 Hello everyone, I welcome this is Kevin it is 427 we start promptly in three minutes your host presenter Melissa I'm with us today start time in three minutes three minutes start time everyone. Thank you and welcome Oh everyone. I welcome. This is online Creator Central We are very pleased to welcome each and every one of you today Let's see last person to join was that crystal change that Steve just joined us before that draws Jeff the Victor JC and others growing up here at random This is online at Trader Central welcome Creator Tom Tracy and the Gala had this year Tracy go ahead Matt Again, this is online Trader Central. Welcome Phil Daniel P. Kinster and others Irving it and others It is now exactly 430 Eastern time. Please put your hands together and welcome our host and presenter Please welcome from the stocks wish.com. Please Thank you everyone. Thank you so much Kevin and Kathy and online Trader Central. Welcome My name is Melissa Armell and I own a company called the stocks wish LLC and today I'm going to lecture on advanced technical analysis I'm a trader and the way that I train is based on technical analysis Some of you know what that is some of you don't we're going to talk about this here in the lecture today If you would like more information after the lecture you can email me at Melissa at the stocks wish calm And you can feel free to go and sign up on my YouTube page I do have a lot of videos on YouTube trades that have done and past webinars as well So welcome full trade based on fundamental Some people trade based on chart reading or technical analysis a lot of people say well Can you really make money in the market using advanced technical analysis skills without even knowing anything at all about the Fundamentals of a specific stock and the answer is yes. Actually the way that I trade I don't even look at anything that's happening fundamentally in the stock So it's very very specific what I do. It's based on reading price Understanding how to read price in the correct direction is a key ingredient in profiting the market That's how I'm able to make money Set yourself apart from the world of novice traders and investors by becoming an expert in technical analysis This is what I have done and I'm teaching people how to do this Experts have knowledge do their homework and read information in real time in the form of price patterns in charts Okay, so this is what it is. We're looking at charts specifically and we're going to look at a lot of charts today So becoming an expert in technical analysis is a vital ingredient becoming successful as a professional trader or investor And again, I'm a day trader. You could be an overnight trader a long-term investor either way You're still looking at what's happening in the price What a current company's value or worth is always reflected in the price now You would see it right in ways that something would happen Well price patterns and charts hold the key to making decisions ahead of time And in the moment to profit and profit substantially and that's how you do it That's how you get in something a specific stock Reading the price and making money then reading what it's doing right now That's how you make money in the trade whether it goes up or down depending on whether you're going long or shorty now Price really supersedes everything else even fundamentals because as I just explained something that's happening in The chart of a company or even the market Will happen where you'll see it right in that moment Okay way before it would even be reflected in the fundamentals That would carry over into the price So really I do very very specific things with my trading which i'm going to talk to you about today But it's really this idea of making the time to trade in the higher level I think a lot of people think they're trading on a higher level because they may use multiple indicators Fibonacci's all kinds of fancy indicators, but they're really not trading on a higher level They think they are but they're not when I'm saying higher level. I mean Training your brain Okay, which is what I've done. I've trained my brain correctly to read price in charts People go to school to learn how to trade. Okay It's no different if you wanted to become an expert in something if you wanted to become a doctor a physician an attorney Okay, you would have to go to school to learn how to do that Training is no different even though you could do this for yourself from home Which is what I do. You still have to learn what to do And go to school to learn how to do it. Otherwise, you're risking your money in the market needlessly And are probably going to lose if you don't know what to do It's very very unique this type of trading that I do It's day trading or even if you're doing swing trading You really have to learn what you're doing if you want to trade to be profitable You have to learn Okay, you can learn from me you can learn from other people But I'm here today to talk about what I do So you can listen and see whether or not you think that what I do is something that you would even be interested in learning about Okay, because it is advanced it it is So first let's talk about what technical analysis is The methods used to analyze securities and make investment decisions falls into two very broad categories fundamental analysis and technical analysis as I was earlier talking about fundamental analysis involves analyzing the characteristics of a company in order to estimate its value For example, if you would read an earnings report in a certain company and decide If you whether or not you wanted to buy the stock or if you already owned it if you wanted to sell it Technical analysis takes a completely different approach It doesn't care one bit about the value of a company or a commodity Technicians sometimes called chartists. This is really what I am Are only interested in the price movements in the market that are happening in the moment that they're happening Okay, which is always right now. The most important thing is what's happening right now. Okay You have to train your brain to read price action I only trade one strategy, which I'm going to talk about today But this is how I've trained my brain to be a profitable trader because I only do one specific strategy And in fact, I'm very very focused on shorting. I like to short. That's my thing However, I can go long and I can also reprice action to the upside Which is one of the things we're going to talk about today because we're going to talk about the market because the market's higher But I've trained my brain Okay to reprice action so that I know whether or not I see weakness or strength In the price action that's happening in a chart And we're going to look at charts today. But how am I how am I able to do this? I've trained my brain. Okay Reading price is like learning a language like anything else you'd want to do you have to train your brain That means actually doing the work to understand and comprehend what the price is actually doing Now here's a chart. Okay. This is a this is a chart And if you've