 Good afternoon, Sherry. I have no sound. I don't know if you can hear me, but I have zero sound. I can't tell if anyone's speaking. If you can hear me, that's okay. Then I can speak, but I have zero sound. If you want to just let me know if anybody can hear me. If you can hear me, I can speak. If you can see my charts, I can speak. Anyone even there? Okay, you can hear me great. I couldn't hear a thing, so we're going to go with it. We're going to roll with it. You can hear and see, and that's all that matters. Welcome, everyone. Today, I'm going to talk about institutional money. For those of you that don't know, my name is Melissa Armo, and I own the Stock Swoosh. And I decided to do something different today. I'm going to just talk the next, you know, half an hour, 45 minutes, whatever time we have here today. And I'm going to discuss charts, and I'm going to go over charts. And specifically, I'm going to talk today about GameStop, because that has been a very popular chart and a very popular stock in the last two weeks. So normally, I would do a PowerPoint presentation, but I thought I would just look at charts today. And most importantly, the daily chart, which is what I use to make my trading decisions. Now, for those of you that don't know what I do, what I do is I get up in the morning in the pre-market, way before the market even opens, and I look at what stocks are gapping. Now, for those of you that don't know what a gap is, I'm going to show you right now. Right now, I have up the QQQs. And a gap is the difference between the close and the open. That's it. Gaps happen in the post-market and the pre-market. Now, again, the theme for today's discussion is I'm going to talk about institutional money. And specifically, GME, which I'm going to bring up in a minute here, because I think it's a great example to talk about institutional money and the control of that. But just to do a brief little lesson here about what a gap is, a gap is a difference between the close and the open. So yesterday, the QQQs closed at 327.68. Okay? There you have it. Then it opened, gapped up today on Wednesday. This is QQ, gapped up here in this morning, okay? And opened at 329.82. So this is a bullish gap, okay? You could go along here the market today. Looks like we're going to pop. We're going to make new highs. People are short of this today. That's a terrible idea. Despite the fact that we're red on the day the market's going to lift, it's going to make a brand new all-time high probably in the next 24 to 48 hours, okay? But you also have bearish gaps. And again, for those of you that don't know me and what I do, I really like to short. The reason I prefer to short is because short moves happen quickly. They happen very, very, very, very fast, okay? So I like to be in and out of trades quickly. Not that I don't go long. I do go long, okay? Again, like I said, you could be long here the market. I called calls in the spy yesterday in the market rally yesterday. We went along the spy yesterday as a day trade too. So I will go long, but I prefer to short because moves to the downside happen faster and quicker, okay? Because there's panic that comes in when something moves to the downside and people panic and sell. Whereas there really isn't that much panic when something's moving higher. There is something called panic buying. Again, we're going to talk about the game stop in a minute. But panic buying is rare. It's so rare that it almost never occurs, okay? Now, getting back to looking at a bearish gap, because I just showed you an example of a bullish gap, which is accused from yesterday to today. Let's look at a bearish gap. A bearish gap happened back here from 1.28 to 1.29. This we shorted. This was last Friday, okay? So the market closed at 3.21.32. Boom! Open in the morning down here at 3.19.58. Okay, see him? So this is a bearish gap. This is a bullish gap. This is a bearish gap. Got it? Now, the conversation today and what I'm going to talk about is, and what I focus on is institutional money. What do I mean? I mean hedge funds. Big, big banks that take positions in stocks in the market. Funds, big professional traders. And the reason that I thought we would use GME as an example here today, one, because it's been talked about so much, but two, because of the fact that it's a great example of the push or the fight of the tug of war between retail traders and institutional money. And again, if anybody has any questions, you can just plop it in the room. So when I saw what was happening here with this stock, this is loading, when I look at something and I'm reading it and I'm trying to determine again if it's going to move higher or if it's going to move lower, I'm looking for what? I'm looking for institutional buying or I'm looking for institutional selling. So, say for example, if you want to make money going long, you have to go long something that is being bought by institutional money. If you can do that before the move comes in, before the buying comes in, it's very easy for you to make money. Again, going back to the example of the market, here actually I'll pull up the spy here. This was an example where you could have gone long yesterday. We went long yesterday. You're having the follow through today. And again, you could have gotten out of this yesterday as a day trade. So you want to go long something that's being bought by institutional money. The market is getting bought. Again, the cues are at the high. The cues are going to push over the high. When I say the market, I mean the QQQs are the spy here. The spy is the ETF for the SMP. When you want to short, you want to do what? You want to short stocks that are