 Testing one, too. Just let me know you see everything here, Kathy. I'm gonna leave the slide up. Is it good to go? Wonderful. I'm gonna leave everything up. I'll take the mic off. I'll be right here. Whenever Kevin announces This will keep you awake. All right, I'll be right back. Hello everyone again and welcome to Stockpompy in just two minutes. Your host and presenter today in Melissa Armel from Stocksquish.com is here with us. We'll be starting pumping in just two minutes. Thank you again everyone and welcome. Hello everyone and welcome. The sun's the trumpet, you know that mean this time to begin. Please put your hands together and welcome our host and presenter today from thesockswish.com. Please. Thank you so much, Kevin and Kathy and everyone at onlinetradercentral.com. Welcome. My name is Melissa Armel and I own a company called the Stockswish LLC. Thank you for being here with me today. I'm going to talk about trading. I trade. I'm a trader. I trade the market every day. I'm a day trader and I'm going to be talking about taking good risk to reward trades. The title of the webinar is called risk a little and earn a lot because you don't really have to risk an incredible amount of money in the market if you know exactly how to take proper trade setups. And this is what we're going to talk about today. I do own a company called the Stockswish. If you'd like more information, you go to my website, Kathy. I'll put the information in the room. It's www.thestockswish.com. You can also feel free to email me at Melissa at the stockswish.com as well if you'd like more information. And you can go and follow me at Twitter, Facebook, YouTube, LinkedIn, Skype and Peninterest. And I have a ton of videos on YouTube. If you want to see plays that I did and market reviews, I did a market review video today. If you'd like to go look at it. In fact, the last webinar that I did with Online Trainer Essential, I did talk about the market. And if we have time at the end of the webinar today, I can field questions about the market as well. And specifically, I'm talking about the market ETFs and the QQQs and SPY. So, welcome. Do you wish you could make more money by only risking a little? Of course. You know, a lot of people that trade the market do have a good amount of money that invest, but specifically day trading, you don't necessarily have to have millions of dollars to day trade. And in fact, there is a good chunk of people that trade the market daily as day traders that don't have a very huge significant amount of money. And so they have to be very careful about the amount of money that they risk. And obviously, anyone, even if you have a lot of money, the idea is that you want to be able to maximize your gains by risking the least amount and making the most amount that you can. If you're trading right now, you might be taking trades that really just don't have enough profit potential. So if you're currently a trader and want you to think about, is there really enough profit potential in the setups you take? One to one is not enough. One to a half is not enough. I'm not a scalper. And I'm going to show you some trade setups here today and some charts, but I'm not a scalper. Scalpers tend to take horrific risk to reward trades. Like they're not even looking for one to one. One to one would be a good big trade for a scalper. I think that's taking a lot of risk with very little reward. And I don't trade like that. I'm more of a momentum trader. That's really how I would describe myself. I'm looking to get momentum, volatility in the stock to get a move. And when I say that I'm meaning in general, trying to look for a dollar or more in the move and something. Is there enough profit potential as well in the strategy to trade? Now, many, many people trade the market and they don't have a strategy. I do have a strategy. The strategy that I trade is called golden gaps. And I will talk about this today as well. But it is the strategy that I trade that allows for the profit potential to have the quality risk to reward setups that I'm going to talk about today. In other words, the trade entries that I take, the ones I'm going to talk about today, cannot be taken in every strategy or any type of trade in the market. They wouldn't work in everything. The reason that the setups with the good entries and the tight stops work in the trades that I take is based on and specifically because of the strategy. And that's why they're so powerful because the strategy itself that I trade is powerful, which is gaps. Now, this is a chart of AOL. This happened today. The stock set up today as a gap. It gapped down. It closed the night before last night and Tuesday up here. And in the morning when AOL opened this morning, it opened right up here around 41-44-ish or 41- something. So it actually gapped down overnight. That's what happened here. And so I'm looking to play this as a short and the strategy is that it gapped. And then I'm looking for a quality risk-to-reward setup in this stock in AOL. So tight stops and good risk-to-reward trades don't exist in every bar of this daily chart. It's a daily chart of AOL. You can't take every single day here. You couldn't trade this. Even if you went long the days it was green and short of the days it was red, you couldn't take tight entries on every day here. They wouldn't work. The reason that this works is because of the gap. So I want to be very clear about that. People ask me a lot about stops and we're going to talk about stops today. It's because of the strategy that this works. You can't do that in every day here. Even if you got the direction right, you couldn't take the setup the way that I'm going to show you here today because it wouldn't hold. So when you exit your trade, maybe you trade right now, do you always feel like you want to need more? A lot of people are not satisfied with the amount of money that they make trading, specifically day traders. And this is why day traders tend to over-trade actually. All that does is rack up commissions and you give your profits that you do make back to the market or you tackle up and out of your losses. You have to feel satisfactory, meaning you took a good trade, you did everything right, you got the entry, put the stop in the right place, size yourself well and you got out at a good place. And you're not always looking to get out of the low of the day that's unrealistic or the high of the day if you're in a long. You do the best you can based on the information that you have in hand. But this wanting or needing or feeling this constant, constant overwhelmed feeling of I got it, have more, more, more, more is a mentality that a lot of traders have that sets them back. So I teach people not to think like this. You go after it with conviction and feel satisfied in the trade that you did the best that you could and you got the move. And the move is what I call the money move. It's the momentum move that you're getting in the stock, which comes into the strategy, which is the gap, which we're going to talk about more today. So the reality is, as I said before, you don't really have to risk a lot of money to be successful in the market. I know a lot of people think you do, but you don't. Here's an example of the trade. This was a late trade. This wasn't even an early trade that had a very good stop entry in staples that set up last week. Staples was a short. This is an intraday chart in this on a five minute chart. You could have shorted staples around lunch and had a nice momentum move in here. It would have been triggered here and you would have been up money