 Hello everyone and welcome. This is Kevin with online trader central We are promptly in just four minutes your host and presenter today here at online trader central Melissa Armo Is your host presenter from the stocks wish calm? We start promptly in exactly four minutes The slide is up, but as Kathy has posted in the room there We welcome each and every one of you to the presentation today and again start time promptly in just now three minutes Three minutes start time. Thank you again everyone and welcome Hello again everyone and welcome we start promptly in just one minute here at online trader central sunny days is here with us So we could start but we'll wait for some others to join and we have the other people are still registering as we speak The Indy Kyle Steve others. This is online trader central welcome Steve Tracy star best be trader and a taz if I'm pronouncing that correctly Giara Jake is here with us. This is online trader central and your host presenter today Melissa arm off of the stocks wish calm My last person to join was well that changed that Patrick and Reggie. All right again everyone. Thank you and welcome We start Okay, and cue the trumpets The trumpets mean this time From the stocks wish calm, please welcome Melissa Kevin and Kathy with online trader central welcome. First of all, I would like to wish everyone a happy new year Welcome to 2015. I am the very first webinar presenter of this calendar year 2015 boy that must have some significance. So thank you for being here today and My name is Melissa Arma. I own a company called the stocks wish LLC. I started the company back at the end 2012 up. Can you hear me? I had them like on all right? I was talking and no is this name But luckily you caught it quickly Welcome everyone. I was saying happy new year. That's all that you missed I was saying happy new year and thanks so much for coming Welcome to 2015 here. I am the first webinar. I'm doing of the year the first webinar for online trader central I was saying there must be some significance to that I didn't have the microphone on so thank you for letting me know My name is Melissa Arma and I own a company called the stocks wish LLC. I am a day trader I day trade the US stock market So today's lecture is going to be about Helping you if you are a trader if you're thinking about becoming a trader To find that one thing that's missing in your trading And I don't care if you're brand brand new been doing this for a long time If you're at the place where you are either losing money or you are not making what you consider enough There might be something missing obviously there's something missing or you'd be making good money Okay, because it is not impossible to make money in the market. It actually isn't now There are a lot of people that want to trade and be successful and aren't but it's not impossible It's just that most people are lacking that one thing about trading and we're going to talk about this through the lecture One thing I want to mention that before we start is trading is one of these things where it's like if you have 99.99999% of it You might still not be successful Trading is one of these things that it's like so fabulous once you get it because the potential is so huge for the money That you can make that you actually have to have everything you have to have like a hundred percent It's not like you can skate by and make money every day in the market missing Even just a little bit of it. You have to have everything. Okay. This is what it is And this is one of the things reasons why many people Don't stay with their trading or they come back and they go in and they're back and forth doing different things because they're lacking That one thing and i'm going to try to put you on the right Path this year. I think this is going to be a good lecture I have a lot of charts in this lecture And so feel free to ask me questions as we go along you can just type them in the room A million person that can see the questions, but I will Answer them in live time because I have plenty of time to go over it today If you have any questions after we're done email me at melissa at thestockswitch.com I also have a ton of videos on youtube you can go there You can feel free to call me and join my facebook or twitter website as well So welcome. Welcome today. There's going to be a special bonus for the live people here, which is all of you I'm going to pick five people. I had given random numbers to kathy. She's picking them up and she's going to email them to me I'll be emailing the winners when we're done today Five people five is a lot. I'm going to give 30 minutes to five people this week to go over anything they want A stock and etf anything one-on-one in my live trading room So this is something special i'm offering and I think it's nice for there's some people that have been following me And they want more information this i'm going to give some one-on-one time to some people alone So it'd be a random thing kathy's picking the numbers and you'll find out tonight. So check your inbox Also at the end of the webinar depending where we're at in time You might do it live here or go over to my trading where we're going to review the market for 2015 At the end of today's webinar, we're going to review it and this is how the market pretty much closed today in the qqqs So one is the one thing that you might be missing you've been trying to do this You've been at it. What's the one thing? Well, if you've been trading on and off for years Some of you might be doing this for two to three years. Some of you might be doing for 20 plus years I've met people that have been Attempting to be successful at the market for more years than i'm alive. I'm not even kidding actually In fact, i've met a really nice man recently. I'm not sure if he's here tonight Rajinder who said, you know that he sees the youth and vitality and me has excited him to Learn more about the market now and he's retired. He's an older gentleman. He's retired So even if you've been doing this on and off You might be losing steam or motivation But the fact is that you don't have to give up No matter what place you are in your life no matter how long you've been doing it Many times traders have a lot of information But they lack this one missing piece and trust me for those of you that have been doing this for more than 10 years You obviously have a lot of information. Okay And but the thing is you might be missing this one thing and without it You cannot see lasting success because it's that important Trading is one of those things that if you know what to look for it's easy If you do not know what to look for a trading can be challenging Trading is also one of those things as I was saying earlier If you know 99.9% it might not be enough to be successful Why specifically because there's so many people in the market that are trying to grab the same thing Which is money So you got to you have to be like right there with everything you got and you must know 100 to be successful 2015 is about making your life easier and better This is your shot. This is your chance. It's very early in the year only five days into the calendar year Okay for you to start getting serious about what counts in your trading and you can turn your trading around No matter where you are no matter what you know and make it better with this one advantageous strategy So what is the one piece of the puzzle that is missing for many traders and I picked this chart here? This is a a puzzle and the one piece you see here It's missing you can't tell what this is sometimes without the one pieces This piece might hold the key to the whole picture of the puzzle that you're trying to create And if you lose it or you dropped it or it's under the sofa And you can't find it or somewhere then nothing makes sense And you know a lot of people are in this space where they're trading The thing is that the one piece that's missing for many many people is gaps Now I know that a lot of you are trading and you know what a gap is I'm going to go over what a gap is for people that are new But this isn't about Knowing that gaps exist. It's about knowing their significance Like why do they matter? Okay, so bear with me here first I'm going to explain for people that don't know what a gap is. This is a chart of the spy A gap is just when the marketer is stuck And this is a chart of the spy etf closes at one price at four o'clock eastern time And then opens at a different price the next morning when the market opens at 9 30 Now, I know this chart is a little small, but You know, I wanted to show more information here So you can see here if we take it across all the way over to the right Where the market closed at like 190 something and the spy on this day But then if you got up in the morning Take it across take it across take it across prices over here on the right hand side You can see that the market opened at like 191 ish 192 something close to 192 So this is a gap the size from where this closes to this opens Can be anything. Okay. The fact is it's different and that means it's gapping Now this is what is considered a bullish gap meaning that it gapped up Okay, now that is what a gap is now. Why do they matter? There's a lot of gaps in this chart. There are bullish gaps like this one here I just pointed out There also are bearish gaps. This was a bearish gap here. This was back in the summer of 2014 The market closed here at one price and gapped down this green line Here's the 50 period moving average so the market gapped down on that and fell on the day Sold off. It's this red bar means selly So this is a bearish gap this one here now. There's lots. Okay. I could point many many out But the fact is there's a lot of gaps in the chart They hold significance Not everyone does As much as some But they all with their gapping Could have the potential to do something that could be of significance So how do you know which ones are the ones that matter? Like which ones are the ones that she would buy and which ones are the ones that she would sell Or short To know to take a position in a chart and I just picked the spy here I could have picked any chart in the world and we are going to look at some other stock charts today But they do matter and the fact that some of you are trading and know what a gap is Does not mean that you know the significance of it. Okay. This is why this missing piece counts Gaps matter