getting shorted by institutional money or you want to short selling action. And again, I'm just going to give a very basic definition here. This is taking forever to load here, the spy. A very basic definition of shorting is when you're betting that the price is going to drop. You're betting that the price is going to fall. Say you short something at $100 and the price drops down to $98. What can you make? $2. $2 times whatever the quantity of share size that you have, depending on if you're doing an equity trade or if you're doing an option. And again, I do options and I do day trades. Okay, here's the buying. So again, this is institutional buying. Does everyone see this? What occurred? Market gapped up. This was Monday. Close. Market gapped up Tuesday. Close. Market gapped up today, Wednesday. We're not closed yet. We're running up. Time of the day is 1.55. I don't know where we closed today, but it looks like we're going to close today with a green body and lift. So here is the market. This is going back all the last couple of years. This drop off here was a year ago almost with the COVID. Okay. This is bullish. You can see here there's institutional buying that's coming into the market and lifting it. Is everybody with me so far? Now, let's go to the GameStop. And again, the reason I'm going to discuss this today, because there has been so much discussion about this. I talked about this on TV in the last week. I think every single news network has been discussing this. I'm not going to get into the politics of this, but the long story short is if you don't know what's going on with this, I'll just briefly tell you. This was a stock that was previously. Actually, let me squish this and take off this last. Let me just take off this last week. There's oops. Now hold on. Let me get it off. I just want to take off the trading from the last week. I can. I think I can. There you see that? That's the, that's, I just took off the last week's bars because I wanted you to see what this looked like without it. Okay. Without the rally. What happened here was the stock was trending down, down, down, down, down, down, 2015, 2016, 2017, 2018, 2019, even into 2020. Okay. Even into December, December of 2020, the stock in GameStop was in a downtrend. Okay. Does everybody see it? Then what occurred? Some buying came in. Let me see if I can get this up. Slowly, slowly, and then poof. This is where the stock then lifted. It lifted over the high. This was Friday the 22nd here of January. It lifted over the high and then it had this massive move up here. And then this is the last week of trading. Just everybody can see it. At one point it was, well actually, you can't see this here in the pre-market. I'll show you in a minute, but it actually got over 500 in the pre-post market at one point. So what occurred? Like what happened here? What was the talk of the town with this? What was going on? Well, everyone was saying that a hedge fund was short this and that retail trader squeezed the shorts out, popped over the high, blew up, and the stock went from, and you can see this in here, just going back the last two weeks, the stock was down in here in the 30s and again ran up almost to 500 here on the day, but it was at 500 in the pre-post market just so you know, I'll show you that in a minute. What can create a move like that? You say, well, it's got to be institutional money. Melissa, it has to be because it had a big move. No, no it wasn't. It was actually a bunch of retail traders that got together and read it that decided to buy the stock and that as a result of the buying that came in, there were short positions in it that had to cover and when you exit a short, you buy to cover and that's what happened then that ended up squeezing the shorts and that lifted and pushed the stock even higher. Now, when you're looking at this, you say, now, does this mean that it's higher? Is it going to go higher? No, why? Because you don't have any professional buying coming in here. So some retail traders lost in this already because they bought the stock up here way, way, way, way, way, way too high of a price in the 300s and the 200s. As you can see right here today, the stock is trading at 108, 107. In fact, today's low ended up being like 85. Yesterday it was down in the 70s. When you're looking for institutional money, it's very easy to make money and also you have something called follow through. You have no follow through here in the game stock. To the upside. In fact, every bar that's happened in the last one, two, three, four, five, six days is red. So that is not a representation of buying power and money coming and supporting the position, supporting the stock and moving it higher. Okay? You see this looks very different than the spy. Now, I don't follow fundamentals. I look at technicals. That's where we're going to look at a bunch of charts today and I'm going to look at gaps today and I'm going to show you what I'm looking for for money that comes in whether again it's pushing it down or pushing it up. But in this case here, this was a once off where you had traders that made money buying it. There were retail traders where you didn't have the institutional money on its side that flipped it up and squeezed the shorts to poof it up. But if you didn't get outright, if you had bought it at a lower price, you got screwed and you lost actually to high because you did not have institutional money buying the stock. You did not have institutional money supporting the stock and actually right now at this point today it looks like institutional money has come in and shorted the stock. Now, many platforms can't short this at all as an equity