never traded before if you're brand brand new to trading, this is what a chart looks like This is a chart of cores. It's michael cores And the every bar here is a candlestick Okay, the green ones depict buying on the day and the red ones depict selling or shorting on the day to simplify this out Okay, the volume is down here and the days here. You can see this is a daily chart And these are just some moving averages that I have on here. You don't really need to worry about those right now but In advanced technical analysis, you're looking at not just the body Okay of the color of the body of the coloration to see what's happening But what the actual numbers are of the price And also I'm not just looking at these moving averages because if you just quickly quickly quickly Look these moving averages. You might say something different all along in here You've got to get more information and pull more information out of this chart than just simply quickly looking at the moving averages Or any other indicator you put on here. Again, I don't have fibonacci's or anything else on my charts But if you put anything else on here A lot of people rely on these other indicator type things to tell them what For example, the trend is of the stock and the overall long-term trend or even the intraday trend What to do with it on the day and you just can't get enough information on that to know specifically what to do with the stock Even to trade intraday. I'm not just talking about overnights I've created a new and bold way of looking at price looking at price accurately to redirectional bias That's how you make money in the market. You make money in the market by getting in something that's the correct direction Otherwise you lose. Okay. I know there's people that scalp All right, I get that But you can't really make a significant amount of money scalping And you're actually at a lot of risk when you're scalping if you're taking them size where you would be making thousands of dollars in one trade Because it could turn against you very quickly and then you could lose thousands of dollars in one trade So I'm not a scalper. Okay. This is something where you are actually looking to read the correct directional bias of a stock or the market There is one underlying principle that exists in the world of the market and in every chart in etf and existence What is it? It is a pattern that exists in the stock market in every stock that exists, including etfs Understanding how to reprice is so critical to create substantial gains in the market What do you need to look for in a chart to know whether to take a train? What is important and what is not important and this is what we're going to talk about today So what is important? What is the most important thing that's happening in a chart? in order for you to make money As anyone a trader an investor. I don't care who you are big or small. How much money you have it doesn't matter What is important? Who is in control? Who is in control? Who is in control of the stock on this day? We'll tell you whether or not you as a day trader will be able to make money because you must play with the control Now what do I mean by control? I mean the control of the money. It all comes down to the money. Who is controlling the money? Because that's what moves the market. It's money that moves the market money flows in and out So you have to be with who is controlling the money in the market in that particular stock or the market itself It doesn't matter How will you be profitable? By playing with the control Okay, so you have to be able to read the control of the money if you incorrectly read the control of the money Then you will most likely lose Now that's not to say that some days you might not make money as a person trading the market Misreading control some days you might be but you'll be back and forth back and forth your results will be down Or break even and they'll be down. They'll be down if you don't play with control Many people don't know how to read control correctly. Okay. I'm very good at this And we're going to talk about why in a moment here, but I'm explaining to you I'm really just breaking it down nuts and bolts here The fact is what you need to do Is reading price is training your brain to read control who's controlling the market And we are going to talk about the spy today Because what is important important is training your brain to read control. Okay The I just looked at the market actually before I came on here within the last 45 minutes of the market closed bullishly today and I knew that it would and I knew that at the wood and the market was read all morning And I knew the market was going to hold today How have I Able to read a chart like the spy. This is a spy ATF. Okay, and just clip this here back from since october mid september. All right How am I able to read this chart and know with 27 red days in here that the market is still higher and it's going to make a new high Which the spy is going to do and have a hundred percent conviction that it will this month in february Because i'm reading who is in control And this is where it comes down to the advance because if you read this and didn't understand what I know And again, we're going to talk about in a minute about the strategy that's telling me who's in control You would see all the red bars all these red bars, which was selling And some people shorting people are short this market right now There are people that have sold out of their long positions in the market in the last two months december all of january There's a lots of red bars in the market if you do not know how to re and control properly Good to control the money Then you may think the market's coming in you may be short the market now You might have sold out of a long position you have and taken profits When you're going to miss the move when it happens, okay But you might have done all those things because you see all the red and I get it. I see the red too, but the fact is The market itself Is higher and I know this because i'm reading on an advanced level the Who's in control? Who's in control of this market and the bulls are still in control of this market They are really in control of this market And it's just a lot of people don't see what I've seen the kid This is what I do and what you've learned from me if you came and and and learned from me but I just want to point out here that It's not about just seeing the coloration of all the red bars and candlesticks for those of you that do trade That's happened in the last two months. That doesn't mean That the bears are in control because they're not Okay And every time I see a day like today in the market it confirms what I already know Who's in control it is about who is in control? Okay, that's how you make money So again, what is important who's in control? What else is important gaps? This is the strategy that I use to read the control Okay, so how am I reading the price action to control through gaps? This was a gap that happened last week. This was a bullish gap This stock is ea these