because they pinpoint opportunity The cornerstone of lasting trading success is really to be able to pinpoint opportunity because how do you make money in the market? You make money in the market by taking advantage of opportunity Opportunity means that you're seeing something that's going to happen and you take the trade in that stock before that event happens Before the move happens the volatility. There's no opportunity If you get into something too late or past the point or it's almost made the move where it's done It's like anyone in the world could tell that something's doing something by then and get in it And then you obviously the opportunity is gone opportunity means good risk to reward potential for significant profit High odds of succeeding that the trade would not fail meaning that it would make you money Okay, because every trade you take this potential for it to fail. You have to know that that's why you size yourself Choresk lead with risk. Okay. It's called calculated risk But Your pinpointing opportunity in gaps. These are all daily charts Okay, someone asked All of these here and this one goes back to 1999. Is this a spy again? Now And we aren't going to talk about this at the end today Anyways, they matter because they pinpoint opportunity. You could have been long the spy now for quite some time If you knew how to read bullish gaps Like I do You could be up a lot of money right now in this chart and still in it You can still be in this and we will talk about this later If you did not know how to read gaps, you might not have taken this You might have missed this move that has happened here in the last two three years or plus And you might have been waiting for to come into support or do different things. Okay Now supporting resistance. I'm not going to talk about in depth today I might do another webinar and that's some time later this year But supporting resistance are meaningful in a chart But not as meaningful as a gap because supporting resistance Are not opportunity Now listen to what i'm saying. This is actually important. I never plan what i'm going to say I just fly by the seat of my pants, but i'm telling you right now the supporting resistance is not opportunity Supporting resistance is not in point opportunity Opportunity is in a gap because it is a strategy and supporting resistance is not a strategy Now listen to what i am saying. I just taught you something there for free right now write it down Supportive resistance is not a strategy if you are playing it as a strategy It doesn't work all the time and you know this and if you are not making money playing that as a strategy The reason is it doesn't work because it's not a strategy Opportunity is something that has a high potential for you to make profit on a regular basis With a high as of success and a good risk to reward to go to the target To take size in for profit That is an only a strategy and in the case of this it is a strategy of gaps And by the way, there really is no other strategy to play in market okay now Opportunity can mean to get in or to get out like you could have been in this chart long This is the chart of big You could be long big you could have been long big for the last you know year or something And then the stock gap this was back in december Say you were up say you got in this Say you got in this down here. So you got in this around 30. You were long big at 30 and shut up You made 20 bucks on this. You held it. This is an overnight trade pretend You did it as a long-term thing. You were in this actually less than a year. You were up 20 dollars. It's pretty You know, it's nice money So then the stock gaps down now you were in it at 30 it gaps down to 44. What are you gonna do crap? You would know to exit this here and sell you're long you're still up You're up 14 dollars in profit. Did you give some back? Yes But the fact is that this gap here you would know then if this was a significant gap Which we're going to talk about a little bit if you figured out that it was Per the system that I use and the method I use if you figured out it was Then you would sell you're long despite the fact you had to get back profit And by the way, you see where this is at now If you did not sell your long here, this is trading around 39 something So you would have given back an extra five dollars and you sure would have been up But the point is you can use This for the opportunity for so many different ways. This is what I'm going to talk to you about here Which is gaps, but I use a method to figure out these things So you would know whether to buy it or sell it or short it Okay, you cannot be all over the place that could go you and expect to make it. You just can't it's just you can't It's it's just verifies everything I was telling you earlier about the fact that you know, you have to know everything It's not impossible to know everything It's just not okay, and you really can't be all over the place What do I mean by that? I mean one day you're doing climatics one day You're doing buy a set of cells that is one day you're buying a support the next day You're shorting the next day you're doing a gap the next day you're doing a novice gap I mean you're doing like 20,000 things. It depends what you feel like when you get out of bed in the morning You you can't make money like that. Okay, you're all around like a yo-yo One day you're doing equities one day you're day trading one day you're swing trading the next day You're doing futures the next month you decided you're going to do options forex I mean, there's so many things you can do All you need is one thing to do to be successful to make money and then you just You know put more risk into it as far as the sizing And you get really good at that one thing that's a lot better than being a yo-yo It's about focus and the focus is on one strategy and the nice thing about the strategy and gaps And i'm going to discuss with you today is that you can use it for Overnights you can use it for day trades you can use it for swing trades for core trades for longer term Like some of the charts I just showed you on the spy and even the big and you could Do an option in it instead of taking the equity trade You would have to know how to do the option. I personally do not do options But that is something you could do that might be more cost effective for you If you did not want to open up an active day trading account It you really want to have the complete 100 focus This idea of being a jackable trades and master of none is a waste of time It's really just a waste of your time And even though it might not be costing you anything to go to free webinars or read books Or practice on a demo it really is costing you because your life has meaning And the time that you spend doing things is valuable and you really actually can't put a price on that So you might think you're saving your pennies by trying to figure it out yourself or You know just taking your time and five years goes by two years goes by three years goes by Really in that time if you learn how to make money you could have been profitable and your whole life could be different My whole life right now at this point and for the last few years actually has been different than it was 10 years ago in a way that I can't even describe to you and it's all because of the stock market So you your time is actually something that you can't even put price on it. You can't all right. So think about that Now why trade gaps stocks that gap have big moves on the day and they can continue for weeks and months Stocks that gap usually have their moves within the first part of the trading day in the morning And you can be done trading by lunch if you day trade, which is what I do This is what I love to do and the reason that I love to day trade is because I know exactly how much money I have every day before I go to sleep at night And I actually Like that and I also can get it right away. I could pay myself every day if I wanted to That's not necessary, but I could okay or once a week or twice a week or once a month or whenever you want I have the money boom. It's there if you're in stuff for weeks or months. You're waiting for longer term targets Okay, brahlio. No, you didn't miss that much Wonderful sounds good So stocks that gap have huge moves with small stops, which means you can make more money with less risk And stocks that gap have a chart precision that is very unique in the market Sometimes you can take a swing or a core trade in a gap So you can use the same strategy even for longer term trades that you would use for day trading This is a benefit. It's actually extremely unique It is very very unique to have a strategy that you can use for day swing and core trading But again going back to what I said a few minutes ago In my mind, there is no other strategy that exists and this is probably why it works for everything That's probably exactly why it works in every time frame Because it's the only strategy really that exists in the market to play It's very unique But the fact is if you learn it you can parlay them into so many different time frames that you play Now why is that the case? It is the case that it works in different time frames And it is the case that it's a powerful strategy to make money because Gaps are created by institutions in the market. Now i'm going to talk about target Again, this you can't really see the bars very close here and I did this for a reason here I just want to show you this chart all the way back to 2012. This is a chart of target. It's a very bullish chart There are some people out there. I know there could even be people here tonight that want to Fade or short or think target's going to come in And they want to get a quick short in this Target is a very bullish chart and should not be shorted in my opinion And in fact, it's probably going to hit a hundred dollars this year. Okay. I think the high up there was 76 something Now you could have already been in this. Okay, if you knew how to do gaps You could have done the quality bullish gaps in this or you could have been in this for a longer term trade Now going back to what I was saying about institutions Someone mentioned to me the other day that someone That was a mutual acquaintance had started a hedge fund and this person. I know does not have a A lot of experience in trading, but they have a lot of money And it reminded me about how many different types of hedge