. It has to be some plan of action, not only to trade the market, but how you're going to meet your own financial goals. So where do you see yourself in a year? Do you see yourself in a year at the same place that you are now? Possibly at a job sitting behind the desk in a static office like this? At the same exact place in a year from now that you are right now? Think about it. Where do you see yourself in a year? Here? At the same place that you are right now in your life? Or somewhere else? Where do you see yourself in five years? If this is a question mark, then it's time to think about this. If you absolutely don't know, if you have absolutely no clue where you see yourself in five years and think about it. Think about it. And the question is to think about where you want to be in five years. To look at the bigger picture, how can you get from point A to point B in a year or five years from now to get to the place in your life where you want to be where you have freedom, financial freedom and happiness to spend with the people that you love? The benefits of trading are that it is less stress per day. When you do something and you were trading and you're making money in such a short period of time, there's less stress on you. When you're sitting at a job and you're working and you're taxing your brain for eight, 10, 12 hours a day, it is a lot of stress on you. It's a lot of stress on your physical body and your mental body. It's not the same way with trading. The benefits of trading are the money is yours now. It's not like you have to wait a week, two weeks. Some places are also by monthly that you get paid. Or if you had a commission sales job, you don't get paid until the deal closes. When you trade and you take the trade and you book the money and you're out, boom. It's in your P&L. It's in your account. It's there. It's yours. It's in. You've got it. The money is yours. It's there. The benefit of trading is the money is yours now. Also, the benefits of trading is you can work from home. You can work from home while you use a computer. A desktop, a laptop, whatever you want to have, whatever you have right now is fine as long as you have a computer. I can get on the internet. The benefits of trading are you can work from home as long as you have a computer. And the benefits of trading are that you don't have a boss. You have no boss. No one that you have to go and report to. No one you have to go and tell when you want to take a break, when you want to take a vacation. Can you do this? Can you do that? You don't have to go and report to a daily boss. You are your own boss in the stock market. Also, the benefits of trading are you can go on a vacation when you want to. You want to take a week off? You can do it. You want to take the next month off? You can do it. You're doing really well. You're having a great quarter. If you want to take 10 days off, you can do it. Again, no boss to report to. You don't have to go and punch a clock. And if you want to go on a vacation and want to take a break with your family, you can do it. You can go travel. You have freedom of your time. It's not like you have only a week's vacation a year. The other benefits of trading are there's no overtime. It's not like you have to work late and come home at night and you come home and it's 7, 8 o'clock at night and you're tired, you're exhausted, it's late, you miss dinner and all of a sudden you've got to go to sleep and get up the next day and do the same thing all over again. There's no such thing as overtime in the market. The market actually closes every day at 4 o'clock. I don't even trade all day trading in the morning, but there's no overtime in trading. The other benefits of trading are there's less hours working per day. Less hours working per day than you would in a normal job. Specifically, if you trade the strategy that I trade, which is gaps, I'm in it for a short period of time in the morning. Less hours working per day, less stress, less time working. The benefits of trading also that there's more time for your family. So if you're spending less time working, you have more time with your family. You also don't trade on the weekends. The market is closed on the weekends. You never have to work on a weekend. You never have to work on a weekend. And regular jobs sometimes require work on a weekend. So you have more time to be with your family. Also, the benefits of trading are personal freedom. This is one of the best ones that I personally think for me. You can make your own schedule. If you want to get up in the morning and trade one day, you can. If you want to get up in the morning and skip one day, you can get up when you trade. Really, this is one of the best benefits of trading, period hands down besides the money. And the benefits of trading are there's a greater potential for future dreams. So when you have a regular job, you've a set income. Maybe you get a 3% raise each year and companies are even doing that right now in this economy. And for trading, it's not that way. There's a great potential for you to buy a bigger house. Dream big when you're a trader because if you're doing well today, there's a chance you're going to do well tomorrow, the next day and you're going to continue to get better. And this is the wonderful thing once you learn how to trade and start to make money. Your dreams can get bigger and bigger as the years go by and as you're making more money. So in order to make six figures a year trading in the market, you need the right business plan. This is something that it's not going to happen without having a correct form and formation of what you're going to do. Strict rules. For me, it is something I call the golden gap. This is the way that I trade. 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. And the checklist is going to tell you what to look for. How with the points. The philosophy behind the 26 points is to find stocks to trade probability of directional bias for the entire day. Two big moves on the day. Of course, you want the momentum to trade. Three, early confirmation of my bias and the move between 9.30 and 10, which is when I want to get in my trade and get the move. Get the most of the move. 80% of the move or more. Number four, precise entries with follow-through and a good risk to reward. And this is how you're making money trading that you can trade in the short period of time and still profit and be able to make money. Because you're getting the good risk to reward. And this is the reason that it works. So you're using a 26-point checklist to trade. And why trade gaps? The whole philosophy behind this is based on the gap which is a strategy. I'm finding them using a reining system but why do they work in the first place? One reason and one reason only large institutional money. So they work so well and pay so well because gaps that happen to buy large money. They actually are an event. This is the reason that they work so well. Gaps are created with large institutional money. That is what makes the gap. For example, on FIO, for FIO to gap down the way it did the night before on Thursday was made by institutional money. And actually anyone that was here on the webinar I did last Wednesday I told everyone that was here that FIO was going to work on the day and if you took the trade you made money on Thursday morning. The professional gaps that happen one thing and one thing only large institutional money. And even if every single person in here got in the same trade we would