candlesticks are off here in this last couple of days Something was wrong with the charts here, but the stock did gap up Forever closed in here the prior day and 48 something it did gap up to 50 51 something In the morning the stock gap. So this is a strategy that I Have a method to use to determine the control meaning What would happen to this ea on the day? Would ea get sold on the day and go red that you would short it? Or how would you know to go long ea to buy it before the green bar forms? Now afterwards, it's easy to see here with the stock ran up two and a half dollars or actually even more It went past 54 it went all the way up to 55 something But how would you know to take the position here before this bar forms? You would have to look at the price action and the strategy that I do To determine whether or not you want to short it or go long it Okay So what is a gap? This is the method I use to determine price action and control a stock gaps From the opening price today is different from the closing price of the previous day's trading Just like in the ea closed to 48 something open to 51 something a gap is a break in the price action for one day to the next That's all that it is. That's all that's happening there in that chart And what happens in a gap? Some gaps get sold some gaps get shorted some gaps get bought Okay, some down gaps get bought some up gaps get shorted You don't know. So how do you figure it out? How can you read it? I have a method I use it's a rating system So then this is a new method to read gaps that I created myself It's it's a method that I use every morning for any stock that I look at It's a 26 point rating system and you can use this to apply to ETFs like the spy and the qqqs Which is how i'm able to read that the market's higher. I'm reading the gaps I'm reading the ratings of the gaps know that the market's higher So I look at a stock or the market when it gaps and I rate it According to the rating system If it meets the criteria, I know that it's a gap that will be either a long or short So therefore I know who's in control of the stock on the intraday Whether or not I should go long the stock or whether or not I should short it And conversely if you're in a stock long You could rate a gap You could rate a down gap and and figure out if it's a good bearish gap to know whether you should exit A long position you may be in overnight to know if it's going to be a good short Then you'd want to get out of it knowing that it would follow through to the downside And if you were long enough money, you'd want to exit it Okay, for example, if I was long the market overnight, I would not have I would still be in my position Okay, long the market despite the fact there were bearish gaps that happen in the spy and the qqqs in the last two and a half months Good So it's a it's a system you can lose for a lot a lot of different things And I've had people ask me about this for futures and options I Teach the rating system which teaches you the directional bias to play of the ETF and the stock It is up to you if you do not do the equity trade, which is how I trade Whether you do the option or whether you do the future It is up to you to know how to apply that to take that type of position in the market I don't specifically teach options for futures. I teach equity trading. I'm taking straight equity trading as a day trader. Okay So I titled my system a golden gap because it's like finding gold in the market because the gaps are really good It's a gap that has a high odds of working on the day In the direction of the gap Finding gaps the rate according to the 26 point golden gap rating system is like finding gold in the market Golden gaps spot institutional money. Again that controls stocks in the market Golden gaps are made by professionals. They are gaps that have a high odds of working on the day in the correct direction of the gap With a large large momentum move For example, just like that ea. Okay, that stock went to the dream target Past expectations on the day and was a huge train to go long if you want to go long something So you would get up in the morning if you saw this gap Which you might have you'm sure you would have and you would have rated it And in the raining it would tell you whether or not this stock was going to go red on the day or green And then you know whether or not you should go long it or Short it if you want to Okay So again, it goes back to oh here's today. This is how I don't know how exactly when it's today This was today's trading it goes back to what is and what is not important Understanding what is and what is not important is very important because you see in the chart of the spy The moving averages are sloping down the spy market The etf has made a series of lower highs and lower lows today actually it made another lower low in the market But this that looking at the moving averages whether they're sloping up or down And the pivots is not enough information to tell you who's actually in control of this market Reading the price action tells me that through the strategy that I know on gaps And I rate the gas to determine the ones whether or not they are In control of who's in control of it. Okay, and that's how I know who's in control of this market still is the bulls So why do golden gaps work to reprice? Well gaps are created with large institutional money That's who really moves stocks anyways in the first place And that's what makes the gap the gaps that happen and play out in stocks are formed by one thing and one thing only large institutional money Therefore, you need a way that will help you pick the correct direction to play the gap And confirm that the large money will flow with it by having a formula to rate and qualify the gap You get confirmation and conviction that the large institutional money is on your side And then you play it gaps are an event and create a sense of urgency Thus an action is being forced by participants of the stock This is why gap trading is incredibly powerful trading gaps is a powerful and profitable way to train Because you're trading on the side of power money okay And that is what control stocks Not traders Not all of us in here And that's why you have to learn how to read this if you want to be a consistently profitable trader It's not about getting it right some of the time. It's just not enough if you're going to write some of the time when you train You will never have enough conviction or be able to trade with any significant size to be able to make any real money in the market And after your commissions and other fees that you pay to your brokers You're not up Platform fees commissions all the things that the back-end costs are that it costs to trade and have money in your account I trained to make money That is what the focus needs to be Someone emailed me about something just recently today. I responded to the gentleman You can't be in my live trading room unless you actually take my class and learn what I know And he said he's taken a lot of classes My son I understand that except for in my class. I