 Testing one, two, testing one, two, just let me know if you can hear me here, Kathy. I know the screen is up in the back up. Hello everyone and welcome to the new folks who've just joined us. We're in the right place at the right time. Welcome Phillip, I am Mary Cookie, Anataz, John S. and others. This is Online Trader Central. Rock of One, Be Me, Gordon and everyone else that has just joined us. Thank you so much for your time and your participation today. This is Kevin. It is 427. We start in three minutes. Three minutes start time here today. Your host and presenter, Melissa Armell with thestocksquish.com. Again, start time three minutes. Thank you again everyone and welcome. Hello everyone again and welcome. This is Online Trader Central. Your host and presenter today, Melissa Armell with thestocksquish.com. It's presenting. We'll be starting very, very soon. Elsid just joined us. D, underscore, Boo, Bill, S64, Gordon and others. This is Online Trader Central. We are fortunate today. Melissa Armell is back with us again today presenting here at Online Trader Central and we want to welcome each and everyone of you to the presentation today. John from Denver just joined us. John from Denver, welcome. Again, this is Online Trader Central. We do try to start on time. We try to end on time. We are appreciated of your time. We do try to be respectful of your time. I keep it to the one hour as promised. So with that, let me see if I can round up the percussion section here. All right. Drummers, are you ready? Percussion. Drummers. And with that, ladies and gentlemen, the sound of the trumpet. You know that means it's time to begin. Please put your hands together and welcome our host and presenter from thestocksquish.com. And thank you so much, Kevin, with Online Trader Central. Welcome. My name is Melissa Armell and I own a company called the Stock Swoosh LLC. Thank you for coming today. Today I'm going to talk about making up to $20,000 a month trading 30 minutes a day. If you would like more information or if you have questions, Kathy's going to put my information in the room. You can feel free to email me after the webinar. You can reach out to me at Melissa at thestockswish.com and you can go to my website if you'd like more information at well. I also have a lot of videos on YouTube and you can subscribe to my Facebook page too. And if you want to reach out and call me, you can call me at 602-799-5754. So today we're going to talk about really making money in the market and making enough money that actually could pay your bills. $20,000 a month equates to about $240,000 a year. They ever take the weeks of markets closed for the holidays and that's enough to really sustain many people, most people, for a living. 2015, January 2015 is a good time to think about what are your goals for the year. If you have not been thinking about them, if you did not consider that at the end of the calendar year last year in 2014, it's still early in the month of January and it's a good time to think about what you want to accomplish this year. Whether you were currently a trader or whether you were considering becoming a trader, now is the time to think about really what are your goals. And one of your goals might be to make significant money in the market, enough money in the market that you could actually quit your day job and sustain yourself as a trader, whether a day trader or a swing trader. I happen to be a day trader. So how can you earn up to $20,000 a month in the market? And can you make this kind of money in half an hour a day? The answer is yes. The answer is yes and it has to do with a specific strategy that I trade myself and I'm teaching people how to trade, which we're going to talk about today. The strategy is gaps. And more specifically, something that I titled golden gaps, which I'm going to talk about today. Now this is a chart of BBY. If you did not know what a gap is, I'm going to explain it to you. A gap is, and this is in the US stock market. Down here is the daily chart. Down here are the days. You can see the dates. This was BBY. This was back on the 15th of January. The stock closed the night before, up here at $39 in some sense. Then gap down here in the morning at 35 or whatever, wherever it opened. So one is a gap. What strategy is this? It is when a stock closes at one price the night before, which is four o'clock Eastern time when the US stock market closes, and opens at a different price the next day, which is 9.30. Now there are bearish gaps and bullish gaps, which we're going to talk about. But this is really what a gap is. And this is what it did then on the day. The stock fell on the day. It's really about how, what and when. How do you make money really in the market? You train a strategy that is profitable. Professional gaps, and I coined the term golden gaps, and I'll talk more about this in a minute, are a highly profitable strategy because they create large momentum to trade. And for you to be able to make $20,000 a month trading, day trading, you really have to have momentum. You've got to have momentum in the stocks you're trading. That's why I always think it's ironic. People talk to me about penny stocks. The amount of size, of share size, you'd have to take in something like that, and you wouldn't, you would just, we don't get the momentum. I trade equity stocks that have a price range point of anywhere from, I'd say $5 all the way up to, you know, $400. But I like to trade in the range from, I'd say 20 to like 65. It's my favorite range of stocks to trade price point. What stocks do, you know, you should be looking at. All right, stocks that gap, they gap and they rate 20 points or more for the golden gap 26 point rating system, which I'm going to talk about today as well. How do you do it? You trade the gap in the direction of the gap. So in the case of BBY, we'll just go back and look here. You would be looking at this gap to see if it meets the criteria, which is 20 points or more per my system, which I'm going to talk about here in a little bit. And if it meets the criteria, you're going to do it in the direction of the gap. And since it was gapping down, you'd be looking to short it. Okay. Very simple. When do you trade these things in the morning, early, early, early in the morning, into the open, when they set up and trigger. Now every stock sets up at a different time. They don't all trigger immediately right into the open at 930. Okay. But I do have once again criteria that I have rules I follow where I'm looking for the stock to set up by 10 a.m. Eastern time. That first 30 minutes of the trading day in the US stock market is extremely powerful. That's where you get most of the moves that happen. Just even, even just now, even though I've been doing this, I've been trading now for gosh, you know, more than six years. Even just in the last month and actually BBY was, which I'm going to go over this trade today, really just hit me. How well I took this. It's really, really has maybe realized that I actually have an edge in the fact that I can read that part of the day so well. In fact, I called the market long today in the first five minutes of the day and I called it to go to the target and it did. And the QQQ is on the spot and I called in the room and people in my trading room took it. Now I didn't do the market today, but I called the market long today in five minutes. So, you know, I really have an edge in reading that time period. I can read what happens immediately. This is what you would learn how to do for me. Plus the fact you'd learn what stocks to trade. There's no doubt about it in my mind that I really can do something that most people on the planet cannot do, which is determine what something's going to do right into the open. And that really helps you make money because the sooner you can take