trade and if you've even looked at any options trades in this as far as calls or puts it's been too expensive to trade it's made absolutely no sense it's actually more expensive than even Amazon which is over $3,000 a share because of the volatility that's occurred in this. But I want to show you the gap if this was a normal, normal chart here of what had happened, didn't happen with the Reddit traders, this actually gap down. So from the other day over here, this was Monday, closed at 2.25, opened here in the morning at 1.40.76. So this actually gap down. So I think what happened and it could, I said it on Monday actually it was an Ameritrade, I really thought that this, a gap was going to come soon in this a gap to the downside. It happened the next day, which was really fast really, really quick but I thought to myself institutions are going to come into this, short it and push it down again which happened really literally overnight. I mean this is like boom, look at that. It's pretty big and it's pretty fast and it happened out of nowhere and that's often what happens with gaps because they saw an opportunity for the stock to drop, so they shorted it. Similar to what was going on back here remember when I took this price off again, it's really small if you squish it now but this was way, way, way, way back here again 2016, 2017, 2018, 2019, 2020 before this this bizarre thing happened. So institutional money is in control of stocks and the market at all times, even if you think it's not, it is even if you think it's not, it is and while there were some people that actually bought in this on that Reddit chat that actually made money going along in this way before way before the pop-up that happened back in the 27th, okay. A lot of people lost, okay because they got in the stock at a high price too late and there are still people here that are along it that swear up and down that it's going to go to a thousand that is not going to happen. Why? Because you're not going to have institutional money coming in and buying it and again institutions make decisions based on fundamentals, based on looking at, you know, the data based on looking at earnings reports, things that I don't look at because I'm just reading the chart I'm just reading the gap, I'm just reading the price action and a nutshell what I do is I predict where a stock will go by reading the price action and a gap that is in a nutshell really what I do. Now let's any questions here before I keep talking, the next one we're going to look at here is Google can everybody hear me? Am I talking to myself or is anybody there? I'm loading up this Google. Okay. They're there. Okay, good. Now if I have the right thing up for the questions or not, but if there's questions you can let me know later. Anyways, this is a beautiful beautiful beautiful what? Gap up. So I call 2100 calls in Google. It's through the Striker ready. This morning, this morning in the pre market, in the pre market okay. So let's go over this one. Now, what happened with this? Actually, I'll show you. So this Google had earnings probably if you follow the market you saw this, this happened last night. It had an earnings report so did Amazon. We'll talk about Amazon in a bit but anyways it just went pow this was right at four o'clock now as I've been discussing what am I looking for? Institutional buying and institutional selling. Again, look at this. This was last night. Four o'clock, boom. Lower the bar. This is after hours was 1927-51. High of the bar was 2080. Then it wiggled and jiggled and wiggled and jiggled. This is the post market. Then it opened this morning here early 847 in the morning. It's roughly around 2050, 2060 and then it went. Now I'm going to take this over here. It's running up. It's running up big time. This was a bullish gap up. What is happening here? Google is getting bought. Institutional money is buying Google. Forget about the fact that this cost $2,100 a share. Forget it. Forget about that completely. Again, I called option calls in this. I'll explain when an option is a minute but this is getting bought by institutional money. When you trade on the side of institutional money you can make money as a trader. You're never going to move the stock by yourself. What happened with GME was a once off. People think it's going to happen all the time. It's not. It's a once off and now that people know that that reddit group is out there and they're attacking certain stocks funds aren't going to even take positions where they see they're attacking them. So that was a once off and as I said many traders lost to the GME or are going to lose in it that continue to hold positions in it because it's not going to go probably even anywhere near back to the highs let alone $1,000 because institutions are buying it. Now, consequently look at Google, institutions are buying this. The fact that it's up where it is doesn't even matter. Like you say, well how can this do this? Well, because it's getting bought. Okay, the stock closed yesterday at 1927-51 and again, I don't worry about fundamentals. I read the price. I rate the gap. I rated in the pre-market. You could have looked at this last night. Last night I knew it was higher but I didn't know where it would open this morning. Anyways, then today it opened here. 2073 that is big people. That is huge. $140 up and it's still going and many traders think this is going to fill the gap. They're short this but that's the incorrect position to be in. Why? Because it's getting bought with institutional money. I always go in the direction of the gap always but I don't always go long every bullish gap and I don't always short every bearish