actually teach you how to make money There's a lot of classes out there that teach you good information But maybe not how to make money in the market And the only way to really make this worthwhile is if you learn how to make money Training is fun. It's interesting to stock market. It's interesting, but quite frankly, I would never do it Never never never do it If there wasn't money to be made I'd do something else to make money because I like to make money Okay, so I'm teaching people how To make money in the market and how am I doing that? I'm training their brain So they know how to read a chart right to know who's in control So that when they take the button in the train longer short, they know to take it in the right direction So they will make the money in the trade Okay, our money makes gaps Power money moves the market power money is in control. It is in control at all times. It is in control right now in the spine And the market will make a new high this month Even though there's 27 red days in the last two months of the market, the power of money is still in control of this market So learning a system that teaches you how to read direction to power money is something that you can use Not just now not today. This is not something that's just going to last for a week or a month or a year forever Forever because you are training your brain to actually read control that price control and that is extremely powerful It's so powerful that you could use my system forever as long as the u of stock market exists And as long as the u of stock market exists and has a close and open there will always be gaps Which is a strategy that shows you What to do with the price? Okay, whether to short it sell it or buy it Using a system in a checklist is a very professional way to trade in even professional traders that are trading in big trading Desks have checklists. They go through So the purpose of this 26 point checklist is what number one to find a high probability of directional bias for the entire day big moves on the day Early confirmation of the bias. I want to have early confirmation. What do I mean between 9 30 and 10? I'm not taking my first trade at 2 o'clock in the afternoon Even as a day trader you there's you can train anywhere from 9 30 to 4 o'clock eastern time. Okay But I'm looking for the confirmation between 9 30 and 10 I'm also looking for precise entries with follow-through and a good risk to reward and a good risk to reward in my opinion is three Three or more. Okay Could you take a trade and it only makes one and a half hours or two hours? Yes If it gets to the target and that's what it is and you're out But ideally every stock I look to train. I'm looking for three risk units at least So the 26 point rating system is a multi-purpose system Multi-purpose. Okay. It can be used to rate stocks to play in today However, it can also be used to take swing or court trades and stocks And as I said earlier, some people have taken my class and used it already for options And someone's going to do it for futures. I'm sure at some point One of the reasons why the golden gap course is so unique is because a system can be used in multiple ways to trade One stock symbol meaning you can take it on the day you can hold it It can be used to trade in multiple time frames depending on your financial goals whether short term or long term And how is this possible? Because the quality of the gap if it's a high quality gap will follow through Why because of the control the control the control the control How is this possible because everything in the system follows the patterns created by your large institutional money? It could happen on the day or it could happen in the longer term This is why the information taught in the golden gap course that I teach is so valuable There's so many systems out there But it's very very rare that something can be used in multiple purposes in multiple ways and that's the That's because of the high level of the advanced information that I'm teaching that's reading this so particularly That's why it's just so detailed. I mean, I'm a detailed person to begin with I'm very analytical to begin with that side figured this stuff out But 26 things really is a lot of things to look at but you want to get it right You want it to get it right as much as you can? And so that's why I have to look at those many things because I like to win I like to make money like I said Good and you want to have the odds on your side by getting it to be very very accurate So the rating system really uses advanced technical analysis and ascertaining the direction of the setup And therefore it can be used in multiple timeframes. Your targets would be different if you held something overnight So again as I was saying this system teaches you how to make money So let's look at some examples here and see And really this is I just put this picture of me in here so people can see me I trade what I teach. I I only teach what I do I'm training people's brains to think like my brain people always say well, I want to be like you I want to be like you then just take in every single thing that I say every single thing that I say Just taking it. Okay. I teach people how to make money in the stock market I'm very very very very very good at reading price I figured out the stuff that I'm teaching people and every day right now even in the market everything I see I'll tell you right now the spy is going to 300 this year The spy is going to run more than 100 points from right now February 2nd by the end of the calendar year And how do I know that This I'm the only one that's even saying this everyone out there saying the market's going to crash And I'm telling the spy is going to get a 300 by the end of the calendar year and I have 100 conviction So I'm teaching people how to make money because if you learn what I know You'll know not to sell out of your lungs in the market and you'll also know to be buying The market so that you can make the hundred point run and the 30% job But the market is going to have this calendar year when you might do something else In which case you don't get the money It all comes down to being profitable Now let's look at some trades here This was back in January actually this was the chart of five companies called five ticker symbols five The stock gapped down, okay The stock closed up here the night before 43 something and gapped down here to 37 something So this could be any number it could be 50 cents. It could be a dollar. It could be 10 dollars It doesn't really matter I just get up in the morning and look for whatever company is gapping and again I like to look at shorts, but you can look at long strips as well in fact five Here you could have been long this you might have been long miss actually, okay There were some bullish gaps in this chart too, but I'm just going to talk here about the example here in this one here today Which was a short Okay, so you look at the stock and you're going to get up in the morning You're going to rate it to determine if this is going to it might have