 Hello, everyone, and welcome. This is Kevin with Online Trader Central. This is Online Trader Central. We'll be introducing our host and presenter, Melissa Armo, in just four minutes. Four minutes start time, everyone. Thank you again, and welcome. This is Online Trader Central. Hello, everyone, and welcome. Start time in just two minutes. Two minutes start time, everyone. Thank you, and welcome. Welcome. At the time of the conference, you know that means it's time to begin. Please put your hands together and welcome our host and presenter for today. Please welcome from thesoxwush.com. Please welcome from thesoxwush.com. Kevin and Kathy, thank you, everyone, at Online Trader Central. Welcome. My name is Melissa Armo, and I own a company called the Soxwush LLC. Today, I'm going to be talking about a trading strategy, a strategy that I personally trade. And the topic is Earn an Achievable Income Trading Half Hour a Day. The strategy that I'm going to discuss today is a strategy that actually sets up where you can make money and trade it within a half hour of the day. It happens into the open. And so when we're done today, we can go over any questions anyone has. I have a lot to talk about today. We're also going to do a market review when we're done here today. If we end up going over, Kathy and Kevin are going to put us all into my live trading room, so don't worry at all about that. If you have any questions or would like more information, feel free to go to my website, www.thestoxwush.com. You can also email me and Kathy or put my information in the room at Melissa at the stockswush.com as well. You can go to Twitter, Facebook, YouTube, LinkedIn, Pinterest, Skype, and like in any one of these places. I put a lot of market calls actually on my YouTube page. It's a good, I've been calling the market incredibly well this entire year of 2014. And we are going to talk about that when we're done here today, but I put market calls on my YouTube site. I also teach a class. I'll talk about this more at the end. I just want to bring this up in case we do go over here today. If you are interested, the class that I teach is called the Golden Gap course and you can email me for more information on that as well. I'm gonna talk about that more later when we're done today. However, I just wanted to put that out there in case anyone has to leave early today and we end up going over the time. Gonna start today with a very positive quote. This is from someone named Wes Brown. Your goals are the roadmaps that guide you and show you what is possible for your life. You know, when you set out to trade the market it's very important to have goals. I don't care what strategy you trade and I don't care what kind of trading you do, whether it's stocks, options, forex, you do need to have goals. I was very goal-oriented when I began trading. I didn't know how I was gonna get there and I figured out what I'm gonna discuss today which is the strategy that I trade in it and a system to do it, but I did have monetary goals for myself. I knew exactly how much money I wanted to make and I also knew, and this was the most important goal that I had, I knew that I wanted to trade for a career and the reason I get into trading, and I don't think I've actually ever talked about this in a webinar before and some of you have come to see me often, I wanted to change careers. I was doing mortgages and it was back in 2008 and I saw the writing on the wall for the mortgage industry that was just, it was tanking and I knew that I wasn't gonna be able to continue to make the same income I was doing mortgages for the next 20, 30 years and I'm young. So at that time I set out to find a new career and it was just by happenstance that I found out about trading or that there was such a thing that you could do from the comfort of your own home which was trade the market. I thought, you know, it was something where you had to go and work down a wall street. Although I lived in New York at the time, I certainly could have done that, but my whole idea when I first started trading was that I wanted a new career and I think a lot of people go into the market and they start to trade and they really don't know why they're doing this. They may be doing this that they think that they're doing it to make money but they don't know why they're trying to make the money. They don't know how much money they are trying to make. They don't know the reason that they are doing it and again, with everything else that you put out in the universe that you're one to create when you have set goals for yourself and be clear about it, you have a better chance of making it happen that way and manifesting what you want because if you're not clear, you'll be misguided and you'll go down many, many different roads and many, many different paths and then you'll look back and all of a sudden five years of your life has gone and you say, what did I do? Well, you just didn't have a clear goal to get where you want it to be or even know what that is. So I think it's extremely important we're gonna talk about that today. So how can you earn up to, I'd say what would be a normal income for someone, I'm just gonna say 100 grand a year. 100 grand a year, although you can earn way more in the market, what if you wanted to earn 200 grand a year? Okay, these are realistic numbers for someone to make as an individual trader. That's what I would consider an income, something that would pay your bills and is it possible for you to make this kind of money in a half hour a day? Yes, why? Because the strategy that I'm trained happens to set up at that time. In other words, if it doesn't set up in that timeframe, it's not gonna work. So I have again, a strategic thing that I'm looking for in the market that has to set up within this period of the time and it's between 930 and 10 a.m. Now, do most traders understand the market? This is an interesting question. I thought about bringing this up because I did a class last week and I was just talking and I realized that a lot of people who trade the market, who could be even trading it even for 20 years or more, do not really fully, conceptually understand the market. You've got to accept the market for what it is if you wanna do this. Okay, now I don't know if you wanna do this or not, but for people that are doing it right now or if you wanna do it, you have to accept the market for what it is. Accept the market for what it is, accept the environment. There is a sea of people that trade the market unwilling to accept the market for its true self. And how do I know that? Well, because I actually started teaching people, besides the fact that I trade every day, money through Friday, about a year and a half ago, two years ago now almost, I've started to teach people what I do, which is just my strategy. It's the only thing I teach is my own strategy. And I realized that people are asking me for things that if they understood the market, they would never be asking me. They ask me questions and they want things from me that if they understood what the market was, they would never even be posing those questions to me. So people that are trading right now and have been in the market for a long time just don't get it. They still don't understand what the market is. And I'm saying this and this is tough, this is tough love here, accept the market environment for what it is if you wanna do it. And I embrace that I wanna do it. This is my personality, but if you want to do this, you gotta get it. And what is it? The market is a place for risk-takers to succeed and profit. It's a glorious place actually for risk-takers to succeed and profit. It's called calculated risk when you trade, but know that when you go into the market, it is a place for risk-takers to succeed and rise to the top, okay? Those that are willing to take risks and do their work succeed. And by the way, if you wanna trade for an income for a living, there's a certain element of risk in that. But you know, this is what it is if you don't have a job where you get an actual salary. And there's many jobs out there that people have and do actually nowadays when they work for companies, but they don't even get salaries because they're on commission. And then if they don't sell a certain amount one month, they're on 100% commission, then they don't get a salary. Like car salesmen or