as soon as you took the trade and it went right down to the target. So you didn't have to risk a lot in this. And what do I mean by that? The stop was 10 cents. So here's what I'm talking about. Risking a little earn a lot. The price of the entry in staples was $16.72. You would have shorted the stock there and put the stop over 10 pennies over. That's very small and tight, but it's correct. The actual share size, if you wanted to take an intermediate risk, beginner risk, really between $1500 this beginner, if you risked $100 and exited at $1650 you could have made $220. This is a nice trade because you only risked $100 and you were up as soon as you took it and it went right to the number. Boom and you were out and you weren't in this a long time. So you took this approximately 12, 05, 12, 10-ish, 12, 15-ish and you were out of it in here into this drop. So you're in it for about an hour, but you were up every moment that you were in it. And so you weren't even stressed. And this is a nice trade. You could have even taken more risk in here, but I'm saying if you were just a beginner, this is a fine amount to risk as a new person trading this strategy. And it's $220. $220 pays your platform fee for the month or a trading room monthly fee. $200 a day trading on a beginner risk like this comes out to be $1,000 a week. That comes out to be $4,000 a month, which is almost 50 grand a year. And that is money. That's real money. Whether you're doing this as something on the side part time or whether you're doing this as your full-time job, because eventually you'll risk more if you can consistently make $200 a day. I think traders, people that day trade miss the importance of consistency, and we'll talk about this more today as well. You really need to be consistently profitable, even if it's $100 a day, $200 a day, $300 a day. If you can get to the point you're making $200 a day, you'll get to the point you're making $1,000 a day. Then you're really going after it. What I find so great about trading a stock market is that really it's open to anyone in the planet. You could live in China and trade the US stock market. You also don't have to be wealthy. That's the other great thing I find and the amazing thing and the great thing I love about trading the stock market is anyone can do it. You don't have to have a certain amount of money like a million dollars to trade. You can live anywhere in the world and do it. You can take a small account and turn it into a big one. You hear these success stories all the time. Does it happen to everyone? No, of course it doesn't because a lot of people don't understand that they need to understand and learn how to trade first before they risk their money, particularly if you have a limited amount, let's say $5,000, $10,000, whatever the amount is. But either way, the great thing about the market is it has unlimited potential and you can be anywhere in the world and do it. The only thing that you need is a computer and an internet connection and a platform and a broker account. You don't have to be a US citizen to even trade the US stock market. It's another fantastic thing. If you learn how to do it right, the opportunity is available to you as much as the guy next to you. Just because the guy next to you, maybe if he has a lot of money, doesn't mean he's going to necessarily do the right thing. He may not know how to trade and lose all the money that he has. The best chance of your potential to make it in the stock market to trade successfully is to learn how to trade correctly and that way you can take trades like where you risk $100 and make $200 on a consistent basis and that's how you take a small account and double it and triple it, quadruple it. So how can you do it without risking a lot or having a lot of money? That's the question. Well, it's all about the risk to reward. You want to take good quality setups. They are found specifically in the strategy itself. So how do you measure the success really of the trading results? Again, good risk to reward. This is the measure of a good trader versus a poor trader or a so-so trader. Here's what I mean by examples. For example, let's say you are risking $400. That's an intermediate risk. An unsuccessful trade would be someone that probably is scalping. They risk $400 and they make only $200. That's not what I would consider a successful trade. I could do that every day with my eyes shut. If I did a trade like that and got out of it like that, that means the trade would probably have no follow-through if I felt like I had to exit it. That is not a successful trade. An example of a successful trade is risking $400 and making $1,200. That's a successful trade. Three times the amount that you would risk, which would be $1,200. That's a good quality trade. An example of a very successful trade is risking $400 and making $4,000. That's a very, very successful trade. Are there trades like that? Yes. I'm going to show you an example today of something that happened today in AOL. That was a phenomenal call. You can make $10 in a trade and that's essentially what this is. That means for every dollar you risk, you made $10 and you will have trades like this. You will have trades like this not every single day, but you will have a couple of months and they really can be profitable for you. What kind of trader do you want to be? The answer is easy. You want to be successful. You want to be the person, the woman, the man who consistently takes trades where they're making $2,000, $3,000, $4,000, not a half. Not risking $400, making $2,000, not risking $200, making $100. It's all about quality, not quantity in reference to trading successfully in the market. The results really are about the risk to reward no matter what size you trade or how much money you have to risk. It has nothing to do with the amount. Everyone always asks, oh, I don't have enough to do it. I don't have enough to trade. You can risk a small amount and take good quality trades and bulk up your account. You can get to the point where you have a small account. If you don't need to take any of the money out, you can leave all your profits in there and let it grow. You'd be very focused on what? You'd be focused on the quality. Good risk to reward trades are for everyone. Even if you had $1 million to trade, why would you take crappy trades? You wouldn't. You wouldn't. You wouldn't risk $1,000 to make $500. That would be insane. That would be crazy. In fact, the more money that you have, the more quality you would look for. I find as time goes on and my risk increases and the longer I trade, I'm very, very, very, very picky about the price entry I've taken something to stop everything, the gap. I'm so picky. Sometimes I pass on something that I know is going to go and going to go to a target and I see it and I have 100% conviction it's going to go. It's profit. But if I don't get the exact entry price, I might be a couple pennies late and then I pass on it and then it goes on to work. I've done that even in the last week. I am very picky. The more you risk, the more picky you even get. Spend your time and money wisely and good risk to reward trades. It has nothing to do with how much money you have. You have to get that out of your head and act like you have $1 million right now even if you don't, so you get to that point. Now, getting back to what I was saying, what is a good risk to reward payout? 