the trade, the more money you're going to make. And actually the more risk to reward you're going to make, even if you want to hold it for more than 30 minutes. The idea is that it's up to you whether you hold it to a bigger target or pass the first half hour. But if you're taking it early enough, you could get the trade and make money in 30 minutes, you don't need to hold it past that. And you get such momentum that happens into that beginning part of the day. All right. The concept that I teach and what I'm going to talk about today as well is that it's really only one strategy that you need to even make this kind of money. And actually not only is it all you need, it's all that you should have. This idea of what's the word? Diversification, okay? Actually is not the best course of action for someone that wants to be a professional day trader. Diversification in your mind, the way that your mind works, actually creates confusion and a lack of consistency there. So if you want to be a professional day trader, okay, then the best thing you can do is to do the same thing every day, which is what I do. It's very challenging for some people to do the same thing every day and a lot of people actually think that that's not the right thing to do, but that's false, okay? And many people do many, many, many, many different things and they're back and forth with their results. And they don't end up getting good at anything. The reason I've gotten so good at what I'm doing is because this is all I do and this is all that I have done for years. Okay? And nothing else. One strategy is all you need to earn a good living in the professional golden gaps is a powerful strategy that offers the opportunity to earn up to $20,000 a month or more, or more, okay, for individual traders. You can book profits with substantial gains in a timely fashion early in the morning. And this should be enough money to pay your bills and live a full life. And the idea of working in less than an hour a day actually is very enticing because many, many people sit and trade the market until four o'clock and they're exhausted and other people are at jobs where they're working, you know, 40, 50, 60 hours a week. So the idea that you could make this kind of money and do it so quickly is very enticing. Booking money quickly reduces risk. It's exciting and it's fun. It was a lot of fun to do that BBY trade, which we're going to talk about here today. It's really about focus, you know, one strategy for the consistency. This is the theme that's going to permeate here at this whole webinar today. It's a consistency. It's not that you couldn't have one good trade, one kind of slam dunk thing, one fabulous trade that you could get every once in a while where you could make a couple thousand dollars in it, or a thousand dollars a morning or something if you're a day trader and have some great day. It's not about that. It's about the consistency where you're hitting it Monday, Tuesday, Wednesday, Thursday, Friday. You're always getting it. The only way to sustain this kind of money every month over the course of an entire year is to be consistent. So a lot of people will have a good trade and they'll make good money, but then they'll lose another one or be back and forth. So there's a lack of consistency. So then in the end, they don't end up making 20,000 dollars a month. Even if they do one month, they may not the next month or the next month or the next month or the next month. So then how can you rely on the business source of income that you could even quit your job? You have to know that you are consistent before you can rely on this for something that you do for a living. So it's really just about one quality strategy. And you've got to know it and know it like the back of your hand that you could replicate it over and over and over for profits. Once you can do something like that, it really changes your trading world and it opens up your eyes to the true profit potential of the market. The market can offer you a real life long career if you have a strategy that makes you money. Now we're going to talk about the top 10 reasons. Top 10 reasons to trade the gaps I love David Letterman. He's actually, this is his last year, been taping it every night if I don't stay up to watch it. Let's talk about the top 10 reasons why it's a great idea to trade gaps. Number one, fast profits. They set up quick. Why? Because when there's an order out to go pre-market, ahead of the market, the order is actually set up to go into the open at 9.30. Whether that order happens to be for an institution to sell or short or go long. So these moves happen in that period, that period on how to trade that gives me an edge. That period if you know how to trade it will be very profitable for you if you learn it, okay? Because that's when the orders are getting ready to go and then taking cold into big amounts. Big amounts with volume and that create then the momentum to go. And again, it's in that period from 9.30 to 10. Reason number two to trade gaps is the good risk to reward setups. We will talk about some of these today. Why don't I consider a good risk to reward setup three risk units or more? That means you would make $3 for every $1 you would risk. Is $2 for every $1 you risk good? Are you risk good? Yes. Is $1 for every $1 you risk good? No, not really, okay? Although some people on many traders actually risk $1 and make less than that. Because they just get out because they're scared to get out or it wasn't a good trade and as soon as it goes against them they kill it or they get out. And they book whatever they book. That's not a consistent way to trade with any amount of level of risk or size. I'm talking monetary size, okay? Because of the fact that you can't be so in fear that the trade isn't going to fall through. The idea of taking the trade in first place is that you are predicting that it is actually going to go and work in your favor that you'll be able to make up to three hours or more, whether the stock goes to the target or the dream target or not. Reason number three to trade gaps, again, booking money early in the morning. I live in the East Coast. No matter where you live, whether it's the West Coast to East Coast or another side of the world, you can do this very quickly and do something else with your day. If you have another business, a family, a job, something else you want to do, it actually provides a great schedule because you'd be done quick in 30 minutes and then you can get on with the rest of your day and do something else with your life. Reason number four to trade gaps is large profits. It is almost virtually impossible for traders to get something like a 6, 7, 8, 10-hour day in any other strategy other than gaps because stocks on any given day really don't move that much. They move but not on any given day on a regular basis that much. You almost have to be watching the same stock every day to get some huge move in it. And you probably sit and do nothing for months before you get something to move really big in the day. Gaps move a lot and that provides the momentum for the large profits that you would get. The kind of trades are going to pay you the risk to reward that's going to make it worthwhile for you to even do this for a living. And I just mentioned here about the momentum. This is the chart of BBY. We're going to talk about this trade here in a few minutes. This BBY, here's word open. This is 930. 930 Eastern time, 931. Stock here you can take it across because see the prices run $35 in some sense. The momentum move that the stock had in the first 20 minutes into the open came down in here and hit on down into 33. So from up here where it was at and the drop in here was more than $2 and all of this momentum actually happened in the first 20 minutes. And by the way, this was the low of the day. So stock made the low of the day in the 20 minutes. Not only did the momentum happen, the entire momentum happened. 