 Good afternoon, everyone, and welcome. Welcome to the Stockswish Show Play of the Day. This is KBH. Actually, this is the Play of the Day yesterday as well, except for it didn't work out yesterday. I didn't watch this today. I really prefer to do brand, brand new gaps on the day. However, I will look at the continuation gaps. I will watch them. I will follow them. Someone had asked me a couple of weeks ago if I ever do videos in plays that don't work. Not that often. Everyone's in a blue moon, usually because if they don't work the day of, then they work the next day. Just like this one here. And then I ended up doing a video on the day that it works. But most of the time they work the day that they actually got. Particularly, let's go over this from yesterday and what transpired here. KBH gap down. It was a valid short yesterday. The bar closed green on the day and it didn't have a short play in it with the follow-through, obviously. However, it really ran into the first target. So, the issue was that the stock opened at the target. Now, that doesn't mean it didn't have other targets. It did have other targets. It's on its way down to the next target here now today, but it should have continued to sell off yesterday. It didn't. One of the reasons was the market was strong yesterday. The other reason was it hit the target into the open. But it didn't really have what I would consider institutional buying action in it. So, there was no long claim that yesterday to make any money and it didn't work out as a short. And it very well could have broken and went to the next target yesterday and that's why I played it. It just didn't follow through. So, a great example of conviction in, and not only that, an example of consistency. To stay with something, to see it, and to not be put off of it because it didn't work the one day. It's very important to understand what is actually a failure. What do I mean? Something that actually gap downs and fails. It is a failure. And oftentimes I will see that failure into the open. If I don't, okay, and it actually fails on the day, meaning that it closes as a failure, then you can't go back in and replay it. Okay? That was not the case with this yesterday. The gap didn't work into the day as a short yesterday. But this was not what I would consider a gap down failure, okay? And which is why it was valid today. If it actually ends up being a failure, though, it's not valid then for follow-through. I have to make note of that. Anyways, let's take a look at this guy right here for today. If you were aggressive out of the gate and hit this immediately and the beautiful, beautiful price over here was a huge trade. If you got it later, it still was a nice trade. Let's go over this. So here was the first entry. Here. It worked. Could have taken a second entry in here, dropped, rallied up. Here's the other entry in here, dropped. There was an add in here, dropped. This was a nice mover today. Nice consistent selling action all the way down, falling through here even in the afternoon as well. Target for this today. The next target is 15. Looks very likely to get there. You don't have the market against you here in the afternoon. It's not always something that you need to look for necessarily in gaps, but in the afternoon, 1.30 in the afternoon, if you're looking to do something, it is good to have the market with you. I will say that. It's not that you need it, but it helps. It helps what? It helps you get the stock to the target. If it doesn't get there by the morning, if the stock doesn't get to the target by the morning for the afternoon, you really, it's better to have the market with you. Next target for this is 15. 15, 15, 15, 10, 15. Anyways, a great example of conviction and why you can't be so hung up on something that you get angry with something. If it doesn't work on the day that gets supposed to that you, you have to get up the next day and have them need you. Okay. And not only that, you have to be consistent with what you do. I consistently do the same strategy, the same system I have every day and have now for years. And it helps your level of conviction, confidence. It helps you make money in the market. You do the same thing every single day. If you just focus on what you're doing and read it. And if it doesn't work out, you look at it and you say, did I see something wrong? I did not see anything wrong with it yesterday. It just didn't work. Okay. And I saw the fact the market was rallying and had a big rally yesterday. I saw the fact it's not coming to the target while I had the numbers written down. And it just did not get the selling into itself. But do you see this didn't really go anywhere yesterday here. So what this would have needed to do to do what it did today is to have more selling in it. And it didn't bring in the sellers. It didn't bring in the sellers yesterday they came in today. Why did they come in today? Who knows? Maybe this wasn't on enough people's radar yesterday. They didn't care enough about it to actually sell out of it yesterday. But it did come up as the fact that it got down. It did come up the fact that it got down yesterday. And then it came up and the people said, ah, and they're selling out of it today. And that's what's making this bar. You wouldn't have a bar like this today the way that this thing fell this morning without selling action. Because this isn't something that traders would really play into today. This daily chart, this is like not anything here actually today. I'm reading the fall through the continuation of the gap from yesterday. This actual thing here, this look to it is really isn't anything specifically, okay? So what is happening here today is, I mean, I short this today and my trading room short this today. People that did this with me, but I'm sure most trading rooms didn't even have this on the radar today because this really doesn't have a setup necessarily in it here unless you were looking at this yesterday. This is institutional selling. It's having this today and it's why it's moving so nicely. This is actually behaving extremely well. This is behaving very well actually. And it's going to break 20 in here in three little pennies. So it's good to stay consistent. I've never been more consistent than I have been this year 2014, which is a wonderful thing. It reflects in your P&L and your results when you're consistent with what you do, when you hold the convictions and the confidence is high. It allows you to read things instead of getting caught up in the moment, whatever that moment happens to be. The moments sometimes are highs when you're trading and could be lows when you're trading. If you allow yourself to get too caught up in the moment of what you're doing, you're going to miss the boat and get off of the consistent track. You got to stay consistent with what you're doing. I'm very strict with myself on the strategy. I don't even want to do anything else. It's not like I even, I don't even get sucked into things that I don't even want to do anymore. I don't even want to. It doesn't even, I don't even think about doing things that I don't, I know not to do. I don't even think about it. You just get into a routine. It's like getting up every day and going to the gym. Getting up every day and exercising. Getting up every day and having a cup of coffee. Whatever your routine is, whatever it is, you've got to get in a routine with your trading. It's about doing one strategy, one thing consistently, day after day after day after day after day. And if one day doesn't work like yesterday, you stop and you take the loss or look for another gap. Okay? But it's not about saying, oh, you know, and then flipping from thing to thing to thing in different strategies in different directions and doing all kinds of crazy stuff. That's how one day where you can have a medium to small loss turns into a huge loss day for people and it can run away with you. You just look at what happened. You see that it didn't work on the day. You know why. Are there a bounce? You have an estimate and you say, did I read this wrong? The answer was no. Valid continuation today. Set up. And that's the end of the story and you do it today. Look at this here. Come on KBH. Under 22 is a new low on KBH. Beautiful bars is on its way to 15. Lovely. Well, nice move here. A nice short move in KBH here into the two o'clock major reversal time on a Thursday. Thursday, getting into the end of September. October is going to be a very, very, very, very, very busy month. Very busy. So if you have any questions or if you're interested in signing up to trade gaps with me during the month of October and the rest of the year, the Golden Gap class for the fall is this weekend, September 27th and 28th. Deadline to sign up is tomorrow at five o'clock. Five o'clock is a deadline. If you want to get me the papers, I'd sign up as soon as possible to make sure that I have time to register you and get your spot. It'll be a good class this weekend to take for fall trading in October and November and December to close out this 2014. It has been a nice trading year and it's just going to continue to get better. Email me and Melissa at thestockswitch.com so you'll like more information. Thanks everybody. Have a great day.