 three minutes. Whoops, make that two minutes. Starting in two minutes. Again, thank you everyone and welcome. This is online Trader Central. Your host presenter again today, Melissa Armo with thesockswish.com. Okay, let me know. Can you see the screen? I have everything set up, Kathy. Can you see me, the screen? Hello everyone and welcome. Last person to join was Trader Gal. We do want to thank each and every one of you and welcome you to the presentation today, which is starting very soon, like now. Again, thank you everyone and welcome. Let's get the percussion section drummers. Are you ready? Okay, and please cue the trumpets. And without need of gentlemen, please put your hands together and welcome our host and presenter today from thesockswish.com. Please welcome your host and presenter today, Melissa Armo. Thank you. Thank you so much, Kevin. And thank you online Trader Central for having me. Welcome. It's great to see everyone. Can everyone see me? You're actually going to get to see me talk live, which is, I think, a better experience. And then if you have questions, you can write them in the room and I can see your questions and answer them as we go along today. Today I'm going to talk about shorting stocks. And I prefer to short stocks. It's not that you can't make money going long stocks, but you know, the interesting thing is I was thinking about this this afternoon. I actually prefer shorting stocks as day trades because the moves happen fast, but I think I prefer going long options, which is which is weird. I've just kind of realized that this year. So my mentality really is to short stocks quickly for the panic action. We're going to talk about that today. But then in my mind, I think I really like to go long if I'm holding something overnight. And I've had some good success this year with going long some options where I was holding overnight. And so I think everybody has to pick something that they like to do in order to be successful in the market. You have to believe in it. You have to have conviction in it. You have to like it. And one of the reasons that I like to short is because of the panic action that comes into stocks quickly in the morning. So we're going to talk about it today. So feel free to just write any questions in the room. My name is Melissa. I'm on a company called the Stockswush. If you'd like more information, you can always go and email me, Melissa, the stockswush.com. I didn't go follow me at any one of these places. YouTube is a great place because I have a lot of videos on there where I talk about the market and all the webinars I've done are on there too. You can go and subscribe to my YouTube site at the Stockswush on YouTube. So let's get going. A lot of people ask me, can you make money shorting stocks in a bullish market? The answer is yes. Now I started trading at the end of 2008. And at that time, the market actually had taken the dip from 2008 into 2009. And I really started creating my system in this period in here when the market was in the downturn. And then the market started rallying in 2010 into 2011, 2012. And the market really just had a huge move from 2012 into 2013. And then we made brand new all-time highs in the spy, just continuing along. And we were up at almost 215 last year. Now I know the market's fallen the first two months of this calendar year. I squished this together so you can see back a long time. But the market did fall in the, this is the S&P chart. This is a spy. The market did fall for the first two months of the year. But we held the uptrend. Okay. The only way that we would break the trend in the market in the S&P right now is if we broke through this level. And I don't believe we're going to do that because we were so close to doing it a couple of times this year. And we didn't, I believe we hold. Now what if we, what if we break this? So we do the will be in a downtrend. And then really in order to make money as a day trader, you'll need to know how to short. But the interesting thing is, can you make money in a bullish market? Yes. And I'll tell you why. Because even still, if the overall conditions of the market are strong, when stocks want to sell off, when panic comes into a stock, people get nervous. They get excited. They get stressed. They, they, they, they are losing money usually. Okay. So they sell and I short panic action. I short into the selling. So what happens is you can make money in any kind of conditions if you have a good system in order to short. So even though we seem like we were falling this year, we're still in a bullish market. Okay. We have to get going here soon. But, but whether the market's bullish or bearish, if you have a good system to short, you can make money because I'm looking to do it as a day trade to quick it out. But I do believe that actually, if you're in overnight, it's really better to be in the longer term trend of the market. Now let's talk about shorty and making money trading. You know, as I was saying earlier, I like to be in and out quick. The one thing that's nice about doing shorts, and I'm constantly reminded of this in the day, sometimes when things go so fast and sometimes they go so fast, I might even miss something in something, you got to know exactly what you're looking at right of ways. If you don't have the pick and have it up to get the trade and know you're doing pre-market, it can go without you. And sometimes it could go and be your whole goal for the day and happen in five minutes. So what I like to do is prepare in the morning for what I want to trade before the market opens. So I usually get up about 8, 8.30 to start looking and scanning for things. And then I go through my process of getting ready what I'm going to trade. And trading only takes a few hours a week. This is another nice thing about it too. You don't have to trade till four o'clock. The system that I trade is in the morning. And I'm going to talk about why here in a little bit. So can you make a lot of money shorting? Yes. Again, because the idea conceptually of shorting into the panic action that happens and comes in very quickly in stocks. So if you're trading right now, you're not funny enough success. It might be because you're really not specific enough with what you're doing. I focus on just one strategy. And again, as I said, I prefer in one direction, although I will look at longs. Now here, let me just move this. What I like to do is a strategy called gaps. Now I'm going to explain to you what a gap is. So this is a gap. When the stock closes at one price here the night before, this was HRB. It closed around 32 something. Then it had an earnings report and overnight then it gap down and it opened like a 29 something. So a gap is when something closes at one price the one day and opens at a different price the next day. And that's all a gap is. It could be a gap down or it could be a gap up. But in this case, it was a gap down and today we're talking about shorts. So anyway, it's a stock gap down. Now this red bar here depicts the selling action that came into the