100% of the momentum happened in stock and hit the low of the day happened in the first 20 minutes. You could not have resorted this actually on the live day and been profitable in this same regard. This was the biggest move the stock had on the day with the proper entry and exit. It happened in 20 minutes. This is an example of momentum. Reason number six to trade gaps is long-term trading. Gaps can be used for swing trades and court trades. We're going to talk about this a little bit today as well. So you can take them overnight if you want to. If you want to be more than a day trader. You want to do things for a longer term. It's the same strategy, same strategy, same principle. It's just you'd be holding them for bigger targets. Reason number seven to trade gaps is that you can work for yourself from home. I work for myself from home. It's very luxurious. Okay, I don't have to report to a boss. I love that. And if you are an independent thinker and you're an independent person, this is the perfect world for you. And you don't have to worry about commuting every day back and forth, dealing with traffic or anything like that. Reason number eight to trade gaps is institutions trade gaps. This is a clip here, a chart of the market of the QQQs from a couple of days ago. This is one of the major reasons. One of the most important reasons to trade gaps is that banks, hedge funds, institutions utilize gap trading. And that's why you would be considering yourself a professional who chose to trade like this. And I'm training people to think like that, no matter what their account size. Whether they have $5,000 in account or $50,000 in account, you need to act like you're trading like a professional with real size because that's how you're going to get there financially to be able to make this kind of money consistently. You have to take it seriously. Reason number nine to train gaps, personal freedom. Many, many, many, many, many days once I'm done trading, I leave and go to the gym and I have the rest of the day to myself. And actually after I got done trading today, I went and got a manicure and a pedicure. I came back and doing the webinar. So I mean, the reality is that, you know, you have the afternoons to yourself, okay? And it is a very, very, very nice life. Whether you're single like me or whether you have a family and kids and you want to spend time with them, it is a very, very nice life. Reason number 10 to trade gaps, it's a strategy that can pay you income for a living just like you go and you're going to the bank every day and you're going into the market and you're taking that money out and you're booking it and you're done. So let's talk more about what I'm discussing here about a golden gap. I'm just going to define it before we review the trades. And if anyone has any questions, you can write them in the room down in there like we're cafes writing. I'm the only one that can see everyone's questions but I will answer them in real life time. What is a golden gap? This is, again, a term that I coined. A golden gap is a gap that moves in the direction of the gap. It is called a golden gap because institutional traders and investors are making and creating the gap. A golden gap rates 20 points or more per the 26-point rating system. So in other words, I have a rating system. You do not have to have a perfect score. You have to have 20 points or more in order to play or trade the gap. Kathy, can you help BK or Kevin? BK does not have sound. Can you help BK? Does everyone else hear me? Let me know if everyone else can hear me. Or is it only BK that lost the mic? Okay. All right, very good. In the case of a bullish golden gap, institutions are buying the stock. They are lifting it on the debt. Good example is Netflix. Netflix was a bullish gap today. Therefore, the stock moves higher on the trading debt. In the case of a bearish golden gap, institutions are selling at a shorting stock. Therefore, the stock moves lower on the trading debt. You have selling action and shorting action that creates this. This is actually why I prefer bearish gaps. For those of you that do not know me, I prefer to go short. I like to short. That is my thing. I love shorting. It is really what I love. But I will go long if I see a good bullish gap. The reason I prefer bearish gaps is because gaps that gap down have two things happening to create the gap. Therefore, they have double the potential for a move. And also when someone is panicking, selling action creates more panic, more frustration, more that quick, quick, hard type of move that I like to play fast into the open. That is one of the reasons why I like to go short as well. I do like to my trades to go quickly. That is my favorite thing. Now, here is just an example of a bullish event. It is a bullish gap that happened in Target. There was a bunch of them here. This is a chart of Target. This is an event where the stock actually gapped up. At one point here, which was back in November, it was trading like around 67-something. The next morning it gapped up to 70-something. It was a $3 gap up and it rallied. This is what is called a bullish golden gap. You could have bought this stock on the debt. There. It is a day trade. Or it is a longer term. Now, this BBY, I did show you this already, was a bearish gap. Closed here and open here. It went lower in the day. This was a bearish event. It was a short. You would get up in the morning, you would rate the gap per my 26-point rating system to see a BBY, rate it over 20. Then you would know if it did, you could short this. Who makes gaps? Large institutional money. Gaps are created with large institutional money. Like I'm talking about billions of dollars or 100 million or more. That is what makes the gap. Professional gaps 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 confirm that the large money will flow with it. By having a formula, this is your trading plan. To rate and qualify the gap, you get confirmation and conviction that large institutional money is on your side and then you play it. You look for the setup. Gaps are an event and they create a sense of urgency and the urgency actually can be in the bullish direction too. You can have urgency like, oh my gosh, we got to buy this, now we got to buy this, now we got to buy this, now you can have urgency in a long. This is why gap trading is incredibly powerful. Trading gaps is a powerful profit because you're trading on the side of power money. This is the only way, again, consistency. How do you become consistently profitable? You must be with power money. You must trade with institutional money. One of the examples here I'm going to show you today in a minute is going to really pinpoint that. John Eskis saying, do you and your followers run into issues with shorting due to unavailability of shares to borrow, giving them a lot of inventory may be used by the institutions? The answer is no, I never have a problem with it and are there people in my room that might, if they say that in the room, I refer them to a broker that has access to shorts. That is a problem that it's easily solved and you may have to find a broker that has good short access. I know where all those places are. It is not a problem. You trade with a broker that gets you short access and there's never a problem. It's not about that in reference to the thing with the institutions that I don't want to get too off target with that question there. If somebody brings it up and says it in the problem, then I refer them to somebody where they can get short access and they just change. That's it. It's as simple as that. But usually people actually already ask me that, like you said, after they do the class, after