people in retail, I mean, pharmaceuticals, there's all kinds of jobs out there where people actually do not have any guarantees of the money that they're gonna make. And it's kind of like that with the market, except for if you get in a groove with something that you know works and you know how to do it, you know over the course of the year how much you're going to make. But there's a certain element of risk involved because you don't get a paycheck every week. But if you're willing to embrace it and understand it and accept the market for what it is and do the work to get there, then you can be successful. Those that cannot do both, which is take the risk and do the work, do not succeed. This is one of the reasons why many people lose in the market because people cannot do both. Not only that, they do not even want to do both in which case they should stop trading and they don't understand that they have to do both. So I'm telling you this here, you have to do both. You have to accept that you want to do both. No one's forcing you to trade, you don't have to trade. If you want to trade, you can do it. Why? Because you can learn how and many, many people will not accept what I'm saying here right now today and will not do it. They will not take the risk and they will not do the work and they will argue with themselves and fight with themselves. Conceptually, you have to understand this. A trillion people trade in the market with no conception of this fact. They do not accept or understand risk in the market. And I actually embrace it, which is one of the reasons I'm a good trader. The very essence of the market is that it requires risk to profit. You will not make money in the stock market without taking risk or being willing to take risk. In fact, the more money you risk, the more money you have the potential to make. This is what I love about trading. This is what I love about trading. Do you know that every morning I get up and with the strategy that I do, I'm gonna talk about here, I trade different stock every day. I don't know what I'm gonna trade in any given day. Monday, Tuesday, Wednesday, Thursday, Friday, I get up every morning and I don't know what I'm gonna trade. I don't know how much money I'm gonna make. I don't know what I'm gonna trade. I don't know if it's gonna work or not. And yet I do it. I have been doing it now for six years and guess what? I love it. What would your life be like if you knew what was gonna happen to you today, tomorrow, the next day, in a week, in a month? Your life would be boring. Your life would be so boring. The great thing about trading the market is it is not boring, it is exciting and it takes on life to the fullest. Now there are different kinds of risks which we will discuss. However, the nature of trading is that it involves risk and you must be willing to take risk in order to trade successfully. And what I'm saying is, it's the same way about life. That's why if you wanna do this, just accept it. It's like if someone said to you that I know what's gonna happen to you the next day, does that, do you really wanna know what's gonna happen to you tomorrow or do you wanna be surprised and live, okay? And live in the moment and not only that, be able to make your own choices. That's a great thing about the market. The type of risk you need to be successful though is called calculated risk where you think out ahead of time what you're supposed to do. When I get up in the morning, I figure out what I wanna trade before 9.30, before the market opens. Why, how can I do this? I have a plan. I have a plan and I have a system and even though I'm doing a different stock every day, I'm doing the same strategy every day. I'm doing the same system every day. So I have a groove in place for myself and I choose the stock that I wanna trade before the market actually opens. Now here is one of the ones that I did, okay? This is a stock that I traded. I shorted it. It's Cree, okay? We're gonna talk about this in a little bit. It's a gap and that's the strategy that I do and we're gonna go over this in a little bit. But here it was, this was back in August 13th, okay? The stock closed the night before up here on 49 something and open the next day down here at $45. So stock gap down $4 overnight. That means it lost value into the morning gap from four o'clock to 9.30 and there it is. Now I did a trade in this, okay? I do this when I get up in the morning. I look for the trade setup to happen between 9.30 and 10, okay? And it did, all right? So the stock rally, I shorted it in here and it dropped, okay? And all you have to do is this and all you have to do is look for this every day and that's all you have to do and then all of a sudden you're making money to market. You don't even have to trade the rest of the day. That's the beautiful thing about the strategy I trade which is gaps and personally I love that because I don't like to sit at a computer for six, seven hours. It's hard in your eyes, it's hard in your brain. You get tired, your reflexes are tired as the day goes on. Entry time in this, actually it was at 9.31. It was 9.45, 9.35 and there I have to update that. But the price was 45.24 for the entry. Risk was 36 cents. This is an advanced risk. I'm gonna talk about this in a little bit later too. Of 540 dollars, okay? This is not gonna be in our trade or risk but it is an advanced risk and I'm doing this for six years. You can get to this point, it doesn't have to take you that long but if you wanna trade this kind of risk you can take a trade like this and exit and move the stock and move to dollar plus, okay? Total profit was 16.35. This is a risk to reward of three. That means for every dollar that I risk I made three dollars. Now, if you didn't wanna take a 540 dollar risk let's say you wanted to risk a hundred dollars with a three hour risk unit and we're gonna talk about this more later too. That means if you risked a hundred you would have made 300 dollars. You would have made 302, okay? And again, this happened in less than a half an hour. Trade set up and went very quickly into that first half an hour period. Now, when you start out trading, when you start from the very beginning and you learn a strategy, say you learned something else and you're coming here today and you never heard a gasp before and you're doing something else, you start out very optimistic, typically. Most people do when they wanna get into the market and then they start to do something and then they start losing. Then they make a little bit of money back. Their optimism is still close to where they started, but then they start losing again. Then they're losing their confidence. That's what the C is. They're starting to lose confidence. While this is going on, they're back and forth, back and forth, and back and forth but they're on a spiral downward trail where their confidence is going lower. Their overall confidence is lower. They're losing money over time. They started out very happy, very confident, very optimistic and this is where most people are. This could go on for a person's whole lifetime actually when people attempt to trade the market. Now then we have this over here. This is the way it actually is. This is the way most people live. This is the way most people are 100% all the time and will never get out of this mode. But this is the way it's supposed to be. Actually, this is me and I am a great example and a mentor and a living proof that you can be like this because I started out very confident in myself. I went back and forth like this but over time, the curve for me was pointing up. My confidence is higher now than in 2008 when I started. This is the way it's supposed to be. I'm extremely confident what I do. I always believed I could make money in the market and I was excited about doing it but now I actually am doing it and I'm extremely confident and I've been not doing it for years so I'm on the upswing, okay? This is actually the way it's supposed to be. If you think about any of the career on the planet you start out with something, you're doing it for five, six, seven, 10 years. You get better over time. Not only do you get better over time, you make more money over time, you know more. You have more maturity, more knowledge base. You're more experienced. This is the way it's supposed to be with trading too but this is where everybody mostly