funds There are actually that are in play in the market And I know I don't really talk about this that much in some of the videos and webinars I'm going to talk about it more this year because I think it's important for you to realize And this is what helps you to stay the conviction in some of your trades that you may be in something that moves That moves against you for a short period and you panic and want to kill the trade But it's really not doing anything wrong and one is sometimes making a move like that It goes against you in that short period It could be what I call a mini hedge fund Let's call them a mini hedge fund, which is not the people that are really controlling stocks of the market When I've been talking about institutional money, which is how gaps are made I'm talking about several billion dollars under management 100 million or more But I was just reminded the other day that actually there's so many people that do start funds You could start a fund with a million dollars. You could 10 million dollars could be a fund I'm not saying 10 million dollars is a lot of money, but I'm saying on the level of hedge funds. That's nothing So When you have something like target okay Target had this rally here This rally this almost went vertical. I mean, look at this. This is like beautiful target almost went vertical all the way up from like Well, you could have even gone back here to 60 All the way up here to like 68 Target had a gap. This is a bullish gap. I know this is very small But it closed here the night before at 68 something and then it opened up here and gapped up to 70 something Now I know traders look to short this on the day because they thought it was climactic because it did go vertical It did gap up quite a bit more than two dollars But actually guess what look what it did it rallied on the day had a big massive green bar and it's continued ever since And if you bought this gap you're still in the trade. It's held 70 dollars Now I'm not saying it has to hold 70 dollars to continue up to 100 But I'm saying here's an example of the power of the gap of what? Institutions that continue to buy into target, which is what exactly happened here Now if you are an individual person one person, you're not a mini hedge fund You're not a hedge fund at all. You're just you and your trading account however much money you have You can profit by going with the correct momentum of Something like target Now maybe target would have been assured here How would you have known I have developed a method to rate the gap I rate it pre-market before target even opens before 9 30 even happens So then I would know if target is assured or long This is the system that I do but it is centered and focused on gaps And you would rate the gap before 9 30 to know whether to buy target Sell target if you own it or short it because remember you could have been long target Let's just say you bought target at 60 and you were up a dollars and this gapped up here and you were up You might have thought crap. Should I sell it and then you quick rate the gap and then you're rating say wait a minute No, no, no, no, no This is a good one you say for a long to continue higher and you hold your long and you get paid You continue to get paid actually then you don't sell it Whereas if you wouldn't know what to do you might have sold out of the lock And if you didn't know what to do you might have shorted as a day trader And if you didn't know what to do you might have not bought it and if you bought it You would have made money and you would still be in it Although like I said, this doesn't have to hold 70 Continue to the next target So the point though is that gaps Are significant and a missing piece that many people forget or don't observe or observing correctly Because they are complex. I'm not going to lie to you They are complex But you need to know what to look for and if you do learn what to look for then you'll know And then in that knowing you'll be able to take advantage of the opportunity to take the trade Or exit something that you're in or play it in the right direction Which many people fail to do because a lot of people are just looking to buy support and short resistance in stock charts Or they're looking for a reversal moves or they're looking for something that they qualify as extended Which many people will qualify target as extended, but actually it's not I gotta be honest with this not and I'm not saying it's going to shoot up vertical like this again to the next target But I'm saying look at this thing. Okay. This is even moving ahead of the market That's how beautiful this start is So Institutions when I talk about that so you know if you ever listen to my videos or from today the lecture here Is it is about major major money? But you have sometimes and we will discuss this at the end of today when we review the market for 2015 You will have moves that fluctuate nothing really goes continually in a straight line up or down Because of the fact that there are participants in the market that actually do have money real money And they sometimes make things move Against what is the current trend or institutional? Move that the institution is making And if you don't understand what's going on to see that which is that person in my being your opponent To know what's happening in there then you may exit a trade or take a trade in the wrong direction haphazardly And again, we'll talk about this later. This is where the conviction is necessary Gaps really sync everything together Sometimes it's not about changing the entire way you're trading in order to become profitable A lot of you have a beast level knowledge information that exceeds that exceeds uh, what would be beginner Some of you are even intermediate, but you're missing this You're missing this and you're never going to make the money You want to be able to quit your job or day trade for a living without this advanced level information that I know Because it's advanced But I figured it out already. So you just learn it for me Sometimes it's just that one gold nugget of information to mesh everything Everything you already know together to get you the next level and it's not like it has to take a million years either. It's like Yes And I call it spontaneous enlightenment really I was talking about this earlier today in the trading room. It's like whoop there it is And you know it Also, no matter what type of trader you are you can use gaps because they happen in every chart in existence And they happen every day meaning if you're not a day trader and you don't want to be a day trader And you have no interest at all in being a day trader You can still use gaps if you take overnight and you really need to understand them because if you're in an overnight And something gaps against you like target if you're in target, for example Longer the gaps against you down you could be upside down in the trade and you could be down money. So you really Need to understand gaps, especially if you're holding overnight It makes it a lot easier to be consistently profitable if you have a strategy that sets up daily If you're a day trader or even a swing trader because swing traders you want to be in something Even out within five to seven days two weeks the most and you want to make money consistently And so you got to have the setups and if you don't have a lot of setups, it's how are you booking profits? Now i'm going to talk about this gap here. This is what I really like to do. I like to do shorts That's just my thing. I love the short. This was a gap that happened In a stop chart. Okay, we're off the market here now. This is a daily chart again You can see at the bottom here the dates This is kkd this had a gap back in the middle real first week or so of december It closed up here the night before at 20 dollars in some sense the next morning it opened here at 19 something It actually opened right above the 50 perry moving average. You can see this here. This green line again is the 50 And I got up in the morning and I looked at this and then I used my method to determine what to do with this thing here I have three choices. I can go long it I can short it Or I can do nothing Okay, some days I get up and I look at the gap and I said there wasn't anything to do with that You could do nothing some days just pass okay But there's was a good bearish gap and it had a short in it the stock opened it rallied Here's the short boom This is an example where you could have been out of this trade and again, this is why I love day trading I just love day trading you could have been out of this trade in literally Like less than five minutes you could have been in it and out of it in less than three minutes Because it did go to the first target very very quickly went past the first target the first target was 19 It actually dropped through and hit through 1880 But you could have just killed it right in the second big red bar in here at your shorting. Remember this is not Along your shorting this here. You're getting this momentum. This is what I'm talking about about volatility That's created from the gap itself boom and you're out now The price of the entry of the short was 1933 again You're not buying it. You're shorting if you don't know what that is. That's something you can email me Stop has to be in is a hard stop because you are actually Want to put in a certain risk amount if you don't put in a certain amount of a stop Then where what if this thing goes up to 22? I mean you have to put in a stop So I use hard stops. Okay That's how you figure out your position sizing If you took 6,000 shares short of kkd in 1933 your risk is 12 cents Effectively on 6,000 shares. This is 720 dollars. That means your r is around 700 750 Okay You exit the first half of the position at the first target, which is 19 Again, it dropped through 19 in the first drop down in the first five minutes You could have made almost a nine. Uh almost $1,990 You just book this quickly quickly quickly because that was a big drop And it also got to the first target Final exit it did continue down your lower your stop through this it took later into the afternoon 1850 Although the low of the day and this was like 1820 something total profit 24 No, actually total profit 2490 in this portion portion you add the 990 plus the 2490 So your total profit on the day is this So the 2490 profit is from taking the short at 1933 exiting at 1850 3000 shares And