 427 p.m. Eastern time here in the Boston area it is or wherever you may be around the world. We start promptly in just three minutes Today's topic profit trading on the side of banks and hedge funds with Alyssa. We'll start properly in just three minutes Thank you again everyone and welcome everyone. I welcome this is Kevin with online trader center We want to welcome each and everyone of you to the presentation today. It's exactly 430 Eastern time We do want to welcome the new folks who's joined last person to join Thomas B. Christine. No T Charles W. Jimmy and everyone Please put your hands together and welcome Kevin and thank you Kathy and everyone in online trader central.com welcome Welcome, my name is Melissa Armel and I own a company called the stocks wish LLC Today I'm going to talk about profit trading on the side of banks and hedge funds. I train. I'm a day trader That's what I do and if you have any questions, you can feel free to type them in the room as we go along I'll see them as we go along and you can always email me afterwards as well at Melissa at the stocks wish calm And you can go to any one of my sites here YouTube LinkedIn Pinterest and Skype and Facebook and follow me on Twitter I put a ton of videos and YouTube so you could go there and subscribe I do a lot of market calls as well, which I put on YouTube ahead of time So let's get right started. I want to start today with a quote And I'd like to be very motivational as a person as a as a mentor as a teacher and as a trader myself I motivate myself every morning when I trade and I saw this quote and I thought this is a really good one We gain strength and courage and confidence by each experience in which we really stop to look fear in the face We must do that which we think we cannot and I thought this was a really good quote in reference to trading Specifically day trading because when you take a trade in the market you are taking a risk There's no way you can make money in the market without taking risk and I find that a lot of people are afraid to take risk and One of the reasons that people are afraid to take risk in the market is because they're so Unsure of themselves. They're uncertain. There's an uncertainty a level of uncertainty They feel like 50 50 about the trades that they take But the one thing we're going to talk about today And this permeates all of my teaching specifically what we're going to discuss today in reference to Money and banks and hedge funds and how they move stocks in the market is that you need to have 100% conviction when you choose to take risk when I take risk in a stock or a position I never feel like 50 50 if I would feel like that Then I would feel like I would lose and I wouldn't take the trade. I wouldn't even risk a dollar so I don't It's not like some days. I take a little teeny weeny size And then some days I take a really really really big size. No I take risk in my positions when I believe that it will work And I take it without fear and we're going to talk about that some more today So open up your mind today to learn something new That's what I want for you today My desire for you today for the time that you spend here with me in the next hour is that you learn something There's a takeaway for you here today Ultimately though, you want to be successful in the market and one of the cornerstones to everlasting trading success is consistency Without this it is very hard to stay in the market for any length of time no matter who you are In order to be consistent a person needs to focus on what counts and what ultimately counts And what can bring everlasting and consistent success? Well, this really requires a deeper understanding a better comprehension and an overall wider perspective Of what makes individual success possible for a trader or investor in the market So I don't care if you're a if you're a long-term investor a core trader swing trader this this Webinar still meaningful for you But like I said, I'm a day trader But let's talk about why do stocks move and what makes them move What makes stocks move in the market? I don't know if you've ever really thought about this before Look, this is what we're going to talk about today It's money and not just a small amount of money It's really big money so much money that you it would be difficult for you to even conceive of it Like if I said picture a vault With 10 billion dollars, you probably couldn't picture where 10 billion dollars actually looks like Maybe maybe you could but probably not. Okay. We'd all probably picture something And then if we really went and looked at 10 million in a vault It probably would look like way more than we any of us would even conceive because that's what big money looks like It's like gigantic Okay Now what is big money? It's massive huge amounts of money so big you cannot even imagine it in your head Becoming a successful trader and investor really requires becoming a specialist In defining where big banks and hedge funds are buying or selling a stock And guess what those are the ones that have that kind of money that big big big big money Learning advanced technical analysis is an important part of this. What does this mean? It means really reading price action in charts But reading it so specifically that you can pinpoint what that big money is going to do before it even does it Comprehending how to redefine and trade with this power will have a huge positive impact on your profitability as a trader So elevate yourself your trading and your profits to a higher level of consistency and success by learning how to read the Footprints of both hedge funds and banks trading in the market because that kind of big money is really what moves stocks in the market You're reading the footprints of the big money and how does it take hold? I have this picture here is a picture of a footprint This could be a footprint of anything, but if we