not be able to move the stock. There's only one thing that moves stocks. Big money or what I call power money and therefore you need a way that will help you pick the correct direction to play the gap and confirm that the large money will flow with it because you want to be with this. This is how you're going to make money as an individual in the market. So by having a formula which is my 26 points you get confirmation. You get confirmation and conviction that the large institutional money is on your side and then you play it and you take the trade. Gaps are an event and create a sense of urgency. What's a sense of urgency? People are up long in the stock. They're up money. The stock gaps down they have to make a decision. They might be down money. They might have been up a lot and now they're down not as much as they were. Thus an action is being forced by participants of the stock and this is why gap trading is incredibly powerful. Trading gaps is a powerful and profitable way to trade because you are trading on the side of the power. In fact this afternoon I did the first part of one of my classes which is called the trends class and we had a big discussion about this. There's only one thing that creates trends in stocks. I call it power money. Power money is money that's run by banks. Hedge funds. Anyone that takes large positions in stocks that make them move. And this is actually one of the great things about trading the market is that these people even exist. It's the one reason that it's so great to trade as an individual because of the fact that these people exist in the market they actually make the market. The market wouldn't exist without power money. So the whole very philosophy of trading the market works for us as individuals because if you train with that money you're going to make money. So the philosophy behind the golden gap system is really to analyze a large time frame which in the case of the 26 points is a daily chart. So you're analyzing a large time frame of the daily chart to make the trend decision on the directional bias for the gap. All large traders of every kind look at large time frames to make decisions particularly institutional traders. So to make entry decisions and exit decisions based on a small time frame the one minute chart which has a high degree of focus and accuracy. So the bigger picture in deciding what stock to trade is based on the daily then the position sizing to get in the trade the entry is made in the one minute. Okay this is why this is why this works so well because I'm making the trend decision on the bigger time frame and the small decision to get in on the smaller time frame where there's a high level of accuracy. So 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 reward trades with accuracy. Here we're going to look in a gap this was the beginning of August as well it was just last week this is SU&E. So SU&E you can see here close the night before at around $9.70 some cents. Now you get up in the next morning the next day the stock is gapping down here around 8 something it was under 8.50 So you rank the gap the gap ranks high it rates 21 points what do you do you watch it for a setup to trade to make money in with momentum on the side of the power money so you can see that the stock actually was in an up trend prior to the day of the gap and now all of a sudden what happened it gapped down so all these people here are up money the stock gaps down here and then is created it's forcing a reaction for people that own the stock what are they going to do what are they going to do not everybody's down some of these people are down some of these people are up but they're not up as much as they were before what do they do they have to do something and here was the play so I broke it down into three different levels which we're going to talk about three different levels three different examples for everyone because I understand that everyone's in a different level beginner, intermediate and advanced and the reason I broke it down is to show you the different risk amounts and how the risk to reward is the same no matter what you choose to risk monetarily and how you can start up as a beginner work to an intermediate and then become advanced and you want to get to the point where you become advanced so that you can be able to make six figures a year but here's an example of a trade that worked and worked very well very quickly in the first 30 minutes of the day so you rate the gap let's go back you rate the gap the gap rates high it rates 21 points in the 26 point system you watch it in the morning to set up the trade the stock opens it's holding beautifully you have to wait for an entry you get a rally it holds the high of the day what do you do well let's look at the play this guy is a beginner so this is the golden gap for beginner traders he's new he's working from high he's working from home he's doing this part-time he has another full-time job he only trades in the morning for about 30 minutes or 45 minutes and then he goes off to his regular job he doesn't want to risk a lot of money because he's just starting out and he's working on it he's really getting there so he decides to take the trade and the setup he's only risking $52 his risk is about $50 so he's sizing it around $52 he takes $400 as the entry price was $937 the price was $829 I'll go back and look at the chart to show you stock was over $842 the risk was $0.13 he got out here at the exit this wasn't even the low of the day by the way but this is the exit we'll go back and look at it total profit was $476 this is for the beginner trader he risked $52 and he made $476 so the risk to reward is 9.2 times the amount risk was made in profit this is a very good trade this is a solid trade now in order to get setups like this you have to find quality gaps and then if you do you can get setups like this that have the good risk to reward what does this mean? that means for every dollar you risk you made 9.2 times the amount and how do you do it? taking the trade in the morning in the first 30 minutes of the day he turns $52 into $476 in 30 minutes so let's go back so he rated the gap he liked it it drops down he's doing nothing he's waiting goes back up and retests here he gets in puts a stop over here and he actually gets out into this drop it happens here this is $9.37 he gets out the first target really was $7 he didn't even feel like holding it till then why? he had to get on to his next job he has to be done by around $10 the stock dips down in here he's up all this money he takes it out stock actually dropped lower bottom down right around here he could have stayed in it and made a little bit more but really when you're at this much money and you're a couple pennies from the target the first target was $7 you take it actually the first target was $750 but it blew right through it so by the time it blew through $750 you know it's going to get to $7 and he's out so he took this trade here he risked $52 and he made almost $500 in 30 minutes risking $52 I mean $476 that's a good trade and then he's off with his day doing whatever he wants to do he could go to another job he could do nothing the rest of the day he's done, he's up now we also have intermediate traders now this was last week Dave this was trade was last week we'll go back and look at the chart again it was last week also we have intermediate traders this guy is a little bit more skilled he's done the class he's been training for like about two