is, okay? But this is the way it's supposed to be and would in any other type of career where you were working to make an income, you would be like this but people have this mentality here and it all stems a lot of it with money and risk and the things I just was discussing but mostly people don't have a strategy that I actually are confident in as well. I'm confident in my strategy and also I have the monetary proof of that. But think about what I'm saying here, okay? Cause if you're on this path you can always turn it around. You can always turn it around but what happens is here people start to get down this spiral slope and they have a difficult time turning around because in order to do that something's gonna have to happen for them. They have to change probably something drastically that they're doing and maybe learning a new strategy like mine and then paying for a class like mine which costs the money and the people don't wanna do it because they're losing money in the market but you gotta take some drastic steps here if you're like this and this is where I'd say probably most people will always be. This is why people that are over here like me actually are in a position to capitalize well on the market and the money the market has to bear because the fact is that most people will not get out of this mode. Most people will only stay over here. You gotta get over here. If you can get over here, you're set, okay? Cause there's just never gonna be that many people over here. It's always gonna be a small, small number compared to the whole and that's what makes the stock market. But if you had any other kind of career you would, this would make sense to you that you would be like this, okay? It's just that trading takes hold of people and then they tell them go like this and then they get so used to being like this they forget that they should be like this but I'm telling you and reminding you today that this is what you're supposed to be and it would be like this and anything else you tried to do in your life, okay? So think about it. So a system is what you need. A system in one strategy and mine is gaps and I showed you the example of cream. We're gonna go over another example here. This is LF. This was a gap again too. It closed the night before. It appeared seven dollars in some sense and opened down here around six dollars in some sense, okay? And this was a short, okay? It was a nice short on the day. Again, back in August. So it's all about when you wanna trade and specifically if you're doing something you wanna make money on a regular basis for income it's about the how, what and when. How do you make money in the market? You've gotta trade a strategy that's profitable so you can get on the upswing of the curve. Professional gaps are a highly profitable strategy because they create large momentum to trade. What stocks should you trade? Stocks that gap, okay? And we're gonna go over some more examples here in a minute and rate 20 points or more. This is a system I created to find my picks every day per the golden gap 26 point rating system. You trade the gap in the direction of the gap. So when I get up in the morning before 9.30 it takes me about an hour to get ready. I'm looking for stocks that meet a 26 point rating criteria. They do not have to get the full point 26. They have to get 20 or more. When do you trade them? Early in the morning on the up when they set up and trigger. If the stock doesn't trigger by 10 o'clock in the first half an hour, I'm not gonna do it, okay? If it does, I'm in it and the moves usually happen very quickly. One strategy is all you need to earn a good living in the market. Playing professional gaps is a powerful strategy that offers the opportunity to earn $20,000 a month which is a very good income for really anywhere you live in the States for individual traders. Traders can book profits with substantial gains in a timely fashion early in the morning and then you can make money to pay your bills, live a full life and work in less than half an hour a day. Sam is asking a question. It's automatic. Do I have it programmed into a black box type thing? No, I don't. Could you? I mean, that would be something you'd have to do or create. I don't have anything like that. I still like my eye and use it. I probably always will. I'm very old fashioned in the way that I make decisions and train your reference to looking at stuff and the numbers, so I don't have anything automated. If you took the class and wanted to do something like that to help yourself, that would be something that you would do. Booking money quickly reduces risk because you're doing it early, okay? So even if something doesn't work, you're out of it early. It's not like you're hanging in a loss all day. The trains usually set up and go right away as if they're gonna go and if they don't, you're out of them quickly, okay? The fun thing about trading is that obviously it's exciting and you can make a lot of money doing this in a very quick amount of time. I tell you that the first day that you have a big day and I call them common days, any, I don't care, a small account, a big account, a medium account, it's exciting. To make over $1,000 or more in five minutes or one minute or less is ridiculous. It's like a high. I can't explain it to you. It's like addictive. I guess this is why I'm still doing this now after six years and feel no reason that I'll ever do any ever strategy that ever exists in the market with this. And that's probably why I love it so much and we'll teach it and talk about it and do videos seven days a week because I really, really love this stuff. And it is addictive once you start making money. So again, one quality strategy, which is gaps that I'm gonna talk about in a minute is all you need to pay yourself on a regular basis. Knowing a strategy can replicate over and over, for profits can change your trading world. Why? Because it's gonna take that downward curve and it's gonna slip it around into the upward curve. The C is for confidence level, whether it's down or up, but your equity curve goes with the C. My confidence is high. My equity curve is going higher as the years go by. When your confidence is low, your equity curve goes down and so does your confidence. You see how you gotta turn it around and shift it around. People are like, well, wait till I'm making money trading and then I'll get the confidence and then I'll do this or then I'll do that or then I'll do this. No, you have to decide I'm going to do something now to shift this thing to make a change so that I can turn my confidence level around and my equity curve and I'm gonna have to do it. You have to, it takes us to do that. I know, I know, but you have to make a decision. Again, the goal, having one powerful strategy that pays will open up your eyes to the true profit potential to market. The market can offer you a real lifelong career if you have a strategy that makes money consistently. Professional gaps for strides it can generate up to $20,000 a month or more and earning a high income is only one reason however to trade gaps. It's not as unrealistic as a lot of traders think to make 20 grand a month, by the way. Successful traders know it's very realistic. I'm gonna break it down here in some way that people can just see how realistic this is. If you made $750 a day profit, $750 a day, I'm not talking about $1,000 a day, I'm talking 750 bucks a day. That's 3750 a week. 3750 a week, barring holidays. Okay, the markets closed some of the holidays is about 195 a year. That's 200 grand a year people, okay? 195 a year is an annual income. This isn't even $1,000 a day, okay? $750 a day is not unrealistic once you break it down. Trading for a 90 a year income means consistently doing the same strategy and system over and over and over and over and it also means doing it well. Okay, Sam has another question here. When is the rating done? You can do it at night if you want to if you have a nighttime gap or you can do it in the morning before the open. I do mine in the morning before the open. I do the nighttime ones and the morning ones in the morning, because if you do the nighttime ones you still go look at the morning ones, okay? But before 930, okay? So see here, 750 a day, this isn't crazy people, okay? This is like seriously, that's 200 grand a year basically. So these are achievable goals