gotten bought If this hadn't rated well, it might have gotten bought it might have gotten bought and rallied all the way up here Okay, this was showing a lot of signs of strength. I mean, I'm not going to even argue with that Look at all the green bars in here So you have to rate it. This is where the rating system tells you do I go long this or do I short it? I don't know what to do let the rating system. Tell me again. What is the rating system telling me it's reading price In the chart to determine the control okay Let me just look at a question here This is a question from mike and anyone else's once questions here as we go through How do you differentiate between a golden gap and an exhaustion gap whereby the gap scene is merely the last Full is getting in the mood. I shouldn't you be the suspect of a gap on the spy After it has not had a pullback to the 20 month EMA since 2012. All right. Well, this is that's a couple questions Let's answer the first question first How do you differentiate between a golden gap and exhaustion gap? There is no such thing as an exhaustion gap boom And even this thing golden gap I just made up the name But it's reading power money and exhaustion gap doesn't read any power money and let me explain why Because people Can't play exhaustion. Listen as a strategy many people have a Incorrect idea of what exhaustion is it's too Oh, what's the word? Like what I do is very specific Doom Doom Doom with numbers this idea of exhaustion You might look at something and say oh that thing's exhausted and that thing can't even go any farther down And then it then it continues dropping like a thousand points I might look at that and say in fact here. Let's look at the market. Let's talk about the opposite We're talking about let's just go back here. Hold on and I may have to come back to this other question here to look at more charts when we're done here at the A lot of people looking at this market. I see I don't have the whole thing here A lot of people are looking at this market. They're saying let's take away the opposite of what you're saying You're saying exhausted people are saying this work is extended. We're saying oh my gosh, this market's extended It's too extended. It's extended. It's extended. I read this market here and I'm saying this market is an extended. It's perfect Perfect perfect perfect to do what go higher and you might read that and say it's extended There is no such thing as extended or exhausted There isn't as a strategy to play consistently for money because what you look at as extended Is not what I look at as extended what you look at as exhausted Is not what I look at as exhausted. That's guessing. I don't guess I read the information And then I know what to do I read the price and I know what to do. I wait for it to happen that I know what to do Okay the guessing tops And guessing bottoms, which is essentially what you're doing an exhaustion or extension when you're playing it Is not a strategy It's not a strategy doesn't because there's only work to make money because every time you think something's extended Like this is what's happening in the market right now people people are shorting this market because of exactly what might just said They're saying it's extended I'm telling you the market. I have a hundred percent. I have a thousand percent conviction There's no chance of failure. No chance of failure. The market doesn't make a new high this year No chance of failure. Okay And people are reading this as exhausted to the upside or basically what it would say extended because it's been rallying It's too Much leaving up to choice. It's guessing guessing guessing Okay, I predict that something is going to go to a target, but I'm not predicting I'm not predicting the directional bias. I'm saying I see it boom Check check check check check. That's the directional bias. Let's play it. I predict the target I have information to predict that based on the price and based on the gap. However, I'm not guessing That it's going to collapse Do you understand the difference and when you're playing extension exhaustion? It is not a strategy. Don't play it. Don't play it You're not going to see long-term success and not only that you are actually training your brain In the wrong fashion to read control Because when something's rallying like the market guess who's in control who's in control the bulls So you're playing against the control You are This is just a lot of questions here. Hold on. Shouldn't you let me just go to mike second one Shouldn't you be suspect of a gap in the spy after I was not a pullback? Let's I don't have enough information here to talk about that spy chart at the end. Let's go back to that Um nimble trader has a question here too How did you get to the target of 300 spy from this price action? How did I already call the targets that the spy made already last year? Because I'm just so good at reading price nimble trader Go back and watch all my videos from last year The spy made new highs and didn't have any of those numbers anywhere in the chart and I said all the numbers and it hit them That question. I don't have an answer for you I'm that good at reading price that I can see something the way it's moving That the strength is going to come into that effect because Of a lot of things that are happening right now people are shorting the market They're not going to give up on it people are going to do exactly what mike just said It's going to rally over the high and people are going to short it again And every time that happens that the market gets bought Then it's going to go over the high again and pop through those people that are shorts And the buy-in is going to come in the buy-in is going to keep coming in and then the people keep shorting to keep going It's going to drive this market to some insane number this year. That's what I'm seeing That I'm seeing how it's all playing out and that's how I'm seeing the numbers But I saw the I saw numbers last year the spy never hit the spy made all time highs last year I called every single one of those numbers that it hit and you go back and watch all my videos and youtube and Lifetime when I made them when I made those calls So how do I see something that's not even there that is just Experience doing this for almost seven years and I'm so so so good at reading power that I see that the power is that strong That's the best way I can explain it nimble trader I see that the power is so strong And that people are going to get flipped on through and the buy-ins are already planning on coming in They're going to come in and they're going to come in with force and people are going to flipped on through that The power that's going to happen in the market is going to be so incredible that it's going to run like that I saw it in october of last year So and also the market is holding the least level of support I'm just holding the least level support, which again gives me conviction. We'll talk about that at the end here We'll talk about that at the end. I can bring up the whole chart of the spy I'll