 Okay, is that good, Kathy? What does that mean? We are ready to begin. Percussion, are you ready? Drummers. And most of you know, many of you know, ladies and gentlemen, that means it's time to begin. Please put your hands together and welcome our host and presenter from the Stocksquish.com. Come on, let me know if you can hear me. Let me know if you see the slide. Okay, great. Thanks so much for coming, everyone. I'm going to talk today about a 30-minute strategy for busy people to make fast cash day trading. So, my name is Melissa Armell. I own a company called the Stocksquish. And if you've never heard about me, I day trade the U.S. market. And so I'm going to talk about the strategy I trade. And I really only trade in the first 30 minutes of the trading day. So when the moves happen and the stocks that I choose to trade, the momentum comes in fast and quick and swiftly. And we're going to talk about a bunch of trades today and go over a lot of examples. But if you're thinking about day trading but you don't have the time to sit at your desk all day from 9.30 to 4. Which is the hours that the market is open, it's really not necessary. That's not what I do. And actually, when I first started day trading, I did trade all day. And it was exhausting and I found that I very often gave money back in the afternoon. So I kind of figured that out really in the first year of trading and then I realized that the best thing to do was to just trade this 30 minute period and stop. So you can be, you know, at your office if you're not a professional trader and trade in this period if you're able to get on your platform or you could do it in the morning before you go to work. And depending on where, what time zone you are in, you can make this work for you. And even if it's something that you're not doing daily, although you could, and I run a live trading room and it's open five days a week. So let's get right into it here. For those of you that want to contact me afterwards, excuse me, you can call me at 929-3200-0427 and I, you know, I trade gaps and that's what we're going to talk about today. And if you want to watch more of my videos or webinars, you can go to my YouTube site. I have a lot of market calls and plays of the day on YouTube. And you can feel free to reach out and email me as well. Or if you want to trial the live trading room, you can email me at Melissa at thestockswish.com too. So before we get started, I gave a lecture in the room this morning. I gave a lecture in the trading room this morning on Conviction. I actually taped it and it's on my YouTube and I was thinking about this after the lecture in the room and I'll probably talk about the room to this tomorrow. And you can answer me here if you want to. I mean, everyone's, you know, totally anonymous in here. Would you rather have $1 million cash or would you rather know how to earn $1 million? What would your answer be? If someone came up and said to you, I'm going to give you $1 million or I'm going to teach you how to earn $1 million, what would you say? Which option would you take? A or B? Does anyone want to comment? Say what they would pick? No one would take a million dollars or learn how to earn it? No one has anything to say? Ralph Kay answered. Okay, we got one person from the Peanut Gallery tonight. Ralph saying B. Okay, anyone else? I can't believe no one else has any opinions. Well, it was a trick question because the bottom line is that, first of all, there's no wrong answer. If someone gave you a million dollars or taught you how to earn a million dollars, obviously either choice would be good. There's no bad pick here, actually. But the point I'm trying to make is that if you would for some reason, okay, take a trade in the market and earn a lot of money in it, okay, that have no idea how you did it, how would you ever be able to duplicate it if you didn't know how you did it to be able to duplicate the same result? So even people that are very wealthy, they will have to make the money that they have last forever if they don't have what's something called earning power. Earning power meaning a job that can support them to continue the longevity of earning the money and the lifestyle they can afford or something like having a skill set like you would learn how to trade. If you wanted to learn how to trade the market and make money trading, you would learn the skill set to do that that you could replicate it over the course of your lifetime, okay? And I just used a million dollars because it's a big sum to make the broad point that even if someone offered you a lot of money, would you rather that or learning something that you could make more than that and make it last? Because even people that go, and you hear these stories, I mean you see it on the news, when people, you know, they win the lottery, they've got to make the money that they've won last if they're going to quit their job or not work. And very often, you know, a lot of taxes get taken out of it and people think, oh, this money's going to last. Even a million dollars doesn't last you that long and for that number of years if you want to retire depending on your age point. So it's really the power in finance is having the information that you can use and the knowledge and the skill set to make money for yourself, okay? That is more powerful than anything else. And so if you'd like to make money from home, you can do this. You can learn how to trade. So, you know, it's an old saying if you are in this realm of you're doing the same thing over and over and over again and you're not getting where you want to, then you have to change. Otherwise it's called insanity. You keep repeating the same mistakes and you can't do that. You've got to change. If you want to survive in this world in this economy and the growing changing times that the planet is in, I mean politically, economically, financially you have to change what you're doing so that you can, you know, not only survive but also thrive. And you have to stop doing things if you're doing things in the market trading that don't work or if you are working somewhere and not making the money that you want to be, how can you make more? You can get a raise at your job. You can get a part-time job like on the weekends or you can do something like learning a skill set in reference to trading, okay? But the most important