stock on the day. It sold off. It actually went to the dream target. It sold off more than $2. High on the day was actually almost 30 and low in here broke 27. So it was a $3 extension from the high to the low in this day. And this is panic that came into the stock on the day. It's selling action. So as a trader, you would look to short it to short the stock to make money. Because if you go along the stock on this day, you're not going to make any money. And by the way, this was a short today. And we're going to talk about that too. And go ahead. Anyone can ask any questions in the room there? I can see your questions where we're going along. So it's about the focus. The focus counts with what you're doing. It doesn't really matter what you're doing as long as your focus and know that it works. So you have to have a plan of action and say, I'm going to do this stock or I'm going to do this stock. What you don't want to do is go into the day and have like 10 things. And then you miss the trades in all of them. One individual can trade the market successfully as a career with a dependable method. In order to reap the rewards, though, that the market has to offer, you need a quality system to follow. The central structure of the trading results must be a strategy with a solid foundation that is based on accurately reading price action. And I do this in gaps, as I was explaining. The other powerful factor in being consistently profitable is having an edge. And shorting, I believe, gives traders an edge. Not that many people know how to short well. And many traders just don't know how to do it, or they just really don't even understand it. And even the ones that do know how to short, just think at it. I don't know why, but for some reason people prefer to go long. But the fact is that you can make a lot of money quickly shorting, because you're shorting the panic. And there's just this mentality, people love to buy stuff. Now this was a long, actually, I'm showing you here. This was a bullish gap. This is still a gap. And it was a good gap. And it was a long from the other day. This is urban. URBN is a symbol. The stock did gap up and it was long. It was a good bullish gap. You could have bought in on the day. And it actually went to the dream target of 33. But at the end of the day, many, many people, for some reason, just prefer to do this kind of thing. They prefer to go long rather than short. And so I'm saying to you that if you learn how to short, you'll have an edge because many traders out there, whether they're day traders or swing traders or court traders, don't know how to short well. They're scared to short rallies. They won't short aggressively right away into the open. They don't know where to short or if they short stuff, they're shorting stocks that are, that they think are going to like fill a gap, like for example, this, which didn't do. Okay. Why? Because this was a buy. It was a good bullish gap and up gap. And that's a talk for another day. But I'm just saying a lot of people believe that even if they short, they're going to short something that does like a fill. Like a lot of traders probably thought this was going to drop into the support and fill the gap here, which is this is a 200 pair moving average from, from the daily chart is a daily chart of urban, but it didn't, it didn't because it was a long. So even the people that short don't even get the shorts right. So you really have to learn what to short. Okay. And this was not it. This was a buy. Now who's shorts? Some insiders indicate that it takes a certain type of person to short stocks. Many short sellers have been depicted as pessimists. That's definitely not me who are rooting for a company's failure, but they've also been described as disciplined and confident in their judgment. That's more a description of me. So think about where you fit into that. Also, maybe you are a wealthy, sophisticated investor. I don't know if you run a hedge fund, but hedge funds short, large institutions short, banks can short and day traders. And this is what I am. And if you want to learn my method, you can become a day trader, but you can also do overnight shorts. But I was, as I was saying earlier, it's really important. I think if you're in a long, long term that you got to know that that stock is truly weak or you got to be with the overall trend of the market, which right now is up. Now what is a short short selling is a selling of a stock that the seller doesn't own more specifically a short sales, a sale of a security that isn't owned by the seller, but that is promised to be delivered. That may sound confusing, but it's actually a simple concept. When you short a stock, your broker will lend it to you. It's called a pre-borrow. The stock will come from the broker's own inventory and they have to have it, so you have to have a brokerage account that has good short access. Okay. So they'll barred from another one of the firm's customers or from another brokerage firm. The shares are sold in the proceeds or credited to your account. Sooner or later, you must close the short by buying back the same number of shares it's called covering. So it's called a buy to cover when you exit the short and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit of the difference. So you're betting that the stock price is going to drop. So you would short a stock, for example, at $10, you take the position in the short, and you're betting that the stock price is going to go under $10. If you short it, if it doesn't go under $10, you're not going to make any money. Okay. So it has to drop. So if the price drops, you can buy back the stock at the lower price and make a profit on the difference and you keep the difference. So if it's at $10 and it drops to $9.50, you make $0.50 cents. If the price of the stock rises, you have to buy it back at the higher price and you lose. And I use, I use stops when I trade. Okay. Putting in the stock saves me from having unlimited losses. Now let's go back in here. So again, what is a short? This was a short. Okay. The stock price, again, you're looking at this HRB, that's a ticker symbol on the daily chart. And I have a method to find shorts, good shorts of the day in gaps. So you are betting that this stock on the live day on this day was back on the fourth, which was Friday, you're betting it's lower. Okay. You are betting that this thing is lower. So if you take the short in here, you have to know what the target is to get out, which I teach people and I have all figured out before the open and you're betting it's going to go under it. So if this open, for example, I don't know the exact price of the open, say it was $29.35, you have to be betting that it's going to go under $29.35, if you're making money shorting it. Here's another short, LinkedIn. LinkedIn had a gap, this was back, this was a crushing gap. Again, an example of panic and selling. The night before, this was earnings on LinkedIn. The night before the stock was worth like $190 and change. On the day of the gap down, the stock closed at