bring up the whole chart of the spy and then go back to your questions there might Daniel p. I don't know what you mean never say never I don't know what which one you were talking about there because that was a couple questions back All right, let's go let's go over five So you could have shorted five Okay, again, you would get up in the morning and rate the gap stock closed here gap down. This is a one-minute chart Excuse me And you would look to take a short in this if it rated per the 26 point golden gap rating system as a good short You're not going to buy this you're going to short it Price of the entry is 37 risk is 35 cents. This is how you're sizing yourself here You're risking $700 if you're an advanced trader Or you risk $100 whatever you want to risk It's according to what you can afford It dropped a dollar it actually dropped more than a dollar, but this was the first target And you would have made $2,000 if you took a thousand shares you made $1,000. This is a move. This is a day trade. Boom Wrister ward is 2.85. That's good. So you risk 700 you made 2000 It went lower I'm just showing you here it went through and went all the way down to 35 50 You could have made another 50 cents again You would have had to be very very very very tight here with this because you're up a lot by the time this squishes down But you could just get out right at the target, which was 36 and and a dollar is a move And this all happened here in the morning. See it right on down It did break through and continued past 11 o'clock and like I said dropped another 50 cents So you could have made you could have made even more if you wanted to you actually could have made $3,000 in this Trade through a 700 but you know, you have to be very very particular and tight then once you're in trades And I I tend to just play this period in here And this is really what I like to do and every once in a while I'll do something in the afternoon But it's like only if something has a dream target in it It's power training the day or it actually if it opens whooshed if it opens whooshed I might trade something in the afternoon, but that doesn't happen on every play Okay, nice trade here and again I'm gonna dollars if you took 500 shares it went you would have made $500 If you took 100 shares and I made a hundred bucks you would have $35 to make a hundred bucks and that's a good trade Let's talk about if you did want to take less Risk at a beginner person. You don't want to risk $700. Let's say you were 70 bucks. Okay You took 200 shares of it moved a dollar Total profit is what 200 dollars. Okay This is a nice trade. You only were 70 dollars and you made 200 bucks If you made $200 every day as a day trader That's actually not half bad if you're only trading for the first 30 minutes first hour in the day So if you could make $4,000 a month working in less than an hour On top of your regular job, let's say That's huge. Okay Massive it's almost 50 grand a year extra money that you'd have just working this one hour a day in the morning And if you can do that for any amount of time a few months even you could risk more obviously And then you could even make more than 50 grand a year, but I'm just saying $200 a day there's five days in a week. That's a thousand bucks a week And that's not risking some crazy amount of share size or money Okay, it's only $200 a day But in the whole and the bigger picture It's actually quite a lot of money for the amount of time that you're spending trading as a day trader So advanced technical analysis. So it gives you conviction It gives you conviction in the rating of the gap that you could risk more money if you want to That you could get to the point where you could risk five six seven hundred dollars on a trade Maybe even someday a thousand. Okay That's a lot of money you have to have an account to sustain that to take the buying power of the stocks We'll talk about that later, but it's certainly plausible. How if you have conviction Now one of the nice things about Again, my system and what I teach in the class is knowledge is very particular for the gap reading of knowing what to do This was q-com. This is a 15 minute chart to gap down. It's also I teach in the class again I teach you how to make money. I teach you how to take the entries and I teach you where the targets are Which is the exits? I did q-com and I had the exit perfectly I actually had a perfect entry and a perfect exit on this q-com And it is very very very very Uh Challenging I'd say to every single solitary day be able to pick where somebody's going to go at the low of the day You've been doing it short of the high of the day if it's doing along because sometimes things don't happen exactly in that morning Period to the maximum number you want like sometimes stocks make the low of the day in the morning But sometimes they don't and I just don't like to trade late in the afternoon But in the case of q-com it actually set the low of the day in the morning And it actually went right to the target and it was a perfect perfect exit And and where did I get that number? Like magically pulling it out of myself. No, it's because I teach how to get these numbers on on the chart it's it's an advanced technical analysis and It's there It's it's it's there. I know how to do it But it's there now in the question of nimble trader. He's asked me at the spy. How am I able to predict a number? That's not there Because I can see I can read strength and weakness so well that I can tell how aggressively something's going to happen in a big big way And in the rating system that I teach, okay The idea is not to get a 26 of 26 in the points. It's to get 20 or more That means that a stock has to rate 20 points or more to trade it in the direction of the gap But if a stock rates 23 24 25 26 26 is better than 20 and that tells me something about the quality of the gap as far as The possibility for what I call a dream target in something That it's going to be so strong the move the momentum the volatility It's going to be so strong in whatever way whether it's to the downside or the upside So that's how that's another layering again. This is advanced This is another layering on top of everything that I'm already teaching that I do So I know if something rates 25 points if like if I'm looking at two gaps I'm looking at q-com and something else Okay q-com rates maybe better than something else So then I know the q-com is going to be the better one Okay Now let's look at this. This was the one minute trade in the q-com Short it Boom And again, this happens very quickly in the morning drops on down First move of the day drops into 10 o'clock. It does hit the first target Although this continued lower and I did hold this later as I said I held this into the late late morning because the stock ended up going and I love this gap I mean, I just had a hundred percent conviction. It was going to the number and it did This chart is again this chart is screwing here. This is actually showing A bar that didn't really happen in here, but this was the day of the gap in here It