months he's been risking about $100 $150 give or take so he takes the trade he gets a set up he's in the same trade as the beginner person he feels comfortable risking $130 per trade he gets in at the same place he gets out at the same place he makes more money why? he risked more money but the reality is that it was the exact same trade the exact same trade there was no difference in the entry no difference in the stop the only difference was the total amount of money that he chose to risk based on his experience level and the size of his trading account he makes over $1000 almost $1200 in 30 minutes 30 minutes this is the beauty of trading gaps how is he able to do this? because he's trading with the direction of the gap and the power money that are setting the gap they are decided they wanted to sell out of the stock that day so the stock gap down how do you know it's going to work you look at the daily chart you rate it to make sure that it's going to trade down as a bearer short on the day and you take the trade and you short it he got in here and in this trade he made almost $1200 now he risked more than the beginner but he's an intermediary he can risk a little bit more than $100 and make the profit time of the day is the same risk to reward dollar for dollar is the same he makes over $9 per dollar that he risked this is a quality trade you don't take any more trades after this remember I talked about this earlier less is more in the market one trade you make over $1000 that's it there's no reason to sit all day no reason to sit in front of the computer at 4 o'clock no reason to trade and trade and trade and trade and take a million trades so let's look at the next one this is an advanced person this is an advanced person this person has been trading for almost a year really knows what she's doing and really has it down she's actually risking roughly $500 that's her R or her risk amount she loves the gap it's a quality gap quality trade she takes 4,000 shares plenty of volume she can do it she takes it she risks $520 she has a hard stop in at $842 gets out the same place how much money does she make $4,760 she makes $9.2 for every dollar she risks she happened to risk more this is a sizable position but still perfectly good for a day trainer perfectly within the range to take and make this kind of money she makes more than a dollar and she just made $4,760 in 30 minutes now she risked $520 but she was a skilled advanced trader she's been doing this for a year let's just say and she knows exactly what to do so clearly there's a lot of money to be made here trading this if you know what to do with the size you just have to learn what to do from beginner to intermediary to advanced many people ask me how many gaps do you get per week well during each quarterly earning season there's four earning seasons a year in the market there's three to five quality gaps or more meaning there's three to five gaps per day that would rate according to my 26-point rating system to take to trade they would have setups like I just showed you that would go on to work during not earning season there's three to five quality gaps per week now I know that seems like not a lot compared to earning season but that's still enough to make money as you can see in the examples one or two of those trains per week is your week so a quality gap is one that rates high enough to train based on the 26-point rating system what is this this is the business plan for you this is the business plan for you that tells you how you're going to get to make the six figures the strategy telling you pointing in the right direction which stock to train which stock symbol to pick you have to know what to do there's so many stock symbols in the market to trade every day you can't possibly just roll out a bet and pick anyone you have to have a reason to pick it and know what to look for now we're going to talk a little bit here about leverage I wanted to talk about this tonight because so many people ask me about leverage and I find that people don't understand what leverage is or are scared about using it so here's just the definition of leverage what is leverage? leverage is the use of a small initial investment credit or barred funds to gain a very high return in relationship to one's investment to control a much larger investment or to reduce one's own liability for loss alright let me answer some questions here hold on one second are these trains intraday day trains yes they are Steve following the day trading rules meaning the size of the account to be an active day trader is that what you're asking me day trading rules there's only day trading rules are if you want to have a retail account you have a specific requirement to open a retail account if you want to be an active day trader or you can open up a proprietary day trading account we'll talk about that more in a minute but I think that's what you mean anyone else can feel free to ask me questions I will answer them as they pop up so anyways let's get back to the leverage this is what leverage is so how can I use the leverage in my trading account to my advantage well you're going to use it to your advantage because once you know what to do and how to train it's going to help you make more money and there's nothing to be afraid of in using leverage it is the way that one person, one individual in the market can trade and make money you're going to say well how can I protect myself from losses if I'm using leverage you're going to use money management you're going to use stops I talked to lots of people people said I don't want to use a stop I don't want to use a stop because if I put the stop in then the stop's going to take me out and then it's going to go on to work no, learn where to put the stop part of the reason people are concerned about stops is because they don't understand where to get in a trade and where it's going to fail you must use stops if you don't use stops you have no amount of risk that you're risking the risk is odd and infinitum if you don't use stops you simply must use where learn where to put the stop so you use stops to determine your entry and risk amount you must do this this is the only way that makes sense to even have any profit in trading this is what a business plan is you wouldn't go out and start a business tomorrow and not have any idea how much it's going to cost you to start the business or do anything you hire an employee you can't run out and hire five employees and decide that you're going to pay them each a certain amount of money a year if you don't know where you're going to get the money to pay them you must use stops in trading people have to learn where to put the stop people should not be afraid of stops this is a very important part about protecting yourself in trading and it actually will help you become comfortable with leverage comfortable with leverage, comfortable with trading and comfortable with making money so you protect yourself with losses by using hard stops you learn where to put them where to enter the trade and where the stop needs to be put so the trade would fail and then let's go back before we get to the next pit let's go back and look at this trade the stop in this trade was here now what if this had violated the stop would it have been a good idea to be in this trade short if it had violated the stop the answer is no why if this would have violated the stop the stock would have gone over the high of the day that it set in the first trading bar of