gap. Now, let me show you an example. Mark was asking of the opposite that I would not do. Oh, this is a nice trade here. This thing here. Oh no, you know what? I'm going to go to AMC. I'm going to go to AMC because that was the other one that everybody in the brother was talking about. Actually, let's just look at this if this comes up. My computer's so slow here today. So Mark's question was, do I always go in the direction of the gap? Yes, but I don't short every bearish gap and I don't go long every bullish gap. I qualify them. I pick them in the morning in the pre-market. I have a rating system and that's how I determine it. That's how I figure it out. I do it all in the morning. I do all my homework in the morning, the whole shebang and if it sets up the way that I want to see it and it rates per my 26 system, then I take it in the direction of the gap. If it doesn't rate per my system, then I do not trade it at all. I do not trade it at all. I don't touch it because you have many gap downs that push back and rally and you have many gap ups that fall and collapse. Okay. Gosh, these charts are so slow. Maybe it's just my computer. Too much crap on my computer. I have to delete stuff. This is just way slow. Wow, this is doing this. Oh here. Got it. Okay. Now this occurred. What was it? It was a gap up. So this closed here. 496. Boom. Open in the morning 2034. So this actually was a gap up. Now forget about the fact that the reddit people bought it. Pretend that didn't even happen. Pretend it was news or earnings or something that actually would have stuck. The fact is I would not have gone long this. Why? It wasn't a good bullish gap to me. It wasn't an institutional buying that was coming into it. You have sometimes things that gap up and sell off. You have things that gap down and then they reverse Tesla. Tesla earnings was just the other week. This is a good example. Everybody loves Tesla. Everyone loves it. It had a gap down on the earnings. It had a gap down. It fell. I didn't short Tesla. Not in my life did I short Tesla. I didn't go long it because it was a gap down. There was no play. We did no options in Tesla which is all I would have done. It's too expensive in my mind to day trade even a margin. But we didn't do any options in it. And I love doing options in this stock. They can be a little bit pricey. No more such than Google or Amazon. But they still at the end of the day can pay you because they can move a lot. You could pay $25 for one contract and it could run up to be worth like $125. But there wasn't any play in this. Why? Because the stock had earnings. Then it gap down. It didn't rate per my system that selling would come into it. And actually the gap got bought. So that's why so many people when they're looking at something they want to do a gap fill. They want to fill the gap to the downside. They want to fill the gap to the upside. That's a silly way to look at something. It doesn't mean that sometimes it doesn't work. It means that every once in a while anything can work just like that GME. Once in a blue moon a bunch of retail traders can come in and push through a fund. That is once in a blue moon. That is a once off. That is not something that you could be consistently in a specific system in order to do it over and over and over again that you can rely on to make money. You can't have something that's just a crapshoot. And I think the biggest lesson from the last week if anyone again has been following what's been going on with GameStop is that many people do take positions in stocks and they risk money and they basically look at it like ambling. And for me, I've been doing this since 2008. I've been trading since 2008. It took me about three years to figure out my system. I've been teaching people since about 2012. But the reality is you've got to take trading seriously. And I don't care if you're doing this part-time or full-time and I don't care. I don't care if you're risking $500 a trade or $5,000 a trade. You have to take it seriously or you will not make money in the long haul. Trading is not a get-rich-quick venture. You're not going to buy GME in a reddit room and then make a million dollars. People did it. In my mind, many of those people that did that had it pre-planned and basically pumped up the stock themselves by taking the positions weeks and weeks and weeks ago. By the time it was out there and everybody saw it, most people bought it by $200, $300, over $300 a share. And Dave Portnoy who's been on Fox a lot, I appear on television on Fox News and CBS and other channels, he's been on a lot talking about what he's been doing to help restaurants in New York. He trains. He was admitted yesterday. He sold out of some of these positions that he jumped on the bandwagon with the reddits and he lost $700,000. Now Dave Portnoy is a millionaire and can afford to live $700,000 although I'm sure that was a hit for him too. At the end of the day anyone that trains, whether they have a lot of money or whether they have a little bit of money, you must know what you're doing in order to profit. This is just reality and I don't know why people don't understand that. I teach a class once a month. People pay me for my information to learn it, but they're also paying me to grab onto the skill set by getting the information that I'm telling them, such though that I'm telling you about Google for example and we're going to talk about it Amazon in a minute. They're paying me for my expertise. Trading is a skill. It's a skill acquired through experience and education and it's something that you have to learn in order to do it. Many people just, I think, think of trading as a gambling type of thing