1 to 3 on the low end, 4 to 6 in the middle end and 8 to 10 in the high end, which there was a trade like that today and we're going to go over it. This means for every dollar you risk, you should have a goal of a minimum of $3. That's your goal. Does every trade go there? No. Do a lot of trades go there? Yes. You will have to money manage yourself. That means you're going to be holding some of the trades to the target to get it to 3. And sometimes they just go right through that and go bigger. Also, there should be a potential for even more of a payout if the stock goes to the dream target. Some days stocks go to dream targets, some days they don't. Today, for example, the one did, but you don't know until the momentum comes into the stock and then as the momentum comes into the stock, you can see how it reacts if it's going to go to the bigger number. So if you calculate this on a percentage basis, a lot of people like to think like this, even though percentage basis just really is something that mostly investors use, but I'm trying to break it down because people like to think like this, even though a trader really should think in terms of risk to reward. If you still want to think about percentages, it's actually phenomenal if you do because if you invest a dollar in a trade and are paying $3 in a trade, you're actually gaining a 300% return on your trade. So if you want to think about it in reference to percentages, it's actually phenomenal. This is huge, huge, huge, huge, huge, okay? More so than you never get in investing something long-term. That's why day trading is so profitable if you learn how to do it. The question is and the thing is, can you learn how to do it? Yes, if you learn a good system. I have a specific method and strategy I trade and it's a very good system that has consistent results, but a lot of people out there don't have good results because they don't even have a strategy or a system that they follow and are strict with. I do, but do you see here the percentage of return is enormous? What other strategy the market offers is kind of paid at a dollar per dollar basis? Nothing really other than what I do. Nothing. And I've been trading day trading for now seven years. I looked at everything when I first started. There is a huge, huge, huge upside potential to these trades and gaps and that's why I'm telling you these specific tight entries only work in gaps. You can't be trying them in anything else. It's really golden gaps. That's it. That's the way to make a large profit in the market. This is the way to risk a little and turn it into a lot. This is also the way you can make a very good rate of return percentage wise on your trades and positions in the market. This is how you do it, okay? So how do you achieve good risk reward results? Learn how to take successful setups in a quality strategy and a quality golden gap. Learn how to take successful setups is something traders need to focus on. Even people that think they know how to trade, I find out really don't understand how to take entries. I'm really good at this. The other thing that makes me good at this is I can see it in live time. I can see it in live time right away is to see it quickly and that counts. That's why if you're in the live training with me, it's very meaningful. A lot of people that just don't know what to focus on and it's like trying to win the race before you even qualify for the run. People are tempting to trade. They're actually trading real live money. This might be you in here right now. You're risking your money and you're trying to win the race and you don't even know how to run. You need to learn how to take successful setups first before you can make money in the market. The play is so important because this is how you make money trading. You can have a correct directional read on a chart, know that somebody's along or short, but if you take a bad entry and put the stop at the wrong place, you can lose in a position even if you get the directional bias right or you might not make enough because you may undersize yourself not knowing where to put the stop correctly if you are unsure of how to take a trade and therefore missing out on the right risk to reward and therefore you're going to get the profit potential even though you had the right pick and the right directional bias. Like for example, if you knew AOL was a good short today, you may not have taken the setup I did with the right risk to reward because you may have put the stop at the wrong place or undersized yourself. Do you believe in small stops or do you think they're bogus? I get this question all the time. They are not bogus. Small stops count. They matter. If something isn't going to work, it's not going to work and you want out of it. A level has to hold whether in a long or short. So whether you're looking at sport of resistance, it has to hold in the stock and you're doing otherwise you want to be out of the trade. You don't want to be in it at all. And the reason you are in it then doesn't even make any sense. Here was a watch from today that actually I didn't do and it never set up. But I'm going to use this as an example because it was a bearish gap. The stock closed the night before up here around 26 something and opened in the morning. This was a valid stock you could have watched on the day. It opened down here around 24 something. The stock rallied first. You could have looked to short this in here. And if you had, you would have put the stop over the high. If you had, you would have gotten stopped out. What if you wouldn't have put the stop? And this is the point I'm trying to make. The stock from this high here that was set at the 930 bar flew up like a crazy person at a dollar. And you see how not putting a stop and then you would have really hurt yourself. So stops are not bogus. You do need to use stops. People do crazy things like double down then when they don't put stops in. And they think they say, well, I'll try the next level the next level, the next level and then it never goes anywhere near your original entry anywhere near where you even took more. It's a no-no. You must use stops when you're trading. I recently found out that actually very few people use stops a day trade. I was floored by this information. I literally couldn't even believe the information that I found out that most people don't use stops. I've been using stops since I started to trade and I always, always will. It's about accuracy. Accuracy counts and trading on all fronts. Precision and detail matter. You need a quality strategy, which for me is golden gaps. A good risk to reward what you're looking when you're looking to enter the stock and then you're looking for the targets. You have to know the target too. The right end trade, which you have to take correct size and the proper exit. Being successful in the market takes detail and a certain level of precision. Detail matters. It matters very much. You're dealing with numbers and I'm very, very specific with numbers. It's a price and it can make a difference in you making a lot of money one day or losing one day. You have to learn what to do and you have to learn when to do it. Specifically, this is the AOL and detail matters in this. We're going to go over the trade, but if you took this trade at the right place today, it was a huge move. Literally from the high of the day in AOL to the low of the day that it set, which all happened within the first 30 minutes of the day of the stock. The stock had a jimungus move, went to the dream target and moved more than $2. Do you get this every day? No, but if you know what to look for and know what to watch and know how to take good quality setups, you could have gotten this trade today. If you were in the live training room with me, you