then quick this drop in here And I want to explain why this is important because if you were 720 on the whole position and you got out of 990 in the first drop What what there's your you can't possibly lose on the day put the stop back in put the stop at 1945 You can put the stop at break even I don't train like that But you put the stop back in if you're following me at the place worst-case scenario you if this trails you lose 360 You're there about you book 990 you're up on the day 600 bucks five something you can't lose them on the day You let it ride you let it ride the target. You've got nothing to lose. You can't lose money on the day But that's why you use the stop Rich to reward is 4.83. That means for every Dollar that you risked on the day in this position You made four dollars and 83 cents if you played it out this way You could have gotten out of the whole thing in the first drop You could have made 33 cents on 6000 shares, which is nothing to sneeze at actually Okay, that's still a nice trade So actually we weigh over a thousand dollars So it would be a nice trade But you made more almost twice as much actually if you held it and you weren't at risk because you're up No matter what worst-case scenario you trail and you would about 500 something And this is how you day trade and actually you would do something similar to this if you'd swing trade two Different sizing Okay, you're not taking a 6000 share position and overnight But something similar as far as peace billing in and out in front of the targets Now let's go over what I was talking to you about it with institutions. This is a green bar blowout Conviction tested. Okay. This is I remember this So say you did the trade here Let's pretend that you took half out You kept the rest with the stop up here You're going along everything seems fine. It continues everything seems fine. Everything's wonderful. This bar happens And so here you're up you're up money and you see your P&L and you're up and then this bar happens and actually do you see where this went So if you got in this in 1933 You actually were up money down here This is on the half or let's just say you don't think for Pete sakes and you didn't get out of any And then all of a sudden you weren't you weren't up at all. You're like What is this this is a green bar blowout meaning your conviction would be tested after you see this What would you do? Would you kill the trade? This is what i'm talking about about sometimes you have things that happen in charts So you need to know how to read If this was actually buying Stepping into the thing that was institutional buying in this one minute chart here Which is happening again. This is a one minute chart just so you know We're on a one minute chart now for these entries daily was the bigger picture If you're if you are in this and you Know and understand this Then you will stay through the trade to get the rest of the profit and drop like I told you done 1820 on the day later If you don't understand this you might quick kill the trade You might have killed a break even you might have killed it up you wouldn't be down still But she would have given up that a lot of profit If you didn't get out of it down in here You would have given up a lot of profit for this to go on to work if you didn't understand what this was Or what this whole thing is here Which is the gap so the reason i'm able to you know Read something and keep the conviction. I call it conviction. It's because I have a full understanding of gaps Okay Where do I get the conviction? I get the conviction from the golden gap I get the conviction from there. It allows me to take the trade from there It allows me to stay with the trade where you get a bar like that And if you've jaded jaded before you've seen bars that happen like that or wiggly jigglies Okay, like I was saying nothing goes straight down the line Every once in a while though, you will get something that actually just falls off the planet into the open Those are the best ones, but this kind of did in the first five minutes because it went to the first target So where do I get the conviction? I get the conviction from the 26 point rating system This is how I do it. How do I know to short kkd? How do I know not to buy kkd? How do I know To do anything at all with kkd because I use a rating system I rate the gap on the daily chart pre market before 9 30 of any stock or an etf That I choose to trade to know what I should do with it This is the one piece of information that many of you are missing you do not understand the significance of gaps Or how to determine what to do with them And I will say that I have met so many traders that talk about gaps and they have no idea what to do with them And they actually don't understand what to do with them The reason that I know what to do with them is because I spent three years of my life three Long years of my life figuring out the 26 points to determine what to do with them and it works And this is how I get the conviction. This is how I can stay with a trade that I'm short in that has a big Glow of green bar like kkd to get more profit out of it on the day if I happen to still be in it You may get a bar like that that happens after your trade is done But in that case it happened early in the morning. That's why I wanted to point it out The the 26 point rating system is an opportunity It's an opportunity for anyone that finds me to learn something special because I created this myself It does not exist out there anywhere else. I made it up It's me. I made it up three years of my life figuring this stuff out It's not buying software. This is no software. This is just you alone with your charts The rating system is a way to read price and all you need is your charts And that you can actually use it to make money Whether it's day trading swing trading or core trading It's like getting down in the meat potatoes of a chart and unfortunately we live in an electronic world And there's so many different methods and softwares and things out there And I know people are buying them I'm sure 90% of the people here have bought softwares and I'm not saying software programs are bad I'm not saying that at all. I'm saying I I personally would have no conviction into allowing any machine to trade for myself I am the best person to make decisions for my own trading I'm the best person to give me things in real time and I know what to look for And so are you but many of you don't know what to look for to use a machine But a machine does not have a high level of accuracy if there was there'd be one machine We'd all buy it. It would be too expensive to afford. There is no such thing So think about this because there might be a reason that you are here tonight that you came Now, let me look at a question here canned education I don't know what you mean by that there is reversal times in the market Yes, there is I don't know if that's your question There are time time is time is an indicator that exists in the market I'm not sure exactly what you what your question is There are several indicators that exist on my chart time is one of them actually that I use that's why I have the clock here You see this is the clock that's square I don't have a lot of indicators, but that's all the time is Is it something that you look at? Yes Yes, it is If I'm in something past four o'clock, I'm going to be in an overnight. I have to pay attention to the time I also have to pay attention in the morning because Most of the institutions that take positions in stocks in gaps whether they're buying them or selling them Make their activities in the morning the market opens at 9 30 I choose not to trade in the pre-market You can use those times to take pre-market trades. I do not there also is a post market I don't trade in that time frame either I don't trade in those time frames because you can't use hard stops and your risk is indeterminate As far as your fills So yes time is something that you would consider along with price and volume, which is down here And you have it on your chart It's not something that is meaningless. No It's not meaningless at all I take everything that's on my chart into consideration Here this is this is a bigger picture the kkd to show you where it went down in here Everything that I have on here. I take into consideration Is there anything in here that I'm like, oh my gosh, I can't live without There's only one thing does anyone want to guess what it is What's the one thing that I if you said melissa, I have to take away everything I'm sorry. I can't let you trade today. You only can have one thing on this chart What are you gonna pick? What would it be? Does anyone want to guess? What's the one thing I can't trade without? Click come on wake up. It's five o'clock. Let's go people. What's the one thing I couldn't trade without are you either? Take away everything else. Boom. What is it? Nobody's answering I can't believe no one's answering What is the one thing that I cannot trade without and you cannot trade without Price yes, you can call it candles, but it's price You can't trade without the prices. I mean, how do you know you're getting in with it? You you can trade I can trade without anything else but price if I just a moving price guy I can trade I it's called trading to take, you know back in the old day I just got done saying to meet the datas Okay, that's what you need this other stuff. I taken a consideration. The answer is yes Can you live without it? Yes Could you do my rating system will live without it? Yes because price is what matters and that's how you're making decisions And that's how you make money in the end if I go long something in 19 dollars and it runs up to 20 dollars And I sell under 20 I made a dollar if I go long something in 19 and it drops in price and it goes to 1850 I just lost 50 cents. That's all that really matters in the end All this mumbo jumbo stuff and all the things that people put on fibonacci's and all the systems that are out of the software programs Everything everything that's in play In the end you just take it all away And what do you have left is the price and that's why you gotta be focused on that Okay These are this is the 200 This is the 20 and this is the eight Now if you did the k and k d and you shorted it here Again, you would have dropped down in the first portion here And you could have stayed in the whole rest of the half now You're basically lowering