for people. Everyone says, well, I gotta make $1,000 a day, I gotta make $1,500 a day, I gotta make $750 a day. You're there. Now some days you might take a loss. As long as you don't blow up, one day you lose. Guess what? One day you're gonna make more than 750 and you see how it is? This is an average. One day you're probably gonna make 1,500. One day you'll probably lose 500. But overall, averaging 750 a day gets you there. And this is extremely realistic. And this is what I do. I basically break it down, chunking it out to make the money. You have to get up every morning and you see what you get. I look at my goals on a weekly and an annual basis. That's how I personally look at things, okay? So this idea of breaking it down helps people, but I think traders tend, if you're hearing your trader, you know what I mean, talking about, you tend to get too consumed with the live day. Oh my gosh, I gotta, I have to make money today. Oh my gosh, what am I gonna do? Some days I don't do anything if there isn't anything to do, okay? I'm not like, oh my gosh, you have to find something today, I have to do something. There's nothing that doesn't meet my criteria that I'm not training, okay? So the reality is that you have to stay consistent and look at the bigger picture here for chunking it out. How it helps you do that, your goals, your goals help you do that. Your goal, which is what? I wanna do this for a living. I don't do this for a living and I'm gonna do this for a living. And I know that I have rules and I have to follow them. And the rules say I have to do a gap that ranks for the 26 point rating system and if I don't get one, I'm not training, okay? And that's how you do it. It's about balance. It's like balance in the body and I think this is one of the reasons why also on the blue people and the red people with the Cs, the blue people are imbalanced where their confidence is high and their equity curve is growing in their P&L, but they're also in balance, understanding how it affects your body. When you are losing money in the market for years, I cannot describe to you what a toll that takes on your physical body and your health. Your emotional health, your physical health, everything, okay? When you're doing something that is taking a toll on you, making you stressed out day after day, it ages you, it prematurely ages you. It's not healthy, okay? And we want to do things every day that we enjoy that are healthy for us to do and that we love, okay? So whatever career you choose, whether it's training or something else, think about that. The nice thing is that if you have a career right now that's training you, stressing you out, you're working 50, 60 hours a week. Making the transition to becoming a full-time career trader is actually something that might benefit you in the long run. It's gonna take time because you have to learn it because it's not like you quit your job today and then start trading and making money. You have to ease yourself into it by learning the process. You have to keep your day job while you're learning how to trade until you're making the income that you want to make that you can say, yes, I'm gonna quit this job now and I'm gonna go trade full-time. You have to wait till you get to the point where you're making the money that you need to pay your bills. This is all where it comes into balance, okay? And a lot of people are like, gosh, how can I do it? How can I make the shift? Well, the good thing is the strategy is so soon in the morning. I mean, it sets up so early in the morning. You are not devoting a lot of time in the day here to do this thing. If there was any strategy on the planet you could trade and make money in the market. This is it and make a career transition. I know because I did it. I did not quit my full-time job until I made enough money training to do so. I didn't do it, okay? So I traded and worked and how did I manage it? Because I traded in the morning, okay? And then I worked my other job later in the day. And this is a good strategy to make that transition because the gap set up early in the morning and if they don't, then they don't work. You're not waiting until after 10 o'clock to even take them or 10.30 or lunch or two o'clock in the afternoon. You are trading in the morning. If there was any strategy out there that you could make a career transition, this is it because you would do it in the morning and then go to your regular job until you're making enough money training that you can quit your regular job. I look at whatever happens to be gapping. Mike is asking me how many stocks do I have to look at? It's interesting. There are thousands of stocks that gap every day. My list, my criteria, if you take the class and learn it is so specific to look for 26 things that you actually end up narrowing it down to only a few picks. Like I might have one top pick or two top picks that I do in a day. Now during earning season, which we're getting into now here in the fall, fall is an extremely busy trading time. This is actually the most busiest trading time of the year from now until pretty much the end of the year. This is the busiest, busiest, heaviest trading time in the market. More so than even spring and definitely more so than summer. And so there will be a lot of gaps. But I say, I usually narrow it down to one or two top picks. Some days you get five, okay? There was a day a couple of the weeks ago was in August, there was four bullish gaps that swushed on one day. Nah, they all worked. I mean, so you never know. But all you need is one thing. I mean, all you need is one thing. Could you play four if you get four good ones? Yes, yes you could. You could do them all. As many as your account can withstand, you know? So one quality strategy is this all that you need, okay? You are doing this in the morning quickly. It's something that you can learn and transition, okay? And the tidiness of the trades is what I like. The sun-ups happen to go very quickly with steel exceptions. So you get the fast early profits. It comes right into the open. If I'm on a trade by 10 o'clock and the market opens at 9.30, then I'm not doing it. Then something's wrong. Then it's not gonna work right, okay? Then there's a problem. The personal freedom for you to train in the morning and be done helps your whole overall day. Because if you are actually a career trader, you're the rest of the day to yourself, if you have to go another job, you could do that too while you're transitioning. If you have a family and you have to take your kids to school and do kid activities or cart them around to sporting events in the afternoon, you could do that and spend time with your kids, okay? It's just one of these things where you actually have time to do other stuff for yourself. You're not stuck in an office or in your home, even in your home office all day to four o'clock. This is after you've only had to do it. After you've made it, after you're there. I mean, it's just so nice for me. I live in New York City. I can go out when I'm done trading. I can go out in the afternoon. I could go out and walk around the city and get out in a fresh air. When I did my mortgage job, I was sitting at my desk stuff till sometimes 10 o'clock at night. I mean, you just go stir-crazy, all right? And I'm out. My job is done early in the morning. I know what the gaps worked, what gaps didn't. I know what money I made for the day. And then I refresh myself and come back the next morning, okay? And that's the right way to do it. The other thing about gaps that's good is that they have good risk to your work setups. Like I talked about earlier, that three to one, you're typically looking for every dollar, you're looking to risk, you're looking to make three. That's the key here. And gaps have momentum. What does that mean? That means they move very quickly. We're gonna go over this trade a little bit here, but this is the LF gap that I showed you earlier. Here's some momentum the stock had very quickly in the morning, okay? And this isn't cheapy. The stock had a nice move, 70 cents, very quickly in like 30 minutes, okay? That's momentum for a six-hour stock. So I've been talking about this system that I created. It's what I do myself. I named it Golden Gaps, but they're really qualified professional gaps. Now, what do I mean by professional gap? A professional gap is a gap that