the day could have rallied would have rallied עם here? Who knows what if the stock would have rallied and rallied up like a banshee and rallied up a dollar okay this is around $8 something what if it ran all the way up to $9 $2950 Are you gonna let yourself be down a dollar what if you had 4 incorporated of this do you see what I'm saying so you have to have the stop in this is not a good short if it goes over here now may it reset up later maybe But to be honest with you, this is the time of the day when these trades need to set up and play out. And if they don't, sometimes they fail and you just never take a trade in them, you don't do them, or you take the loss and you move on and find a different play, or you take the loss in the day and get up tomorrow and look for another trade like this tomorrow. If you look at the daily chart of this, let's just go here and look. Say this had gone over the high of the day and failed. Do you see it would have lifted up into here, and it really wasn't that far from it. It was barely, barely 25 cents and it could have lifted up here and anything could have happened. When something hits this area here, it could have gone, doot. So this is actually was a very strong stop. If this would have lifted on the day with a bullish market, because we're in a bullish market, it doesn't matter how this market traded this day. The fact is we're in a bullish market right now. So if the stock would have lifted up here into this, it could have gone anywhere. And then what's your risk? Add infinitum. You can't do that. You have to have a stop and you don't want to be in a trade if it fails. You want to be out. That's part of trading. So high bylaw is asking, do you need more money in your account over and above the risk amount to cover the trade? Yes. Yes, you do. You can't have, if you're, let's just pretend you're a beginner trader here. You can't have only an account with $52 and take a $52 risk. Same thing with the intermediary. You need to have more than $130, because if this trade fails then you would have nothing in the account. Same way with this person. This person needs more than $520 in the account to take the trade. Now let's get back to the leverage, because I think that'll answer some more of the questions. The point I'm trying to make here is not to be afraid of leverage, that if you're a good trader, it actually helps you make money. From the time that I started making money trading to the time that I went forward from starting out at the beginning, lost at the beginning, figure the stuff out that I'm doing now that works, and then started making money. Leverage was a great thing, because it helped me move forward faster and stronger and bigger, and that if I hadn't had the leverage, I could have never made the huge progress that I have in the last few years since I started doing well trading. So when you know how to trade is actually a magical thing. Leverage is a magical thing. You just need money management. Leverage helps you make money if you know how to trade. Period and a story. It's magical for everyone. Leverage is a good thing if you know how to trade. All intelligent traders. I don't care if you've been trading for 20 years or for two months. All intelligent traders use leverage and use it to their advantage, and if you do not use leverage or don't understand it or don't know how to use it, you have to learn. You're just afraid of it, and you need to learn how to do it. And if you're afraid of it, it's because you probably don't know where to put the stop in. And then it's something that you need to learn. Leverage gives you buying power to take a position without needing the full cash value or cost of the stock outright to purchase it or pre-borrow it in the case of shorts. So for example, to short 4,000 shares of SU&E instead of needing $33,160 in real cash, it's a real cash equivalent if you wouldn't need the full-on value to take that advance trade or trade. Cost of the trade was $829 per share, so it would have been over 33 grand. Do you need that to take that position? No. Not. You don't need it because of leverage. So the advance trader only needs the leveraged equivalent of the position in buying power. So for a retail trading account, that advance trader has a retail account. That advance trader only needed $829 in cash equivalent, $33,000 in buying power, $829 in cash, real cash, to take that trade. So he actually made 50% of his cash value in that trade. He needed $8,200 in cash and made $4,700. The buying power was this. If he had needed this, okay, and he probably had this because he's an advance trader with a retail account, but if he had needed that, then he only would have made less than 50% of the cash value. Do you see the difference? Scott's saying no audio if you want to help Scott, Kathy. Does anyone else have any problem with the audio? Let Kathy know. So for the beginner or intermediate trader, if they only took 400 or 1,000 shares, it'd be much less than this amount of money. But I'm just using the primo, primo example here. Primo example, 4,000 shares, that's a good size in a trade. Good price of the stock, okay? This person didn't need this much money. This person only needed this much money. They would have made 50% of their money on this and one trade. One trade, okay? So this is how someone that knows how to use leverage can use it to their advantage. And if this person felt like risking $1,000 in that trade, say they were in love with the guy, and wrap a lot for the week and decided they wanted to risk double in their size and weren't going to take any more trades that day. They said, you know what, I'm going to do this one time and it fails them out. If they risked 1,000 and taken 8,000 shares, it would have been a huge day for them. It was a huge day for them. But the point is, the sky's the limit. If you have leverage at your fingertips to use, which every trader does, they need to know how to use it. They need to know where to put the stop. The stop had to be over that base there. The stop had to be over where it triggered. There's something called, let's go back to this again before I move on. This is an aggressive trade. There's no way about it. If you're waiting for the confirmation, you actually got it here. If you're waiting for more confirmation than this, you're in the trade late and you miss half the move. And there's no guarantee that this trade is even going to hold, as it turns out it did. This is an aggressive trade, but the bottom line is it has the best risk to reward the biggest payout. And by golly, it should hold. Why? Because of the gap. Because of the gap. So you got to learn and understand this gap. If you learn and understand what's happened here in the gap, you understand everything that's going on in this chart. And then it's going to happen before it actually happens. So at the beginning when you're learning, you can wait for the confirmation. Sometimes you'll get it very, very quickly after and you can bang right on it. Okay, and take it. Sometimes you don't get this. You get it way late into it. And by the way, if the stock had not gone on to the bigger target, you wouldn't have gotten that much out of the trade. Why? Because the first target was down here, actually $7.50. Here it is. She would have only had a small trade in here of $0.40. Instead, this is $1.20. Do you see the difference? So all you have to do is learn how to do this and what's the worst thing that can happen to you? What's the worst thing that can happen