would have gotten this trade today. What I do in looking for the setups with the good risk to reward is using advanced technical analysis. All the information you need to analyze stocks to find quality entries is found in the price action in charts. The problem is that many, many people don't understand how to reprice action, but you can learn it. Like I'm teaching people how to do it. Even people that are trading for it more than 10 years don't know how to reprice action correctly because usually what they're focused on, even though they're looking at the same thing as me, is something that is not the right piece of focus. Using advanced technical analysis skills can help you predict how the stock is going to set up before it does. I do this every day. I actually fill out a sheet. It's a sheet that you would get if you take my class. It's a worksheet. On the worksheet, I fill out and actually write how do I want the stock to set up on the open? What does it need to do? What's the correct ideal entry? I actually write that down every day on my sheet. That's how specific and detailed I am. This is all before 9.30, before the market even opens. Also, where it is going to go to the target before it does, I figure all this out before the open. That's how detailed I am in my position. When the stock sets and triggers, you can take deliberate action and enter the position without hesitation. That idea of getting it right at the right time is how you get paid with the momentum before the momentum goes. Technical analysis uses past price data to predict future moves in stocks and the market, and that's how you do it. If you want to become a successful trader, it's important to analyze price action in detail. Understanding price action helps you evaluate the correct directional trend of a chart so you know what direction to take the position and when. It's when, when to, because even if you know something is a shorter along, if you get in it wrong, you're going to miss the boat. For example, AOL, if you waited until after 10 o'clock to short the stock on the day and waited on your scanner to look to find this thing and saw that it was down a million miles, you didn't get any of this move, you didn't get any mystery word, you missed the whole trade, you probably lost money even if you shorted it. So it matters to know what stock to do before the market even opens, where to take it, where it's going and to get it at the right time. If you were waiting to trade something after 10 a.m. Eastern time, which is what many, many day traders do, you miss 95% of the momentum moves that happen in the market. It is about proper trade execution and it has an enormous amount to do with the right stock pick and the timing. Calculated risk is not gambling. It means that I am deciding that I'm going to risk this amount of money and it is worth it and I have 100% conviction that it's going to work. Does it mean that every trade works? No, it is unrealistic to think that every trade works. People that ask me about this or that happen to be in the live trading room and see something not work and then get upset are completely unrealistic and actually are not destined to ever be successful traders. The reason it's important to look for quality trades and calculator risk is you can take two losses, three losses in a month and make money the rest of the days and still be up. So you have to accept the fact that you will sometimes in the period of a month of 20 calendar trading days in a month have two or three losses. The rest of the day should be profitable but if you have good quality risk to reward trades it will be very profitable even if you lose two or three days in a month. Even if some trades don't work because of the payout is more than a half or more than one in the trades that go on to work. This is how you pay for commissions. This is how you pay for run fees. This is how you pay for platform fees. This is how you pay for losses and then this is how you pay yourself even after all of that and still can make money as a day trader. Now what do I mean by calculator risk? Calculator risk means a chance. It's a chance. You're taking a chance. A chance taken after careful estimation of the problem with an outcome as in taking their dispute to arbitration was definitely a calculator risk. This term uses calculated in the sense of planned with forethought. That's me. That's me. I plan with forethought. I get up in the morning. I have my coffee. I have my breakfast at 7 a.m. I'm looking at the market and I'm trying to decide what stock I want to trade in the day and I've got all the morning until 9 30 to decide what to do. I take a lot of care and great detail in my calculated risk. I have a reading system I'm going to talk about today. That is how I'm taking the calculator risk. The reading system points me in the right direction. The stock to pick the trade and that's how I'm going to take it and because that works, I'm taking the calculated risk. It's calculated careful estimation of the probable outcome. Probable outcome if the stock rates 20 points or more per my 26 point rating system, the probable outcome is that the trade is going to work today and therefore it is worth me taking a risk. Whether it's $100, $200, $300 or $700 because the likelihood of the trade going into work is high. Does that mean that every trade works? No. Again, that is unrealistic. Calculated misread means that most of the trades per the system, if you follow it directly, the way that I teach you will work and therefore in the course of a week and a month and a year you will be a profitable trader. Proper risk to reward trades use calculated risk and this means knowing what stock to trade. What is the basis for taking a certain position of stock or knowing that the setup will go where you take it with the stock, where you put it because of the gap, which is the strategy, the golden gap. It is on the quality of the gap. You find quality setups and quality good risk to reward trades in the strategy itself, which is golden gaps. Now what am I talking about? What is a gap? Gaps are an event in the chart of a stock and they are a large display of price action. Institutions who participate in the market that they do every day notice gaps and trade them and as one individual you can trade them to make money and that's what happened in AOL today. AOL had an institutional sell-off in it today. Now how do I do this? How do I qualify the stock to pick it? I use a rating system. It's a checklist. That's really all that it is. The stock has to pass the checklist. It has to pass a 26-point checklist. That's how I know what ones to trade. If the gap rates 20 points or more per the 26-point checklist, I will watch it to go longer short depending on whichever stock I'm looking at, whichever gap. And I'm only doing these setups in stocks that are gapping. The market gaps, ETFs gap, the market gaps almost every day, the market gap today, you can use this for ETFs. People ask me, can you use this for options or other things? Yes, the checklist would tell you what direction to take the stock or the market. But your entry as far as your risk to reward would vary whether you did a day trade, equity trade, court trade, swing trade or option in it. So your actual positioning, risk to reward and target would vary. And I'll answer any questions about that if anyone has any questions about that too. So again, why does risk to reward count? Because you have to be able to be in balance with the fact that some trades will not work and be okay with that where you don't get into that fear mode when you