thing is to change something that you're doing so that you can achieve the results that you want. So there's a couple steps here to do that which we're going to talk about today. Step one, know your goals and not only that, your current time limitations. For example, maybe you have to be at work by a certain time. Maybe you have to, you know, have responsibilities. Maybe you've got kids, whatever. Know your goals. Your goal is maybe you want to make an extra two grand a month or three grand a month or something. You seem to not be able to save that much each month. You pay your bills with your job. You're not able to save, you know, have your goals and also know your current time limitations, how much time you can afford to sit at a computer or a desk each week to trade. Many people cannot afford to be able to sit at their desk from 9.30 to 4 o'clock every day and that's why many people don't date trade. But the point I'm trying to make is you don't have to. My strategy doesn't involve doing that and you can also use my strategy for options, which case you don't even have to be at your desk between 9.30 and 10, which is when I trade and we'll talk about that. But step one is know your goals and current time limitations. Step two, oh, before I get into that, step two, and if you're a busy person you also have to know your time limitations too. Okay. Again, going back to the same thing, do you have a business? Do you have a full-time job? Do you have a spouse? What do you have going on in your life? Okay, maybe you have to take care of an elderly parent or something, or grandparent. If you're busy, you have to weigh this in the options too. And also, where are you in the morning if you want to do this strategy? Or it's the morning for me. It's between 9.30 and 10 a.m. Eastern time. It might be night time for you, depending where you are in the world. Are you at home at that point or are you in the office? Okay. So, next step. Step two, find a good system to achieve the goals. Okay. Find a good system. And that's what I'm going to talk about today, to achieve the monetary goals and the time that you have to devote to doing this. Okay. Step three is be practical in why you take a trade, which we're going to talk about. We're going to talk about something called institutional money in a gap. And we're going to talk about that in a little bit here. Step four is trade the highest paid period of momentum time of the day, which as I've been saying is between 9.30 and 10. It's the first 30 minutes of every trading day. That's the highest time of the largest momentum comes into stocks, so that you can make the most money that you possibly can in the shortest amount of time. Okay. That's the goal. So, you don't have to sit there all day. And step five, book the money fast. Simple. Get out when you're up. You do not have to hold every trade to some dream target. Okay. It's not, it's not imperative. It doesn't even matter. That's not your goal. Your goal is to make whatever money that you set as your goal. Okay. According to your time constraints that you have to do it within that time period. So, let's go through step by step. And if anyone has any questions, you can just write any questions or comments in the room there. I'll see them as we go along. So anyways, going back to step one, know your goals. You know, do you really want to transition into extra money? Do you like the market and you're interested in the market? And you just want to have a foot in the market doing a couple trades a week, doing just option trades. You know, I don't know. A lot of people are very interested in trading. They love the market. They love investing. They have extra money, whether it's a little or a lot. And they like to be involved and they're excited about the stock market and they have their own investments, but they do have time limitations with their career. So it is very important to know your goals and you know, how do you fit them into your own personal lifestyle? Step two, find a good system to achieve these goals. Now what do I do? For those of you that have never heard me before, as I've been saying, I trade gaps. Now, I call what I do or my system golden gaps. And the reason I do is because it's like finding gold in the market when you find one that works because I have a high percentage win ratio system. It means you have to figure two will be losers and eight will be winners. Okay. Now, for those of you that don't know what a gap is, I'm going to explain it. This is very, very brief. I'll show you in a chart in a minute, but a gap is just when a stock opens at a certain price in the morning at 9.30 and closes at a different price than the next day. So anything that closed tonight at 4 o'clock that opens tomorrow morning at 9.30 that's it. So for example, Amazon had a huge move today. We're going to look at that chart. It was an option trade I called last week. I don't know the exact close price today was probably 8.62 something and change. If Amazon opens tomorrow morning at 8.65, let's say it will be gapping up. Okay. So a gap is a break in price action from one day to the next. The difference could be up or down. Okay. It could things could trade higher in the morning from where they closed at 4 or they could trade lower. Now here was one that was lower. This is a daily chart of IBM. So IBM this was last week on I think this was Wednesday or Thursday. It was Wednesday. So the stock closed here now go over here to the right. It closed here around 170 something at night at 4 o'clock. Now IBM had earnings. So then in the morning at 9.30 the stock opened here at a very different price. This ended up gapping down and it ended up gapping down $8 plus. Okay. So you see here it opened around 161-ish. So this is a gap. Okay. So step two is trade a good system. My system involves trading only stocks that gap. Now it could be anything. I do a different symbol every day. All right. They could be gapped downs. It could be gap ups but I will tell you that I prefer gapped downs. I prefer to short but you can use my system for both directions. So gaps happen in the market on a regular basis which is another important thing that you have to have if you choose to learn a system. It's got to be something that sets up every week. You can't decide to learn something that you know you get three trades a month. Okay. Now a lot of things gap