 everyone and welcome. This is Melissa Armo with Stock Swoosh and I'm gonna go over today's plays. One was a win, one was a loss and I'm also gonna talk about using stocks because that is very important when you're trading. If you'd like more information you can email me at Melissa at the stockswoosh.com or call me at 929-3200 Gap and follow me on Twitter, Facebook, YouTube and Skype. So overall you know when I get up in the morning I'm looking for the gap that I like the best. There could be a couple of gaps, there could be a lot of gaps, there could be only one. It depends. So today there was a few. This e-train worked initially. I forget what I was up in like I don't know 20 cents something like that. But then it flipped okay. It held the stop all morning. I'm just gonna go this here. The stop was $59.20. Okay so this we had the stop at $59.20 and we got taken out over $59.20. I want to point out where the stock went. Tippy tippy tippy tippy tippy tippy top like $59.80. So the stop moved $0.60 not a small move, a big move over where we I mean the the stock moved over the stop $0.60 plus where we had the stop. So it and it could have gone even further. Okay it could have gone all the way up to $0.60. Could have even gone it could have gone a dollar plus over. Now what's my point? My point is that a stop protects you where you have a fixed amount that you choose that you risk and a fixed amount that you lose in the trade if it fails. So this first trade failed I did not retake it. If you did retake it the second trade worked. Okay we shorted this and this was a short then it closed week today. But my point is that stops help you protect you from unknown losses that could really mount up to be a lot. Now here is the one that worked. Okay so that was the one losses is the one win this is HPE and this stop held all day. So the stop was $16.10 an amazing placement of the stop and how did it worked all day. I really know what I'm doing with numbers I'm very good at that but long and short of it is that we got in this early it didn't break till late. Sometimes that happens what are you gonna do. So it did work it held the stop all day and it's important why because if we did not have a stop in the other one then we might not have had a possible profitable day with one winner one loser because you could have been a wash or it could have been a loser. It might not have been up but because we had the stop in it was a profitable day because even though this came down and they're gonna say well this came all the way down it's true it did come all the way down it came all the way down we actually could have got the trade break evening with profit here I mean if this E trade it held it all dead but that's unusual you know it's unusual the point is that this theoretically once it lifted over the high in this big fat massive green bar lay here could have gone crazy. So that one lost this one worked and here's what it amounted to. So lost an E trade 2100 HPE 3570 total 1470 so it was a 1470 in profit one profit on the day a 1470 with one loser one winner and it's because of the stop in E trade and that's the point I'm trying to make stops help you they protect you stops are important because we're like the insurance they protect you if the trade fails you only lose when you risk to know more. If you don't use stops you essentially have unlimited risk which makes no sense that doesn't make sense for anyone. When I trade I'm taking calculating risk based on the gap rating use stops to help you when you trade so you keep the money you make in the good trades today the stop in HPE it really really was perfect if I do say so myself it held all day okay so I'm very good with where to put the numbers and stops and the targets to and knowing the gap but the one thing is that the preparation in the morning helps you determine the quality of the gap the direction you want to go where to put the stop where to get out of the trade where's the target I teach a class I teach all of this in the class it's this weekend August 25th and 26 9 to 5 class tuition is 54 99 US dollars the class is online you can be anywhere in the world and take it email me if you want to sign up at Melissa at the stockswush.com also doing the trends course on Monday the 27th okay 11 to 5 class of the class is 59 99 classes online again you know it's online so you can sign up you save $500 by doing these both I'm telling you that trading is something that you absolutely can learn I mean these numbers I'm getting them off the chart I you can learn this you learn in my class and it's a skill it's a skill set you do it do it do it and that's how you get good at it that's how I can find these numbers so quickly and so easily to help us take the trades and stay in the trades but think about what I said today it is so important to use stops it's calculated risk when you trade you can't have unlimited risk and that's how you're gonna make money you have to think about that because not every trade is gonna work so you have to learn how do you stop somewhere to put them have a great night everyone