to you if you take this trade and it fails, you lose whatever you risk? If you're a beginner person, $52. Intermediary, $130. Advanced, $5.20. And if it works, look at the money you make. And if you're an advanced trader and you can make this kind of money in a trade, your week is in. Okay, your week is in. You don't really need to do any more trades. Or you can do one more trade after that. So to move forward here and talk about this, the bottom line is that it's about really position sizing and leverage. David's asking a good question here. Is it risky to trade these low price stocks? No. In fact, my best moves, my highest days, the biggest days I've ever had trading, are in a range of stocks, I'd say roughly between $7 and around $35. You'd be amazed at how much momentum you can get in these stocks. You get filled, you got to trade them with volume. They have to have volume in them, which that did. And you get huge moves in the things. And beautiful entries like I just showed you there were $0.13 stop. The position size you take in a trade depends on the amount of money you choose to risk based on your level. That could be beginner, immediate, or advanced. So you're going to determine that. You're the one that's determining that. You are putting your stop in the trades based on using your required monetary risk amount. Using hard stops mean you are only risking that portion of money. No more. It's not about the leverage. You're only risking the money that you put in the trade to take the position size where you're putting the stop. So you are not risking, for example, the advanced trader, the total buying power is $33,000 for that $4,000 position. That trader was not risking $33,000. They weren't even risking to $8,000 in cash equivalent they needed. They were only risking the $520 that they put in the position to take the trade with the stop and it ran on to make $4,700. So you need leverage and buying power to take a position. But it has nothing to do with the amount you're risking on the trade. You are deciding on each and every trade you take what your monetary risk is. And it should be roughly the same each trade, but it is not the buying power or the cost of the stop. I think a lot of people don't know this. This is why I'm putting in here was a request from someone actually. So trading with size, let's talk a little bit about it. The only difference between a beginner trader, intermediate trader and an advanced trader is size. Size of what? The position. A trader cannot risk more money per trade and take size until they know how to accurately trade over a period of months at least to prove to yourself you can do it. However, training with size is the goal. This is absolutely the goal. One playing with size can make your whole week. Two or three great plays a month can make your whole month. So the fact is, even during non-earning season, you do not need to get an amazing gap every single day because two or three a month can make your whole month. So for example, if you take 100 shares of a stock that moves a dollar, that means you'd make $100 profit. If you take 1,000 shares of a stock that moves a dollar, you'd make $1,000 profit. If you take 10,000 shares of a stock that moves a dollar, you would make $10,000 in profit. So what's the difference? The only difference is how much you're risking the trades are the same. Just like I showed you in the examples previously, it's about the size that you take in the position based on your risk amount, where you put the stop and your level of advancement where you're at, how well you know the system, no gaps, and know how to trade. But you can see the progression here and how the goal is size because the money is so significant when the size is great that it is so much more. So training with size is the way to make even more than six figures a year. So once you get to a point where you're making six figures a year trading, these gaps in the morning, the first 30 minutes of the day, once you do that, you are on your way to making more than that. You are on your way as long as you keep your discipline under control and you keep up with what you're doing and you stay on track with everything that you're doing. Take your stops when they hit, get up every morning, go through the rating system, take the trades, you're on your way to making way, way more. This is an amazing thing. So once you get to the point where you're actually making more than six figures a year, you're on your way. David's saying, so the stop is the same for all three traders. The stop is the same. The stop is at the same place because if the train goes over that, if the stock goes over that price, it's violated. Let's go back really quick. It's about where the position needs to be put for the stock to make the move based on the price where it hits, where it triggers. So the reality is that it doesn't matter how much size you take because if you're a beginner, you have to take small. But for everybody, it has to be here. The price cannot be violated. The position in the trade cannot be violated per the price rules or the trade, you have to be out of it. It's going to fail. And David's asking me a question here saying, what percentage of account risk per trade? Again, this depends on the size of your account and how much you are willing to risk what your risk tolerance is. Some people have a very, very low risk tolerance. Some people have a high risk tolerance. So let's just say you have a retail trading account. Let's just say, for example, if you have a retail trading account and you have 30 grand in it, your risk tolerance may be more than somebody with a prop account. Maybe you're going to give yourself $1,000 in the day. You could divvy it up into four trades and risk $250 a trade. But if you have an account at a prop place and maybe you only have $10,000 in it, you may not want to give yourself $1,000 a day. You may only want to give yourself $500 a day. Okay? So that would be less than 10%. It would be 5%. It does depend on your own tolerance for risk and how well of a trader you are. So the ideal training with size is going to get you where you need to be. Do you have to trade with 4,000 share-lots positions to make six figures a year? No. No, you don't. It's about getting quality gaps with quality moves and playing them out. Training with size successfully, though, requires a plan. This is the same thing we were talking about earlier, a business plan, because you certainly cannot take any sizable position in a trade without a checklist. You've got to know that it's going to work. $500 is a lot to risk in one trade, and you need to know that it's going to work. You need to know that it's going to work. Two trades in a row at $500 risk, if it fails, it's $1,000. You better know that trade is going to work. And it shouldn't matter if you're risking $52 or $520. Money is money. You want the trade to work. You have to have a system that's going to tell you, I have 100% conviction this is going to work. I believe in the trade. I know that I've done this umpteen times, and it's going to work. So here are some goals. I always like to do some goal setting. For example, we're talking about how to make over $100,000 a year. If you break it on down, it's $500 a day, and that's more than $100 grand a year. $500 a day is $2,500 a week. $2,500 a week is approximately $130 grand a year. $500 a day is not insane. This is not, to risk, this is to make. So if you profit $500 a day, that's $2,500 a week, that's $130 grand