but not everything is something that you can actually predict the directional bias in the gap. Not all of them are what I call good gaps or golden gaps. Understanding which gaps are meaningful and which gaps are not meaningful in the market will help you to know what to do and what to change is occurring. Choose the gaps to play that are moved by power money which we're going to talk about next in a minute and they will easily and quickly pay you. Power money is big, big money created by institutions like hedge funds or banks. Okay. That's what I'm talking about when I'm talking about power money. Now here's another daily chart of what a gap was a different stock. Was T-S-C-O. This one closed here. Boom. $70 plus and then it gap down here to 67 something. So at four o'clock it closed here and then it gap down here in the morning at 9.30 when it fell. This was a short. So this is again a gap and then I'm looking to predict the direction it's going to go based on whether or not I think institutions are going to sell it or buy it. They could have bought it. They could have bought it up. Like Google today got bought by institutional money. T-S-C-O sold off. So you would have shorted this on the day to make money. Okay. So what do I do in my system? I find the gaps in the post and pre-market. So I can look for them tonight. Right now stuff is gaping here live tonight. Or you can get up in the morning before 9.30 and look at them in the pre-market and that's where I find them. And then my system uses a checklist where I will rate them that tells me which one to do. Now sometimes there's many many ones you could do. You could do five a day if you want to. But I like to focus on one. That's a personal preference. All right. That's not the system itself but I found that the more focused I am doing only one thing the more money that I tend to make because you only need one trade a day. Again going back to step one what are your goals? My goal is to do one trade a day. So not only do I have the monetary goals I have the number of trade goals that I want to do. I might do two like once a month. It's not that often. Any questions so far here from anyone? Now let's go to step three. Be practical. Be practical while you take a trade. Now what am I talking about? What do I mean? I'm looking for huge amounts of money. Volume. Okay. I'm looking for a huge amount of money. Volume. Volume. Volume. Volume. Volume. Volume. Volume. I'm looking for heavily traded stocks. Like IBM, Microsoft, Google, stocks that move have a lot of volume on the day. I'm looking for stocks that are heavily traded that are going to pay me as a person, as one person in the market by just taking a normal to average position as a day trader. Not something where I have to take some massive, massive risk. I want to get a big move. So in order to do that I've got to have momentum. What creates momentum in stocks? Big positions. Institutions. Because they're the ones that take the big positions. Okay. So if you learn how to read the footprints of big position players before the momentum occurs you can take the position in the right direction and get out. After the move happens for profit but you have to understand how to trade this with sighted power and you need to know how to find it. Knowing how to read what institutional money looks like is very, very important if you want to be successful because you can win big on the side of the power. Now I did a webinar last Thursday actually. It wasn't here. It was with a different group and in that webinar I talked about a Google option trade that I had called the previous day on this day here. So I did a webinar on the April 20th and I talked about the Google option that I called here on the 19th. Now where's the power money in the webinar which I have on YouTube actually you can listen to it. I called this as along I said Google is being bought by institutional money. I said this is really higher. It's being bought by institutions. Look what the stock did today. So people that were there Thursday night actually could have done it on Friday and they could have taken the trade from being at the webinar that night or they could have done it this morning. So I did the webinar here on Thursday night. I called the trade here on this day here it was a little red guy a little red bar and I said this stock is higher and I called the 850 calls for Google and the stock blew it actually got up to 850 today and blew up and I said the target today is 860 1 over 860 1 to 863 I said the stock could even get to 870 875 this week 25 points through the strike this was a huge call that I made based on what? My system my system that read the institutional money in the stock to go along it and this is the kind of thing that you will learn from me because this is institutional buying so you would belong this in an option I wouldn't day trade Google it's too expensive you could if you wanted to but anyways this is a show of power money and it's something that I even talked about in a webinar and then it happened a few days after so how am I able to do this all the time because I'm reading the chart and I'm reading the gaps in the chart and I'm actually reading the bullish gaps and the bearish gaps so this was a bullish gap here that failed in Google and fell then it gapped down it didn't have any follow through then it gapped down again it failed then it rallied then it came in then it gapped up then it rallied in fact one of my traders said he didn't do the trade because he thought that it was too late I said you've got to be kidding me he didn't do the trade he missed the trade because he thought it was too late because it had this big bar here it was not too late this is the move okay you could have done it in the morning anyways the point is this is how you're making money as one person you make money winning trade stuff like this this was a really profitable trade okay this one was too it was a day trade in IBM institutional money the stock dropped gapped down gapped down eight dollars overnight fell hard had a massive move I forget what the total move was in the day from the high to the low but it was more than three bucks so that is institutional selling this is bearish it's to the downside okay so this is to the upside institutions are buying the stock this is to the downside institutions are selling it okay any questions