moves in the direction of the gap. It's called a professional gap because professional traders and investors are making and creating the gap. In the case of a bullish gap, professionals are buying the stock. Therefore, the stock was higher on the day. In the case of a bearish gap, professionals are selling the stock. Therefore, it moves lower on the day. By professionals, I mean institutions, hedge funds, big trading desks, big-time traders, okay? That's who's making these gaps. We're just playing them then as regular people, along with the move. The reason I prefer bearish gaps though, this is just I like to short, is that stocks that fall on the day, that gap in the way that I'm gonna show you here, have two things happening to them to create the gap. They have selling action, which makes the red and they have short action, okay? Which is what I do, I short. Now, here's an example of GMCR. This is one of the ones that squished. This was back in August as well. The stock had a beautiful bullish move in the day. It ran 10 points on the day. This was a golden gap, but this is a bullish one, okay? So you could have actually traded this to the upside. So this is something that I teach in the class too. You can't see the service as a daily chart, but it did a swoosh and a swoosh, a stocks swoosh is actually something that gives you a media confirmation that it's gonna be a good one. And then you know to get in it early. And it's gonna have a big move too, which this did. Stock moved $10. That was a 10-hour trade. And then you'll have days like this. I mean, this is why the idea of, you know, just make it $750 a day is actually very realistic. Cause you'll have days like that where you make way more. Here's the LF. This is a bearish gap. The stock closed here the night before and opened down here. So the stock sold off into the gap, okay? It lost value overnight. So you're looking to short it. First you have to rate it, okay? But this did meet the criteria. Who makes gaps large institutions, institutional money? They're the ones that are making the gaps. This is why, this is why it happens early. This is why you get the momentum. This is why if you know how to trade that beginning period between 9.30 and 10, you get the good risk to your work, which I know how to take the setups. I'm getting in on the one-minute chart when I'm taking my trades, okay? The actual gaps that are made are made by institutions. And as one individual, the only way you're gonna make money is trading with institutions. I don't care if you swing trade, or trend trade, or day trade. I don't care what you do. Options or stocks, you will not make money in the market unless you are in something that has having a move with an institution, because the stock won't move. On any given day, if you look from January to the end of the year, stocks really don't usually move that much on any given day. Even the market stocks. But on the days that they gap, they do. And you gotta say, well, why? Okay, that's when the institutions are taking positions in and taking positions off. So gaps offer a payout with good risk to your trades. No substitute for learning. Absolutely none. Because in learning, you're gonna increase your confidence. When you increase your confidence, it's gonna turn around that downward curve of your confidence if you're losing. You have got to turn that around. In fact, you need to turn your confidence around before you can turn the money around because it doesn't work the other way around. You have to learn something that you feel confident in to turn around the equity curve for you if you have had a low equity curve financially with trading, okay? So golden gaps are a very profitable strategy to trade. And how do you find them? Well, you scan for them in the morning and then you rate them using a checklist. So I go through in the morning, someone's asked me about this. Just check it through. Go through and go through each and every one. It doesn't take that long. I don't think it's something that it takes you that long. You can do it in five minutes, okay? And I may look at three to five things each morning that I rate. And then I'm trying to narrow it down to one because I like to focus on one thing that this is a personal preference and I'm running a live trading room. So it's a lot going on for me to handle with my risk to do even two things. But every once in a while I will do two, but I usually look for the best one. And I'm very good at finding that as well. Why? Because I'm getting better over time in six years from now even. I've been training for six years, six years from now. I'll be even better than I am now. It's hard to imagine because I've called, I just called some things perfectly in the last year. But if I can ever get to the point where I never make a mistake, you know, my class will be $30,000 for a weekend instead of $3,000 for a weekend. And my training room will be a lot more, but you know, I think that you get to a point where you say, you know, how much better can you get? You got to learn something that works. Otherwise you're on the path where you're doing something every day that doesn't work. And if you're on the path or doing something every day that doesn't work, you got to look yourself in the mirror and say, what am I doing with my life? Okay, don't waste your life trading the market if you're losing, take a step back from it, reevaluate. Remember, stress isn't good for you, it's not good for anyone. So the 26 point rating system measures gaps by rating them in the daily chart to find stocks to trade that have number one, a high probability of directional bias for the entire day. If you can get it, like LF, like GMCR. Number two, big move on the day. Like LF, like GMCR. I want the stock to move. Early confirmation of the bias in the move between nine, 30 and 10. Precise entries with follow-through and a good risk to work target potential because that is how you're going to make the money. I don't want to risk a lot to make a little, okay? I don't want to risk $500 to make $500. I want to use $500 and I'm gonna make 1,000, 1,500, 2,000. Okay, now let's go over some more trades here that happened very, very quickly. Let me see if I have any other questions. Okay, I think I got them all. Now here was another one, this was SHIELD, okay? Again, beautiful, beautiful SHIELD. Nice drop in here, red bar bearish gap. Stock closed the night before up here at 36 something. Open the next day down here at 34, 50 something or thereabouts, open, dropped. Extension on the day is over $2 plus. That was made by an institution selling out of that stock, okay? Now, there were two trades that happened in this. You could have shorted this aggressively, boom. And you see this one big red bar here? This is a dollar. You could have shorted this and made, this is a buck. You could have actually shorted this and made a dollar. In one minute, this is a one minute chart. And then you could have gotten all out. Entry time in this was 931. Price of the trigger was 34, 54. How can you take a trade like this? You have to know what you're doing. You cannot do this if you don't know what you're doing. You have to know if it's a good gap, but look at that. You could have actually done this and in one minute you would have made $1,500. You could have just gone back to bed, all right? Beautiful trade, okay? Nice weakness in the stock. Now, it's set up again. If you missed this, or if you wanted to make more money on the day, because you can play these things through, if they continue, reset up again, boom. You can reshort the stock, dropped in here, kept dropping. Nice move in here. This actually, you could have been out of this quickly in the first half hour. It's set up in the first half hour, but if you wanted to play it for longer actually, you could have played it all the way into 11 o'clock. The second set up, or if you missed the first, could you do this for the first one? 9.45, price trigger 34.48. On 2,000 shares, again, an advanced risk of 5.40. Exit in here. Again, another beautiful exit. This is a $2 drop. This is momentum, almost two bucks. Total profit 37.60. So what if you had taken the first trade and the second trade? You would have been up over more than five grand on the day. And if your goal is 7.50, you could take the rest of the week off. You could just not do anything the rest of the week if