have to take one loss in a trade. And that's what really sets people off course where they do crazy things with their trading accounts when the fear comes up. And the fear comes up when people take a loss. If you are in balance with yourself, you won't be in fear when you take a loss because you've 100% conviction in your system in the gap rating system and the strategy itself. And you will know that the next trade that you take will be positive. And it is based on calculated risk. Now this was a play that happened last week. I'm showing this to you, even though it was that money in this play when it set up initially, it slipped and I got stopped out and it didn't work. Now what happened with this? The gap was P. I shorted the P in here. I was up profit. But again, I'm not looking for a half of a risk unit. If I was, I would have gotten out of this with profit and not taking a loss. Instead, I took a loss instead of taking profit when I was a profit because I'm looking for the trade to move and have momentum. But this setup fail. If you did this setup as an intermediate risk trader, you would have taken the entry at 1475. Put the tight stop at 1505. Risk was 30 cents and 500 shares. If you're intermediate, not new, what you're getting there, you've been doing this about a month or two, you can risk $150. The exit was you got stopped out, you lost money. Profit was zero. Let's go back. Here it is. You're out. If you didn't have the stop in, look where it went. You have to have the stop in. Your loss is contained. The stop contains the loss. Your risk is contained. It's calculated. It's calculated. And you figure it out and you put the stop in. You took a loss though. It didn't work. There's nothing you could do. The stop just flat out didn't work right on the day. It didn't follow through. You're down. You stopped for the day. What happened on the day in this ultimately, it did not work at all. The bar as a short here, it was a green body bar. It had a top entail and a body entail. You couldn't have shorted this and made any money and you couldn't have gone long to submit any money. It had no proper long set up. It wasn't a long, it was a short, but it didn't set up right. You could have watched this for follow through after, but you would have taken a loss here. Now, so that was Friday. Again, money managing yourself with a good system. You have used the stops with the quality entry. This could have gone a dollar and you had 500 shares and you risked 150. You could have made 500 bucks. That's a three-hour trade from the entry. It didn't work. You took the one loss. You continue on. You believe in the system. You have conviction. You get up the next morning. You rate the next gap or the next day or the next day, whatever the next day is we trade. Now today, there was a gap that you watched. AOL was a gap down. The stop closed up here, like I said, the night before Tuesday evening, gap down here in the morning. Before 9.30, you would have seen AOL and you are trying to decide what to do with this. Then you watch it into the open if you determine that this is something that you believe is a quality short or along whatever you would do with it, but it turns out it was a good short. So you'll be watching AOL to take a short position. Here is the play in AOL. You could have actually been very aggressive in hearing this, but this is the call I made right here with the stop right over here. And here's the move. This is a crazy number down here went to the dream target. The real exit in this is here, all into here. But you could have held this down and made even more. Again, your goal is not to get down to the lowest, lowest point of the day because you never know. Sometimes these things go farther and sometimes you're up so much money you have to actually money manage yourself. If you were a beginner trader again, risking about $100 price of the entry is 4090 stop is over 4110. This is a great entry in a stock with this price point. It's 20 cents here. Again, you are risking a little and earning a lot. If you've done this trade, you want to make 750 bucks and it sends it is not at the low of the day exit was 3940 and actually went down to 3870 something. You could have made another 70 some cents in this from this exit. You could have actually have made even more money in this, but this is the proper place to exit it. Profit 750 if you risk $100. This is a 7.5 hour trade. This is a great risk to reward trade. Okay. And you got all the momentum on this. If you watch this and popped up in your scanner around here at 10 o'clock and you'd be looking to take a trade, you had no risk to reward, no proper entry. The move was done. This ended up being the low of the day in the stock. It was a low of the day in the stock. All of this came into the morning. Why? Because the stock got. Because the stock got because momentum volatility happens and stops into the open. And so you need to go to watch it and where to take it and how to trade it. And that's how you're getting an entry like this in AOL with a 20 cent risk to fall off a planet. This is how you make money day trading. This is how you pay for one loss in P. So if you did P as a beginner and you did AOL and actually risked 150 in the P. And if you risked 100 in AOL, you still would have been profitable between those two trades and made $600 or 6 Rs. This is how you successfully trade consistently following the system, doing the right trades, looking for the entries, ready your gaps, being prepared in the morning. No hesitation, having conviction. Now if you did this trade with an intermediate risk, this is closer to the 150 original in the P, $200 risk, you would have made $1,500. If you could have done AOL today in my call, it would have been $1,500. And this is not an exit at the lower of the day. It's a 7.5-hour trade. If you'd risked $200, which actually the buy power you would have needed in this isn't even crazy. This is only 1,000 shares. The BP you would have needed to take this position and make $1,500 in AOL today in your account, the buying power would have only been $40,900. And almost everyone I'm sure in here this trading even has that. This isn't even an insane amount of risk for BP that you needed to take this trade and you could have made $1,500. It's a great call. How am I able to see these things, to see the setups, to see the cause, experience the gap rating system that I do and knowing how to take trades and enter them in a one-minute chart. All of this is everything that you would learn from me. If you came and wanted to be mentored by me, I am mentoring people how to trade properly because I know how to read price. And because I know how to read price and I can see it in the line moment, I can call a trade like this for you to make profit like this. Now, if you're an advanced trader, you would have needed more BP, obviously, than the intermediate person. But you could have risked $700 in this trade today and taken 3,500 shares of AOL and made over $5,000. And it was a phenomenal move. But if you took a trade like that, it makes your whole week. You don't even have to take another trade that week. You could make $5,000 every single week. You could make 20 grand a month trading. And it can be done. So this is an advanced risk when you get to the point that you're learning how to do it. But again, you have to start from the beginning. Beginner, intermediate advanced, you work your way up. As someone asked me the other day, well, if I have this much money, how long will it take me? If I have a lot of money, there's nothing to do with that. You have to learn