 Good afternoon. I'm going to talk a little bit today about entries. And I'm going to talk about the infrastructure of taking a trade or doing an entry. And this is an important piece here in trading, because a lot of people just want to quicken in trades and quicken out and do not understand the proper placement of taking an entry. And one of the important things that I teach in my golden gap class is how to take an entry, where to take an entry, what's a correct entry, and why. It really is about the focus of the infrastructure, which is the main thing that I do, which is what, it's the gap. All entries need a foundation and infrastructure, just like a home needs a firm foundation. Entries need a firm foundation. The infrastructure for every entry is a strategy. And for me, that's the golden gap. And that's what I teach in the golden gap course. The strategy is the core reason behind why you are even watching that stock in the first place or even contemplating an entry or a trade in it. An entry in a stock should not be taken unless the trade has a foundation for supporting it, okay? So the infrastructure is very, very important. This is very important. In fact, many stocks at any given day have no strategy to trade as a day trade. That's a fact. That is why on most days, stocks do not have a proper entry and there is no strategy. Just trend trading something will not make you money every day as a day trader because they want to the proper entries to be able to predict where the stock's gonna go in the day or even to where to put a stop. And all of those things are valid and important if you need to determine your risk and how much money you're gonna make or the probable outcome of the profit. So the strategy is the infrastructure. Like you have a foundation for a house. And for me, that's a gap that rates 20 points or more per the 26 point criteria. Without that, there's no foundation for the house and it could collapse in a big storm. So that's why you want to look at only gaps that rate 20 points or more for proper rent rates. So the foundation really of what I do and every trade I take is the gap, whether it's an option trade, a swing trade or a day trade. Gaps are a strategy or foundation for your trades in the market. When you choose to take a trade, there has to be a support system behind why you're taking the trade. Gaps are the support system or reason why you would enter a position. The reason you're choosing to enter a stock or the foundation for your entries should be because of the stock as a quality gap. And if you're doing some other strategy, it's the same principle. And if you're not doing a strategy at all, then you shouldn't be trading. You shouldn't take any entry in a stock. This is what I'm saying. Just trend trading is not a strategy. Now, what is a gap? We've discussed this before, but we'll review it again. It's a break in continuity, interruption hiatus, divergence, a difference of disparity. A gap is a break. Stock gaps in the opening price today is different from the closing price of the previous day's trading. A gap is a break in the price action from one day to the next. That's what a gap is, very simple. Let's just go over it. There are bullish gaps and bearish gaps. Here's CN. CN close to your gap down. Closed price here was around 2250. Open price here was what, 21 something. Stock closed here, four o'clock open here at 9.30. Boom, it gapped. That's a gap. Here's another gap. Stock closed here at four and 9.30 open here. So here's a gap down. Here's a gap down. Here's a gap up. Stock closed here at 2050, gap up to like 22 something. Stock gap up. Okay, so this is a gap up. Closed here at four, open here at 9.30. Here's another one here, BBBY. Stock closed here, gap down, boom. Closed here at 61, gap down here to like 57 something. Here's four o'clock, here's 9.30. That's a break. It's a break in the price action from one day to the next, from the 25th to the 26th. These are the calendar days down here. So gaps are a strategy that exists in the market. They happen in the market on a regular basis. However, quality gaps do not happen every day. The best gaps for trader gaps that create a new trend or continue a trend. Not every gap that occurs in the market will offer proper entries. Gaps need to be qualified and rated before looking for the entries in today. The most important gaps in the market are gaps that signify a change in direction or a bigger move in the same direction. Understanding which gaps are meaningful and which gaps are not meaningful in the market will help you to know what to do, when to trade, and how aggressively to trade. A highly rated gap will provide quality entries. And that's what you want because that's how you're gonna make the money. You can't make the money until you get the entry because you gotta get in and you can't just take it, okay? So first it's a strategy, then it's the entry. Quality gaps offer quality entries. A good gap might have several entries all day long. However, a gap that is a poorly rated gap might not have a quality entry at all. A gap that is a poorly rated gap may have entries that look good and then they set up and fail. That's why you've gotta have a system in place, which I do, which is the 26 points to determine the good gaps. Because something could gap and it could look good but then not have the entry and it fails and you get stopped or you lose. So you have to have a way to qualify the gaps and that's what I do in the rating system and the points in the Golden Gap course. There are low odds that a poorly rated gap will have quality entries and that's a fact. There are high odds that a highly rated gap will have quality entries and usually multiple entries all day long. There are times that poorly rated gaps have good entries however this is very, very rare. So you've gotta keep in mind that a quality gap will always offer quality entries and this is what I strive for daily. A non-quality gap might or might not have a poorly rated gap, may have a quality entry. So a non-quality gap, one that doesn't rate per the system, okay, might have a good entry, might not. Low odds, it will though, okay? So you want to focus on the quality. The whole idea of trading is you're trying to get the odds in your favor. The odds in your favor meaning high percentage that you're gonna win in the trade, high percentage that you're gonna make money, high percentage that you take the trade and put in the stop, it's gonna hold and it's gonna go immediately into the profit and that's your goal. So you want to keep the odds in your favor and focus on quality gaps for quality entries. What is a quality entry? An entry that has all the parts and entry needs and a good risk to reward. So bottom line is you gotta have the infrastructure in order to take the entry and that's the strategy. For me, that's a 26 point rating system. You use that when the gap rates 20 points or more to take the entry. Otherwise, you're just taking entries in any gap at all. It doesn't have a high odds of holding or working or any other strategy, you're taking an entry. What if it doesn't work, okay? You have to have a way to qualify even the strategy that you're choosing. So for me, it's the gap, it's the rating system is the way I qualify, the quality of the gap and then the entry itself, I'm taking only in quality gaps. So these are all, this is the structure. Again, it goes back to building the house. You have the foundation and you build it up from there and that's how you become successful and then it's day by day by day and that's how you do it. For more information on how to learn how to trade gaps with me, you can email me at melissa at thestockswish.com. Have a great day everyone.