they're ready to go live. One quality strategy is all that you need. This is all that you need to make a living. They're profitable. They pay you. It's good risk to reward. You have to do the same thing every day and every day and every day, every day, every day. Just like you get up every morning and have breakfast. You get up every morning and exercise. You get up every morning and trade a golden gap. That's it. Every day. Same thing. If you don't have one, you don't do it. Easy. You don't have a gap that rates 20 points or more. You don't trade that day. Boom. You just leave. Go to the gym. Very easy. You don't even have to think about it. You just learn it. It is a checklist. You go through and check it. Boom, boom, boom, boom, boom. It is a 26-point rating system where you will rate any gap that you want to. You can rate every gap you have time to rate or you can rate a grouping of them. You can rate longs and shorts. I usually have a top pick every day I look at and that's what I do and I'm really good at this. So I focus on my top pick. But if you get four or five things that rate 20 points or more, you can put them in a row. Go with the highest one or you can do every one that rates over 20 points. It's up to you how many trades you want to take. So the rating system, what does it do? It measures the gap by rating them on the daily chart to find the stock to trades that have, number one, a high probability of directional bias for the entire day because ultimately you do want to be able to get this to a dream target if you can and trade it out longer, take a second trade if you want to trade past the first 30 minutes. Not that you would need to, but you want a high probability of directional bias and you want to hold in that. Big move on the day like the BBY showed you the $2 plus drop, early confirmation of the bias and move between 9.30 and 10. And this is 10 a.m. Eastern time. Market opens at 9.30. And precise entries with follow through and a good risk to reward target potential because that's what makes a difference. I'm trading on the one minute chart. That's where I'm taking my entries. You must be very precise. You must know exactly what you are doing. I'm not saying that I should be using hard stops when I trade. And in my opinion everyone that actually dates trades should use hard stops because you want to have your risk confined, if you do not have a hard stop in, then your risk is not defined. Your risk is unlimited essentially if the trade goes against you. And then you're relying on yourself to kill it and many people don't. They just cripple themselves and then halt in fear. Now let's talk here about the BBY. and I looked to short this on the day, and I did. Entry was right here, here was the first drop. You could have done this here and been in it and been out within four minutes, and this is it. So, the price of the entry was $34.99. Risk is 45 cents, or risk, which is how you're sizing yourself is based on the amount of money you wanna risk. That's how you determine the share size. If you want to risk an advanced risk, which you would need to do to make 20 grand a month, which is $500 or more per train, you'll be risking $5.85. Exit, end of the drop, as quick as you can get out into that red bar, it's $33.86. So, the first trade that you took in this, you would have made almost $1,500, it's a nice trade. You're looking, you're shooting for three every day and this four minutes, you made 2.5. It's a great trade, okay? You could be done, okay? There's no reason for you to take anything else, all right? You made your goal for the day. This is your goal for the day. You only have one goal to make your goal every day. Your goal, and that's why you don't keep trading all day over and over. You make your goal, you're done, all right? And you can take a second trade or a second gap, like I discussed, but you have to still make sure that it's within your risk parameters. Because if you would take this trade again and it fails, then you'd be up 900 something, and then you'd have to stop. And this is where the money manager comes into play. Again, that's all part of being successful and having the level of consistency. Now, when I say fast, I mean fast, why? Because that dropped. It dropped in four minutes. That is what I'm talking about, that happens. I'm always on top of the first century and everything that I trade. Some of these go so quickly. And that could have been the low of the day, okay? And so that you have to get out of that. That drop in there, that move in there was more than a dollar into the first drop. Now, if you wanted to do a second trade in this, it did actually set up again. And it did go further. You could have shorted this again right in here. See how it held? Drop. Second drop happened in within 10 minutes. Okay. The price of the second entry was $34.20. Now, someone had asked me about this last night as well. You do not need $34.20 in cash to take this trade for 2,000 shares. You need the equivalent of what that would be with a leveraged brokerage account. Every broker gives leverage for day trading. Depending on where you go to retail place or prop place, you have to ask the broker. But you don't need exactly $34.20 to take one share of BBY because you're trading with leverage. And if you're a day trader, you'll get more leverage, whatever type of broker you go to than if you do overnight because you're flat by four o'clock Eastern time. Risk in this trade is 30 cents. If you're risking an advance amount, similar to the first trade is $600. You can take 2,000 shares, eggs is 33.25. Total profit in this trade is 1,900. Another great, great trade. This is a little bit more than three risk units, 3.2. And again, you just turn 600 bucks into 1,900. This happened in 12 minutes. Very fast trade. Both of these trades were done in the first 30 minutes of the day. Okay. So the total risk you had in BBY final, if you did both trades, you risked 5.85 in the first trade. You made money. Then you risked $600 in the second trade. You made money, but your total risk really in the stock of the day was 11.85-ish from the two trades. Total profit, if you took the two trades, 14.69 in the first one and 1,900 in the second run, total profit was over $3,300. You don't need to make $3,300 in every single trade that you take but I'm showing you here how you could have done two quick trades and even if the second trade would have failed, you still would have made almost 1,000 bucks and all this happened in 30 minutes. The reason that you will sometimes do this though is that you will wanna have a big day like this. You'll see the potential of the stock. The stock rates will per the 26 point rating system and you'll see that the stock still has target left to go for you didn't wanna take it. And you would know all this and learn on this because you learn how to get the targets from the class that I teach. But the reality is this is a great trade and you get a couple of these like this a month, two or three or four trades a month where you make $3,000 or more there, you're there as long as you're staying consistent within the rest of the month and not making mistakes during the other days. Do you understand? Many people make mistakes because they're not consistent or they don't know what to do or they do things that they should not do on days when they actually should not trade and I know the days not to trade. I know it before 9 30 AM so I don't really waste a lot of my time. Now I'm gonna talk about BAC because a gentleman had called me last evening and is actually long BAC and I'm gonna talk about the daily chart of BAC here in a minute. I don't know if he's here tonight but I'm taping this recording. BAC was a short back on the 15th as well. I think this was the same day as BBY, yeah it was. You could have shorted BAC here and gotten