your stop all the way down here So you would have gotten out here where it would have trailed with a lowered stop This came down though and did touch 1820 But you know at this point you would have thought it was probably going to 18 So you probably would have just lowered the stop try to squeeze a little bit more out of it But then it it stopped you out or you could have taken the trade here and held the whole thing If you had this much conviction you could have held the whole thing This is the u.s. Stock market tom is asking me about is this stocks only you can do ets But it's everything that's in the u.s. Stock market is the u.s. Stock market gaps Like there's only one gap in 4x So if you're looking to do something like that with a gap, it's the idea of something gapping ets gap That's fine Stocks and ets gap. So you would use it for either one of those things It's in the u.s. Stock market because it closes and has an open time Now let's just say you did do this here and you shorted the whole position in 1933 You had 100 conviction you love this trade everything was beautiful And by the way the market was with you on this day You could have held this whole thing and got out of the whole thing with the whole trade You never actually were down that retest of the big green monster bar that that scared you Didn't take you out. You weren't down didn't stop you out. You could have made 49 80 And actually went to 1920 I mean 1820 So actually if you would have looked at your p&l and set him up a dollar or more You could have actually made over six thousand dollars Risk to award getting that here is 6.9 in 1850, but it did go 20 cents more So you can have made another 1200 bucks So this is a really nice trade no matter how you played it and and at the end of the day I mean really whether you make $3,600 or $4,900 or whatever I mean these these are quality quality trades You look at this number here And this is your profit This is determined by how much you're risking This has to be something you can afford if it's not you take what you can afford This is how you make it, but this is what counts And really it's all about the gap Now let's go back to what I was talking about the one missing piece of the puzzle which is gaps What else does gaps help you if you were a person and you would look at this chart and you didn't know what I know I would say to you listen What do you want to do with this thing you want to buy it on support? Someone just asked what's this what's this line? This is a 200 premium average You might think well, maybe I should buy this thing on support chart looks good You're all moving averages are moving higher and you might think of buying kkd on support I would not So do you see here how like this one thing This one thing would make the difference Maybe we're a trade that you would think is a great trade a fabulous trade the 200 premium average You're like in love with this thing. You're like, oh my gosh, this is like perfect. I'm going to buy it at 1760 It's going to rally all the way back with the market up to 2021. I'm going to I'm going to take it out We're not I'm going to hold it. I'm going to this is a perfect buy on support. It's pulling in You know If you don't understand what's really setting up here in the gaps that are in this chart You might do that but again buying support is not a strategy Everyone should have a set risk amount you could vary that if you're doing well I'm not saying you have to set risk amount that you keep for your whole life But yes, each trade should be same or close to same or the risk amount unless I do an ad That is even a more advanced concept, which we're not going to talk about today But sometimes stocks allow position sizes for ads Or something does what is called a stocks whoosh that I teach in the class and what's I need my company after And that is something that is a very high percentage of Chance of working and a huge move and I may risk more in a stocks whoosh You don't know until you see it. That's something that happens live on the day But other than that you have a set risk amount that does not vary from trade to trade to trade Otherwise your results would be vary I bet I have videos all the way back from Since my risk has been changing Actually I have videos back. I think I don't know how many years now three years So I've increased my risk that may be why you see the different amounts on there, but sometimes I do a do an ad But it's not that much. I'm not talking about exact dollar. I'm talking about if your risk is 700 and your risk 750 That's not what I'm talking about. I'm talking about you can't risk $300 in three trades And $600 in one trade and then what if the $600 trade doesn't work? You know what I'm saying? It has to be equal or close to equal. That's the best way I would describe it You can also increase your risk if you're doing well I would not advise anyone to do that unless it is at the beginning of an earning season Your time to be changing those things is not in the middle of summer holiday time slow season You know the time for you to be changing your risk is at the beginning of every earning season Okay, and you and when you were doing well So 2015 is about recognizing opportunity. Okay, you are here at the start of the year And there's going to be a lot of opportunity in the market this year I will talk about this more when I talk about the market chart itself here at the end But I will tell you that 2015 is going to be a year that you're probably going to want to trade If you've ever traded before this is going to be the year you're going to want to be in the market It's going to be a year where people that know what to do actually are going to be able to profit significantly In fact, it's going to be one of those years where if you actually figure out what to do this year Like if you can hook that with someone like me you might actually make enough money To feel like everything you did for the last however many years is worthwhile because that's how probable 2015 is going to be If you are successful now or not where you want to be and you don't do the right things in 2015 It could be a disastrous year for you because a lot of people are not looking at what's setting up here right now in the market Correctly and it could be very challenging for you Once again the wide range of success versus number of failure people the the width of the The width of the distance The separation Will be significant Meaning that the people that know what they're doing this year in the calendar year are going to have all the money And the people that don't are going to lose and could lose big time like more so even than they had prior years Because of what I see setting up So I recognize there's opportunity for someone like me for this year It is new early on in the year And it is for anyone that understands how the market is setting itself up and we will talk about this at the end But this is one of the years where if you've been at it Wanting to day trade or if you've never done it or if you've been doing it That it could make all the difference in the world for you to be successful this year and you'll say to yourself My gosh, I'm so glad I stuck with it. Look, I traded this year It's going to be one of the best years of stock markets ever ever had in its life ever like ever okay For momentum for volatility for the move that it's going to make And if you know how to day trade you'll be able to capitalize on it If you know how to swing trade you'll be able to capitalize on it And if you don't know what to do you do the incorrect thing It could be disastrous year for you and you look back and you won't know what to do with yourself And that will happen to some people because the distance between the people that are successful and the people that fail will be wide Benefit of a system is that it forces you to stay focused daily It forces your brain your mind everything you got to stay honed in and focused on the right strategy The correct decision the right directional buy as long or short Daily focus helps you make money. That's the reason you're doing this. You're not doing this for any other reason I know trading is fun. Hey, I love it too, but it is to make money Boom, that's it. Okay. Otherwise you could do something else to make money So how do you learn this system? I teach a class the class is called the golden gap course The golden gap course is a two-day class on how to trade professional bearish gaps The golden gap course is designed to help you strategically find pick and play stocks that are professional bearish gaps And the classes this weekend january 10th 11th is the first class of the year What does the golden gap system consist of and what is really necessary for a complete trading system? the following components Specifically and in their entirety number one a strategy a system. You must have a strategy It's gaps for me number two you to play the play is how you're entering and exiting the trade You're gonna have a strategy if you don't know how to enter it or exit it It's pointless So you need to know how to enter it and how to figure out targets And number three you need an edge and for me the edge in the strategy itself Is the 26 point rating system because that is so Specialized and specific and detailed that it pinpoints. What stock I am supposed to look at each day or etf And in what direction to play it long or short That 26 point rating system gives me an edge. It's how I'm able to stay something like the kkd It's how I'm able to call the market which we're going to talk about here at the end The 26 point rating system that I spent three years of my life figuring out is an edge And I've had the business for two years. I've taught You know, however many people All those people have an edge in their trading I've actually been able to teach people how to do what I do The amount of money that you make has to do with what you risk you have to use what you've got But if you are losing or not making money Then you got to learn how to do it It's like you really have to have everything all the pieces of the puzzle You cannot be missing even one thing if you want to be successful too many people want to trade But the good thing is that you do not need 100 strategies in place to make money in the market You need one strategy one play which works And if you can combine one strategy and one play and do them extremely well Then you can make money