were looking at it in reference to a stock it would be Something that it would be doing in the price of the stock Which it would be doing in a gap now. I'm going to explain what a gap is in a minute Now what does big money look like first? Let's just look talking general analysis here of the of the overall picture of the chart This is a day chart. It's a day chart of the qqqs ETFs or what I call the market I look at the qqqs in the spy when I say the market But just looking here at the qqqs. This is what big money looks like in reference to the overall market, which is an end up trend So big money looks like It's in control here in the qqqs because it's not dropping and it's In control to the upside meaning that the market the overall market here I'm just looking in the last two months is all I clipped here Is higher and it keeps getting bought Now the green bars here depict buying today even the market had a fantastic power training day And the market gapped up now I was just saying how do you see this? Now, what do I mean by a gap? Let me just backtrack here when the market closed on friday it closed here at a certain price 106 or something something whatever it closed Then this morning it gapped up All a gap is is when it opens at a different price in the morning at 9 30 So here's four o'clock on friday and here's 9 30 this morning the market gapped up like 50 cents plus Okay, so it gapped up So when you're reading this placement of the gap and in the case here of today this morning the market gapped up It could have been a gap down Thursday into friday the market gapped down closed up here at 107 something a gap down here to 106 50 something 106 60 something on friday so from thursday to friday the market gapped down then from friday to monday the market gapped up Now what does big money look like? You see here the control the control is To the upside of the buying In the qqq specifically The key to profits is really to train with the big money whether it's up or down We're going to look at this chart a little bit more later too. This is axp american express This is a 15 minute now. We're on a 15 minute down here. This isn't the daily but last week American Express closed on thursday night around 80 dollars in some sense and then in the morning at 9 30 when it opened It opened around 78 something So this was another gap that happened and then this case it was a gap down And do you see this is the move then that the stock made? Okay, so how did the stock go like this? It dropped in here two dollars plus into the open This is big money, which is selling the stock Okay So if you were a trader if you were shorting this you would make money if you're buying this you would have lost What you need to figure out is what is the big money going to do with this when it opens? Are they going to buy it or are they going to sell it? Okay It's about money that's committed Big money is committed because the position sizes that are taken are often huge Okay, it's not like they happen small Scott is asking about earnings axp was an earnings gap. Yes The market doesn't have earnings and it gapped up and a gap down friday morning So gaps can happen for lots and lots of reasons earnings could be one of the reasons that was the axp reason There might have been other reasons too. There are many many reasons for stocks to gap not just earnings Just so you know, okay All right, getting back to this it's about money that is committed It's committed to the position in that stock specifically or the market And it's about money that's in control again. I'm talking about the big money Here I depicted the qqqs. This is the overall market going back from the beginning of 2012 Okay, we have january 2012 you can see the price point here of around where the qqq sat We have doubled in price since then it is 2015. It is april 2015 So we're going back three years plus the the qqqs have more than doubled in price So you can see here that the big money is in control of the market. It is getting bought Do you see this? Okay so That the control The the control what side of the control is the side of the control is into the bulls in the qqqs here This is very obvious Okay, this is so obvious that if I quizzed every one of you if you didn't even know a thing about gaps or anything I'd trade I would hope that you would say yes to that question that the bulls are in control Commitment has a plan of action because the level of money is massive And I will tell you that as much as you don't like to lose Banks and hedge funds like to lose even less than you like to lose Okay, because if a bank takes a position and is wrong And and it ends up being a loss. It could be destructive Okay, it could be very painful Way more painful than a loss would be for you in one trade Okay So as much as you don't like to be wrong when you take something or losing a trade Banks and hedge funds really don't like to be wrong because it is extremely costly And sometimes it can be Uh devastating. Okay So commitment has a plan of action to warrant Mistakes not happening that are that costly or destructive Because the size of the money in the positions is huge. Okay. Now positions can be taken in what way? Stocks can be bought or hedge funds and banks also can take short positions and stocks of the market or Stocks or hedge funds can be long positions and sell them Okay, all of those things can be done So it is a battle level of commitment and sometimes as I was saying here in reference to the market and I'm showing here a picture of Netflix Netflix had earnings last week. We will talk about this chart here in a minute too Sometimes the commitment from banks and hedge funds in stocks or the market is not temporary Sometimes it's long lasting like you could take a trade that could be a long-term swing or core trade That could last four months or weeks or years and be an enormous enormous position for you if