one quick trade in here very, very fast. It happened in less than 10 minutes. Now if you took similar risk, $500, if you took the trade in this, you could have taken more size. Cheaper price stock could have taken 5,000 shares. Risk is the same or close to 500. You made 20 cents, you made 1,000 bucks. It's a two risk unit trade that's good. Time of the trade's seven minutes. Nice short. Here, boom, ow. Perfect exit here. You would have known to get out of this right in there. Now, BAC was not as good of a gap as BBY but it was a short and if you did this and got out you could have stopped for the day and made $1,000. Here's an example where you could have actually done two on the day on the same day, two gaps. Now, BAC has second trade in it. If you wanted to do it again this is a bigger timeframe. This is a five minute here. You can see down here. Here was the morning move. If you did this morning move here and made the $1,000 and you're out you could have stopped. If you had some time to hang around and you didn't have to leave at 10 a.m. and you wanted to get into this again and you liked it, you had the conviction. You said this is going to $15. You could have reshorted BAC here and you could have been in this actually all afternoon. Now the next target was 525.520. It got down and almost got down and ran out of time here into the day this is into the close of the day on the 15th. It actually did hit 15 then on the second day. But on this day you would have exited probably around 1520. You could have held it all day in the close and you were up in it all day. You took the trade here and you were up in it all day and you could have just managed the trade. This trade and trade is later. I need to point this out. You would do the first one and you could stop. It happened in the 30 minutes or you could do this one later and add on to your profit. 1555 is the end trade. Same size, $500 risk, 5,000 shares, exits 1520. This was not the low of the day and it did go to 15 the next day. Profit was 1750, still a really, really nice trade. A very nice trade. Three and a half risk units. So if you took both the trades in BAC, you risked 500 the first trade, 500 the second trade. On the day you risked 1,000, if the second trade wouldn't have worked, you would have made still 500 on the day. That's fine. You just want to stop. Remember this is after the first 30 minute period. But you did it because you liked it. You liked it and you saw the potential for it to go to the target, which was 15. Total profit if you took two trades was $2,250. Again, do you see here, you could have, this is all in one day, actually. This is all in one day, January 15th. You could have made over $5,000. Almost six grand if you had done these two trades on this same day. Total time trading on the day in the BAC was less than 30 minutes in the morning. Morning trade was done in seven minutes. You would have had to hold the other one longer to get the second move in the BAC, which you might have done. If you had done the first trade in BAC, or the first trade in BB1, or the second trade in BB1, or any of these trades, because you would be up. You would be up money, you would be profitable. Again, do you need to make $5,600 every day of trade? No, but when the opportunity presents itself, when the gap's right for the 26-point rating system, you can do as many as you want to to make money. If you see this here, again, this is how you get to the point where you don't have any problem hanging up over that number of making $20,000 a month, because there's like a million other trading days in the month. 20 trading days a month is only one trading day. Okay. Building gaps are important for so many types of traders. And the reason I picked them to talk about the BAC today is because there is a trader, like I said, that I spoke to last night, who's long BAC. The reason golden gaps are important for so many types of traders is because gaps can happen, if you're overnight something, a gap can happen against you. In the case of BAC, this is the daily chart, the gentleman I spoke to is long to stop. The fact is the BAC is lower. How do I know this from reading the gaps? And there's someone I spoke to that is long this overnight. BAC could gap down again any second, any day, tomorrow morning, I have no idea when it could, all right? Because BAC, this chart is lower. This is not a good overnight long. How would anyone even know that? They would know my 26 point rating system and they would know that the correct directional bias for BAC is down, okay, that is lower. And they would also know when to buy a stock that would be going higher, all right, to hold an overnight in a long. This is not a quality long trade for an overnight. When something gaps against you and you're in an overnight, it can actually be horrific. The same goes, if you are in something in the right direction and it gaps in your favor, it can absolutely explode your account with profits. Now, again, I'm talking about longer term here, but this is one of the reasons why it is so, so, so important to understand gaps if you take over nights and it is actually extremely important to understand gaps if you day trade because otherwise how do you know whether to short something or buy something? Many, many people who even do trade gaps, trade them in both directions, not in the fashion I do because I'm the only one that made up the system, but don't find the level of consistency because some days they are doing different things. What would be an example? People always talk about this, they say gap fills, okay. There is no such thing as a gap fill. People that are long this think that BAC, some of them, I don't know if that gentleman did, but some people think that BAC will fill this gap, fill it up to here or filled it up to here. But that is in a strategy. There'd be no way to predict that could happen. The likelihood of that happening is zero. What I do when I am rating a gap in the morning before 9.30 and deciding to do BBY is I am predicting the 26 point rating system predicts with a high level of accuracy what that stock will do on the day and the number that it will go to for the target and the level of resistance or support that the stock needs to hold on the day. So you can only predict with information that you know how to analyze something accurately. If you're using things like moving averages, Fibonacci's, all kinds of stuff that's out there, you won't get a consistent read on anything. If those things, those indicators were something that you'd give you a level of consistency, it wouldn't be that difficult to trade. Everyone would make money trading. Everyone can read a moving average and everyone can read a Fibonacci level. There's nothing to do with anything to be able to accurately take a position in a stock and market. Okay, now does anyone have any questions for I go on here a little bit more? So I've been talking here for a while. Does anyone have any questions right now up until this point or about any one of these trades? Let me know. So far not, just giving you a few minutes here. So again, the common theme in making this kind of money is consistency. The consistency comes from doing the same thing every day in the same strategy. Whether you go long or short, it's up to you. I'm even so consistent that I almost always go short. Every once in a while I'll go long, but I almost always go short. So I even have the consistency in the direction I'm playing, although I can read along just as accurately, because of my method. But the common theme in making $20,000 a month or even $10,000 a month, whether it's $1,000 a day, $500 a day, whatever you're doing, the common thing is that you have to be consistent or you won't be able to sustain it. It's a sustainability that you need if you're gonna do this for a living. In today's