trading and if you can make money trading now You can make a continually for the rest of your life And if you want a day trade gaps happen and you're out quick If you're taking the overnight you're in them you're in them on the live day You get into the day and you hold them and monitor them and check them a couple times a week or each day You can make a little bit of money now, but eventually you can make more money over time So even if you're at the point right now, we say listen, I can only risk $50 a trade. Okay, fine. Learn it do it Because in a year from now you might be able to risk more and I've seen it happen with people It's all about the focus the consistency and longevity and most people lack all three of these things and I'm zero direction I mean people have just no direction whatsoever. They lack focus who lack consistency and they have no longevity in the market Longevity is something where you're in it and you're in it for the long haul like you're trading actively All the way you're not in it for a year and then you quit and you take five years off and you come back You're like back and forth back and for like a yola like we talked about I don't have any certain scan. You just you can get you can use whatever scanner you want I have no set thing. I'm not selling software. You use whatever scanner you see fit So to review what is that one thing that you're missing your trading? It's the golden gap analysis This is a critical component to keep your trading as profitable as you can be on a consistent level Because the golden gap rating system helps you analyze the gap by using it daily The gap is the critical piece that many people are missing. They see gaps. They don't understand them Okay, they actually see what a gap is, but they don't get the significance of it And how do you know the significance of it? The rating system tells you that the pin points what to do in the chart the long Sell it or short it This is such a critical piece of the puzzle on every trader's knowledge base and yet so many traders miss it Or they actually do not understand it. They see it, but they don't get it Don't miss what is something that you can wrap your head around meaning it's possible for you to actually understand it Don't miss it. Okay You can wrap your head around this and learn it and use it for profit So what do you get from the 26 point rating system a full understanding of price action? That's the only thing that you need if you took everything off your chart You can do it and you found it and find about pulling all the information together that's in the gap So learning how to analyze and understand this one specific strategy will help you to become successful Okay Remember you need an edge in trading you you need an edge the edge is really that you have everything that you need to do it It's not you can say well, I really know all this I've been doing all this for so long. I know this I know this I know this I know this I I really don't even need this. I know it But you're not making enough money or you're just making a little you're actually losing or you're barely break even after fees And costs and commissions. It's because you don't have that edge. You have to stand out in the crowd I stand out in a crowd when I trade and trust me when I say if I ever decided to start a hedge fund It would be way more than 100 million dollars and I would stand out in the market with decisions Now the choices that I make if I ran a fund will be way different than the choices I make now because I would be in a different placement with different risk and making decisions based for different reasons But the fact is that you as one person don't need to concern yourself with that All you have to do is reading what the institutions are doing in the price of the gap And that's a great thing about being one person And by golly, you can have a lot of money as one person and make good money in this You don't even need to go the road of doing something to hedge fund But I am ever amazed about the number of people that actually are wealthy That have several million dollars and start a fund that have no idea how to trade And then you wonder how they lose now they can they may be able to ride the turns And and be in and out and take the downturns, but who wouldn't want to do that? Why would you want that stress just learn how to trade just do it? Kathy I'm just going to email the winners and at the end you're going to email them to me I'm going to email them tonight. Don't worry about it now because I need to go over the market too The golden gap course will teach you a strategy that will help it sustain you in the market Sustaining you like you're going to be able to keep doing it instead of having your account Just blow up and then having to refund it and blow up and then having to refund it Sustaining means you you do the class you start trading you learn it you do it you stay with it boom Okay, trading is about consistency and longevity And if you want to have longevity you need to produce consistent results And the golden gap course teaches you how to get consistent results in your trading Now is the time to set newest resolutions if you want to Or a plan of action and it's really about your monetary goals. What are your goals for the year? How much money do you want to make this year? Not just this year maybe five years from now, but I think this year is very significant It's very significant because what the market's going to do and taking the golden gap class is the first step To assist you in achieving the financial goals you've set for yourself and your family and is so early in the year You're setting yourself. You're setting right on the course I must advise people not to trade without a plan of action not to trade without the right knowledge Not to take trades without knowing what to do and people do it I mean, I just told you people people do it all the time they do it and they Do it with lots of money and they do it. Okay, but this is what makes the market I mean, this is what makes the market. It's a beautiful thing really You know How could I do well if I didn't have people out there not knowing what to do So I mean, but I'm just you know, I'm here with you now and I'm telling you You know, you want to be one of those people that knows what to do But actually if we didn't have people that didn't know what to do then, you know, those of us are doing well You know wouldn't have the potential Success also involves risk Successful people don't spend time thinking while opportunity passes and buy People will be doing that this year and they did it last year in the market People who take risk get rewarded in life because they're willing to take a chance It's the same way your personal relationships What if you never wanted to take a chance and fall in love with a lonely life You could be you could go away and just build a cabin up on top of the mountain and live alone And you could have no stress. You never have an argument with anyone. You never have any stress You pretend you didn't even have social media But you wouldn't have any friends. You wouldn't have any love You want to have any one of your life you'd be bored selling and lonely Is that the kind of life you want to leave? No, you gotta take a chance to take a chance on life and love in the market You take a chance by doing something different with your life If you're not happy with your current career or your current training Success doesn't come without taking a risk and making an effort and I don't care what you do It's the same all around. This is just one of those principles of life The people that are willing to take risk and move forward in their life get rewarded and people that do not don't If there was no risk involved in training in life And everyone be successful and not everyone is successful in life or the market So you gotta ask yourself. Do you want to be successful or not? In january is a great time to do it because you could start to get serious about your training now You could go on a diet. I mean, this is a time when the year people start exercise programs It's like you're totally motivated Brand to start to the year everything's possible. You got 12 months to make it all happen That's a long time. I'm not saying it takes that long, but You know, you could get on a diet Start an exercise plan Take the class start trading quit your job in a year. Whatever you've got to set your own Plan of action. How much money would it make all of these things? You've got to have a plan and set it down and actually put it on paper I was talking about this earlier about conviction You've got to get conviction in your trading and the golden gap rating system gives me conviction This is how I'm able to take risk whether it's 300 400 500 600 700. I don't care how much money you risk You have to have convictions to take I want to risk a dollar I don't want to risk 50 bucks I don't want to risk 25 cents if I don't have conviction if I say I have a zero conviction I'm not trading today. That's why I say to myself. Okay. You got to have conviction no matter what it is So the one thing missing in your trading maybe the thing that you need to give you the conviction You've got to stop floundering all over the place It doesn't do you any good and it is a general lack of conviction that causes people to be all over the board The one thing you need is a full understanding of the strategy and gaps Gaps exist in everything and they're significant. It's how I'm able to make the calls. I'm making If you gain conviction in golden gaps, you'll make better decisions in your trading You will just overall make better decisions in your trading. You will have a higher level of conviction You will trust yourself in your own decisions when you trust yourself in your own decisions You can move forward in your life that does not mean that sometimes you may make a decision That doesn't turn out the way that you thought Which you made a decision the best that you could with all the information you had available at hand and you trusted yourself Something happens you learn from the experience You take it forward into the next step of your life and guess what you're going to move to another level If you don't trust yourself all is lost You have to have conviction to be able to trust yourself to take the risk and to do it And you have to know what that feels like and many many people cannot do it They are