just looks weird. So this actually gapped here. This bar didn't actually close like this in the 28th 29th was the day So just erase that from your mind for a second because the stock actually closed up at a higher price But here's where it opened and this was the move that the stock had on the day from the high up here It was 66 something from the low down here. It was 62 40 something 62 48 or 47. I think was a low in the day So here again, you read this and it tells you that it's going to have a big move in the quality of the gap The entry was 64 85 nice entry. The stock is a little bit pricey. It's not a cheaper. So you risk 50 cents $700 risk means you have to take 400 1400 shares only but again, it's a risk to reward You piece me out book Into the first target 700 which is half Hold the rest. You're profitable. You're up in it already Total profit 22 40 risk to warden. This one is better than the last play even 3.2 If you you could have held this whole thing down here for $2 and 35 cents, but again You know, I like to book into certain targets and this was the first target But you would have made more actually be held whole thing So this turned $700 into 22 40. Do you see this is this is real money here anything with a comma in it And then day trade is real money So let's talk about percentage of return in day trading because people always ask this It's based on an R concept whether it's $100 $200 $300 $700 whatever it is. It's based on an R concept What does an R mean? It's one risk unit the risk unit portrayed should be equal or close to equal portrayed The risking is the amount of money you're actually risking in the trade if you use a hard stop If you do not use a hard stop, you have unlimited risk I use hard stops many people do not know where to put a stop and do not use them However, it's important to use hard stops no matter what your level trader beginner and intermediate or advanced Someone had asked me In the last week or two weeks or something about hard stops You must use hard stops when you trade on the one minute chart in the morning Because stops can go in your direction or against you and you have to have the stop in And if you don't have the stop in then what is the amount of money that you're risking then the whole R concept is bloom You can say well, I have an idea. I kind of wanted here. I think I'm taking this many shares No, you need to know exactly again I'm very very meticulous with everything that I do with numbers and making money And if it's 35 cents, it's 35 cents, and I need to know how much if I take a A certain amount that I need to know Okay, it can't be you take 5000 shares of something and the stops 35 cents I that's too much You understand what I'm saying you have to have the stop in and you have to know where the stop needs to be Again, people think it's impossible to know where the stop needs to be. No, it's not it's not impossible I know where the stop needs to be and I know where the targets are Okay, and if I get stopped out, it's because the trade doesn't go on to work And then you want to take the loss and be out and you find another gap or another trader You just stop for the day and get back tomorrow. You take one loss You have no profitability Without a defined risk that defined risk needs to be set in stone and the same one almost every trade you take Or close to the same Otherwise, how do you even know if what you're even doing is even a profitable thing that you're even doing? You look at it by comparing each trade with the same risk unit. That's how you know Many many day traders failed to understand this stops having them in Forces you to have a defined amount that you're risking So I don't train based on share size. It's based on dollar risk That's how you'd be consistently profitable Now as far as returning investments again, this is very very different than investing as a day trader I'm taking something where I'm actually taking a position to stop If I'm taking a thousand shares is something at a strike price of 51 That's using 51,000 buying power. I don't need 51,000 cash to take that. I need that much in leverage Okay It's not about the percentage of return on investment based on the percentage of cash that I'm taking dollar for dollar in the In the actual share size The fact is that brokers give you leverage It depends where you trade a retail account of proprietary day trading a capital every trader trades with leverage So you have to understand again the risk unit is the amount you're risking for trade Your return on investment is not about the buying power or the cost of the stock itself because your flat every day is a day trader By the end of the day You're not holding overnight if you do that that's a different story But you base your risk to reward and return an investment based on what the risk unit is and then how much dollars you make Based on the risk unit whether one two three four five six Okay Because you don't need the cost price stock of the stock actually to day trade It's a wonderful thing that you actually can day trade with leverage Otherwise the market would only be for people that are wealthy regular people could never trade the market if that was the case So the bigger picture really is to get to the point where you have an advanced understanding of things That you can trade with sizable risk so that you can actually make more money But really even if you're at that point where you're brand brand new to trading or you have a certain amount of money And you can take advanced risk You still want to make money with the money that you have even if you're only risking 70 dollars in the trading Otherwise, you'll never get to the point where you can take more risk So that's why you have to keep the bigger picture in mind where you want to go Sometimes it's frustrating because we all want things to happen so quickly right right right right right right now When everything now now now we're in a now society. It's me me me me. I get it. Okay And trust me. I was there when I started to trade I thought I was going to figure this thing out and look at a split and it took me way longer than I thought to figure it out And I'm very intelligent. So the fact is that you have to understand the bigger picture is to be successful So that you can do this to make a certain amount of money Once you learn it and what you have now you're going to take to learn to trade to use it to be profitable Many people jump the gun. They want to trade without learning what to do They're just going to lose the money they have or waste time time is a big commodity in the world today huge commodity Okay, and that's why actually having real lifetime trading action in something like the strategy I teach which is gaps and knowing when something's doing a real lifetime is actually a huge commodity Because it tells you what to do with whatever position you have or whether or not to take the position at all And the bigger picture really if you want to become a professional trader is you have more time yourself I have the afternoon to myself unless I'm doing a webinar