 Okay, dope. Can everybody see the slide? Can everybody hear me? How's everyone doing today? Good afternoon. I almost said good morning. I almost said good morning because I was drinking coffee. How funny. Thank you all for coming. Welcome to this webinar. If you have questions, you can write it in the room. I'm the only person that can see the questions, but I will answer them as we go along today. I'm going to talk about how you can make money trading consistently using this strategy, which is what? The strategy that I do is a strategy I created myself 13 years ago, and it is called the Golden Gap. So we're going to talk about this a little bit today. We're going to talk about gaps in general. We're going to talk about trading. And again, we're starting a few minutes late here, but I'm just going to take my time. So don't feel like you can't ask questions. You can. If I need to, I'll flip flap back and forth to go to charts. Crazy times that we're in right now with this market. Just got done watching the White House press conference. President Biden talked about Afghanistan. Market dropped significantly today, then completely reversed. We're in a very volatile market. So you have to know what to do to trade. That's it. That's the end of the story. So if you're trading, you've got to know what to do. Now, if you're thinking about trading and you're not trading, you're still going to know what to do. If you're trading now and you're losing, that's probably because you don't know what to do, and you've got to learn what to do. Thank you, Kathy. So if you have questions, you can email me at Melissa, thestockswitch.com. You can call me at 929-3200 Gap. You can also follow me on Twitter, Facebook, YouTube, or Skype. I appear in national television. I never know what I'm going to be on until the same day, but you can follow me on Twitter because I actually post when I'm going to be on on my Twitter account as well. Okay. So let's get right into it, people. Why trade? What's the point of it? Well, the point of it is obviously to make money. Trading is a career that can offer you financial freedom, fulfillment, and happiness. One of the reasons that I'm so thankful that I got involved with trading, you know, a long time ago was because of COVID. I mean, so many people lost their jobs in COVID or were forced to work from home. I already had my workspace all set up. Okay. I was, it didn't disrupt my work life COVID. So I was grateful for that. Okay. So you can trade, do it from anywhere in the world. You don't have to live in the United States and you can do it from home. You can have the life you want if you're willing to learn something new and develop the skills to become successful in a new industry. I started trading because I wanted to switch jobs. I was doing mortgages for a long time and that was back, gosh, what was that? 2007, excuse me, I'm sorry for yawning, 2007, 2008 was when the mortgage industry was collapsing. And then I got involved with trading in 2008. And then of course we had the bank bailout that was 2009. And then you had the market sell off hard then and then reverse. Okay. It was a long time ago. Hard to believe, but here we are 2021. So we're more than halfway through this calendar year. And I think it's a really good time for evaluating your financial goals and not only that, your career, whether you're doing something you enjoy or not, even if you love your job, love your career, you can make extra money training on the side. Specifically options don't take up a lot of time because you can put the trades on, put a sell order as soon as you take it and you don't have to sit and babysit it all day long. Now I like to watch shards. I like to watch what's going on. But I'm saying if you don't have time to do that. So ask yourself, maybe you're here today to ask yourself, maybe you think about doing something else for an actual career, like you want to do this full time. Or maybe you want to do something where you just make extra money. You're not earning the income you want to this year. And then you have to think, does your career offer you a chance to make more in the future next year, six months from now, is there advancement? A lot of times sometimes there's not right now in this day and age. And that's problematic too. Will you make more money next year in the job than you did this year? Or will you make less? Again, it's almost September Labor Day. Hard to believe how fast this year has flown by, but it has. Do you find yourself exhausted at the end of each week because you work too many hours? That was me. That was me with the mortgages. I mean, I remember getting a call from a customer on Christmas Day and I took it. I took it because I took it because the guy was looking for houses and I took the call. I was like, this is the end of the line for me. I mean, I interrupted my holiday with my family and I just thought I got to get out. I got to get out. And at that time, I had not started trading yet, but I knew like I had to find another career. Do you enjoy also what you do every day? And if you don't, again, one of the things I love about trading is I do think it's fun. I think it's fun because you can make money fast. I think it's fun because you're done no later than four o'clock. We're usually done pretty early in the morning. And again, you have weekends off. Okay. The other nice thing about trading is you have unlimited income. The only thing is that stopping you from making more is guess what? Getting better. Okay. You get better over time. You make more and risking more. So you have to get better so you can risk more. And the better you get, the larger your account is, then you can risk more. You follow what I'm saying. So for people that like to train, again, the idea of working from home gives people career freedom. But it's also the freedom to be able to control your own destiny as far as how much money you make, not necessarily waiting for an employer to give you a raise. So I started out talking about a strategy that offers consistency. What do I do? It's gaps. But more importantly, I create a system called the golden gap. A golden gap is a gap that rates 20 points or more per my 26 point rating system. That is a complex system that I teach in a 14 hour class. But just for the purposes of this one hour lecture, I'm going to discuss to you what a gap is. We're going to go over a few of the golden gaps that we traded and played. And again, at the end, I can talk about the market if you like as well. Today, there was a gap in Boeing. Okay, stock close to your gap down fell. Now what is a gap? From four o'clock this is Friday, this closed. We're on Boeing stock. This is a daily. It closed at a price. And then it opened at a lower price. That is a gap down. And then it fell. It was a short. Could have shorted this today, could have shorted it, or you could have done a putt, which is an option that is a short, or you could have shortened it