not doing it. They will never be able to do it because I don't even know what I'm talking about But the fact that you were here may mean that you Kind of maybe know what I'm talking about or needed to hear something that I said tonight So the golden gap course it gives you conviction because a 26 point rating system is detailed It's precise. It's complete and it helps you to make money by knowing what to look at It also is something that I said can be used to take overnight moves And you could use that to do an option trade too if you'd rather do that than the day trades It pinpoints you to tell you high probability of directional bias from the entire day where the long are short You're looking for the stock or the ETF that would have a big move in the day based on the gap rating And you're looking for early confirmation of the bias which is into the open And you're looking with precise entries will follow through to take the position. That's how you're making money So all about power again going back institutional power in the gap Lots of money not a little Lots, okay. There's power in this knowledge. There's power in the system. I created and I figured out There's power in having conviction. There's power in trusting yourself There's power in information and that information when you have that power is what you're going to use to make money Because if I just handed you x y z you matted money, you could go take in the market and blow it That's a danger of trading if you don't know what to do It's you the power is you you're the one that makes it happen You're the one that takes the information that has the brain to do it to take the Press the button to take the tree Now I do run a live trading room. It's for students only I'm running a special if you sign up for the class this weekend. You can get january and february free in the room If you're interested in more information on the class this weekend Email me at melissa at the stockswish.com. It's a two day course from nine to five Eastern time retakes are free in the classes online. Clash of the class is two thousand nine hundred ninety nine dollars Email me at melissa at the stockswish.com if you're interested And I'm running a trends class later in january January 27th and 29th. This is a separate portion how to be longer term trends This is more for longer term trend people. Clash of this class is nine ninety nine And if you want to sign up for both both classes in january one this week and one at the end of the month You can get the trends class for half off. You save five hundred dollars Now i'm going to email the winners tonight. I didn't think we'd have time just everyone knows Happy new year again everyone. Thank you for coming. What we're going to do is plop everybody Over into my room. I'm going to review the market I'm going to talk about what I see for this calendar year for the stock market Why this year is going to be a big one and I asked ready for questions since we're right up at the time Does anyone have anything they want to say right now kathie? Are you ready to try to Send everybody to my room Thank you for coming. I'm still going to be here We're going to go over the market, but kathy's going to send us to the other room And here's my email again Okay, let me know if everybody can hear me kathy did everybody make it it looks like everybody did Okay, good. All right first things first before I talk about the market Does anyone have any questions about the lecture I just gave we were right up against the time We can be more relaxed here now. We're not being time. Does anyone have any questions about Anything I just talked about in the lecture if you do ask them If you think of some later, you can always email me to kathy if you can just put my email in the room again If you it's melissa at thestockswish.com. I've had people take the class that Took it to use for futures tom I personally have not done it myself So again, you would have to know how to do the future train Just like I'm not doing option trains. You'd have to know how to do that separate piece of the puzzle. You know what I mean So You would do that yourself do the future train You would use the information in the rating system That's how you would do it But she wouldn't be taking the same type of trade as me. You would have a different type of account than me as the broker That would be on you But you'd learn the rating system And actually you might do a little bit of both. Maybe you do a little bit of both Maybe use it for for two things, you know I've actually found that a lot of people that have taken the class Or so most people have taken the class actually do what I do And there's some people that take the class then and they go into it saying they're going to just Do options or whatever and then they end up taking the class and then they're in the room and then they're like Want to do the day train? So, you know people do it and then they think that they want to do one thing with it And then they see it working the way that I'm doing they're like, oh, let's just do this Because it's really I mean I just showed you the kkd trade But a lot of the gaps do have those kinds of moves in the morning and You're just up so quick You know the volatility comes in very quickly When an institution wants to buy a stock or dump a stock into the open Okay, and if you think of any other questions you can ask me to But the class is this weekend and if you want more information on that just email me individually All right, let's look at The market now the market did drop today. Let's first let's just go back to the beginning here I should look up this morning The market was like really neutral like it wasn't really gapping down. It was like a neutral But then we didn't end up gapping into the open Down this was a bearish gap that happened in the market today. We're just talking about gaps The market closed. I'm looking at the qqqs. It's up here. This is a market etf. This is not a stock Friday the market closed at 102 82 and then this morning we opened at 102 49 Again, it's not about the size per se. Okay. This did actually gap 30 cents down And the market actually went red today Actually, let's see the high here. High was 102 61 low was 101 14 Market had more than a dollar drop today in the qqqs So one of the things I've been talking about is Going back to institutions had nothing goes in a straight line now it kind of looked like this was almost a straight line If any of you are traders, this was back beginning middle of october Market was just on a continuous rally up. Look at that for like more than a month or right up into Thanksgiving qqqs ran all the way up to 1 of 6 24 ended up being the high of the year in 2014 And this was almost vertical, but this is very unusual You will sometimes have something like this happens in a move. It was lasted a while and this is like five six weeks But you do have sometimes and mostly where you will have something playing against The current move which you have in the drop down here and you have the drop down that's happening here And it happened in here, but you see how the market rallied over it and then continued up This is what I was talking about. I was talking about this was different players in the market Even some with money because it takes money to move the market like this today And this was money that moved the market today Look at the volume because look up the square the v in the third row to the top left hand corner is the volume So you had people with money In here today And this was actually what's some selling that happened here today was selling Going on today in the market Okay Now would I have shorted this no did I short this no? No, I didn't okay the 2015 call that I've been making for the market is that will continue higher And that this is going to be a very significant year to trade because it's going to end up moving higher And in a way that is so unexpected Because a lot of people actually feel that the market's extended And this is where they're getting this from they're looking at the rally the markets had 2009 2010 2011 2012 2013 2014 it is now 2015 People are looking and we'll see well how long could this possibly continue Making continue as long as it wants I look at this chart and I don't say it's extended I should say it's a beautiful chart and it is a beautiful chart by the way and the market's higher So my cough in the markets is higher And one of the reasons that I think that this is going to be such a year for such opportunity for people that know How to read this stuff right is that What is going to transpire this year's will be very unexpected Because a lot of people are looking at the market that it's had a big rally and that it is due for some significant Correction, okay, I'm going to call it that And that it can't possibly keep going any higher and then people also look at Economics and all kinds of things and they say this that the other thing I don't look at any of that stuff but people do and then they believe that the market's going to Have a correction and in fact a lot of people are actually saying the markets going to crash Or when people are saying the markets going to crash. I think I think as early as even spring of last year I really think it was spring of last year because I remember doing a webinar Yes, I did you can go back on someone was looking at my old youtube videos. I did a webinar in march some some place it wasn't hotcom and People were saying here. I think at this time it was going to crash They were definitely saying it was a correction They I think they were saying this was the top and it was going to crash and I said in the webinar It's not and in fact I said it on a day that the market was running red And I don't think anyone believed me and then the market made a new high in May And continued And here I said it's higher and all along and I keep saying it So I like to short a lot That's mostly what I do, but I can do Bullish gaps and go long and you can flip the points for the rating system to go long But if I like to short and I'm telling you the markets not as short in the markets higher What do you think? I mean the thing is that it You know for me to love to short And to say the markets higher it's like People you know listen to what i'm saying So getting back to what I was saying about 2015 one of their reasons that 2015 is going to be a year You're going to want a day trade It's because it's