like tonight But this didn't start till 4 30 and I did have the afternoon to myself So you have more time for leisure because you're not working nine to five at a job or even overtime And you also can make a nice lifestyle if you learn how to trade the market because as I said There's billions of dollars that run through the market And all you need is a tiny tiny tiny piece of that in order to be successful And in the longer term this is a solid strategy because it can be played on many many timeframes and many many trading genres And that's something that can have multiple uses for you if you want to learn how to do my system I also happen to like working from home and I also like working for myself And if you trade for yourself you'll work from home and work for yourself So I teach a class the class is called the golden gap course. It teaches one solid strategy It teaches multiple entries and plays It teaches you how to trade the open which is between 9 30 and 10 a.m It teaches you how to book money in today in stocks again You will need to book it to be profitable Teachers advanced chart reading skills and teaches you how to get conviction in your trading and the market is a source of wealth Many many people come to me. They've been through the ringer and this thing that the other things stuff They've gone through classes have taken money. They've lost to the market You need to change that around and I found that the best thing to do that is actually to be Making money and the live trading room is open for people to join They've taken the class and then people can actually take my calls and that helps them Get going after the class to book profitable trades which helps their conviction that it helps their mentality Even if they had a hard time in the past The room is beneficial for people because they can take trades and then make money after they do the class So I teach a course it's called the golden gap course It teaches the 26 point rating system to find the best stock to trade each day And it teaches you what direction to trade the stock on the day That's how you're gonna make money and it teaches chart analysis and technical analysis on an advanced level So why would you take my class? Why would you want to learn from me? I have something that's very unique There's absolutely no one on the planet. No one in this world. No one in this universe is doing what I do I'm very unique. There's no one the trades gaps the way I do There's no one that trades the way that I do I can say that with a hundred percent conviction as well Which is why I can call what the market's gonna do too. It's this is very specific And i'm teaching you how to read the chart in an advanced manner and how to trade the u.s Stock market if it's something that you want to learn how to do So empower yourself to trade if you want to again the class is a two-day course It teaches you professional bearish gaps. You can flip the points and go long if you want to I do look at longs in the room, but I prefer to short Why because the downside happens very very quickly and sometimes the stock can go to the target in five minutes in a short And I just love that about shorting Retakes are free. The class is online. It can be anywhere in the world and take it The class is this week in february 7th and 8th from 9 a.m. To 5 p.m. Eastern time and the cost of the class is 2999 If you are interested you can email me at melissa at thestockswish.com I must tell you that the cost of the class is increasing of march 1st The price of the class on march 1st is going to be 34 99 I'm just letting everyone know I'm giving everyone a month's advance all the people to follow me watch my videos I'm telling you right now If you want to do the class in february this month the cost is 2999 if you want to do it And you can make that back in one trade I also teach a class. It's called the trends course. This is at the end of february the 24th and 26th This teaches you how to treat long-term trends the cost of this class is 9 99 This isn't about day training Okay, this is a longer-term trend class for overnight If you want to do it or any longer-term trends in stock charts or even ETFs like the market And if you want to do both you can do both classes in february for one price and save almost 500 dollars for 34 99 The information to sign up is not on my website. You have to email me for sign up information if you want to register And the last day to sign up is friday the day before the class Earning season is now it's in full swing all the month of february into march When earning season happens stops have a lot of gaps So it gives you a lot of picks on the day where you could actually Rate and trade a couple of things on one day. You could rate and trade actually anything that rates 20 points or more So let me just see if there's any questions here. Thank you for coming And I did want to go back to mike's questions about the market and we'll look at that Uh g2 is asking me how long does it take to get through the 26 point checklist? Well, I could do it in my sleep, but if you're new and take the class it's probably going to take you I'd say between five to eight minutes Five to eight minutes and as you get good it should be less than five minutes. It should be one to two minutes After you do them right after the class is probably going to take you five to eight minutes And once you're doing it Okay For a couple of days a couple of weeks you should be able to do it in one to two minutes It sounds like a lot, but you're doing it every day. It's like riding a bike g2 It's like oh, you know, you don't think about how do you ride the bike and you don't think about You know taking one foot in front of the other So again, it's about practice doing what training your brain It's training your brain. You're training your brain. There's one reason and one reason only that i'm successful I have an incredible brain and you know what? So do you you're probably just not using all of it We don't even use half of our brains We don't if we want to be successful in this world if we want to be evolved if we want to trade the market Successfully then you're gonna have to use your brain. You will use it I'm forcing you to do it and that's actually one of the best things about connecting with me On this planet and anyone that finds me and comes to me. I always say this As if anyone that finds me comes to me as a student You you get so much value out of coming to me because I am teaching your brain to use portions of itself that it may never have used And that will stick with you and the more you are with me Monday Tuesday Wednesday Thursday Friday I'm training your brain and that that is actually invaluable It's like doesn't even have a price on it and the people that are with me now for the last One to two years know that and understand and get it and this is why I have a successful business All right, Mike had some questions. Does anyone else have any other questions before I get a mike's questions? I'm gonna take this off and bring up my chart really quickly here. Hold on one sec