you want. This is a 6.9 risk to reward trade. Beautiful trade in here. So you could have done this one here in May of 1500, and you could have done this one in May of 3760. What if this one would have failed and you did this one here? You risked this amount, you risked one risk unit, and you made it, then you risked another 5.40. You still would have been up 1,000 bucks on the day. Worst case scenario, you're up 1,000 bucks on the day, and if it goes on to work, what you did, you know, you're making over five grand. Okay, and that's it. Then you're done. You're done. You're done before lunchtime. Now, a lot of people are asking me about buying power. Again, you do not need some crazy buying power. If your goal is 750 a day, 195 a year, you don't need a million dollars in buying power to do that. Most of the stocks in here are reasonably priced. The highest one I use in the example here is $45, although I have traded stocks that are up in the $100 price range, but hardly ever, to be honest with you. And every once in a while, I'd trade some of the 60s. But honestly, 2,000 shares is something under 50 bucks strike price on a margin account. Your buying power, $100,000 buying power gets you that. That's not cash. It's a margin leveraged account. They got to talk to the broker about it, but you don't even need some millions of dollars of buying power to trade this strategy, okay? Even with an advanced risk, by the way. Because the risk is in where you're putting the stock on the position size, and that varies from stock to stock. So sometimes it's 15 cents, sometimes it's 30 cents, sometimes it's 25 cents. So you're assessing the risk by the dollar amount. It's nothing to do with your cash balance and the account of the buying power that you're assessing the risk for each trade. Each trade goes on its own rating system and how much money you're gonna risk dollar for dollar in the amount that you're taking. It should be close to equal though in each trade whenever you decide. And it should be in accordance with the size of the buying power and the cash account that you have. Because obviously you can't take 2,000 shares of something if you don't have 100,000 of buying power in a $50 stock, okay? Let me just ask this, answer some questions here. How do you know when to get out of the trade? Again, I do it all before the morning. I do my targets before the market even opens. So I'm like right on top of every single number when I'm watching them. And you'd be amazed how I can remember about that. You can ask anybody in my trading room. How am I calculating the risk? I'm calculating the risk from where I'm entering and where I'm putting the stop. I use hard stops. Correct me if I'm wrong. How can you do the checklist during the pre-market and know which stock will gap if there's no data? Because it's gapping. You have the data in your level two. You will actually see it. You will see it. It's not live on the day. The market doesn't open to 930 but there's something called post and pre-market trades that go off. And you can see the price of that in your level two on your platform. So you don't see them in the chart there but there's something that the market has post and pre-market trading. That's why you can look for stuff at night or in the morning. We can look at some examples here when we're done. I'll show you, it's 515, something's gapping here now. All right, let's look at this here. In fact, the market will be gapping right now. The market always gaps after hours. I'll show you the market then in a little bit. This was LF. Okay, here was the trade in this one here. Okay, you can see it bigger, it's fatter, it's a nice daily chart. Okay, nice setup in here. Short it, boom. You could have even been in this earlier back here, boom. Okay, there it is. Again, happens very quickly. And whatever you have to get at. If you are on Pacific time zone, you have to go to your job and it starts at a certain time, 8 o'clock a.m. You know, a Pacific time or 7 a.m. Pacific time. You're done by 10 o'clock, 10.30. You still have time to shower and dressing. You're ready for work. All right. Entry time was 9.38, price is 6.70. Risk on this was 12 cents, which is a good one. This is a small stop. 5,000 shares, advanced risk is 6.00. Exit was 6.25, this was the first target. Low of the day though, 6.00 was the next target. It went within nine pennies there. Profit, if you got out the first target was 22.50. Profit of the first target was 3.75 amount you made on the 6.00. If you held it into the full on, you made even more. You could have made another almost 20 cents in that. You could have made 1,000 bucks. You could have made another 1,000 bucks on this if you held it down in there. Let's go back and look at it. So you see you would have had to hold it longer in here. So if you didn't have to go anywhere and you wanted to stay with it, it actually continued down and got to the next target. But a lot of times I'm watching time of the day and I do have the numbers of the first targets. You know, you gotta watch it. But you can look for things to bigger targets, which I do figure out in the morning too. Because sometimes when things break really good, then I know they're gonna go there. So the point I was trying to make earlier, I'm gonna bring it back around in this again though, though is this idea of having a career where you're doing it yourself. It means more security for you. Let's say you have a job now you like, you're happy with, but you just wanna make more money. That still is more security for you. No one's saying that you have to do this and quit your job if you like your job, even if you make the money trading. But the great thing about this is that you can have then more security by having more money coming in and something where you feel like you're reliable for yourself or having money for your retirement. A lot of people are in a positions now that they never thought they'd be in in the last five years where they took early retirements or were forced to take early retirements and now they're back in the job market looking for part-time work or full-time work or trying to figure out what to do. People are living longer lives, okay? And people need more money then into retirement as well. So it's never too soon to start doing this. And I'm really, I'm very happy that I've learned how to trade the market at such an early age in my life because I'm nowhere near retirement. But it is something to think about and it's never too early to think about it. So you gotta put a plan of action in place. Now, I was talking earlier about risk units. I was saying 500, 600, Sam was in here asking how much do you, how do you know what to risk, Mike was saying about the risk? What, you have to look at the size of your account and see how much you wanna risk per trade. It's called an R, it's a risk unit, okay? I didn't make this up. This is just something that people use at our traders to determine their sizing. A risk unit should be sized according to the size of your cash balance in your account and your buying power. If you risk, for example, 5% of the cash balance risk per day, you can divide that into five trades, okay? So let's say you wanna risk $500 a day. You could take five trades risking $100 a trade or you could take three trades and risk $150 a trade, okay? But then you can't take any more than three trades. One of the first trade you take and you risk 150 goes into work, like LF. You make your goal for the day. Boom, that's it, you're done, you stop, okay? It's not that you're giving yourself five trades a day and you're using every five trades every day, okay? The goal is to make three risk units per trade and once you've made it, you stop. This is your job, you stop then, especially if this is your income, okay? Especially that. Gold and gas provide setups that have a three R payout. If they rank high enough, which is the only way you're supposed to do them, okay? 20 points or more. For every dollar you risk, you can make at least three in the low end. Now, if you wanna get out early, you wanna get in the trade and quickly, quickly, quickly, books on things quickly, you can do that. A lot of people do that. They have to get the first drop, they get out of pass, they're not looking at the numbers I'm giving, necessarily, and holding them. They're getting out of half quickly to get green