write it in the room here step four is what you trade the highest pay period in momentum when is that it's in the first thirty minutes of the day in the first thirty minutes of the day stocks make usually eighty percent of the moves when they're gapping so if you look at the stock and you look at the if you're looking at shorts for example or you could flip side look at lungs a stock usually will make about eighty percent of the total move of the day in it within the first half hour of the day in fact when we're done here what I'll do is I'll pull up Google I bet Google even did it in fact I know that it did I know that it did I have the chart in my head from this morning I don't have the one minute up in the class here but I will go back and look at it but I'm certain that it did in the first half hour of the day I think the stock was at eight fifty eight or eight fifty nine and then it rallied four dollars after that but it made eighty percent of the move in the morning this I'm not making this up it's like over and over and over and over and over and over again and I've been trading for eight years this time of the day is it people it's all you need to trade and if you want to trade longer than that for bigger moves and that's up to you if you want to take a second trade or a third trade on the day in the same stock but I'm telling you if your job is done and you play it in the morning and you're up and you're out then be done okay but this is where you it's at okay where the momentum is now this was last week two no this was two weeks ago this was pier pier gap down again I prefer to short so stock closed here gap down closed up here around 720-ish gap down here to 695-ish or wherever it open fell off a planet again time of the day this is a one-minute chart between 9, 30 and 10 look at the move of the stock made 60 cent move which was a big move for the stock 10% of the move the stock had happened in the morning and this actually I think this was the low of the day actually in this guy here it was this was the low of the day that set the low of the day in the first 15 minutes to 30 minutes of momentum this is what you're looking to play but if you don't know to watch pier you're finding on a scanner and you miss it and you're like crap I missed it and it's not like you can't short a tiny little teeny weeny little move in here or here but this is all the momentum this is how you're making money people okay and this is how you can do it and only do one trade when you get these little scalpy scalpy scalps and you do them late and you're only scalping for one or two bars then you're then you're not then you're having to take four trades to make a thousand bucks rather than just one to make a thousand bucks or whatever your goal is okay and the more trades you take you're always at risk now there was another one this was last week this was the Tuesday Kate again perfect example time of the day time of the day first 30 minutes this was the low of the day in this stock open drop like a brick open short it boom you're out this is 930 this is 931 time of the day in here is 935 five minutes you're in the stock not even you're out entry price in this was 1839 if you shorted it now I'm showing you this is where you would have shorted the stock if you'd wanted to make money in this trade and I called it in the trading room I called the trades live with the entries and the stops if you took an advanced risk of 5,000 shares again look at this this isn't this is 45 cents 45 cents 40 cents 50 cents and look how much money you could have made 2200 bucks so in a few minutes you could make a couple thousand dollars now that was an advanced risk because it was 5,000 share lots but even if you only took half that you could have made 1100 bucks okay and this is how if you if you want to try to you want to try to progress you want to try to transition okay into learning how to trade into making money trading you have to find a transitionary way to do it many many people are employed full time okay and some people really love their jobs or they have businesses and they love them and they don't want to give them up but they would like to make some extra money too you can do this strategy and you don't have to sit at your desk all day and you still can make real money now that's not to say that every day the trades are going to work but when they don't guess what you're stopped out quickly just as the same manner as you're in the money quickly if they don't work they fail quickly too so you don't waste time and you don't waste your day and like I said you figure out out of every ten trades two were going to fail and eight will work and that's what you should base your your parameters on for your risk okay for how much you're risking in each trade and it also should be based on the size of your account which I can answer questions about later too does anyone have any questions about anything so far let me know quiet group here tonight anyways getting back to what I was saying the thirty minutes if you're trading during a period where any percent of the move in the day is happening you have a very high odds of getting pain as long as you're looking at the right stock you've got to get the right pick daily and then you've got to get the correct direction in the pick like if you shorted Google today you lost you had to go long it either as the option to buy a call or buy it as a day trade okay so you got to get the direction right too but that's where the twenty six point system is just what what my system is is four that tells me if the stock is long or short because it's telling me to pinpoint what side the institutional monies are going to take that stock are they going to take it down are they going to take it up okay and then all you have to do is take the trade once you figure it out when it sets up in that first thirty minutes you've got to be with the flow of it you can't be against it if you want to have consistent gains in the market this is how people make money as day traders I'm telling you there's all kinds of different things out there and I'm not poo-pooing them there's people that trade these stocks are called penny stocks or low float stocks or whatever I just think that that stuff is absolutely dangerous okay and any time you trade obviously your money is at risk because a trade could not work but it is dangerous