you're willing to stay with it Now in the case of Netflix Netflix wasn't in a downtrend for About two years or something like that or maybe wasn't even two years And it did a correction here back at the beginning of 2013 price of the gap of this is stock gapped up close the night before here Gapped up gapped up overnight huge beautiful Fabulous gap that a lot of people wanted to short the word traders because the size of the gap was big But as it turns out the gap held as a bullish gap The stock got bought and if you bought this here around 100 and some dollars And you were still in this position if you were still in it long term today You were never down in the position if you bought this and the stock had earnings last week and Is going to 600. I mean it got to the dream target last week of 5 65 75 75 And it was a beautiful beautiful long, but the stock has gone more than 400 dollars in two years So if you only had 100 shares if you only had 100 shares of Netflix And i'm just saying if you took the position in 2013 if you knew how to do what I do And you bought 100 shares of that and you held it you were never down in the position You would have made over 40 000 dollars From then until last week That is one example of control That can make you a lot of money as one person as one individual in the market Because actually 100 shares of Netflix if you had bought it at around 140 bucks or whatever It's completely doable. I mean that's it wasn't that it wasn't like you were buying it at a strike price of 500 like last week Which actually is still doable for many traders But back here If you had bought it here and been in the trade for two years, which is not that long of a time You would have made over 40 grand with 100 shares. If you had 200 shares you want to make over 80 That's more money than people would make in most of their 401k is with 100 share position of anything That's more money than many traders make even taking swing trades on any given year let alone and in two years That's more money than day traders even making it in 12 24 months of time because most day traders guess what they lose Why do they lose because they don't have a strategy to trade Are unsure of the direction And can't take risk was their risk pertaining to this Netflix if you bought it back in january of 2013 Yes, yes, there was there was a risk involved the stock could have continued in the downtrend But if you rated the gap per my system, which i'm going to discuss a little bit here You would have known that that gap actually was a long and would have helped and I called it to happen You can go back on youtube actually and watch our video from two years ago So the thing is that why did that happen? How did that happen? Is it possible? Are there other things like that's a set up in the market other other opportunities that could possibly happen for you? Yes, but you have to understand what you're looking at And more than that you have to be able to have conviction to take the trade so that you can make that kind of money It's reading the footprints That Netflix Is big money And they bought it up last week too, which i'm going to show you that chart i'm going to blow it up But 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 then you get out after the move happens for profit or it was continuing you stay in it But you have to understand how to trade with the side of power and you need to know how to find it Because there's so many stocks in the stock market and i trade in the nasa second the america exchange and there's so many stocks out there But many of them are playable in any given day It is very important to find this power because the power has the ability to pay you And that's how the market has the ability to pay you and actually it's the only way you're going to make any money The only the only way you're going to make any money is by seeing this and doing it and taking the trades And you've got to take risks to do that and you have to know what to look for Knowing what to read what banks and hedge funds are controlling and how they're controlling it meaning are they buying it or selling it Is essential to becoming a successful trader and you can really really big on the trading in the side of power Not just as a day trade but even long term like i just showed with the netflix The important thing to understand is that hedge funds and banks are in charge all the time the market gapped down on friday Gapped down on friday and sold off and you know what i looked at that and i said whatever I didn't call the market as a short in the room for short But i did say we'd fall in the day But i knew that we'd hold and guess what this morning the market gapped up and ran and ran all day and power Trending and got bought why how is that possible? Here's today's chart because banks and hedge funds are in charge all the time even the market gapped down on friday Even though people see the lower highs and lower lows that are happening and the double triple top in here And the gap down from friday and the huge show up that happened in the live day If you day traded friday the market was red and you made money short if you shorted the spy or the qqqs on friday But that is not anything that is taking hold of this market. That is not who's in control It is what is called temporary control And this is very important and this is something that traders struggle with and i don't know why but it is temporary control Versus real control Okay, it is all about perception It's like What you were looking at and somebody else is looking out in their mind Are you seeing the same thing? I looked at the market on friday I said, oh This is nothing we're gonna fall the day, but this isn't this isn't really going anywhere And I didn't call the market short Even though I said it would fall in the day. It's about perception Okay, yet many many people got very excited about the market