or get rich quick and that's just not what it is. If you have a small account, you have to build it over time. It's not going to take $500 to make a hundred grand a month. It's simply not realistic and if you believe that you're in crazy town, you've got to come down to reality. Can you make a hundred grand starting with a small account? Yes, over months and weeks and maybe years of time by building it up. Now let's go over to this guy here. This was the earnings. So a closed here, boom. Gapped down here. So this was the 27th. Gapped down here the 28th. This was last week. So anyways, this did this and then what happened? It rallied. I did not short this. If I had, I would have lost. I didn't go long it. If I had, I don't think it would have made any money either because again, if I had traded this, I would have done it as an option and I wanted to show you here. It didn't have any follow through. Typically, I'm doing weekly options. So like, for example, if I had bought calls in Tesla, I would have done it out till Friday. You see it basically was in a range. This gap down, rallied up. Open lower, dropped, closed, gapped up, rallied up. This pretty much went nowhere and actually if you look at this here now it's pretty much going nowhere because look at this and look at the market. That's Tesla markets near the highs. So Tesla was just like, unfortunately, like I said earlier, it's a fun stop to trade options in. We've done it a million times, but this really had no play on the earnings. So you cannot short every gap down and you can't go long every gap up. I qualify them based on a rating system. I'm very, very picky. I may do one thing a day or two. One thing a day or two. Now let's go to actually let's check out where this is going now. This looks good. Let's go to Amazon and any questions here where I'm talking and if you're interested in more information, go to my website. It's www.thes stockswish.com. If you want to try out trading room, you can email me at Melissa at the stockswish.com and give it to the trial of their trading room this week for Thursday and Friday. Ebays tonight we can look at that in a minute. But the most important thing I think when you trade is to have a consistent strategy and the most important thing for me and something I realized a long, long, long time ago is that I have to go with institutional money because they control stocks. They control the market. Even if you think they're not there they are. And I think that the GME is just such an unbelievable example of that because people swore up and down that that fund, that lost money which they did lose money I don't know if they got out of all the position or not that was the fund Melvin Capital. People swore up and down. They had killed that fund and the stock was going to push all the way up to a thousand that's not going to happen. And at any point in time other funds could have come in and shorted the stock and supported actually that Melvin Capital's position. Now, I don't know if that's what happened the other day but I think that funds did come in and short it whether Melvin Capital got out of it before that or not, I don't know. It was a poorly managed position in my mind how they managed it letting it run over the high. But as far as, you know, maybe other funds wanted to take out a competitor I don't know. But at any point several funds could have come in and slapped back on those traders and that is what happened on Tuesday morning and they stepped down. And there are still people that are long that stop that think it's higher and it's just not going to happen. Now let's look at Amazon this at earnings 2 you want to see it? Now this, okay I'm missing a couple of questions here I just say I detected based on the gap that's what I'm talking about Terry I go through 26 points in the morning when I see the pre market or you can do it at night with the post market actually you know what let's look at eBay because that's out tonight and again this has not gap yet it's going to have earnings tonight so it's going to gap it's going to gap up or it's going to gap down it's going to move that I can tell you it's 26 points that I look at that's what I teach in my class my class is February 13th and 14th not this weekend but Valentine's Day weekend if you want to sign up my class at $7,000 for two days you learn everything I know about the entries and the rating system and the structure of the system but anyways getting back to this what I go through as a process in the morning it doesn't take me 30 seconds I look at it each day and I go through all of the points on the daily it's not just based on red bars or green bars it's not just based on volume and actually I really don't do much with volume except to say that I really don't use volume for anything other than I won't trade stocks that don't have any volume so for example the AMC low float stocks I'm really not trading them why they can't move that much they don't move that much they don't have enough volume so all the stuff that's kind of getting slapped around like EXPR the AMC and stuff that the reddit traders are doing I'm not in those like I really don't trade those we trade stocks that you can just get your head around not only would you learn the system from me but like you can get excited about him oh ebay I love to buy stuff in ebay or you say Apple I love my iPhone or you say I love ordering food from them or prime whatever it's things that you can say you love or you hate again that you know that you can talk about I'm looking at the price action but I find that people really get emotionally involved when they're in a position where they really get behind it and again