to trade if you don't know how to trade it is dangerous to trade if you're not following a mentor if you don't have a system you're not finding any system at all and I think it is dangerous to trade some of those stocks that are people call low float stocks or penny stocks they have very little volume okay very little momentum can't predict where they go and are not traded with institutional money you know if you are running the trade desk at JP Morgan Chase you're not trading crap like that okay and if you want to make money as one individual with a small account and by small I mean less than a million dollars cash okay as a trader then you got to be in stocks that move and that you can get filled and getting filled means getting filled when you want to get in and getting filled when you want to get out and getting filled when you put the stop in not getting hurt alright so you take precautions you take precautions for yourself to assess your risk if you choose to do this that you're going to be with really the movers and the shakers the ones that move the market you know how do you think the market is moving higher the market is getting bought the market is getting bought with institutional money it held in the gap up today I called the Q's long today we can look at that when we're done here too I think we're going to have time on the Google I called the QQQ's hold the gap up today we're going to explode actually this week that's my call for the market there's the market is going to move higher this week because it didn't explode today and it will so in fact Google is probably going to continue like I said if you want to consistently make a lot of money in the market the only way that will happen is if you're trading in the side of institutional money it's just the only way you can't trade crap you've got to trade good stuff and you have to be with the institutions that are moving stocks and most of you are familiar with these companies companies you know you know Costco Microsoft Yahoo the companies that everybody knows Bed Bath and Beyond okay any questions so far in fact it just made me think of something I'm going to write this down we should I don't know how Amazon closed today because the market is going to explode and if Amazon didn't go today that's going to go too I'll look at that when we're done I might have to call something in that alright getting back to here what I was saying let's look at another move again first 30 minute period T-S-C-O boom here it is again 9.30 to 10 o'clock first half an hour stock gap down you look in the morning in the pre-market you determine that this is a short you wait for the stock to open you take the trade you get in and it drops and you're in and you're out so price of this entry 66.90 you would have shorted it on my call or done it yourself share quantity 2,000 total profit 1,300 good money people now I will tell you that this one went further this actually went and continued so this actually ended up going to 64.50 I think was the low of the day on this so this was not the low of the day but it did have 80% of the move here so this dropped another chunk later in the day if you wanted to take a second trade but again if your goal is in for the day your goal is 1,000 bucks a day your 500 dollars a day whatever your goal is if your goal is in you get out now next one here again boom boom boom boom boom first 30 minutes momentum volume the institutional set off what are you looking for you're looking for it to go and this was a tricky one here this was on Friday the stock up down and people might have thought this was going to fill the gap or move higher it went over the high of the day here in the first 5 minutes had a big green bar and then collapsed so again you gotta you gotta know what you're doing here if you're shorting it are you going long it because if you went long it you got stopped out and you missed the short and anyways it wasn't a long it was a short this was a very very good gap from last week that had a big big move and it was a short so anyways entries in here here's the drop okay this went as well to the dream target if you held a little bit more but here's the first again first 30 minutes low in the day and this was like 2180 so it made a 60 cent move past 10 o'clock do you see here again 80% of the move is made in the first 30 minutes of the day so this is all that you need to do if you're a busy person you don't have time to trade at your desk all day and you're doing other stuff with your life or even if you like to trade at your trading now and you don't want to sit at your desk all day which I don't want to do even though I could I don't want to alright this is all that you need to make money this is the only period you need to be concerned about this is the only period you have to be trading looking, watching, doing it okay now this one here again first target was 23 2380 was a short share quantity 5,000 you could have made 4 grand that's insane people that's insanity that's more money than some people making a month anyways this went to the dream target there's no one in the room that held this till 22 but I think some people did do a second trade in it and everybody was regretting not holding it but the bottom line is that it could have worked for a second trade it did go to the dream target this was a huge move it was a good gap and it doesn't even matter if you didn't hold it down this was the move in the first move it was the first target and it worked and if you took size with this you could have made several thousand dollars this was a great great gap and this is the kind of thing that you would learn from me and just you would learn to watch the stock you would learn how to rate it you would learn how to do it on your own even without me okay very very very important to understand why you're taking a trade it's very important to have a system that makes sense and when I say make sense I mean it's going to move and you're going to be able to predict the move and I predict the move of the daily chart I take the trade of the one minute chart and I'm looking for things that institutions are moving like Google like Matt like IBM okay you know what we're going to get this week I don't know I didn't really look and see everything that's out this week I've kind of been under the weather but I'm feeling a little bit better today