world, you need to be thoughtful about what you invest in, and that goes for stocks. That goes for anything that you're determining what you're doing. This goes for something like a trade that you wanna do in BAC, you need to be thoughtful. Thoughtful about it. Thoughtful means it has to make sense, have a high probability to work, you have to have a reason for doing it, okay? And it has to be valid. A strategy is actually a reason to take a trade. A gap fill is in a strategy, and anything to go to a moving average is in a strategy. Someone asked me today, and I actually need to define this. I actually need to define this. There'll have to be something that'll be on my website. I have to write down and define Melissa's definition of a strategy. One thing I realized today after I was talking about this and I wrote it down, a strategy is something that can be used in every timeframe. That is what I have figured out. Golden gaps can be used in every timeframe. That's one of the ways that I define strategy, although I have to define it more, but this is why you have to be very thoughtful about what you invest in, okay? Scott and DeBoe just asked the same question, which is ironic. They both just ask if you can do options instead of stocks. Yes, of course you can. You get the directional bias from the rating system, you rate the stock gap, and then you would do the option, and instead of the day train. You'd have to know how to do options. I'm not gonna teach you how to take the actual option train. You would have to know how to do that, but you would learn in my class the directional bias for the stock to know if you should go long the option or short it or whatever you're gonna do. Okay, and you'd know that. You'd also know how to figure out the targets. So yeah, and there are people that do that. There's one guy in my room, particularly, that does that, and he doesn't actually a lot, but I'm not doing that. So you could. It's a cheaper way to take a train sometimes than the day train. You just have to know how to do the option yourself. I think there's other people doing that, that in my room I never really took a survey, and I actually think there's other people that are doing that that I taught that are not in the live room with me every day. Day training, they're just doing the options. I never took a survey. There's one person that talks to me about it a lot, so I know he's doing it. So the answer is yes, okay. Getting back to this, again, you gotta be thoughtful about what you're doing with your money because you wanna see the consistency. It's just not the same world that we used to live in. It's like you can't borrow things and credit the way you used to. You can't rely on being able to make a certain amount of percentage on a money market or savings account in a bank that we used to or even a certificate of deposit. It's just the access that people have for profit or to do things with their money or just the access to cash, to capital. People don't have anymore. Actually, we haven't had it for years, but I mean, it is here to stay. This is the way it is. It's never gonna go back to the way that it was, FYI. The banking system has forever changed now and will never go back to the way that it was at one point. So you really have to be thoughtful about what you invest in and that's why I tell people to think before they train. I have some people, they wanna save up the money to train live and they wanna learn the platform and open a trading account and save up the money to trade before they pay for my class and take my class and learn it. That is the absolute not right thing to do. Because you need to learn it first. Then you go and then you save the money to trade or you open an account after that and you learn how to press the button of platform afterwards. You need to know how to do this first. It is absolutely the most important thing. Gathering the money together for an account or training live and learning how to take the platform is an afterthought. You gotta learn it first. People are actually training now. Don't have the money for the class that some people have spoken to. Dibbling, dabbling back and forth and they should have just taken the class and waited to save the money for the account. You don't want to take trades in the market live with real money unless you know what you're doing. That BAC is a short. You gotta know what you're doing with your money, okay? You must respect it, understand that knowledge is power. This is why what I know is so powerful. If the power is me, I am the power. I figure this out. I have the knowledge. I'm teaching it to people. I'm empowering you if you come to me. I am the stockswish and I have the power to do this and trade in this matter and an edge and I can call things in five minutes of trading five minutes. You can count it in seconds. That's amazing. And you could come and learn from me, okay? You want to align yourself with people that are like-minded people. No matter if you are doing this in reference to the market, anything that is in your profession, in your personal life or anything that you do, you want to align yourself with people that are successful and are like-minded people. And you might have to change some things that are going on in your mind to align yourself to where you want to go with your goals because your goals might be here. And you're over here and your brain is not in sync with what your goals are and that's why you're not getting there. And you got to change what's going on in your brain, get yourself up and align yourself with the right people, okay? You have got to be concerned about what you're saying, what you're doing, who you're talking to, who you're align yourself with, the thoughts that you think, the choices that you make, the investments that you choose, all right? In today's day and age, the idea of making actually $250,000 a year is quite a lot of money in today's day and age. And it always really was, but in today's day and age it's really even more because there used to be in the last five, six, seven, eight years people that made this kind of money that don't anymore because the world has changed and they may never again, okay? This is actually real money and it always was but more people were making this kind of money in the past that are not now that have to work two jobs to sustain themselves or more hours. And again, the great thing about trading or gap trading is that you don't have to work umpteen hours and exhaust yourself. So you wanna put a plan of action in place in order to make $250,000 a year, 20 grand a month, you're gonna risk $500 a trade. Do you do that immediately after the class? No, you practice. Once a trader has experienced with the system you can learn to do ads the original position. Doing ads helps you to make more money, this is above and beyond, okay? And it will help you to get good at holding to bigger targets. I've been talking about an R, I just wanted to find this here. One R equals one risk unit. All a risk unit is, is the amount of money you're risking for a trade in dollars and cents. That's it. It could be $50, it could be $100, it could be $150, you decide. If you wanna take five trades a day, which is a lot, and I don't, I don't even take anywhere near five trades a day. But if you want to, you would take the total amount you wanna risk per day and give me that by five. If you have $500 you're willing to risk on the day, I wouldn't go and do that in one trade. You could divide it by one, two or three, or even five. If you divide it by five, that means you're risking $100 and it's trade, all right? And then you have a set amount you're risking per day. You need that as well as the set amount you're risking per trade, okay? The goal is to make three risk units per trade. Gold and gas provide setups that have a three-hour