four o'clock at $190 and a gap down here and open like at $125 something. This was unbelievable. So over the time, literally this was at four o'clock at night. This happened at night, this earnings, it wasn't in the morning. The earnings reported the stock lost from where it closed at four o'clock to $930. Look at this. You don't see these things all the time. You see stocks gap and lose money, but this is a crushing, crushing gap. So my prediction is the stock does not recover the rest of the calendar year. Now, if you are looking to do this on the day you could have shorted it, it had a huge, huge move. In fact, it eventually then came down here and broke this area at $100 point. So again, you are, you are shorting panic because if you own LinkedIn and you own the stock wherever price you bought it, okay, I don't have the whole daily chart up here, but if you get up in the morning and your price that you own the stock is above $125, you're down. And chances are people did. Why? Because of the fact that gap down, Jimongus, okay? This is a crushing gap. Does anybody have any questions so far? Anyways, a lot of problems have, one of the other problems that traders have is they see something like this and the stock rallies and going back to what I was saying about the gap fills. People think this is going to fill the gap up here. This will even go anywhere near there. And this is one of these things that you just don't see that often. But it really depicts that LinkedIn and even the HRB, it really depicts panic, panic, panic, panic, okay? It's panic action it's selling. That was a huge bar in HRB all day long from the high and the low to drop $3. Huge bar in LinkedIn from the high and the low, it was like 125 and the low was like 100 something or whatever it was near the low. If that's just a huge amount of drop for the stock on the day and that's panic. People get scared, they don't know what to do and they sell out of their position, okay? And the panic sets in fast. So this is why if you know how to short as a day trader and you know what to watch and you know how to take the position quickly to get in before the selling comes in, you can make money. So you got to become an expert and take advantage of what you see. But again, it's the preparation. What are you looking for? You've got to get the right pick. Then you got to watch it. Then you got to strike, okay? Because it happens quickly. So all in all, this kind of thing, you've got to watch it. Now well in the case of LinkedIn, you actually could have shorted this probably a million times in the day. It did close very near the low. But usually what I like to do is to take a position early into the open and get out. So sometimes you could short a stock all day like this. But usually what I like to do as a day trader is trade the morning and be done. I find that a lot of times people give money back in the afternoon to keep trading. So I teach a system on how to find stocks that are gapping down to short. Not every stock that gaps down can you short. Obviously, otherwise you just short every gap down and they would fall. And you can't buy every gap down for a gap fill like many people think that doesn't work either. You have to have a specific criteria that you're looking for that you are predicting that the crazy panic is going to come into the stock on the day because it doesn't always come in. It doesn't always come in on the live day. So I created a rating system. And the rating system tells you that the stock is shortable in the day. The purpose of the system is to help you evaluate which gap to trade each morning using a checklist. So I only trade gaps. I am not doing anything outside of gaps as my strategy. The philosophy behind the 26 points is what? I'm looking for something as a high probability of directional bias for the entire day. In an ideal world you'd be able to get it into a big move. Big moves on the day. Again, dollar or more is what I'm looking for. And this is funny because there was one today. I'm going to show you Groupon. I never thought it would move the way it did today. And it ended up having a big move. You just never know. You could get the cheapest things in the world. They end up having big moves. And it's because of the power of the gap. And it's because of the idea of the panic and the sell-off. I'm always looking for early confirmation of my bias and the move between 9.30 and 10 a.m. And I'm looking for precise entries with follow-through and a good risk to reward. And I was thinking about this today too. I was even contemplating this today. And I was teaching the trends class this afternoon. And I thought, gosh, you know, if I'd gotten greedy with my trading of my expectations. And I was thinking about that myself. And then I started to think about it. And I was like, you know what? I think anything where you double your money is actually a great trade. Talking about trading, sometimes we talk about it. And it's not the same as investing. Like if you would invest money in something and you would put it in the bank. Like if you went to the bank tomorrow morning and you said to whoever, Mr. Banker, I'm going to give you $1,000 today. If you could go in the next day and pull out $2,000, you would be in love with yourself. You would be in love with the bank. You'd go there every day and deposit anything and then some or whatever day that called you and say today is the day. And then I started thinking about it. And I'm realizing it, trading is the same way. Anything you can take where you could double your money in the trade is actually amazing. And I'm starting to process that in my mind here now, starting to do options this year, but it's true for day trading either. It's the same thing. You put in your money, if you can double your money in it, that's good. And just, you know, this is something that I was even thinking about myself because my expectations sometimes in my trains, I think, are Jimongous. And I was thinking about that when I was teaching the trends class today. Anyways, let's talk about the checklist. So I get up in the morning and I'm going through and I scan my stocks and you can buy a scanner if you want, but I just use my platform. My platform has a list of the top 20 stocks in both the exchanges and I just go through them. And you can look at Yahoo Finance and look up the earnings reports to see what's reporting, as I find LinkedIn or even the HRB. Okay. So I go through the checklist and I just rate my gap in the morning. The philosophy behind the golden gap system is I'm looking to analyze a large time frame to make the trend decision on the directional bias for the gap. All large traders of every kind look at large time frames to make decisions, particularly institutional traders. This would be someone that works for a hedge fund or works for like JP Morgan Chase. Okay. And I'm looking to make entry decisions and exit decisions based on a small time frame in the one minute chart, which has a high degree of focus and accuracy. Using the daily chart to make the decision for the stock