but it's earnings season there will be stuff to do you know all week you know there's stuff right now that's gapping tonight now getting to step five book the money fast and get out when you're up so this is a very very important piece of the puzzle too you know you will never lose money when you get out when you're up so you can lose money if you're in a trade and you're up and you hold it too long and it goes against you and you don't get out which is foolishness so again number one with such your goals if your goal is to make just $200 a day and you take the trade and it drops boom and you're in the short and you're up boom you're up $250 and it starts backing up you can take it you can take it who can fault you whether it drops another $0.20 or $0.30 or $0.50 it doesn't matter if you made your goal for the day no it doesn't your goal is done you get up the next day you repeat the same thing you repeat it you repeat it repeat it and you repeat it like a like you get up every day like you're doing your job because your job is to make your goal okay your job is not to hold everything to the dream target you really only need one trade a day to make money to achieve your goals even and it also keeps the losses down that's important too I mean how can you lose or blow up your account or lose any any extraordinary amount of money if you're only doing five trades a week I mean you know I'm one of those rare rare people that I believe less is more many day trading rooms are open all day long to four o'clock in fact I think I'm the only room that I know that isn't I mean many days I close the room at $10.30 so it's it's really less is more you take the size that's how you make the money like I'm showing you a couple thousand shares which is not a big deal these stocks why because they have volume because you get filled when you're up money and your goal for the day is done you take it and you get out it's not about being a piggy in this thing now let's look at the play that was an AB IBM here stop dropped rallied set up dropped some people took it out in here I did hold this one a little bit longer I really believed believed in the gap and I wanted a big big move in it I remember I said the stock moved like more than $3 in the day so if you did this price of the entry was 161.79 if you did an advance share size is 2,000 shares this was almost a $2 move nice move in here so it was worth it for me to hold this but if you got out quick in the morning you still had a good move in here it dropped down to out of it with a buck in the first morning move I tried to squeeze a little bit more out of it and I really felt like this was going to go and break 160 it did end up doing that it did end up even going more than even when I got out but you know again to be able to make a couple thousand dollars and just a few minutes in the morning I mean it's there's just nothing like it it's just that many people feel like they got to take a couple different trades every day they feel like they want to and I don't even think if you if you had the time you would even want to why would you even why would you even want to it's never over to the fat lady things and if you're in a trade and you're up money and you don't get out and then it could happen even if you have a stop and then it could happen it could stop you out it could reverse something could happen in the news okay even if you're in the trade it looks good and you're up if your goal is in and it starts to back up a prudent thing to do the common sense to do is to take it so you know I always say to people think about what you're capable of now right now if you're not capable of being able to trade five days a week then trade two days a week if you really really really want to trade all day at four o'clock but you can't do that right now you can only you know trade in the morning then maybe my system will help you transition if you really want to trade all day maybe you want to do everything maybe you don't even care about that you just want to make extra money you don't know anything about trading never traded in your life before don't even know what a chart looks like and you would have to learn that from me which is fine then that's where you start but you devote then the period of time of the morning between 9 30 a.m. Eastern time and 10 a.m. Eastern time to learning it and to doing it and that's the time of the day that you focus anyone have any it's just very very important to be practical about what you're doing and the choices you're making and to take action taking action and being practical it's not being being cheap or not taking risk it doesn't mean only risking you know 50 bucks in a trade okay and it doesn't mean also not taking risk like even learning a new system like mine which actually is not cheap either my class is five grand so you know that's not you get what you pay for you know out there you could take you could take 10 different courses that cost $2,000 or 1500 bucks and end up spending more and losing money trading those systems and spend five times as much as it would be to learn one good system which is mine and then actually turn it around and make money doing it so you know it's not about being practical isn't about low cost not when you take the trains and what you're risking or in something like deciding on a class or the price point of the class you have to think about what you're doing being practical means in the long run what is it worth it for me and also thinking about your own time constraints the time that you have to devote to something because if you choose to learn a system that you must be sitting at your desk all day and you can't do it well then even if it's something that you think you want to do but you can't do it then when are you going to be able to do it I never advise people to quit their job and trade full time if they if they don't know how to do it if they've never done it if they don't have at least you know two years worth of their expenses in the bank in cash and then also money to trade and a lot of people don't have that so people will have to find a way to make the transition to trade and I try to give people the best advice I can that's different um okay we have a question here Ninja Navigator I think is is your name I don't know if that's a girl or a boy he or a she it's a sneaky one are you actually going