a year. That's not insane. That's not something crazy. Let's forget the advanced trader that made over $4,000 in the day. This is $500 a day profit. That's it. That's it. But do you see how if you can do this, you can get even so much more? Let's just say you're somewhere in the middle. You're not quite there yet. $300 a day is $1,500 a week. That's $78,000 a year. $78,000 a year from sitting at your computer at home, at your house, working part-time. Jerry's saying how much time does it take to go through the 26-point checklist on the gapping stocks each morning? It doesn't take that long once you're doing it for a while at the beginning. It might take you anywhere from five to eight minutes to go through one. Now that being said, are you looking at every single gap in the morning and rating every single one? No. The system itself, when you take the class, automatically takes out probably 90% of the stocks that are gapping. You won't even rate them. You won't even look at them. So you're only probably going to rate in the morning, even on a busy morning, maybe five. So it's just not going to take you that much time. If you're good at doing it and you've been doing it for a while, you can do it in a minute or two. But even if you're new and it takes you five to eight minutes to rate every one, you're not going to sit there and rate 500 gaps every morning. The system itself automatically takes out almost everything that's gapping except for a select few that you're going to go through and rate. So it's really easier than it sounds. Is there some prep time involved? Yes, absolutely. You can't roll out at 9.30 and start trading. You're going to have to get up. I personally get up very, very early. Do you need to do that? No. I'd say you need to give yourself probably at least 20 minutes in the morning. I'd say if the market opens at 9.30, you should be at your desk looking at stuff by 9 o'clock, really, to be prepared. And the better prepared you are, the more money you're going to make and the better you're going to do in the day. So if you make $150 a day, that's $750 a week. I know it doesn't sound like much a week, but to be honest with you, that's $39,000 a year sitting at home working for your computer. Could you make this extra money with another job? Yes. Would that be a nice extra part-time job? Yes. Is there anywhere you could go and make that kind of money as a part-time job and work from home? No. So you're in transition. You're just getting it situated. This is your goal. You're not there yet. You can do this. You're going to get there. You're going to get there. You do this for a year. You're going to get there. You do this. You do this. You do this. The sky is the limit. $750 a week. So $150 a day. That one train there reached $52 and made $476. So in one train, you could actually have your whole weekend. You see? Q is asking, do you use some kind of a scan to find the stocks to look at? I use just what's on my platform. My platform has a top 20 gapping down stocks in the NASDAQ and New York Stock Exchange. I use that. And you can go on the nasdaq.com. You can go on to Yahoo Finance. You can go on to lots of free websites. Even freestockcharts.com have lists of stocks that are gapping. Of course, you could pay for a scanner. I actually did it at one point and it was too much. I had this thing and that thing and the other thing. And I had everything was just doubling up the work for me. You'll find that many things have the same gaps. So you really don't need 100 different things. Just pick one or two. One site and your platform that should have the top 20 downs on both the exchanges and you're good. And you go through them. It's really not that hard to find things to rate. The idea is to know what to look for. Because like on certain days, like today, today's a good example. Today the market gapped down. I actually called the market beautifully today. I said the market was going to rally and it did. And tons and tons and tons and tons and tons of gaps gapped down today. Do you know that I did not take one trade today? I didn't take one trade. I didn't like any of the gaps this morning and there was a million things that gapped down. Nothing really met my criteria. I didn't take a trade. So lots of things gapped out today. I didn't do anything. All right. I'm sure I'll get something good tomorrow. The reality is that you get up every morning and look for something to do. If you don't take a trade, it's not the end of the world. You wait for the good ones. You wait for the ones that are going to pay you. It's part of the self-control of the system. So to be able to make $39,000 a year, extra income working part-time hours is good. To be able to make $130,000 a year income working part-time hours is great. Is great. This is a dream life. Now do you have to learn how to do it? Yes. I will tell everyone here if you're in the process of learning how to trade or if you've been training for a while and you're not there yet. Trading is one of these things. Okay. This is just the way that it is. If you don't know how to do it yet, you've got to learn. Once you know how to do it, it is terrific. And you just got to get to that point. The interesting thing is that many people think that they know how to trade and they don't. How do you know? How can you tell? We'll just look at your results. If you've been doing this for a long time, you're not getting the results and something's missing in your system, something's missing what you would do. I actually had someone that did the class recently that called me, talked to him on Friday. He told me, Melissa, I thought that I understood supporting resistance until I took your class. It was one of these things that I now have a brand new understanding of support resistance, which I thought I understood. And I realized that I didn't and I didn't know it until I took your class. And now I know it and I know it. It's one of these things that you may think you know something. But how do you know if you know it or not? If you're not seeing results. If you're not seeing results, you're not doing something right. You've got to get the results and there may be something missing in what you're doing and you don't even know what it is. And how do you know what it is? You have to learn what to look for. And how do you learn what to look for? You learn from someone who's a good trader. So your future goals, once you make over $100,000 or endless, the sky's the limit. This is the whole point of doing this, is to make money. And it's about having job security in today's economy. Today's world is not the same as 25 years ago or 10 years ago, even five years ago, before the bank bailout. What we think is a secure job today may be gone tomorrow. We can be great employees, productive out going, hard working. And it may not even matter to our employer in the end if the company can't keep you on. And it may have nothing to do with you. If the company is poor manager, they may fail. And it has nothing to do with you or your skill set or your industry might fail. And it has nothing once again to do with you. You are a skilled person with a great mind. You can work for yourself in the market. You can create your own job security. You've got to learn what to do, but it's possible. You can create your own opportunity by taking it upon yourself to learn how to trade the market and make money trading. Jerry is saying, what is your experience relative to the probability that one gap is to meet your 26 point