pick allows for accuracy in the direction. And using the one minute chart allows for good risk to reward trades with accuracy. Okay. Which is what you really, really want to find because sometimes, like I said, these things set up very quickly. It's a benefit of shorting, but you got to know what to look for to get it. So I was talking about this earlier I was saying about, you know, big hedge funds and traders. This is one of the reasons why you get something like this. Okay. I like to trade gaps as a strategy because institutions make these gaps. So what happened here? There's no way on the planet that this stock would have gone from 190 something down here to 125 overnight. That's when it happened at night without being sold off heavily by institutions. So that that's what I'm talking about here. This is where I get a lot of conviction in my 26 point rating system because it looks at the daily chart of the stock rates the gap. And I'm looking for a rating of 20 or more. And I'm looking to see with the rating system, if institutions are selling the stock, which happened in LinkedIn or buying it, which happened in the one that I showed you earlier, the urban, because this is how you get this kind of move and momentum. And this is how it makes it easy to trade. And you know, some days when you train, I just say, well, the market just gives it to you. And then some days you feel like you're struggling. Why? You've got to get the pick right. It's all about the pick. And I usually have a couple of things I'm watching. But this is an institutional sell off. And that is the other reason here. Well, I really, really, really like this to go lower because institutions would not have sold out of the stock, made a drop down here $60 plus. And they're not going to buy back into it because they just sold it. They said, pooh, and they're done with it. So this is definitely lower. In fact, my dream target for this on the year is that it breaks a new low under $60 and could go to 30 bucks. I don't know when that happens. But that's my call for this for the calendar year in 2016. I mean, this thing is just done. All right, does anyone have any questions while I'm going through here? Let me see. I'm going to keep going. So precision and detail matter. This is the point I'm trying to make. You have to be accurate. It counts a lot. Okay. Specifically for your day trader because you're in and you have to be out by the end of the day. Also, you need a quality strategy, good risk to reward the right entry, the correct size, and a proper exit. So being successful in the market takes detail and it really takes a certain level of precision. And details matter. It can make a difference if you're making a lot of money losing one day or making no money at all or being up in something and not getting out because you don't react fast enough. You have to learn what to do. And not only that, you have to implement it and do it. So a trained eye is very important. And I've trained my eye very well. And this is the main thing I think that you'd learn from me. You'd learn how to look at charts differently. If you've been trading and losing money in the market and not getting things in the correct direction, you would learn how to look at charts differently in my class. It's a huge benefit of coming with me. I really have a certain way that I look at something. It's like if you could jump into my brain and see the way that I see something through my eyes, it would change the way that you view the market and stocks. The market is higher. And I think I'm probably the only person that's been calling that after the first two months of the year, but it's really going to make a brand new all-time high again this year. And hardly anyone believed that. I have trained my eye so well to read directional bias in stocks because of my gap reading system. And that's what taught me how to do it. It's because when I look at a chart, I go right to the gaps and it tells me where the stock is going to go. So I focus on where the momentum is. And again, this goes again when I'm saying about the institutions. Are the institutions going to sell that stock? Because if they are, you can short it. And you can short it and make money. Now let's go over HRB. This was one from Friday. And here it is. Gap down. And by the way, this is another one here that is a longer term short. This is another one here that is a good gap. So what happened in this? Stock, this is a one-minute chart. So now we're on a one-minute chart here. This was the daily before. Stock closed up here around $33. Gap down. Gap down here to around 29 something or wherever it opened, sold off. So the sell-off in here actually was really good in the morning. It sold off 50 cents, but then it blew over the high. It held $30, which was good. Then it dropped. Then it pushed back. You could have taken a couple of different entries in here, but after this kind of thing, you want to wait. Anyways, the entry on this in here that I called to the room was here, right there. You short it and it went right down to the number. Now the normal target on this was $28. Okay? It actually broke 27. You can kind of see here, you had to hold it all the way down, but this is the morning trade. And I really think it's very important to trade in the morning and be done. Every once in a blue moon, I'll do an afternoon trade, but it's not that often. I think if you can make money in the morning, you do it. And if for some reason you take a trade that doesn't work in the morning, the best thing for usually to do is to stop. You want to limit your losses and have a set amount of trades that you take per day. And we all have bad days some days, but you got to really have a structure at least for the most part on each week and each month where you say, this is this is the amount of money that I'm going to risk. This is my goal. I'm not going to go over this. And if I'm up my goal, then I'm going to limit what I'm risking after that. You really have to have money management. Okay? Anyways, here was the entry on this for the short. And then here was the exit, but it did drop another dollar. So if you wanted to short this stock and take an advanced risk, which you don't have to do, but if you did, you could have shorted the stock of my college was 2879. Okay? Stop was 2905. So the risk amount is a difference between the entry and the stop. So you're shorting it here and putting the stop over it. It's about 25 cents. This is how I size myself basically five and 10. 