as an equity train. Okay. Here's another one over here. Closed here, gap down here, fell. This was a short two. Now this here is what? This is a gap up. Closed here, gapped up, rallied, got bought. So at four o'clock it closed at one price and then it opened at a higher price, the previous day, which is 9.30, then it rallied. So you could have gone long here and made money. Could have shorted here and made money. Okay. Does everyone see that? Today you could have shorted it and made money. So a gap is just a difference to the close and the open. But I developed a system to rank the gap, meaning that I get up in the morning, I look at the pre-market, and I analyze it to determine is Boeing going to fall or is Boeing going to rally in the gap. Okay. And I rate it and I go through the whole shebang. And that's what I do each and every single day. Now here was another one that we did. This is PayPal. Let's go back. Gosh, this was July. Closed here, gapped down, closed up here and 300 and whatever. Don't know the exact number here. Can't see it, but you can see where it was above 300. And then open. So this is four o'clock, open here at 9.30, roughly right above 285, snug as above. This is a 50 per move in average. Open here, rallying, fell, closed, boom, gapped down again, fell, fell the next day too. So this is the PayPal. So we did a couple of trades in the PayPal. They were all shorts, shorts. Here's the move. Here's the drop. Down here's the volume. Okay. That was the end of July. So we did an option Thursday, July 29th in PayPal. We did the 280 puts. I'll go back to show you the chart in a minute. Advanced risk means a lot. Beginner risk, which I'll show you in a minute, means not as much. How do you determine if you should be taking this amount based on the size of your cash and your account? In an options account, you're trading it based on cash, just the cost. Okay. You can't lose more than your risk. So for something like this, actually, let me go back here. 280s. I'm just going to go back and show you. It's here. So we did them this day here, the 29th. Okay. So we did the 280 puts here. Then it went boom, boom, boom, and you see how this dropped. Okay. So a put is a short and it fell into it, fell into it like a cup. Okay. So how do you make money in the market? You take something in the right direction with momentum. Okay. The momentum here was down. Again, just going back up here the night before we are 300 something within less than a week, we were at what 270 something. You see it? So in this case, the momentum was to the downside. Let's go back. So the cost of the PayPal put was $4 a contract, 20 contracts cost what, 8,000? You could have sold it at 750. You could have held it for longer, but this is a good profit. I'm usually trying to get between 50% and 100%. So again, 100% is a guide, but this is a nice profit, 88% return investment, profit 7,000 risking 8,000. And that's just in that first beginning period. This isn't holding it through just because I call something for an expiration of August 6 does not mean I'm holding it to August 6. Although I didn't look at actually what that cost. I think this was through the strike on August 6. But the move when you take an option, you want to try to get it as quickly as you can, you take it, you get it, you get out. So again, how do you make money as a trader? Chunk it, chunk it, chunk it. You take the trade, get the momentum, get out. Take the trade, get the momentum, get out. Okay. You have to book profits as you're going along. Now a beginner risk in the PayPal, 800 bucks could have made 700. That's a nice turnaround. That is a beautiful trade. You did not have to take thousands and thousands and thousands of dollars risk. This is nothing to do with margin. You didn't, you did not need to have a margin account to do this trade. You could open up an options account with $2,000 and you could have done this trade. Now I probably would have taken one contract if you only have two grand or 2,500. So you would have paid 400. You have to be careful if you have a small account. If you have a larger account, you can take more. You can take more than even 20 contracts. Okay. Any questions about options or PayPal or gaps or anything I've discussed so far here? How's everyone doing? Okay. Now I did not look at this PayPal today to see where it closed. Looks like it rallied today. This was, today's the 16th. But this gap on PayPal was a good gap. And again, this was an earnings and I'm have this PayPal on my radar to see what it's going to do next. Is it going to move up again? Is it going to move down again? Okay. Then we did INTC. Let's go over the gap. Stock closed here, gap down, fell, fell for cliff, closed up here around 56, open the morning around 54, 50, fell like crazy. This was a short. Again, you're making money to short. If you short something at 20 bucks and take a thousand shares and it drops to 19, what are you up? A thousand dollars. Okay. Looking for a dollar move in a trade is a very, very normal amount to look for. And I'm not talking about things that are crazy, crazy expensive. I was talking about normal, normal stocks. Okay. This up here, excuse me, fell more than a buck because it opened up here around 54, 50 and fell all the way down here almost to 52. So this was like a two and a half dollar drop. That's a big move. You can also see the size of the bars here in INTC to get an idea how it moves. Okay. This was a good one. We did not do an option in this. This was a Dane trade. What's the difference? A Dane trade is a trade where you will take the trade on equity, which is on margins. You need a margin account. You can open up a margin account in a retail broker or a prop broker. Okay. They give you a different margin. Now this was on the medium price point. Entry was 54.10. So we shorted it. You shorted it. We got in, we got out. This fell all the way down like I've shown you and it looks like it went almost to 52. I did not hold it down to there. My exit was 53.28. Again, I'm getting a quick move in and out. So I got the first initial drop and boom, I got out. You could have held this down and made another dollar. Okay. Risk was $2,700. Shares was $2,700. Profit $2,214. But you could have doubled up on that and made more. The reason that I like to get out of trades as fast as I can when I get the momentum is then I know the money is booked. Then I know I have it and it's there. And the difference between doing day trades on margin and options is I don't have a lot of time to mess around in a day trade. I can carry an option through. I can hold it a little bit more. I can get out of half and hold the difference. But with a day trade, I've got to be out of that sucker of the day. Got to be out of it. By the end of the day, got to be out with options. I'm calling the weeklies. I could give it a little more wiggle room. Okay. Any questions? Any questions about day trades or options? Again, that was a gap.