it. Whether you have a lot or a little, it really doesn't matter. It's how fast you're going to learn it. How fast you're going to learn it is up to you. The class I teach is only two days. You learn everything in two days how to trade. It's up to you if you're going to implement everything. So while learning the 26 points matters, again, this is a chart in AOL, where you can see here in the 15 minute that the stock fell all into the morning. And time, it matters because if you took a late trade in this later in the afternoon or later in the morning, you actually lost money or didn't make any money. Timing matters in reference to day trading, core trading, swing trading, any trading you do. The pick matters, the timing, all of it. If you waited to see AOL in your scanner, if that's the type of trader you are, you don't know how to trade the open, you're missing out on the volatility momentum that happens in stocks and you're missing out on all the money moves that happen in the market because they all happen and set up between 930 and 10. Unless everyone's in a blue moon, you get the market power trending up or down and you get all stocks moving in reference to the directional bias of the market. If it lifts and carries through all day in either direction, that is rare. It is rare that the QQQs of the spy would have a power trend day. It can happen, but it happens very little. It doesn't even happen once a month that the market acts like that. Learning how to trade this method is really an amazing way to trade as a day trader because of the volatility momentum you're getting, the moves with the stocks move a dollar or more, and the risk to reward them. Also, you're done quick. These trades set up, you're done in the first half an hour, first hour of the day. You're done. You were done this morning way before 1030 if you did AOL. While learning the golden gap matters, number one, getting the entry right in stocks and positioning, which a lot of people struggle with, they don't know how to do it. Number two, timing. Timing counts. If you get it in the wrong time, even if something, you're reading the bias right of the directional bias, you could lose. AOL is a good example. Direction. You got to learn how to read direction right. Is AOL longer or short? You have to learn how to read that right too in the gap. And knowing what to watch and when to strike before the move is gone, meaning you want to get in something before the move is done. It doesn't help you if it's after the fact. Ultimately, you have to have conviction to trade. I think if you risk any amount of money and people say, well, I'm just testing this with 100 shares, 100 shares, if you get used to trading very small risks, you'll never take it seriously trading bigger risks. And I don't know what your goals are, why you're doing this, why you're trading. Maybe we're just doing this for fun. I'm doing this. This is serious to me. And I think a lot of people do not take trading seriously enough that are day traders. This is not Ms. Pac-Man. This is not a computer game. This is real money that you're risking. It's real. And every time you can pay yourself, you know it's real. And if you're not paying yourself, then you don't feel like it's real. The longer you go that you can't pay yourself, then you're losing and you're sending money to the broker instead of away from it to you, to your bank account, to your checking account, you don't understand then how real it is. Once you start to pay yourself in the market, you realize it's real. I tell people when they start making money, pay yourself, pay yourself anything, anything at all, so that you can feel like it's real. It counts. It matters. Once I turned the corner of my trading with that was able to do that, it made a world of difference for me. And if you are not able to pay yourself right now as a trader, you have to stop and reevaluate what you're doing because you may have completely lost conviction in the fact that the market can even pay you and you need to reset. You need to just completely reset your brain and what that is because you have to have conviction at the market is something that can pay you or you won't let it pay you. It will not pay you because your brain is functioning in a way that you think that it's something that is gambling or will provide losses or it's too hard to do or conceptually pass the point that you can do it because you don't have the money or whatever the case can be. I've heard every excuse in the book from people. There are no excuses to carry any weight or water. I did it. I taught myself I am successful. I'm real. I'm a real person and that means you can do it and I'm teaching real people do and I have people that are training with me that have done my class and are training with me that are successful. They are actually making real money from the market and they actually pay themselves. So it can be done. That's the beautiful thing about the market. Anyone could do it anywhere in the world. You can make money doing it. You can have unlimited access to the funds in the market but you have to do the right thing and it's up to you. You're the one that's going to decide if you really want to invest in my class or learn from me or take a chance when you take a train because you're the one that has to press the button. You're the one that has to do it. Okay. Now why do these setups work? Well, they work because of the strategy which is golden gaps. Golden gaps provide setups that have a good risk to your payout. This is the reason really the biggest reason to learn from me. Not every stock or gap will offer good risk to your work. It just won't. And there are lots of gaps that happen in the market every day. They're not all good. You have to qualify them each morning. You have to qualify the gap. It has to meet the standard of the criteria to trade. I won't do something if it doesn't meet the criteria. Finding a highly rated gap is key to finding good setups. Gaps are an opportunity to find good risk to reward trains and luckily they do happen every day in the market. That's the nice thing. You get up every morning. You don't know what you're going to have. You can look at gaps at night though too. Sometimes stocks gap at night but it's all about the quality of the gap which leads you to the quality entry. And I don't trade post-market or pre-market. I wait until they open to take the trade. In order to take the position at the exact price point you need to be watching the right stock. Again, the right pink. You need to know what to watch. This is how you have to have the rating system to have the good pink. Then you have to watch it live to take the setup at the right timing. Supporter resistance levels and targets are determined pre-market before the open. That's all by the way how I knew that AOL was going to go. Determining targets ahead of time helps you determine if the stock is going to have a good risk to reward move. And then you know if you want to do the trade or not. So you can learn how to take large positions with small stocks because you have conviction in the gap. This was staples from last week. I actually took 7,000 shares of that trade I showed you in staples earlier. That was an advanced risk. It was not a beginner. But I just want to show you that it moved 20 cents. It moved 20 cents and I made $1,400. That was a good trade. And it was just in staples. It was just a regular staple setup. And it was a 10-cent stop and I took 7,000 shares of it. So how do you get to the point where you can take 7,000 shares of anything? You need to know that the entry that you