criteria will not stop up before at least two to one profit is realized. If the trade goes on to set up to work, they work. When they fail, Jerry, many times they fail immediately. That's the other great thing about it, to be honest with you. When the setups happen, they set up, they go on, they work, they pay you, they run, they have the risk to reward. If they set up and flip you out and fail, they usually do it right away. So it's not like they go and they start doot, doot, doot, and then you only make one to one or two to one and then they flip. No, it's usually they set up, they work, they run, or they fail. Boom and you're out and you take the loss. And you can either watch to see if it's going to fix itself, which sometimes they do, but many times it just fail. So it's about self-reliance and personal freedom and the magic of the gap. The magic of the gap, which is what creates this kind of momentum in here where you can get a beautiful trade and make this kind of money. So the power of the gap is what creates the huge opportunity in a short timeframe. This is one of the great things I, if I had to sit and trade for eight hours a day, I'd be pulling my hair out. I don't have the patience. When I make money, I need to make money immediately. In fact, we're talking about this in the class today. If you're in a trade and you're down money and you're down a lot of money, something's wrong. Something is wrong. When you're in a trade and you're up money, you can follow it through. When you're up, you're up. It's a good trade. You cannot be in trades where you let yourself get down a lot. That's not a good trade. You've got to be in where it sets and triggers. It's got to go and be up and it's got to go. When something sets and triggers, it should go and it should be up right away. That's the great thing about trading gaps and the great thing about the morning. So you've just got to learn the right knowledge to make money trading. It is all about the knowledge, just like what the customer said to me last week. He thought he knew supporting resistance until he met me. And I showed him a whole new way of looking at it, which now he's using successfully. So the reality is that you have to learn the right knowledge. It's all accessible, the information. It's how to put it together. And it's a great thing about the system that I figured out. I put it together in a way that it is so put together. It is so put together that everything sinks in with itself. So you can do it. Empower yourself today. If you are thinking about trading or want to trade the market, it's possible. I know because I did it. I'm doing it. It's real. So the Golden Gap course is a complete system to use to trade. What do I mean? All the pieces of the puzzle fit together. Picking the right stock symbol, taking the right entry, putting the stop at the right place, looking at the targets, looking at the supporting resistance levels. So the class that I teach is called the Golden Gap course. It is a full two-day course on how to strategically find, pick, and play stocks in your professional bearish gaps. Retakes are free. So once you sign up for the class and take it the first time, you can retake it as many times as you need to after the fact. The class is this weekend, August 17th and 18th from 9 a.m. to 5 p.m. Eastern Time. The cost of the class is $24.99. If you're interested in more information, email me at Melissa at thestockswish.com. So it's about getting on the path to success. And the Golden Gap course can help you do that. I also teach another class. I'm running a special for August. It's the Trends course. And this course is a course on how to read trends and stock charts. The class is going to be August 20th and 21st. It's broken up into two days. It's an eight-hour course from one to five. Tuesday and Wednesday, the cost is $9.99. But there's a special for August. If you do the Gap class this coming weekend, I want to do the Trends class in August. You can half off the Trends class. So for $29.99, you can do both classes. This is a great deal. Total savings is almost $500. And you learn all about how to rate the gaps, how to play the gaps into your day, and how to read trends and stocks for even longer-term time frames. So remember, love your life. Love yourself and love what you do for a living. And if you don't love what you do for a living, think about the things I said tonight. You really do have to love what you do for a living. You get up every day and you work at a job for eight, 10 hours a day. I love to train. This is why I'm doing it. This is why I'm teaching. I absolutely love the market. And if you're interested in more information, email me at Melissa at thestockswish.com. I'll put it here. And let me answer some questions for everybody. They have some time here. It sounds like you did not scale out, perhaps saying for longer durations in today. Jerry, I had certain exit or what I call reversal signs. So if I had the target, I had the target, let's just say SUNE or whatever. SUNE just dropped right through the first target, so there was nothing to think about. But say you're in something and you have a target, you get what I teach in the class as a reversal sign. Typically what I'll do is take 50% of the trade out. I'm usually not always moving the stop. I'll keep the stop of the original place, take half the profit, let it wiggle and jiggle, and get the rest of the drop down. And that's how I'm doing it. But I'm not in a trade till like 4 o'clock in the afternoon, if that's what you mean. And if something hasn't gone to the bigger target by 12 o'clock, I'm usually just out of it. Unless the target on this thing could be another $2 or something crazy that I might want to take something longer. But to be honest with you, for the most part, these gaps work in the morning, work fast, and then they're done. And then they sometimes even wiggle and jiggle or just base out, there's really nothing going on in the rest of the day. And also things do not go with the market in the beginning of the day in the morning. That's the great thing about gaps. As the day goes on, if the market wants to go in a certain direction, the stock may go and wiggle and jiggle with the market. That is not the case in the morning. So then if you want to trade all afternoon, you better get the market right, because you could be in the stock and having to get it with the market, and you don't have to worry about that in the morning. Steve is asking me about the day trading rules. If you want to open a retail trading account at a retail brokerage house, the day trading rules is for if you're in the United States. Because this is not if you're out of the other country. It's $25,000 minimum. And if you fall under that, you have a margin cost. You really need to have more than $25,000. The leverage is four to one. So if you open up an account with $25,000, you have $100,000 in buying power. Now, there are different options for proprietary day trading accounts. That's a little more complicated. And your best option is to talk directly to a broker about proprietary day trading accounts because the day trading rules do not apply there. They have their own restrictions and requirements. They have risk management, and they also have their own leverage. Much of the leverage in proprietary day trading accounts is set by that particular broker. It could be as much as 10 to 1, 15 to 1, or even 20 to 1. And that's, again, up to that separate company. Does that answer your question? Does