25 cents. So at 4000 shares, it would have been a thousand dollar risk. You don't have to take this. You could take 1000 shares. A thousand shares would be what? $250. If you took a thousand shares and was $250, you would have made 790 bucks. That's a nice amount of money to make, you know, $750 a day. It's about almost four grand a week. It's like $3,800. Anyways, if you did this and you risked a thousand, it was a nice, nice three R trade total profit was 3,160 for this risk, which is over three risk units. And remember I was talking about risk to reward. And I was just thinking about this today. Anything you can do where you can double your money is good. And obviously, then anything you can do where you could make two, three times the amount of money or more is really good. Time and trade was 10 minutes. Now, let's go back and look at it. So again, this isn't even the aggressive entry because the stock flipped here like this. You could have shorted it here or here, but this is just a normal entry. The aggressive entry was back here. You could have even taken it sooner and been up already. Okay? But this is where I made the call. Now, does anyone have any questions about that? Now, this, I did do today and really, I could have held this longer, but I just had no patience today. And that's why I like to short too. I'm very impatient about making money in the market, but this stock here fell today. I don't think it closed and broke the low. But this is heading lower. This is going to break this area here. This tail from the day of the gap will be broken. Do you see here how the stock can't even get over anything here? This stock is so weak. It looks like it's about to fall off the planet because it can't get over this at all. Like it can't even retrace 55% of the bar of the day of the gap down in a week. So anyways, this was a good short today. And sometimes what happens is you could short the stock the day of the gap and watch it to play it on through till whenever it keeps going. I mean, whenever the, when the next drop off is anyways, here was a short in this this morning. So this is on a five minute. You can trade on a one minute or a two minute or a five minute chart. Anyways, the stock on the day here opened rallied up first was watching other things. This dropped broke. You could have actually shorted this and been in it way, way sooner. But anyways, here's the drop falls. Here's the entry in here, 81 82 wherever you can get it. I gave it a good cushion for the stop over 28 and then it dropped. Okay. So you could have actually been in it all the way down here. I didn't hold this through the afternoon or late morning. Like I said, I like to be at early, but the stock actually ended up breaking 50, which was one of the targets on the day. And I think it broke and went down to 45. So price of the entries 27 82 this stop, this was today's short was 2805 risk is 20 cents of 5,000 shares. If you risk an advanced amount, which is $1,000 exits 2762. So you could have made $1,000 on this. And this was just one quick move. So again, talk about what I'm saying. Sometimes you take a trade just for a move. It's a good trade if you can double your money. Now, you know, this did end up going though. Like I said, it went another 15 cents down, but you would have had to have the pushback. So what you could have done, again, I just did the morning one had been done, but you could have gotten the drop in here, taken out the profits, let it rally back. There was another short in here. Do you see this drop off in here? So you could have actually done it twice. So you could have done it here, got out, watched it, did it again, got out, because this thing was really going to hold the red of the day and hold the weakness today. But the amazing thing about my system is the follow through. Why do so many gaps that I short follow through? Because panic comes into stocks. It often lasts. When an institution sells their position, they're not going to buy back right into it. They sold out of it. They're not going to turn around and buy back right into it. And usually what happens is some people see this and they don't understand. So they might understand this and they might think, maybe they don't get out this day. Okay. So a regular person might have may have no idea of this. They're still in this thing and they don't get out the day of the gap when an institution sells it and they wait and then every day looks worse and worse and worse. And then they get out of it. Then they get it out of it late. And they obviously lose more than they originally could have lost. Okay. Which is often why these things, you know, keep going. Does anyone have any questions so far? Are we good? Quiet group tonight. Very, very quiet. Okay. So how does the time of day fit into it? That was the other thing. It's about the time of the day with institutions who are making these moves. Institutions take positions on and off into the open. Like they have it planned out. They're going to sell, you know, 2 million shares of HRB or whatever it is, or they're going to buy 2 million shares of urban. Okay. So the most lucrative time of the day is between 930 and 10 a.m. Eastern time. Stocks make 80% of the moves on the open. I have found this to be so, so true. I mean, it's like, I could go back and look at 50 or 100 gaps that I shorted. 80% of the moves happen in this 30 minute period. And again, this is why I just like to trade the morning. So the panic action happens to come into the stock into the open when the stock is gapping down and people panic and sell as a result of the gap. And so you want to short on the panic selling action to make the money. Now, here was the one from today that I just really couldn't even believe how well it went. But this is Groupon. Okay. So this was a gap down today. The stock closed here around, this is the night before last night around 455 or whatever, open in the morning here at 430. It opened and just sold right off. This was a nice short today. And I never thought it would have this kind of move, but it did. And it actually had a good risk to reward. So what could you have done with this? This is again a one minute chart. So you find this Groupon and know that it's a short based on the daily chart using my 26 point reading system. You're not in it yet. You wait, you wait for the open. You don't know if it's going to work until the open. Here's the open. Okay, this is 930. It's a one minute chart. So it opens, boom, drops. You could have done this immediately. Anyways, it rallies back here. And this is what a lot of people don't know what to do. A lot of people will look at this and they'll buy it. They'll buy it. Think it's going to rally fill the gap. And is it long into support? And somebody did buy this here. This, these, some of these people that bought this here is what makes this big red bar here because these are people that are getting stopped out them when it breaks the low. But I'm looking at this never, never, never as a buy. I'm looking at this as a short because it rated well. Okay. So you have to go with the rating. Anyways, Groupon, you could have shorted it here. Stop over here. This was a very tight stop and it dropped. Target was $4. Low in here is $4.05. But till you taken it out of it, you know, you're getting out of it in that tail. Anyways, you could have resorted it even. You could have even resorted in the day. I never thought this would go so well. If you were a beginner trader and you never traded the market before and you had a very little amount of money to risk in the market, you could have done this trade today, risked $80 and more than doubled your money. So the price of the entry was 4.27. Stop would have been over 4.35. You would have risked 8 cents. So the difference is between the entry and the stop on a thousand shares. It's 80 bucks, $80 you could have risked a thousand shares is a good amount. It went down to 405. But you till you hit out of it would have been like 4.10. Target was 4. You could have more than doubled your money because 160 is double. So what I'm saying is here, if you can take a trade in four minutes and double your money, that's a good system. You have to be able to get the pick and know how to take the entry and know where to put the stop to size yourself because you cannot take an unlimited risk. You can't take umpteen thousand shares of Groupon and have no idea how much the risk is because what if it poops over the high here of this bar? Now it didn't. Okay, it did not do that. But I'm saying you have to still put in a stop because there's risk in the market. So this kind of trade, you know, we see every day, every single solitary day in gaps, you got to know what to watch to do it and the idea of doubling your money in several minutes actually is is really lucrative. And I was thinking about that for myself today. Sometimes it's not about getting into some crazy number of dream target and even something like this at a four dollar price point is shortable. You can short it with your broker and can even have a ginemungus move like the stock did on the day. And it's about the entry. It's about the entry and the risk to reward and then it moving. Does anyone have any questions about this so far of anything I'm talking about in here? Okay, so this is for a beginner. You can you don't have to be risking some crazy amount of money. I think people need to learn how to do it. Find the right picks. I teach you how so you can do it yourself. Learn the entries. I teach you how to do that. So you know how to take it and you got to learn how to size yourself. Okay. So a lot of people ask me how many gaps per week during each quarterly earnings season, it's three to five quality gaps or more. Okay, that's, that's actually good. Now in non earning season, you're going to have less in non earnings season, it's three to five quality gaps per week. So you have to be very picky. A quality gap is one that rates high enough to trade based on the 26 point rating system. Again, I'm looking for 20 points or more. I don't need a perfect score in something. So you need also a plan for booking money quickly. These stocks can move very fast. Know where you're getting out. I have a sheet I fill out every day and I figure out the targets. You need to know where your exit is either monetarily, the number of ours or the target. So in order to be successful, you really need the right business plan. It's just, it's just really ultimately about making money. You want to make money. And sometimes we have a business plan and we have it and we use it. And as time goes on and we evolve, maybe we change it. You know, none of these things are set in stone. The conditions of the market can change. Your risk tolerance can change. It could grow. And you may then want to change your money management plan. All of these things are in process. They're, they're working, you know, pieces of art and you're doing it. But the main thing, which is the strategy and you have that set and what you're doing, looking for the entries you've got to have, you have to risk the same amount per trade of every trade. If you want to change it and redo your money management plan, you can do that like on a quarterly basis. I think a good time to look at your risk and your trades is at the end of each earning season. Doug is asking me a question. Have you ever had problem fills of quantity, i.e. partial fills on four or 5,000 shares? Yes. Well, first of all, you never press the button and it all gets hit at the same price. If I press a trade with 4,000 shares using night, okay, I'll get filled with night, but it'll be like, for example, if it was, if it was, if I pressed it to short something at 2785, all my orders are not filled like in one big clump at 2785. It's like a million different things would be 300, 400, 500, 200, 100, and they would all be multiples of 100s of pennies. That's how you get filled when you have size. So I think it all ends up being close to the same number, but every once in a while I will do something and I press it. And this is usually if something's down a lot. If something's down a lot and I press it and I want to take a big size like 3, 4, 5,000 shares, maybe I don't get filled the whole thing. Maybe I get filled like 3,354 or some weird number and then the rest sits. Usually what I do is then I kill it, because if the stock's dropping quick, that's usually when I wouldn't get filled and it drops so quick that I'm up already in what I took that I don't want to get filled worst price in the rest of the position. So then I have to quit kill it. Now, if it sits there at the number, you can do it, you can just leave it there, but a lot of times if I try to short something like a 2750 and it doesn't fill me and it fills me in an odd lot and then it starts to go, I kill it because I don't want to add to the price then because I size my risk for a thousand dollars and it fills me 25 cents into the position, then my risk is more than a thousand dollars and I'm already up in the trade with what I took. So hopefully that answers your question, but yes, when you trade with size, you get filled sometimes partial lots. It does not happen a lot. When it does happen, I usually kill the rest of the order. If it sits at the price, I let it be. If it backs up, then I try to get filled the rest of it, but usually when it happens, it's because the stock dropped so fast into the order that I'm upright away, so then I really can't scribble about it because you're up fast when it happens. Usually when I don't get filled full, it's because the stock dropped so hard that I didn't get filled. So it's not like a bad problem, but it's usually never like where I don't get enough. And like I said, when you take a position and I get filled right away, it's still in multiple increments off the pennies, but that's just normal trading. Same thing when you get out. Okay, let's talk about risk to reward and trade results. Good question. So what is a good risk to reward payout? Anything that doubles your money or more? And this is what I was thinking about all afternoon. Anything that doubles your money is a good trade. So many people can't even take trades that are winners. So think about that. Okay, think about it. A system that can double your money, just like I used the example of going to the bank. If you went to the bank tomorrow and gave them $1,000, could give them back on Friday, get $2,000, would you do that? The answer is yes. So what are your goals? If you want to do this for a career, and I'm just using a number here if you want to make 100 grand a year, some people don't need to make this to survive, some people need to make more than