long or short two to five thousand shares of stock are you using options it depends let's go back here let's go and we find the Google Google I don't I don't take a day trade I don't day trade this as an equity trade I've never done it in my life I don't have to say that I couldn't or I wouldn't but I haven't it's a very expensive stock and the options have high volatility showing something like this I do options when I do trades and expensive stocks like Amazon and Google I do options you could do the equity trade now the trades other trades here like Kate for example this I'm actually taking the position okay in a margin account in a day trading margin account where I have to have the buying power to do it I'm trading on margin okay and it's in a day trading account and I'm taking however many share quantity I decide to take depending on the cost of the stock and where I put the stop and where the entry is so for the example in Kate 1839 I had the stop over here so this was this was not a big stop it was a medium stop okay my stops could be anywhere from 25 cents if it's an expensive one it might be a dollar like something like IBM so then I determine my risk of the quantity of shares of the stock based on the size the difference between the entry and the stop so here again was the entry here was the stop in this one so that's how I determine the number of quantity of the shares but I am taking them on margin as an actual day trade this was not something that we do for the option option trades make sense in things that that usually are heavily traded in options which really Amazon and Google are or something like Apple okay and something like this if you did an option in one of these things that you're not that familiar with or not as heavily traded in options as Google like something like Kate for example you would have to do it like you would have to do it right at the strike like Google here I said to take it here the strike was here so you're doing it ahead of time now something like this you're seeing it here if I had called an option in this which I did not but if I had I would almost tell you to do it even above like to pay for it to be in the money so that you can get you can get more more going on in it I don't know if that makes any sense so I would play them differently so I don't do that anyways with this I just do the day trade I'm not doing an option in this but if I if you wanted to if you wanted to do that I would take it above it already in the money or at it like I wouldn't I wouldn't tell you to do an option in this it's 17 do you know what I'm saying? does that make sense? Ninja Navigator let me know if that makes sense so they answer a question yes I'm doing the equity trades in these with two to five thousand shares although I have taken you know fifty contracts of stocks like Google and Amazon and Babin stuff like that before I have which is equivalent to five thousand shares but I have the cost of the position the position and the cost of this position is more expensive than these if I take something of that size so I mean I I'm not doing that every day these things here like these trades here like IBM, Matt, Pierre all these stocks I'm trading these every day Monday through Friday I'm not trading options every day if I see a good one I do it if I see a good one I call it I'm not doing those five days a week but you could if you want to because if you don't want to open a margin account that's what you would do because there are requirements to open a margin account whether you open a margin account with a prop firm or a day training firm or a retail firm there's margin requirements if you're trading options you don't have that you don't have the margin requirements I'm tying up a lot of capital how Ninja Navigator how am I tying up a lot of capital this is a good question here actually I might address this here wait I did do one slide here we didn't get to it here this slide might address it here's the buying power slide if you wanted to take 5,000 shares of a $20 stock how much buying power would you need 100,000 what does that mean for cash because you're talking about tying up a lot of capital the answer is no why because you're trading with margin so 5,000 in cash in a prop account is all you need to do this position if you are at a retail trading account you will need 25,000 now I don't know if you consider that a lot of capital but 5,000 shares is a pretty good position but you're in and out of it also in a few minutes so you're still not tying it up if I'm taking the trade and I'm shorting something at 931 and I'm getting out boom at 935 that's it the trade is done there's no more tying anything up and it doesn't matter where you have your account if you made 2 grand in the trade that day you could take it out the next day if you want to boom there's no money tied up it's not frozen or tied up I'm not sure what you mean by that but it's not this is you're in and you're out now if you do an option say you take an option on a Monday and it costs you 2,500 bucks there's no buying power involved no margin account and you get out of it on a Wednesday that 2,500 dollars is tied up Monday, Tuesday and Wednesday until you take it out but that was the cost of the position and if you took it out on Wednesday and you made 1,500 bucks in the option then you'd have Thursday the 2,500 back in your account for the original cost of position and 1,500 a profit but that's doing options so I don't want to confuse people but the margin accounts the day trades are not tying up capital for any more than the several minutes you're in it and even if you take a large position depending on what type of account you trade you're trading on margin it's not the cost of the stock you do not need the full cash value of any stock you are day trading if you have a margin account and that's why traders trade with margin accounts everyone does professional traders traders that have, you know 500 grand in account are trading trade with margin Ninja Navigator saying 2,000 shares here I'm going to put this in the room for everyone he wants to use this example or she 2,000 share quantity this is an example I don't know why that went up there 2,000 shares quantity Ninja Navigator wants to do 2,000 shares of a stock that's what 17 bucks cost of the price per share Ninja Navigator wants to do that so somebody tell