 Hello there everyone and welcome. This is Melissa Armo with the Stock Swoosh and I wanted to review here Facebook It was a really great call from last week and so I'm gonna review the trade and it's really about understanding gaps There's so many people out there that trade the US stock market and have no concept of gaps Don't understand what a gap is don't know how to read gaps and they are so important And this is what I teach people how to do and my eye goes right to a gap When I'm reviewing a chart if you'd like more information you can email me at Melissa at the stocks wish calm or call me at 9 to 9 30 200 gap. You can also follow me on Twitter Facebook YouTube or Skype. So here it is This is the chart just going back the last few months here Previously the stock had made brand new all-time highs back in July Okay, this was up over to 18 then it collapsed in here on this day all the way down in the 170s So quite quite a gymungo gap down for Facebook, okay? And you can see what it's done ever since so this was the day trade from Friday that we're gonna review I also called I put in this trade which worked last week, too So you can trade stocks using options And you can also do it day trading the day trades are the quick trades the options trades You can you can play them for quick trades But the only benefit really of doing options is that you don't have to concern yourself with margin or buying Power or having a margin day trading an account but to get in and out quickly and maneuver yourself in seconds or minutes Day trading is it so anyways, we're gonna look here at this This is again Friday the 28th last day of the month now there was news that came out on this stock I forget the exact time of the day that it happened But either way we were in the trade I called the trade on Monday for the put and Friday morning before the news even came out It was a short. Okay, so obviously there was negative news that came out that created a bigger move I didn't know anything about that news coming out. I didn't know anything about it. Oh, we were already in in Invested okay in the short before that news even broke that there was a data breach again in Facebook So that's the amazing thing to me is that I can see and go back here What's happening in a chart to pinpoint the direction before before okay before the move even occurs Which is which is how you make money when you trade so when you know how to read gaps, right? Go back to this is a daily chart. Okay that it can help tell you how To take the stock and the position to go long it or short it I'm reading institutional money in the stock It's very important because obviously if you were in this short on Friday You had the possibility of making a lot of money and if you weren't along you lost Okay, you lost and there were people that were along the stock other people that are still on the stock Now let's take a look here. This was the day trade in Facebook So the initial entry 167 40 then the stop was 168 60 Okay shares again at first entry in the morning and this was very very late. This wasn't even aggressive 2000 this is an advanced trader risk ad was around 167 then total risk the stop was moved was 2600 again, this is an advanced risk share quantity 24,000 exit 163 or 2 this went to I think 162 50 I think or something this kept going This went way past every dream target for it profit on this day trade. You could have made $16,720 risking 2600 that is a great trade. What did you do? You played this move here? You play this move here What an amazing call so again looking at this you say well, how did you know it's gonna happen? I didn't but I knew the stock was gonna drop I didn't know the data breach was gonna happen But I knew the stock was gonna drop because the data breach happened to create it a bigger drop But I can read that a big drop is coming a coming in the stock from reading the price action in the gaps And that is what I teach in my class in the golden gap course And that's the reason to come and pay me to learn my method and system This was a great call and I hope everyone in the room got this trade and held it through into that drop I have to go back and look at the exact time the news happened But it was very obvious then when it started to sell off because selling action happens quick panic actions Action happens quick, and that's one of the reasons why I prefer to look at shorts Now what if you did not want to take 4,000 shares of Facebook? Well, you still could have done the exact same trade with the beginner account You could have taken initially 200 shares and added you would have had 400 again the entries in the stop is the same Your risk would have been $260 share quantity 400 You could have made $1,672 with a small account risking only 260 bucks. That's a great trait. That is a great trait Okay for to be able to risk $260 and make 16 72 The risk to reward in this trade was 6.4 and again, you could have held it longer I don't know what it was down near near the low if you held it down in the 162s It was at probably seven seven risk or greater the idea though is that you are getting the move in the Momentum playing the gap rating the gap following my trades that I'm calling in the live trading room If you want to learn how to day trade you can work for yourself from home You don't have to live in New York. You don't even have to live in the United States of America You can work for yourself and learn how to do it in my golden gap course It's about having financial freedom. You can do another job. You can have your own business You could work part-time you could do anything you want trading gaps is something you can do with a computer from anywhere in the World we prefer to watch in the morning that trade though was something that fell later You had to hold it through later and the reason we held it was because I could see that the drop was gonna come Okay, and again that was before the news bro So the nice thing about training is that you can work from home if you want to do this full-time But the hours really are not full-time. It's not 40 hours a week. It's not a 40 hour week job So I teach a class once a month the class is called the golden gap course It is October 6th and 7th 9 to 5 Eastern time cost of the class is $5,499 the class is online You could be anywhere in the world and take it the cost of the class is increasing with a new website launch this month This is the last class you can get in for this price Do not delay if you've been considering taking my class sign up You can get in and trade and learn during earnings season which starts this coming week the golden gap and the trends together combo is $59.99 you say $500 that class is October 22nd. It's from 11 to 5 Okay, email me if you want to sign up email me if you have questions email me if you want to try out of the trading room This week before the class. I I hope you think about that trade This was a great example of something of how I read the price action before that news broke I read that Facebook was lower was a great call. So good luck everyone this week and have a great trading week