take is correct and that the place you put the stop is right too. Okay? But you can do it. I mean, I do it. I do it every day. Golden gaps give me conviction to trade and take calculated risks. And you have to know what this is. If you think the market is gambling, you have to do a brain reset. So the class I teach and the method that I teach people is called the golden gap. The class is called the golden gap course. The golden gap course teaches a 26-point reading system to find the best stop to trade each day. This system is a great system. There is no one else out there that is teaching gaps in the matter that I do. I am truly unique. I'm the most unique person you will ever meet in this business. Hands down, you will never, never meet anyone like me. I have 100% conviction that as long as you live and as long as you trade, you will never meet anyone like me. And never anyone that trades gaps in the way that I do. And you will never meet an actual trader face to face that you could talk to like me. People that are out there that are good traders usually hide in the dark in their homes and you never speak to them or they work for institutions. The fact that I'm even sharing my information for a fee to teach in a class is an opportunity that will not exist for the end of time. I'm a young single woman living in Manhattan that's doing this right now. And the people that come to me recognize that this is a special, special thing to find a woman like me that can trade in the way that I do. The course also teaches you how to enter and exit the stock on the day to get good risk to reward trades. And the course teaches price analysis and technical analysis on a very advanced level, which is how I'm called trade like AOL today, that fell off the planet with a 20-cent stop. The course teaches a more proficient way to read support and resistance in the right direction, which is whether it's long or short. Not every down gap can be shorted, not every bullish gap can be bought. All right. The course teaches you to focus on one strategy in a detailed manner so you become a good trader. And I generally care about trade people to become good traders. I can tell you one thing for sure. If you quit, you will not make it. If you want to make it, you can. How determined you are to do it is up to you. There is a level of commitment if you take my class because you pay a fee to do it and the class is intense. But you don't need a million dollars to actually trade successfully because the way I'm teaching you to do it has momentum in the stocks that go and you will get things that have $1, $2 point loops. So how do you do it? The golden gap course and the 26-point rating checklist. It measures gaps for rating them in the daily chart to find stocks that have a high probability of direction of bias for the entire day or at least the morning, a big move on the day, early confirmation of the bias right into the open, and very precise entries of follow-through and good risk to reward target potential. Again, this is based on momentum trading. This isn't scalping. So learn how to take good risk to reward trades and you can learn how to do it in the golden gap class and the golden gap system. So the class is called the golden gap course. It is February 21st and 22nd from 9 a.m. to 5 p.m. Eastern time. If you are interested, you can email me and Melissa at thestockswitch.com. The class is online. I allow free retakes online. The cost of the class is $29.99. If you want to sign up, I already have people registered. Email me and Melissa at thestockswitch.com if you want to sign up. If you sign up for this class, I am offering a special, a Valentine's Day special, Good Through Valentine's Day, which is actually Saturday 9th, February 14th. I'm offering a Valentine's Day special for all new students. You will get February, March and April free in the trading room. The trading room is not included with the class normally, but I'm offering a special for Valentine's Day. It's Good Through Saturday. This Saturday today is Wednesday. So you have Wednesday, Thursday, Friday, Saturday to sign up. You'd have to email me for sign up paperwork. I do have people already registered. Deadline is Saturday night, midnight. And this saves you $750 because the trading room is $250 a month. Now, I always get the question about the trading room. In order to join the trading room, you must have done the Golden Gap class. No one is a member of the trading room that has not done the Gap class. That is a rule I made a long time ago. Why? Because I want people to be successful. The only way that you will be successful trading is if you learn what to do. And everyone can make time two days to learn how to trade in a two-day weekend class. You can rearrange your work schedule. If you work on weekends, if you want to do it, take a vacation day to do it. Many people don't work Sundays. If you work Saturdays, take a vacation day to do it. I only teach this class on Saturdays and Sundays. And so this is what it is. You have to take the time to make it to do it. This is a chart of the market. I don't know where the market exactly clings today in the QQQs, but earnings season has tons of gaps. Like I was saying, the market gaps every day. There's a lot of potential for that free time. I'm giving people in the room if they sign up for the class early to make money, make the money back for the cost of the class in February, March and April. I mean, that's just a long period of time. Now, I also teach a class called the Trends Course. I'm doing this this month as well, February 24th and 26th, 12 to 4 Eastern time. This is for longer-term trades, swing trading, and overnights. It teaches you how to read trends and stock charts. And by the way, AOL was a nice day trade short today, but there's another chart. This is something you would learn in the Trends class. AOL is actually not something where the chart is broken. AOL was a good short today as a day trade, but I must tell you that that chart is not broken. AOL is still in an uptrend, and there's nothing wrong with that chart at all. And that's what you would learn in this class here, if you were looking to do overnight trades. The cost of this class is $9.99. If you're interested in more information on this, you can email me at appleinsets.switch.com. I'm doing a special. If you want to do both classes this month, really intense. I mean, learn all this stuff this beginning of the year of 2015, which is great, great time. You learn the Trends class, the Golden Gap class, how to take overnights, long-term trading, the entries, everything. $34.99 is the price of this, both the classes, and you save almost $500. And also you get February, March, and April, free in the room if you sign up by Valentine's Day. So that's phenomenal. It would actually save you $4.99 plus $7.50. Okay, it's a great deal. And I also teach one more class that people have been asking me about. I don't do this class that often. This is an advanced class. In this class, I teach very specific entries, like we talked about today, but in an advanced method where I do ads. It's something called an ad where I take an extra position in a trade. It's a very specific way that I do it if I have confirmation in something. And this class is called the Entries Course. I am doing this in February as well. I may do this class like only two or three times a year. So I'm offering this this month if you want to do this as well. It's a course in how to focus on intraday entries, learn where and how to accurately take a position and stop, understand risk and proper sizing, learn