payout. In most cases, there will be some that have one, there will be some that have two. If they go to the target in 2.2, you getting out. I mean, that's it, you're out. In other words, for every dollar you risk, you can make at least $3 in the low end and up to $10 or more in the high end if the stock goes to the dream target. And we will see these in earnings season. Earning season is underway, it's just begun. It'll run the entire month of February, the rest of January and into the beginning of March. It's a good time to trade as a day trader because there's a lot of activity, volatility, momentum. And I will say one thing. Actually, 2015 is gonna be a very momentous year for the stock market. If I have time, I'll talk about that at the end. A good risk to reward payout is one of the most significant reasons to learn the Gold and Gap system because of the entries I'm taking on the one-minute chart. And that's I'm getting the risk to reward because I'm getting them quick, I'm getting them soon, I'm getting them in the open, I'm getting them morning, I'm getting them in the one-minute chart before they say off $2 like the BBY, okay? Here's an example. If you risk $500 for one hour, three hours is 1500 bucks, that's a day. Six hours would be 3000, 10 hours would be 5000. You won't have some days that you can make that kind of money in the market, risking 500 dollars or more. In order to make $20,000 a month, you would need to make 40 risk units a month for what would be 10 risk units a week to get there with a $500 risk unit, okay? This isn't an average. So Monday, Tuesday, Wednesday, Thursday, Friday, on average, one day you may not train, there might not be anything good, one day you might make four hours, one day you might make three, one day you make two, one day maybe take a loss. You're looking at 10 hours as an average, okay? And actually if you're a good trader, you shouldn't lose more than, you really shouldn't lose more than two or three days a month. You really shouldn't, okay? Again, it's about the level of consistency and this is where doing one thing all the time actually helps you stay on track with that, where your losses are very, very low. You don't have any, you just really don't have that many. Three, three hour trains a week is nine hours per week. If you would do this, I'm just showing an example, 36 hours comes out to 4,500 a week and that comes out to 18,000 a month and that's pretty close. So let's just say you'd had three days a week that you made three hours, that's nine hours that comes out to be $4,500 a week. That's really nice, okay? And some trades you may actually take a second trade like the BBY or the BAC and make more than three hours if you do a second trade in the stock, which you would just make more than on the same day, okay? Like both the trades, BBY and BAC would nearly have made your goal for the week to hit this and that was only in one day. So how much to risk, again, $500 a trade? Once a trader is making over $250,000 per year, the sky is the limit, you can get to the point where you're making more. Once you reach this level, you have a lot of future income potential. The future income potential is you can continue to trade for yourself and risk more to make more or you could trade for other people. Traders who make money have unlimited opportunities available to them. Why? Because there's not that many day traders that are highly skilled and very good and if you can put yourself out among the pack that you are, then the sky is the limit. You can just keep trading yourself and working from home and risking more as time goes on or you can do overnight's or you can do options like someone else says and the day trades and do both or you can go work for someone else on a trading desk. So the fact is that you can learn how to do this. You can learn how to do it. You can do it and you can do it in 30 minutes a day. You can do it from home. It's possible. One of the greatest commodities that you actually have is your time. I've found this more now in the last year of my life than ever. My time is very precious to me, what I do with it. This is the reason I charge money for the class. The class is two full days Saturday and Sunday for eight hours a day at 16 hours. I charge for my time. My time is meaningful. The time that it took me to figure out this system was three years of my life. That had a lot of meaning to me. I know how to do it now forever. And I was willing to put in the time. But time is your greatest commodity. You can wait. You can wait and wait and wait and wait and wait and come to every webinar that I do and watch every video that I have and wait some day to take my class and I won't teach it anymore. Time is meaningful. If you wanna move forward with your life, if you wanna get somewhere with yourself and you wanna start to make money and rely on yourself and gain that power, rely on yourself with the right people who are successful and move forward in your life and make a difference and make the change, time matters. If you're wasting it, that matters too. If you're doing something in the market where you're losing, you're wasting time and you're wasting your money. And if you're doing something in the market where you're not losing but you're back and forth and you're not really profitable in your flat, you're really wasting time. Because you probably have a good skill set that actually you can turn yourself into a profitable trader if you had a good strategy or a system like mine. Because even if you break even as a trader, you probably have enough skill set or chart analysis skill set that you could learn what I know and turn it into something that could really make you real money. Because neutral isn't making you money. Neutral is nowhere. Neutrals, nowhere. You may as well be losing. This is what people forget, okay? Your time matters. My time matters. You have to think about this. It is 2015 and five more years will be 2020, 2020. So the plan of action in place for beginners is to take the golden gap course if you want to learn my system. You can, I teach a class. It's this weekend. I'll go over the dates in a minute. Then you trade a live account with small size after on a demo, okay? This idea of opening up into accounts and trading before you even take the class makes no sense, all right? You practice on a demo. Then you open an account. Then you risk $50. Then you risk $100. Then you risk $150. Then you risk $200. Then you get up to the point that you're risking between $300 to trade and by then you're doing it for a couple of weeks. Maybe a couple of months. It's up to you when you know you are ready and only you know that. You could talk to me about it but you have to start at the beginning. You have to start somewhere. You gotta make $2,000 a month before you make four. You have to make four before you can make 10. This is how you build the momentum. The whole time you're doing this is you're building the momentum, is you're gaining the knowledge, is you're gaining the conviction in your trading mind when you're doing it and you're risking more in the times going on. You are gaining confidence in yourself, confidence, conviction, consistency, all of it. The consistency gives you confidence to do it. The class gives you conviction to take the trade to do gaps in the first place. The confidence then that you have will allow you to take the risk of $500 a trade if you ever wanna get to that point or hold something to a bigger target or take a second trade, all right? Or even quit your job if you even want to at this point once you're making enough money to support yourself. You gotta be confident you can do it. You have to have the consistency, you have to have conviction in the strategy, in the market and yourself. Confidence is one of these things that people lack and I have