going to be a lot of momentum of volatility and in reference to the qq isn't a spy It's going to be the upside and as a result of that There's going to be significant moves and stocks sort of strong stocks are good buys They're going to have big jumps some of them are going to move 30 percent some of them are going to double There's there's some stocks that are going to double in value in the market Most will have similar moves to the to the market if they're strong And then some that are weak are going to get dumped and then they're going to just collapse And they're going to look like target from the opposite direction where they have a vertical drop Because stuff that people want to sell out of or be done with it's going to almost just collapse And then you're going to have opportunity on the short side for stuff to go to the dream target But it's going to be one of those years where you're going to have so much momentum Of volatility in both directions because of the way that things are setting up that it is so unexpected Because there's an expectation. There's a belief system. It's a belief system It's a belief system right now that the markets are rallying for a while and it's due for correction It's a belief system by a lot of people right now that the market is actually Going to crash there's a belief system right now that they're the economy is not Reflective in what this market rally has been But the reality is there's nothing to do with what people are doing with their money Because the people that are wealthy that are moving the market that have the money are doing it and they're doing fine Okay And they have to do something with their money They need to make it And it's much much easier for institutions actually to buy that it is too short But they do both they do do both. Okay, but it is easier Actually for them to Go long So the market's higher in 2015 that's my call QQQ's will make a new high Let's put this chart back up here Over 120 120 125 it's not the next target in the QQQ's but the market will hit up over 120 125 this year The target for the QQQ's this year that i'm calling is 150 Possibly 175 although I don't really want to say that for sure I did think the market and the QQQ's would reach 108 by the end of the year it halted around 106 25 ish Couldn't really get going in a low volume holiday seasonal time But we'll definitely get up over 120 this year and 150 Okay, kathy. Thank you. Uh, you know, that's There's a I'm not sure if i'm pronounced your name right Anna tez. I don't want to say her name wrong Anna tez. I don't want to pronounce your name wrong Anna Anna tez is asking a question She's saying Anna are you a girl or a guy? I'm sorry. I don't recognize the name I don't want to call you a girl if you're a guy I keep thinking Anna, okay uh Oh, you're a girl good who controls well not good, but I didn't get it wrong who controls the high frequency trains There's a there's just just the same thing as the lecture I did about the institutions There's all different levels of high of high frequency trading like there's all different levels of that too You see what i'm saying It's there's all different levels of the same thing of that going on as well like that's why you can have a bar like the like the uh I wish I could think of another one. I could show you besides the k k d But that's why you have a bar like this here. Let me just the k k d was the most recent example I can think but there's You know, there's others I'm just go back to this again. It was the 10th This was a machine and again, this is it's so hard to describe because we are flat now Nothing's moving the markets closed this trade happened, you know, um teen weeks ago This this you think this this is this this looks like But actually when this happened It was like, you know, like literally when you see that's the thing like when you're seeing everything flat There's the only way I could describe it to you unless you're trading live This looks like it's just like opened here at 1889 and rallied all the way up like a nice beautiful person To 1929 and enclosed here at 1910 But this here was a machine. Okay, so there you have it But did this machine Overrun the world on the day here in k k d. No, how do I know? Because the stock on the day Let's go to it This is a daily chart Stock on the day here ended up closing at 1864 So this machine person let's call him mr. Smith. Okay did not Have an effect on the stock on the day not working correctly for me as a day trader Because the stock ended up closing on the day At 1864 and actually low of the day was 1818 and none of those numbers are anywhere near this So if mr. Smith Came in here and bought this stock and made this big There which actually look there was only 42 000 shares You can see the volume again But still it was a big bar. So this was a machine that happened here because it was quick and fast Sometimes they look like a flash sometimes they're You know, I don't know what you mean by a flash a flash to me is like a millisecond Something could happen quick like could happen in 15 seconds that it's like But I have time to like see it To like make a decision if I needed to but there was no decision to be made here You just stay with the tree, but I'm saying Sometimes you would see something that wasn't right and you might want to actually get out of it But that wasn't the case here. All right, so let's go back to the market So one of the one of the reasons why it's so significant for 2015 to take advantage of opportunity is a day trader Is because there's going to be a lot of momentum There's going to be a lot of volatility and it's going to be in both directions You're going to have to know how to play it and people are going to try to short stuff or fade stuff That is actually going to continue to rally people are going to try to buy stuff actually that comes into support That is actually Stuff that they shouldn't be buying because they're going to think that you can buy anything because the market's rally It's all over the place that it's going to be challenging to trade this year in the market Unless you know what to do, but if you know what to do, it's going to be like It's going to be like like Pickens every day like Just Really good year But that's how it is in the market Normally in the sense that the people that do well make a lot It's just so happens that this year is going to have just boatloads of opportunity for people and how to trade because there's going to be a ton of volume of momentum and Volatility and moving to the market and the market's going to have a huge bullish move that no one's expecting And I called the bullish move we had I've been calling it all year You can go back and watch every market video I did where I said what was going to happen beforehand And obviously somebody's going to watch the videos so I will keep doing market videos Where we go tomorrow? I have no idea no idea today was the first day of the holiday week being back No clue where we go tomorrow. So we'll have to see it's how do how am I going to know I'm going to know from the gap And I don't think we're gaffing anywhere tonight I think we're flat here Yeah anyways The market's higher and I think this is something where if you understand what I talked about all The lecture if you understand The significance the missing piece the reading of the gaps the bullish ones the bearish ones if you know what to look for You will understand what I'm saying the people that are in the room with me that did the class They know this I've been talking about it for months But if you don't you might be convinced this market's going to crash And we've had forward trading days and we've also had a lower high And people and we've had a lower low and a lower high too And people are gonna this is just because people were conviction that don't know what they're doing That we're going to come in because the market rallied up came in broke the pivot came in made a lower low came in made a lower high People this is how people make trading decisions. I don't I do not but I know what my opponent is thinking And they're thinking that this is giving them confirmation with the selling in here And the lower highs and lower lows that the market is going to crash that it is coming in And the market got down today and it's sold off and the people look at that again People don't know how to read gaps right and they think the market's going to come in It's going to pull in all the way to some crazy number. It's going to crash or do whatever Okay, and people are actually getting conviction at the market after the activity of the last few days Specifically today because the market got down and fell all day People are getting conviction that the market is lower and so people get scared. They're in longs. They sell them People don't know what to do. They don't want to buy they think well maybe we should short it So then they take a short trade But know that the correct way to read this is to trade with the institutional positioning Which is not in a direction that anyone should be shorting The institutions are in the market long And the market's higher And I know that from reading the gaps I know how to read power money and power money again is billions And a hundred million or more and not baby hedge funds Does anyone have any specific questions? I'm just talking talking talking here now Ask me if you have any specific questions about anything and all that I'm talking about anything whatsoever If not, I'll just go to everybody go Email me if you'd like more information about the class this weekend or if you want to sign up again I'm offering two months free january and february in the room Oops, I don't know why that did that with the class this weekend Which is a good amount of time to be in the room take the trains with me and also be in the room during earning season Because first quarter earning season starts during that time. There's many many many gaps in earning season to trade Any questions for anyone at all? Okie doke If you think of something later email me I'm going to email the people that won the five people that won the contest. Kathy was just going to email it to me I'll check that I'll email you tonight You're welcome Okay, great All right. Have a good night everyone If you'd like more information on the golden gap class email me at melissa at the stockswish.com Thank you so much for coming everyone. Have a good evening