how to do and add to a position to maximize profitability in trading games. This class is February 18th and 19th. This is during the week, 12 to 5. And the Trends class is during the week too. Class of this class is $14.99. You can do the Trends class alone. You can do the Entries class alone. You can do the Golden Gap class alone. I'm just offering specials here. If you want to do everything together this month, I'm doing all three classes. And the total price, if you wanted to do the Trends class, Golden Gap class, and the Entries class, you could save $1,000. It would be $44.97 for everything. And you also would get February, March and April in the room for free. So you'd actually save $1,750 on everything as long as you'd sign up by February 14th. So that's huge. You do every class. You'd be in the room February, March and April. You'd learn everything from beginner to advance that I have to offer if you really want to commit to doing it. You can learn. And then you'd be in the room. And the room is a very valuable place to learn from me. So the biggest special I'm offering right now this month in February is amazing. If you sign up by February 14th, you could do the Trends class, Entries class, Golden Gap class, and you get February, March and April in the room for free. And you save $1,750. This is the biggest special I've ever offered. So again, I have a live trading room. If you want to trial the trading room, I can send you an email me tonight. And I can send you a trial to the room. You could trial the room this week or next week before the class. If you want to see what you think of the gaps and see what you think of the room, you would miss the special if you wanted to trial the room next week, because that expires this Saturday this week. But the class is not until February 21st and 22nd. So you'd have plenty of time to trial the room if you wanted. I do get people one week trials. I tell people that they should pay attention and just listen in the room for the trials, not take the trains. But I do have people that take the calls I make. And there were people that were trying the room today that did the AOL. And I made for someone to come in and trial in a room and make money on a trade like I called today in AOL. That does not happen. That is an anomaly in itself, just like me, because that was a great call. And there were people in the room that did that trade. And they had a huge day today just by you taking my call in the room in a trial. So you could have made the money for the class in the room today on that call. So, you know, I have good information. It is quality information. There are a lot of people out there that are teaching about the stock market. I am not one of those normal people. I can refer you to clients that have taken my class that you can ask about me, or you can call and talk to me directly and ask me pretty much anything you want. It's an unusual opportunity to learn this from me. It's something very specific that I'm doing because nobody else on the planet is trading gaps like me. And I generally, generally am teaching people really how to trade. It's not something that you would learn how to do and it would last your week. It's something that I would teach you to learn how to do for a lifetime and that even if I stop running the live trading room and you don't join it, you can do it by yourself because I'm actually teaching an old fashioned way how to read price and charts. My charts are very clean. I don't have a lot of information on my charts. I'm focusing on price when I teach the class and when I trade. It's like back to the basics of chart reading. You don't buy some kind of thing for me that's going to put indicators on your thing that's going to go to funk and like the next six months or the year. This is something that exists as long as the market will exist, which is that stock's gap. And the reason is because the US stock market has a closed time. If this was the forex market, it would not have the type of offer because the forex market only has one close on the week. But the US market will always have a close and open time because they need that time to situate themselves. And there's institutional traders that mostly work for banks and they don't want to be working 24-7. It's different. So there will always be gaps as long as the US market exists. And the reason that the 26 points work so well for the calculated risk for a high percentage of return is because it follows institutional money on the day. And that is what happened in AOL today. AOL is still okay in the chart long term, but today AOL had a massive institutional sell-off. And that's what created the moving momentum in that stock on the day. And if you knew my system and were in my live room, you could have gotten that trade. So thank you everyone for coming. Does anyone have any questions? Let me just scroll up. Does anyone have any questions about anything at all? The class, the trains, the market. Again, I did talk about the market in a previous webinar that I did for online traderscentral.com. And the last one I did. And someone was talking to me and trying to convince me that the market was assured. And I told that person the market was not assured. I told that person the market was along. I don't know if that person's here. The market is along. The market's in an uptrend. The market never broke the uptrend. The market's going to make a new high. And it could even happen this week. The market's a dollar away from making a new high in the QQQs. And how am I able to read the stock market that way? It's because of the gaps in the market. I'm reading the gaps in the market. You can rate the gap every morning in the QQQs at the spot. And you can determine in the direction of bias for the day in the market. If you need more information, you can email me at melissa at thestockswitch.com. If you would like a trial of the trading room, you can email me. If you would like to sign up for the class, you can email me. The papers to sign up for the class of registration forms are not online. You need to email me to get those forms. And the Valentine's Day special expires Saturday. Mike is asking, do I use a scanner to find potential stocks to trade, not outside of the scanner that's with my platform? I don't have a separate scanner. So I find that it is sufficient to use the scanner that comes with the platform that I already pay for. And everyone has one. If you don't know how to use it, you have to call customer support for your platform to find out how do you scan for stocks on your platform. But I don't pay for a separate one. You could. MK is asking, is there any track record of results available? The answer is no. You'd actually have to go back and watch live videos of the trading room, which I've taped and have on YouTube. They're three hours long, but you can go back and listen to me trade live. If you want to see previous live trading that I've done, or you can email me and I can refer you to people that are in the room with me and they'll be honest with you. They have no reason to lie. They've already paid me for the class. So I mean, they have no reason to say anything other than the truth. Or you can try on the room and be in the room with me. Does anyone else have any other questions? If not, you can email me here. Thanks for coming everyone. Bullish market tomorrow. I'll see everyone on YouTube and go to YouTube. Subscribe to my YouTube channel. It's blowing up already. All right, everybody. Have a good night. Email me and Melissa at thesockswitch.com if you'd like more information. Thank you, everyone.