me I'm quizzing you people now how much buying power does Ninja Navigator need in his account to take that position does anyone want to answer does anyone know anyone know Ninja Navigator said but I don't want to say let's see if anyone else knows how much is that going to cost him no one knows come on there's a lot of people here no one wants to guess I'm not going to yell at you if you get it wrong I'm trying to help people take 2,000 this is easy this is just simple arithmetic 2,000 times $17 equals what 35,000 but that's not 35,000 in cash Ninja Navigator does everyone understand that you're not tying up 35,000 in cash or capital because you're training on margin if you're training at a retail account you take 35,000 divided by 4 if you're training at a prop account you take 35,000 divided by 10 so you need $3,500 in real cash to trade this in a prop account and I'll get my calculator for this so I can be exact 35,000 divided by 4 you'd need 8,700 8,750 but you actually need 25 grand to open up a margin account in a retail firm but that would only be taking up $8,750 of actual cash to take the position but that's not your risk your risk and I'm going to go back here and these are really good questions you may not have time to bring up the Google your risk is not let me get back to the mat here your risk is not the 35,000 for example you're the 8,750 if you had a retail account let's use that example what is your risk? quickly can anyone tell me what's your risk? hurry, hurry, hurry does anybody know? what's your risk? the stop in this mat was 30 cents your risk is 30 cents times the amount of the quantity so 30 cents times 5,000 is what? $1,500 you will only lose $1,500 if you have the stop in here at the right place which was 2410 for the straight so you enter and short it at 2380 the cost of the position is not 1,500 but you're not going to lose the cost of the position you can't you have the stop in and even if you had slippage you might get out and lose an extra $1,600 it might be $1,600 or $1,700 you would never have terrible slippage that would be anything worth that you don't lose the capital that it costs to take it this is very important and I may be talking over some people's heads that don't get it and Ninja Navigator is asking good questions but tell me if you don't understand it Ninja Navigator it's not the other wrong broker my guess is you don't have a margin account set up with your broker very easy it's the forms that you fill out with a broker and maybe you open the account when you open the account you didn't open up an origin account and you got to have an origin account if you want a day trade it doesn't make sense if you don't why would you... how could anyone on the planet now just seriously I'm saying this here if you would have to have that kind of money to take all these positions the only people that would ever be able to take my class and learn from me would have to be very wealthy people and I'm telling you that's not the case I do have wealthy people that have come and learned from me and then I have people that don't have a lot of money they have $2,500 in a prop account or $5,000 in a prop account and they're making money yep you don't have a margin account set up easy nope you don't have yourself set up you don't have an active day trading margin account set up if you're it that's right you don't but I don't know if it's your broker or they don't offer it or if you just don't have the right set up you can email me for questions later these are very good questions that will help some people I'm sure anyways I teach a class the class is called the Golden Gap course it's a 26 point rating system that tells you the best stock to trade each day well it's a long or short although I prefer it to short it teaches you how to enter and exit the stock on the day and it teaches you advanced technical analysis and really teaches you how to day trade because a lot of these questions are day trading questions that an injured trader is asking but you will learn one strategy it doesn't take a lot of time in the day to do it and you will learn how to get conviction in your trading and part of that has to do with the system and part of it has to do with the time of the day and part of it has to do with understanding how to read these institutional moves that's what gives you the conviction to understand how much money you can make in these stocks I mean holy cow look at that move Google made I think everybody in the room was like wow I mean people regretted not doing that trade they were like ugh you know I mean it's there it's there in the market so you can learn how to do this I say empower yourself to trade if you want to do it I teach a class it's called the golden gap course it's a full two day course on how to strategically find pick and play stocks that are professional bearish gaps the class is online you can be anywhere in the world and take it it's this weekend Saturday and Sunday April 29th and 30th from 9 a.m. to 5 p.m. eastern time I teach the class in the weekend because I don't want to interfere with my trading the cost of the class is $49.99 and if you're interested you can email me at melissaatthestockswush.com now I'm offering the wealth class free which is next Tuesday from noon to three for anybody that signs up for the class this weekend and this is a nice benefit because you will learn a lot about trading psychology in this class and it will be very helpful for some people that have gone through the ringer in trading this really does teach you conviction I also teach another class called the trends course this is about long term trends this is May 17th and 18th if you want to do this one this is better for swing trading the cost of the class is $9.99 it's from noon to three it's how to learn long term trends read long term trends and stock charts and ETFs and I'm offering a combo if you sign it for both you save $500 if you want to do the golden gap course of the trends course and then you would get the wealth class free so it would be three classes for $50.99 and you do them all in the next two weeks any questions from anyone at all good questions here at the end does anyone want me to go over anything whatsoever we have a couple just a couple minutes here I will do a here do I have time to bring up the Google here I have three minutes let me just bring up Google