something, okay? Or to get safe, basically, so they can't lose and then they let the rush right out to the bigger target. That's the other, that's the other idea. But if you wanna get some of these trades that really, really get some mojo in them, which you can get up to 10-hour trades and you gotta hold them. A good reshoot word pan is one of the most significant reasons to learn the gold and gas system and that's the class that I teach. Now, what if you wanna make 250 a year? I use the example to make 195, which was 750 a day. You really got to risk $500 per trade. Now, this is an advanced risk. This means you have to take the class and learn how to do it and actually trade live. Once a trader's experienced with the system, you can learn to do ads in the original position. Doing ads helps you make more money with less risk. It will also help you get good at holding the bigger targets. For example, if your goal is three hours, okay, that's 1,500 on the low end with a $500 risk unit. Six, this is a middle end, it's 3,000, which some trades will be. And you get one big training here, you can make like five grand or you play it twice like that shield, okay? But in order to make 20,000 a month, you're basically looking at 10 hours a week with a $500 risk unit, okay, or thereabouts. And this isn't like mathematical science here. Some months you'll make seven, some months you'll make eight, some months you'll make 12, okay? This is what the market is, all right? The busy season, you're gonna make more. And again, we're getting into the busy season here, like I said. Three, three hour trades a week is nine hours per week. You could break it down like that. Let's just say money through Friday, one day you take off, one day something doesn't work. Or one day something only goes one hour, one day something doesn't work. Three days you make three hours, you're there. That's nine hours a week, okay? It's $4,500 a week if you're risking $500 a trade. That's 18 grand a month, boom. Okay, you can see how you can get to the numbers. This is realistic people. Again, have the goal, know what you're looking for. Have the goal, you have to have the goal. And two are trades is something else you could look at. What if you say, you know what? I'm gonna just look to make two hours. I'm gonna be very, very, very conservative. I'm gonna risk $500 on my risk unit, but I'm gonna get out of half early, let the rest ride down so that if I make $1,000, I'm good. That still gets you there, okay? Still gets you there. So once you become skilled at trading gaps and reading gaps, you can increase your risk accordingly. If you want to make $250,000 per year as an annual income trading gaps, a normal risk unit of $500 per trade is adjusted. And earlier I was talking about 750 a day. That's not even two hours then. If you made 750 a day, that's only one and a half hours and you would be making 195 a year. Once a trader is making over $250,000 per year, the sky is the limit. Once you reach this level, you have a lot of future income potential. You could trade for yourself or also for other people as well. Traders who make money have unlimited opportunities available to them. That's the positive thing, okay? It is all about the pick. I cannot tell you how much it's about the pick. It is night and day about the pick. Me, the things that I would pick, if I pick a good one, great. It is all about the pick. This is the reason I made up the system in the first place. It's the whole reason because there were so many things that there were gapping and there were so many stocks in the market. I said, this is, I have to focus. If I don't focus, I'm gonna do this thing, that thing, this thing. One strategy is the focus and not only that, but one stock pick. Otherwise, you're spinning your wheels waste your time into the open to try to see what's going, what's moving, what you should train. You've got to know before the open. At least narrow it down to one or two things because all you need is a quality trade and pick and it makes a world of difference. It's the reason that I'm successful is because I'm good at picking the right thing each day and it's different every day. The goal and got 26 point range is some points the way to the right stock, which will move and help you make money and work according to the system and allow you the accessibility to profit to make the kind of money that you wanna make to achieve an annual income for yourself. And whatever that is is up to you but you have to set your goals specifically. So how can you do this? Where you achieve the success you want, you've gotta know what your dreams are. Do you really wanna be wealthy? Do you wanna just pay your bills? Do you wanna stay in the job that you're at right now? Even if you're not happy. For me, myself, I wanted to change careers. I had a very lucrative career doing mortgages for a long time. So one of my goals in changing careers was not just to change careers but I wanted another career that could provide me with the type of unlimited income potential that I had in my mortgage job and the market is it. The market is it. There's not that many jobs out there like that. I don't wanna work for someone for a salary. How am I ever gonna get anywhere? Okay, I love the idea of the fact that I can make more money year after year with increasing my risk in the market. So you've gotta get to a point where you can just expand your horizons and see the possibility even though you don't know exactly what's gonna happen if you learn something new, you don't know exactly what's gonna happen but if you're on the spiral downward path where your confidence is going down and your P&L is going down, how much worse can it get? You know, you've gotta look at yourself and just decide how badly do you really wanna do this thing? How badly do you wanna train it? What are your goals? Expand your horizons, open up your mind and think about the possibility of learning something different. If you're at the place where you don't believe anymore that it's possible to make money trading the market, then you definitely need to stop and maybe stop trading for good because you have to have confidence and conviction that you can do it but you're gonna have to put yourself on the right side of the fence because there's a lot of people on the wrong side of the fence and will be there forever. Why? Because they can't expand their horizons. They can't see exactly what is out here so they won't get on the ship, okay? And I see that, I have no idea what's out there. It could be a fabulous island, a spa, a resort, the man of my dreams, okay? I'm getting on the ship and I'm going out there and I'll see where it takes me. And this is the attitude that you have to have with the market. So remember the way it's supposed to be, the way it's supposed to be. This makes sense, this doesn't make sense. You can see why it is this way with traders. You can see it, but this is really what makes sense, okay, and this is me and this is a lot of people. So move over to the right, okay? Get with me, all right? Because this is the way it is supposed to be and I'm reminding you of this. This is how it would be with any other career. This is how it would be with any other career, all right? So think about it, this is sensible. Like this makes sense here. Where you get better over time, you make more money over time, you're risking more over time, you have more confidence over time, you have more conviction over time, you have more money over time, this makes no sense, okay? I don't know why is this way with the industry, except for the fact that anything that has to do with money brings up so many different issues for people. I don't want to get too off target, but it just does. You've got to work through them and turn it around, all right? I don't look at anything in particular range, Mike. I'm saying I'm typically, typically I'm not doing things that are more than a hundred strike price. It's, I'm typically not. I don't really have a set range though. I'm just saying what's typical. So if you're a beginner, what do you do? Take the Golden Gap class, which I'm gonna talk about in a minute, learn how to rate the gaps, practice. Risk 50 bucks a trade, that's your R for a month, a week, okay? Then you can step it up to 100 bucks a trade, then 150, then 200, then 250, then 300, until you get to the point where you're risking