this to survive. But if you wanted to do this as a career and you really wanted to get serious about it, what kind of risk would you have to take to hit this mark? Well, $500 a day is $2,500 a week. And this averages out to be $130,000 a year. Now $500 a day is a good amount of money to make. What do you have to risk to get to that mark? I'd say between $300, $400 if you want to hit this mark. You're going to have to cover some losses with this. Some days you will lose. And then some days you might make $1,500 instead of $500. Now, if you make $300 a day, that's not quite 100 grand a year, but it's still $70,000 a year. And if you're doing this part time or you're working from home, this is still a good amount of money. And this is $300 a day profit, $1,500 a week. I really believe that people that trade with me should be able to make $1,500 a week on an average week, not a fabulous week, unless for some reason it's a bad week. $150 a day is what? $750 a week. And this is, again, a small risk. I just showed how you could have risked $80 and made $170, 80 bucks. And you could have doubled your money. And this is almost 40 grand a year. And this is a nice extra part time income. So to be able to make $39,000 a year extra income working part time hours, you're only working about an hour in the morning is really good. And if you can get to the point where you are a successful trader consistently making money, you can make six figures that you're doing this, but you got to get serious. You have to have the money management plan. You have to have a system. And I truly believe that shorting gives you an edge as a trader to do it. So I can teach you how to make money shorting stocks, you use the rating system, and I teach you the entries and then also the targets. So the class that I teach is called the golden gap course. The golden gap course teaches a 26 point rating system to find the best stock to train each day. That's how you get it. If you miss it, it's over. Perfect example group on today. If you didn't get that short of the morning, you didn't get it. You've got to know what to do right away. The course also teaches you how to enter and exit the stock on the day to get good risk to reward trades. The course teaches you price analysis and technical analysis on an advanced level. And the course teaches a more proficient way to read supporting resistance in the right direction. The course teaches you to focus on one strategy in a detailed manner so you can become a good trader. And ultimately, this really has to be your goal. I know we all want to make money, but really, if you're a good trader, you will make money. So your goal has to be this. The money will come if you get good. If you get good at seeing the shorts before they set up, you're going to make money. So you've got to get good. And that needs to be your goal. And how do I do it? I use the checklist. I get up in the morning, I rate the gaps. I go through however many there is, I do it. And again, you can use this for bullish too, but I like the short because of the fact that I really feel like I get an edge selling into the panic action. And that's another question here. Do you look for stocks with plenty of average volume or open interest? And what would that minimum look like? I just don't I just don't trade stocks that are too thin. It's not like I have a set thing, Doug. I mean, to me, anything that trades less than $300,000 on the day is too thin for me. So that's really the only criteria I have. If the average volume in the stock is under 300,000, that's just too thin for me. That's really the only criteria I have for that. And I just look at the daily chart and go back and look at the look at the daily bars to determine it and look at the volume. I'm like, I'm not doing penny stocks. I'm really not shorting things under two bucks. That's really the only things I'm just looking at about 300,000 average. And most of the stocks that I do are like that. Sometimes I pass on things that are thin and that fall, fall like bricks, and I don't do them. And then I say, why didn't I do that? But I mean, it's just to me, it's too risky when they don't have enough volume. But I mean, I've seen low volume things just drop like bricks. So is the class that I teach beginner advanced? The class is advanced. It is an advanced class that I teach. It's a 16 hour course. And so you learn a lot. I think that this is what you need though, in order to make it. Someone emailed me the other day, I felt sad for the person. They said, gosh, Melissa, I feel like I wouldn't be smart enough. That's not true. I allow free retakes from my class. Anyone can do this. Even if you have no knowledge about the market, I can teach you. And I can be patient with you and you can be patient with yourself. And if you signed up for the class once, you can retake it as many times as you want to for free. So you've got plenty of time to do it. If you don't get every single solitary piece of information in the first class, you can redo the next one and the next one and the next one. So don't worry about it. This is something that is a skill-based system. You are learning a skill when you come to me. But guess what? That is something great. If you're relying on a certain indicator or a certain, you know, system that you're buying where you plug it in and it just takes the trades for yourself, what is the chance is that that is going to work over the course of your lifetime? Slim to none. Whoever made that system probably is something that you just use and it works for a short period of time and it's done. Or what if it breaks down? You have to have something that you learn yourself and your mind conceptually that you understand that is a skill that you've gained and acquired through knowledge by taking the class with me and trading with me that you can use forever and you will never lose the skill. And this is, I think, about the very good thing that I offer people. There's more than one step in the ladder for people. When you're going up this ladder, you're trying to get to the top, you know, you take a lot of steps. You can go up, then you can fall back and you take some more up and then you fall back and you feel like you're never going to get there. But eventually, if you keep going, you will get there. I always tell people if you quit, you won't make it. So guess what? You can't quit. And we all have days where things are stressful or hard. You can't give up. Okay? Often I find that when you were getting ready to get up to another level in your life or training, something happens. It could be something that's nothing to do with you. Like you could lose internet or your platform could break down. It could be anything, anything at all. And usually it's like a sign. It's a sign from the universe telling you that something big is coming up. I don't know why this is true, but it often is in the market because the market just flushes out losers 24 seven. You've got to basically say to the market and the universe that you are a winner, you put your foot down and say, I am a winner and I am going to do it. I'm going to keep the momentum going up the ladder and I'm going to make it to the next level and the next level and the next level. And that's how you do it. At some point, though, you need to get in the right path. If you want to make it, if you're doing a system that's losing money for years, I talked to people, some people are losing money for years and they still keep doing it. Stop. A system that you're doing should work at least within I'd say the first few months. You should be able to say, yeah, I see this thing working. I see it working. So don't let anything stand in the way of your success. I'm trying my best to teach people and help them be successful. Everybody's on a different level and I'm here to help people and all that I can do, but it really has to do a lot with your mindset. I know from my own personal experience about all these things. All these things I'm telling you is personal experience. 