I call it conviction it's conviction like Google running up today for example you have to have conviction that this stock is higher okay let's look at that let's look at the ebay where is this right now this looks like it's barely moving today which is really funny probably because of the fact that this is has earnings tonight look at this this is like a snail here today so anyways this is just sitting it's butt here this is the 8 pair moving average on the black line okay so it's just this is hardly moving today my only explanation for this with the market breaking out that it's barely moving is it's kind of waiting to see what happens tonight now again here's the chart I'm going to squish it this is ebay running up running up running up ebay is an enough trend what's going to happen I don't know but again this is green today along with the market could ebay gap up yes it depends on the price that it gaps up I have to wait to see then rate it and what happens with these like the google and the amazon it may do something tonight and look completely different tomorrow so I tend to wait to the morning to rate and go through all my system and my process but you know you can look at them at night like if you're in California people that trade with me in California they don't want to get up at 6 am they really just come into the room right at 9 30 at the open you know you can wait until the morning to rate this now this could gap down I will tell you right now this is probably going to have play it's probably going to have a play through like I feel very confident I'm probably going to be trading this tomorrow but I'm not in it right now I don't take it beforehand I don't predict where it's going to gap I don't know I don't have any insider information I don't know what's happening in this earnings report I don't know what they're going to do I'm waiting to see the gap then I see it then I rate it based on the daily chart and I say are institutions going to come in and buy this or are they going to dump it are they going to dump it I'm going to be here with this Google it's getting bought it didn't even matter how big it was up it was up huge and it still got bought okay it still got bought anyways why people think this is higher they want to be in it they're long okay trying to think oh IBM this was the one that we did the other day that was really good we shorted this now what I was saying earlier really really really like to short more than I like to go long why longs take a long time to go just for the reason that I told you earlier there's no panic in a long okay now in a short or a gap down that rates good that we want to short again you could have done it put in IBM or short of the day trade we did both but in something that's falling that falls poof like this did here this was earnings too closed the night before at 131.65 boom open here in the morning this was January 22nd this was a great trade it opened here at 120.70 so I rated this I said this is going to get dumped it's going to sell off people are going to short this and sell it it's going to fall we shorted this as a day trade we did a put in it it worked it's just one day one trade you're in you're out that's it and whether you do an option in it or whether you do an equity trade and it really is up to you I like to do both but the thing is with the price point here around 120 you might have wanted to do a put instead of a day trade now I like to do day trades because I feel like I can maneuver myself more but for the put sometimes when something's at a certain price point over $100 people like to buy puts it's cheaper and you don't need margin for those of you that don't know anything about options I have an options newsletter as well where I just call the trades you can sign up for it you won't learn the system you just call you just do the trades but for this if you have a margin account you say Melissa this is super expensive I need millions of dollars to do it no no you wouldn't if you have a stock and it costs $100 a share if you have a day trading account an equity account a margin account you can get margin from the broker how much you get depends on what type of broker you're at if you're at a retail broker like a mare train you get four to one margin if you're at a proprietary day trading broker you might get ten to one margin so for example if you have $10,000 in a prop account on ten to one margin you have $100,000 in buying power so in a stock I have $100 a share like this and again I'm just roughing it out here say it was at $100 it was like around $120 you could have taken a thousand shares at $100 stock price with $100,000 in buying power with ten grand cash so you don't need a hundred grand cash to have taken a thousand shares of this or something else does everyone understand I find that people don't always understand margin but it is something that's very important to understand it's important to understand if you're trading on margin and quite frankly it is also important to understand with what happened with the GameStop a lot of people were taking positions in GameStop and some were taking positions that they were taking on margin and didn't understand what they were doing and that's part of the reason why some people are losing there and by the way that's also the reason that Robinhood made some of the restrictions because what they should have done and what they didn't do and I think her at the brand was a national margin and I think that that would have alleviated some of the problems that the broker had Robinhood but at the end of the day margin is something that all active day traders use even big professional traders do otherwise