an advanced amount, okay? You have to start somewhere, you have to make $2,000 a month before you can make four, you have to make four before you can make eight. You have to make $15,000 a month before you can make 20 and so on and so forth. Once you're averaging $20,000 a month your goal is to just build your base. The goal is then you just to earn more, raise your capital balance in your account so you can have more buying power and then therefore take more risk. And it's all about focusing on the right information, reading the gaps, doing the rating system, focusing on the price. What I do is based on technical analysis. My rating system, the 26 points, are based on technical analysis. I'm looking at the technicals in the chart to determine what I want to trade. So the class I teach is called the Golden Gap course. It teaches a 26 point rating system to find the best stock to train each day. The course teaches you how to enter and exit the stock on the day, which some of you were asking about. The class teaches price analysis and technical analysis on a very advanced level. It will definitely open up your eyes even if you're a trader, the way I look at things. It's a window into my world, the class. The course teaches a more proficient way to read support and resistance in the right direction. And the course teaches you to focus on one strategy in a detailed manner so you can become a good trader because that is your goal too. The only way you're gonna make the money goal is if your goal is to be good. And this is a path to do it. The checklist helps you because it tells you what to look for. It tells you exactly what to look for. It tells you when something is good. It tells you when something is not good. It tells you whether or not it's gonna work extremely well like if something does a stock swash or if it's not gonna work right at all. And the setups happen early in the first half hour which I'm telling you is beautiful for anyone looking to make a career change with a transition really working in the morning. And you can learn how to do this. If you've never traded the market before, I've been teaching people that have actually never traded the market before or recently more than ever that have never traded before and they're trading now or never traded stocks and now they're trading stocks and they're learning the strategy brand brand new and they're doing it and they're actually following the rules specifically. Day training is about consistently booking money for income, this is what I do. But if you wanna do this for longer term trades, you can do them. Some of these examples I showed you, GMCR is one of them to the bullish side is a longer term long. The market is a longer term long so you can do gaps for swing trades and core trades. Personally, I like the day trading and I'm flat every day by four o'clock. And then here's me, I just thought I'd tell you I'm a trader although I did talk about it earlier. Everyone always asks, yes I teach the class but I teach the class of the weekends so it doesn't interfere with my trading and one of the reasons why I think I'm good I actually teach, running a business which I run my own business and I trade is because I trade, I trade is because I trade. If I didn't trade every single day I wouldn't be able to teach the class as well and I wouldn't be able to know what I know. So it's because I'm a trader that I'm good at running my own business and that I'm gonna teach in class because I'm actually doing it. So I have a wide range skill set that I can teach what I know but it's really because I'm a trader that I can do it. So get the stocks will show market calls. You can go to YouTube and get them, I have them on there. And the class is called the golden gap course. It's a complete system to use to trade is all the pieces of the puzzle that you need to learn how to trade the market. It is a full student course in how to strategically find pick and play stocks at a professional bearish gaps. You can flip the points to go along that's how I need to do the GMCR one. You can rate bullish gaps too just flip them, I like to short though. And so I focus a lot on that. Retakes are free if you pay for the class and sign up for it the first time you can redo it anytime after that for free. The class is online, it can be anywhere in the world and take it. Now, here's the schedule. It's this Saturday, September 30th from nine to three, they go through all the points the 26 points on Saturday, Sunday is September 14th, nine to five, and then I'm doing a bonus day with live trading September 14th, 8.30 to noon. Okay, so we're gonna go over live gaps then and have some examples then and train on the Monday. Oops, I put the 14th, that was the 15th. This is Saturday, Sunday, and Monday's the bonus day which is the 15th from 8.30 to noon with live trading. The cost of the class is 29.99. If you're interested to sign up or ready if people registered, I only take a certain number of people as well by the way because it's only me teaching the class and so I wanna make sure to get everyone's questions in. Email me at Melissa at thestockswish.com if you wanna sign up. And remember I'm doing the bonus day which is really good because it takes the live gap analysis and puts the pieces of the puzzle together for seeing for people. I've done this once other time this year. It's very popular, people really, really like it because they can see then the market and the gaps happen live on the weekends, the market is, you know, it's flat. So I'm just gonna do that on that Monday. I also teach a class called the Trends Course. It's October 1st and 2nd from 12 to four. This is a class mostly for long-term traders on how to read trends and stock charts for long-term. The cost of the class is $9.99 but I'm doing a special this month for September. If you do both classes, you save almost $500. You save $4.99. You can do both classes for $34.99. And if you're only a day trader, the Trends class helps you look for longer-term trades, for longer-term swing trades if you wanna hold some of the gaps in the day trades down or if you do just the day trading, it helps you know for the longer-term so whether or not that stock's gonna have a really big move on the day even as a day trader. So it's really a good class because overall I think that if you want to day trade and if you see the gaps in how they follow through or don't follow through, it helps you get conviction to actually hold some of these things to bigger targets on the actual day of the day trade. You know, this idea of scalping is just not what I do. And a lot of people that day trade scalp, I don't do that. If you can see in the long term that the stock has the potential for a swing trade, it's probably gonna help you hold it to a bigger target on the day trade. And that doesn't mean till four o'clock. It could just mean till maybe 11 o'clock or 12 o'clock. It helps you have more conviction when you understand longer-term trends. You don't need to do this class to day trade. The Golden Gap class is all you need to day trade. But the Trends class takes it to a more advanced level for the day trading and is what you need for the swing trading and the core trading. So start making money in the market if you wanna do it. Take the leap into the market and into your future. You've got to do it if you wanna trade and fall in earnings season is going to be big. It's gonna be big and I'm very excited about it. Get ready and get motivated to make money. Now, let me ask you some questions here. What I can't understand is how you find the stocks that are gapping. There's so many. Well, Mike's asking some questions here. Why don't we do this? Kathy's gonna plop us all over my room. I'll answer Mike's question in the room. I will answer Sam's question in the room about gaps too. And then we'll do a market review. How about that people? I'll answer Mike and Sam, come in the room. Kathy, can you move us all over? And anyone who has any questions here today, email me. I'll put this in the room here. I'm Melissa at thestocksquish.com. If you wanna stay, Kathy's gonna send everyone and teleport us over to my live trading room. I'm gonna answer Mike and Sam's question and we're gonna review the market here. I'm gonna give you my call here in the market. Okay? All right, sound good. All right, I'm ready, Kathy, whenever you are.