100%. This is one of the reasons I'm good at mentoring people. And I will tell you that working for yourself is amazing. To be able to make a couple thousand dollars in a few minutes a day is great. Some days you have to take a bullet and you lose, but most of the days in the calendar year with my system, I win and to be able to have a life where you're done in the morning early is really a very comfortable living. So you've got to think about what your goals are. And I don't know if you want to do this full-time or part-time, but you need to know how much money you want to make, how much money you can afford to risk, and what your goals are before you do it. So empower yourself today to trade the market. I teach a class as I was saying. It's a golden gap course as the name of the class. It's a complete system to use today. I teach all the things in the class that I know. The rating system, the entries, the exits, the targets. I teach something called the Stockswush, which I actually invented as a play in the market. Any more questions here? The class is going to be on a different date. It's going to be Sunday and Monday. So for those of you who have been interested in my class, I've been usually doing them on Saturdays. This class is going to be Monday and Sunday and Monday. So for those of you that have Saturday conflicts who want to take advantage of this class because I usually do it on a Saturday. So the class is called the Golden Gap course. It is a full two-day course on how to strategically find pick-and-play stocks at our professional bearish gaps. As I said earlier, retakes are free and the class is online. It can be anywhere in the world and take the class. And many people want to trade the U.S. market that live in other countries. So the date, as I said, is going to be Sunday, March 20th, and Monday, March 21st. And so it's 9 a.m. to 5 p.m. Eastern Time. The cost of the class is $39.99. If you're interested, email me, Melissa at the stockswush.com to sign up. Now I'm running an early bird special. If you want to sign up by Friday, the class is the following week, okay, the following weekend. If you want to sign up by March 11th for this class, I'm offering the swing trade letter free for the year. And this is a savings of $1,000. It's normally $1,000 for this letter. The swing trade letter gives monthly picks to do swing and option trades overnight. Some of these trades can be held for weeks or months. And some of them can be very lucrative trades. So if you want to sign up for this, you can email me at Melissa at the stockswush.com. This was two options I did earlier this year. This was in the middle of the options. This wasn't my exit on these. But these actually ran up at one point. And in both the trades, I was up $31,000. I did not get out of both these trades at the height of what I was up in them because I held portion of the positions into the into the earnings. I did take out more than half of them before the earnings, but it was very interesting experience because I was not on these positions. These were the two biggest trades I've ever had in my life. And if I gotten out at the height of them was $31,000. It happened over the course of a week. And I was thinking about this actually ever since I got out of these trades. I don't know if I'll do Amazon and Google on the before the next earnings, which actually I looked up it's April 21st. I don't know if I'll see anything there to trade on my gaps. But I will tell you that since I did these trades, I'm looking, looking, looking, looking every day to try to see something as lucrative as these or even more so. You can make money day trading and I call it chunking it out. But ever since I did these two trades, I just realized that overnight trades can be very lucrative. You don't have to be with the market and some of them, particularly if their earnings plays. But I will tell you that I think if you're holding stuff overnight, it is more beneficial to be with the market, the overall market trend. Okay. So your path to success is really the golden gap course. You got to get on the right path. You got to make money. Now I also teach another class called the trends course. If you want to learn how to do this, it looks at long-term trends and stock charts. This is more for swing trading. Cost of the class is $9.99. You can email me at Melissa, the stockswush.com if you want to sign up for this too. And if you want to sign up for both at the same time, you will save, you get 50% off the trends class. So you'll save almost 500 bucks. So it'd be 44.99 for both classes, which will teach you everything how to look at long-term trends, my gap class, how to day trade and do it all. So again, 2016 is here. It's March. It's almost spring. In fact, I think we changed the clocks this weekend. It's staying light out later and you know, you really got to say, what are my goals this year? What are my goals this year? You got to figure them out. It's still early enough in the year and I'm doing it right now myself too. We have to get on the right path as early as we can for the year so we can make it a really great year for ourselves. So if you want to sign up for this early world special, email me here and does anyone else have any other questions? I think we have a few minutes here. Does anyone have any questions about anything at all? Anyone want me to look at any charts? I've got a couple of minutes. Looks like Doug was the most of the questions here tonight. Okay. Well, thanks for coming everyone. Have a wonderful evening. If you would like a trial of the trading room, you can email me at MelissaTheStocksWish.com. If you'd like a trial of the trading room, I can send you one for next week. And if you have questions, you can feel free to call me. My number is 929-3200 Gap G-A-P and you can go subscribe to my YouTube site. All the webinars I do are taped and recorded and put there and my market calls are there as well. Thank you so much. All right. Have a good night, everyone. Email me if you need anything. Hold on. Okay, great. You're welcome. Thanks, everybody. Thanks all in Trader Central.