you wouldn't have the volume that you have in the market only people that are super rich should be allowed to trade are able to trade and that's just not the case if you want to learn more about margin you can email me or call me after the fact I have enough money to open up an account to have an origin account you can trade options you can open up an options account with those little $2,000 and you can just buy one contract which is equivalent of a hundred shares of something and if it costs a dollar you pay a dollar if it costs two dollars you pay two dollars okay which would be 200 bucks for example now that's the position you could take an account with $2,000 okay anyways this was a nice short to the sign actually this still looks lower too we're not in anything in the IBM but you can see here how this had the beautiful follow through this is pushing back now though here with the market any questions here at all if I'm going to talk about Amazon here before everybody go the websites www.thestockswish.com here let's I don't know if I can write in this um here I think Sherry put it in it's www.thestockswish.com but if you want to travel the trading room Thursday Friday you can email me at melissaatthestockswish.com two days in the room will give you a feel for what you do but really tomorrow is ebay I'm going to be all over that I don't know if I'm going long or shorted I really don't know unless it does something completely ridiculous we're probably doing ebay so you know you can come in the room I call the trades live in the room I call the entry, I call the stop um and that's the other thing I wanted to say too uh actually about the GameStop situation the fund that got hurt in this that lost money Melbourne Capital mismanaged their position in this now again whether they're all out of it they're not how much they lost I don't know we'll never know those details it'll never come out but the reality is that they mismanaged the position because if they were short this the stock was in a downtrend I saw what they were doing the reality is when the stock lifted over the high which was January 22nd they should have killed the position and if they had they would have lost a lot less and they would have here the 25th or the 26th you know or even this terrible day for shorts which was the 27th so you know it doesn't people always say oh I have a lot of money to trade I don't have enough money to trade I I've got to save up it's it's this that's the other thing no people that have a lot of money actually can make mistakes do and hedge funds can make mistakes wealthy people can make mistakes you've got to not only know what you're doing as far as the strategy you also have to have proper money management one bad trade can wipe you out even if you're a hedge fund certainly if you had if you're one individual trader and you have a small account so you know you have to have good money management for me I use stops so my money management is I just put a stop in when I'm doing a day trade like IBM IBM was shorted it worked if IBM would have flipped failed rally I would have lost on that day but I didn't lose but I would have and I would have just lost the amount that I risked that's it I put in a stop it's a hard stop I call it a hard stop it's a limit order stop and when I do an option I can't lose more than I risk so if an option cost like I said I'm just making up a number if an option cost a buck and I want to buy 50 contracts what will that cost me $5,000 I can't lose more than $5,000 it doesn't matter what it does and for me then the total position is my stop I don't kill it in the middle of it if it's not working or if it's down I let it right out I give it to the expiration date I just let it ride and I'm doing the weeklies but you have to have money management to trade and more importantly you have to have a strategy there was no strategy here for the reddit traders that were buying this that's why many people lost and as far as the hedge fund there was no money management because they should have gotten out of the short position when the stock lifted and went over the high they may not have known why that happened before all the news became public of the reddit traders that were buying the stock but the fact is it doesn't matter once the stock lifted over the high they should have killed it and that is going to probably happen here too I know I came in late and I was having trouble with the computer but I just want to say one thing I'll let everybody go that's going to happen here it's probably going to happen here more so more so in the queues because day trader shorted this today they shorted it it fell we set the date to 10 o'clock here people shorted this I think this is a good entry short in the market it's ridiculous the market's higher it's going to make a new high in the next 24 to 48 hours the market's higher and that's all I have to say um any questions okay thank you Sherry yeah you can email me at Melissa the stockswush.com if you want to trial the golden gap class is where I teach my strategy the class for February is February 13th and 14th email me if you want to sign up you want to go to the website it's www.thes stockswush.com the class is $69.99 that's $7 grand everybody pays the same you must take the class to join the trading room and if you just want to trade options you just sign up for the options newsletter it's a newsletter the trades get emailed to you again we did QQQ calls we did spy calls we did google calls we even did amazon calls so we'll see where this puppy is going to go to thank you so much for having me let me see if there's any last questions thanks so much everybody stay safe