it, I cannot give it to you. You learn the information from me which gives you the confidence yourself because I'm empowering you to do it and I can't give you conviction either. But my talking, my teaching, trading with me, trading live in the room, you gain the conviction which happens over time and that's how you move forward to be consistent. I run a live trading room every day from 8.30 a.m. to 11 a.m. Eastern time, Monday, Tuesday, Wednesday, Thursday, Friday. You cannot join that room unless you take this class. So please don't ask me, I make no exceptions. Trading is something you have to learn what to do and you gotta know what you're doing if you're taking a trade in a one-minute chart. I'm taking a trade at 9.31, playing the stop and it's going, it's dropping a dollar. You gotta know how to do that. You have to know how to do that, you have to learn. It's like, you can't just follow me in the room in five minutes if you don't know what I'm doing ahead of time which you would learn in a class. It's like, it's just common sense, okay? I want people to do well. I have people that are doing well and are doing well because they're serious about it and they're committed and you have to be committed. You have to be committed too. You have to be committed if you really want to make this kind of money. You'll never make this kind of money in the market if you're not committed. Commitment isn't wasting time in years and years and years and years and years getting books and watching videos and trading and getting nowhere. That's not commitment. That's not commitment at all. The commitment that I made myself in the three years I taught myself this was tough. I was committed and I wasn't given this up until I figured it out, the whole thing out, no matter what it took, no matter how much money it took, no matter what it was, no matter how long and I never knew how long it would take me. I didn't know. I didn't know if I should be doing this today that at three years time and such and such a day at this moment I would make it. I had no idea. but I was 100% committed and I'm 100% conviction in myself and the market as a place that billions of dollars ran through every day and would pay me. Some day I was committed to figuring out and I did. You must make the commitment if you wanna make this kind of money, okay? Must, but the commitment is taking the class and trading for 30 minutes a day in the morning. And you can't spend that much time, Monday, Tuesday, Wednesday, Thursday, Friday, a half an hour in the morning and take a class in a weekend and you're not that committed and you really don't wanna make $20,000 a month, okay? Again, it's just the concept of the amount of share of size that you take. If a stock drops a dollar, you have 3,000 shares, you make three grand. Drops two dollars, you have 3,000 shares, you make $6,000, okay? Again, many people put the cart before the horse. You gotta learn how to trade well before you trade this kind of size, gilding the system, and then you trade live money and then you trade the size. It's all about the right information. The right information is there. It's accessible to anyone that wants to learn it, except for the fact that many, many people misread things that don't know what to do. BAC is a perfect example. BAC is a perfect example, okay? Reading gaps is a skill you can learn. You have to understand how to do it. Whether you're taking overnights or day trades, you can use it in any timeframe and even for the options. So I teach a class. The class is called the Golden Gap Course. It teaches a 26 point rating system to find the best doc to trade each day. It teaches you how to enter an egg as the sock on the day as a day trade and the targets if you wanna do an option in it or an overnight. The course teaches price analysis and technical analysis on an advanced level. I think if anyone listens to me talk for more than five, 10 minutes, they can see that I'm an advanced trader. The class is advanced. The course teaches a more proficient way to read support and resistance in the right direction. If you've never traded before and you don't have any knowledge of trading, you would learn still everything from me from the ground up, even if you've never traded before. And if you traded before and you know how to read a chart, you're gonna learn from me the correct way to read it in reference to gaps. Course teaches you to focus on one strategy in a detailed manner, so you can become a good trader and a consistent trader. So the checklist tells you what to look for and it really, really gives you an edge. Gives you an edge of the market to know what to do and to know how to be consistently profitable so you can book money. This is me, I'm a trader. And the class again is this weekend. It's called the Golden Gap Course. It's a complete system to use to trade. It's a full two-day course on how to strategically find, pick and play socks to the professional bearish gaps. Retakes are free, the class is online. Give me anywhere in the world and take it because the class is online. Once you sign up for it, once you can retake it any time in the future for free. Class dates are Saturday and Sunday this weekend, January 24th and 25th, 9 a.m. to 5 p.m. Eastern time. The cost of the class is 29.99 and you can make that money back in one trade. So if you wanna learn how to do this, the class is in two days. I know it's not a lot of time to make a decision but you'd be able to do the class and then train for earning season because earning season is going on right now. There's a lot of opportunity that you could pay for the class, take the class, learn it, and make the money back for the class even this month. So if you're interested, email me at Melissa at thestockswish.com. I also teach a class called the Trends Course. This is a course on how to retrends and stock charts. This class is in February, February 27th to 29th from 12 to four. This is about how to read long-term trends and stock charts. You do not need to know how to do this to trade gaps but it is informative and it's a more advanced thing which teaches you more information to help become a better day trader. This is essential though for doing overnights. This class is 9.99 and I'm offering a special if you wanna do both for 34.99. Saves 4.99, okay? And you do the January Gap class and the February Trends class. It's time for people to start making real money in the market if you want to. It's possible you can do it. You just gotta take the leap into your future, all right? You leap into the market, leap into the future. You take the chance and learn something. 2015 is gonna be a very, very, very big year and I don't really have time to talk about that why now but if anyone wants to know why I think that I can certainly answer it on an email. So email me at Melissa at thestockswish.com if you'd like more information. The class is not recorded debut. You would have to be there live. You would wanna be there live anyway so you can ask me questions and I do answer all the questions of the class. I'm really good at teaching. I love this stuff. I could do it in my sleep. I'm just like I'm living and breathing these gaps. You would have to be there live and you'd wanna be there live. You would want to be there so that you can actually ask me questions and I want you to understand it. It's better for me if I turn you into a good trader and you tell your friends and they tell their friends. All right, thanks everybody for coming. All right, have a good day. Thank you everyone. We sincerely appreciate your time and your participation here today. If you think it's appropriate, please take advantage of Melissa's offer. We do wanna thank each and every one of you for your time and your participation here today. Have a great day trading tomorrow. Thank you everyone for coming.