anyone else have any other questions, particular about gaps, the class, reading trends, risk to reward? Anything else? Anything at all? It's a good time to ask it. The point I wanted to make about breaking it up into the beginner trader, intermediate, and advanced is that everyone should learn the information correctly first and start out. And anyone that's trading the market should be able to risk at least $50 when they're starting out in the trade. And the risk to reward is still there with $50, just like Dave was saying. You can still make $9 per dollar on a trade if you risk $50. So you don't need to run out and risk $500. I've seen so many people get so excited and go out. You've got to learn it first. You've got to learn where to take the trade, press the button, and put stop. So you go through the process and you learn it. You're welcome, Jerry. And the other thing is too that, you know, once you get into a groove with something and you're doing it, you'll know when it's time for you to risk more. You know when it's time for you to risk more, when you're making money so consistently that it actually doesn't bother you to take the risk, that you actually have no fear about risking more. The biggest thing is people take the leak from risking $50 to $100 to $100 to $200 to $200 to $300. And they're in fear about the extra money they're risking. You can't be in fear about it. If you're in fear about it, it's too soon for you to be taking the risk, then stick with where you're at. The most important thing is staying consistent and banking the money. Banking the money, banking the money, banking the money, booking it. No, no, no. Sell high, buy low. I'm saying there's different types of trading accounts and different types of brokers. I am a trading educational company. If you want to email me, I put my email in the room, I can refer you to several different brokers. You've got to look into that yourself and check with the brokerage house to determine where you want to open up a brokerage account. Then you're going to pick the platform you want to use with the broker and determine how much money you're going to put up and how much risk you're going to take. I teach the strategy. I'm giving you different options for amounts of risk. If you have a small account, you can only risk a small amount. If you have a big account, you can risk more. The point was, though, that you don't need some humongous account because even that advanced trade with a stock price point at a strike price of $829 for the entry required $33,000 in buying power. And that's not a lot of buying power. So, again, you don't need a million dollars to trade. You don't even need a million dollars in buying power to trade. Even if you want to open up a prop account or retail account, if you want to be an intermediary trader, not beginner, not advanced, intermediary, if you have about $100,000, $150,000 in buying power, depending on which brokerage account you go with, you're going to have to talk to them about how much money you need to put up. But even still, you can make money with that. You can make money with that kind of buying power. Now, you're not going to be able to take 4,000 shares of Apple, but that's a whole different ball game. And it's certainly something that no one that is in advance should be doing. And Apple doesn't gap every day, so there's no reason to even do anything unless it sets up as a strategy as a gap to begin with in the first place. So the whole reason that this works so quickly in the morning is because of the strategy, which is the gap. The whole reason that the risk to reward is in the trades, it's because the strategy is because of the gap. The whole reason it's possible to make over six figures a year is because of the risk to reward in the trades because of the momentum, which happens because of the gap. So it all goes back to the strategy, which is the gap, and picking the right stock to trade to get the move. One more question here. Q says, so you run your scan immediately after the open in the market to find the gapping stocks? Do you feel to be in a big rush? No, no, no, no, no, Q, I'm doing this all in the morning. I'm doing this in the morning way before 9.30. I'm looking at this way before 9.30. I'm looking at the gap. The stock, the price is gapping pre-market or even post-market. Like right now, after I sign off tonight, I'm going to look for stuff tonight. There's stuff that happened tonight at four o'clock. You can prep yourself the night before or in the morning. Either way, you're prepared and are reading the gap before the open. You're watching it to set up to take the trade in the open. I'm not in the trade pre-market, but I am reading the gap and going through it all in the quiet of my own private time without the market being open. I'm watching the pre and post-market trading which is where the gap is happening. I'm not in the trade until it opens. And I'm not in it necessarily right-of-ways on the open. I'm watching for the set up, which is what I teach in the second day of the class. Okay? So there's no rush. No rush at all. The more time you prep yourself before you trade, the better you're prepared you're going to be able to do. Why? Because sometimes when the set ups happen, they do happen fast and you have to know exactly what you're looking for to get in and then you take the trade. Do I ever trade stocks that are gapping up? I don't, but you can use my rating system in the class to flip it. I called Facebook perfectly as long. It was a huge gap up. The traders wanted to short. I said it was a buy and it was a great buy and it's still a buy. The reality is that you can take my 26-point rating system and flip it in the opposite direction to go long if you want to go long. And then you can just go long. So you can do that. There's been some good longs actually lately. And with the market, you know, you can look at it either way for long-term trades in your IRA if that's what you're looking to do, Bob. If you want to take trades in your IRA and you can only go long, you can do the class, learn the rating system, take the trade as a long core trade if you want. If the gap rate's high, it's got to be over 20 points. It's the basis of the system. You're not looking for 26 or 26. You're looking for something that rates 20 points or higher based on a 26-point rating system. And that's a quality gap. That's something that's going to have a setup like I just showed you. And one more thing I just want to say, and I'll let you guys go. On the low end, I'm looking for 4 to 5 risk to reward. On the high end, it's 8 to 10. Okay? So I'm not getting a trade to make 1 to 1. I'm not getting a trade to make 2 to 1. I'm not even getting a trade to make 3 to 1. I'm getting a trade to make 4 to 5 if it goes to the first area. Okay? Like with that SU&ED, but then it went farther. And so then you made almost 10. So do you see 4 to 5 on the low end, 10 on the high end when the trade's going to work? File was the same thing. So you look for a gap that can make 4 to 5 on the low end, 8 to 10 on the high end. All right. Have a great evening, everyone. If you're interested in more information, email me at Melissa at thestockswitch.com. Thanks so much for coming. If you're interested in the class, feel free to reach out to me. Email me or give me a call. Thanks so much for coming, everyone. I appreciate it. If you have any questions, let me know. And thank you all my Trader Central for having me as well. Have a great night, everyone.