falling to friday and wanted to short and took overnight shorts And guess what that helped the market gap up this morning because people shorted the market overnight from friday but Those that are in control the people that are in charge the hedge funds and banks that are in control of this market bought it Up on through after the drop down from friday And you say well that how did the market fall on friday and how did it drop like that and why is it making lower highs and lower lows? Because you always have the back and forth Of sometimes the people that are in the temporary control But you can't make money trading with temporary control You can only make money trading with full control or real control, which is only who's controlling What the stock is doing on any given day? Which is the hedge funds and banks that are controlling it Like who has control now? I'm looking here at this. This is a spy again. Okay, this is the market ETF of the spy During the month of january the market appeared to be Almost kind of bearish now I call this neutral neutral slash bullish work have stolen an uptrend But many many people were reading the spy as bearish why there was 7 000 red bars in here in this month And i'm not going to argue with you that there was lots and lots of red in the market in the month of january You could have shorted the market a lot of days in here and probably even profitable. I didn't do that But people did This is where you have a temporary control Temporary meaning not just on the day here or this day or this day or this day But you actually have temporary control going on for a few weeks Okay But lo and behold Look what happened In the month of february the market continued and rallied and rallied over itself And is rallied and rallied and rallied even today and we will make a new high in the market And it's probably going to happen this week I would be shocked if it doesn't happen this week and it will definitely happen before the end of the month So do you see here? This is again the temporary control. So the temporary control could even last longer than a day It could last for weeks But the real control the full control Is showing its hand again today did then also the month of february and it's there. It's there. I'm reading it. Okay So you have to look at really who has the control who has the real control Here's the market today. I'm trying to do all day So I have a method it is a 26 point reading system that tells you how to read this control And by reading the control You can make money Because you won't consistently make money if you're not with the control with who's really controlling it And your trains will be trapping and your results will be trapping You have to train with the side of the real control, which is of the big money You've got to spot it. So I have a method that spots The control of banks and hedge funds taking positions in and out of the market Now I referenced in netflix they were taking a position in netflix, which I read Happened again last week more buying came in in netflix. Again, we're going to talk about that chart in a minute But the method that I created is called golden gaps Now I explain to you what a gap is i'm going to go over it again But I named my system golden gaps because it's like finding gold in the market because it pinpoints correctly institutional direction My institutional direction. I mean banks and hedge funds and big money in the market and it sets up daily That's the one nice thing you get it constantly Throughout the month. It's not like this is something that happens once a year You constantly have banks and hedge funds in and out of stuff every day So again It's in the gap the gap itself now. How does it work? You're looking for golden gaps It is a gap that has a selling action or a buying action That is happening by banks or hedge funds in the market That is creating a move that will follow through in the stock to pay you in the direction of the gap So It's really i'm reading the price action in the gap now. I talked earlier about advanced technical analysis This is where the technical analysis part comes into play You're going to use the daily chart looking at the candlesticks and reading the price action to see how it's setting up To clearly read the gap to see if this is actually something that's real that will sell off or get bought It is a very very powerful way to enter a trade to take a trade and to have a big move in the stock Golden gaps have huge opportunity because they spot big money and that is really the way that one person can make money in the market There's really only one thing that can move stocks and it's not a little bit of money as I was saying is called big money It's in charge. It's in charge all the time even if you think it's not it's there If you read the gaps correctly and the amazing thing it is a negative is traders and analysts talk about Power money people or hedge funds or banks. They're really the reason that we can be successful in the market It would be incredibly difficult for you or me to make money If hedge funds and banks didn't participate in the market in such a big big way and on a daily basis We be we'd be trying to look for stuff and be trading penny stocks We'd be I'd be pulling my hair out if I was looking to do anything other than what I'm doing now It wouldn't be any fun because you wouldn't get the play on through you wouldn't get the big moves You wouldn't get the momentum like I'm going to show you in some of these trades here And momentum is fun and making money is fun and when it works and goes to the dream target It's really fun now Netflix just happened to be one of those gaps That is such a great example here of what i'm talking about That i'm going to define it for you in layman's terms because the stock the night before closed around 470 something 475 ish. Okay at four o'clock eastern time The earnings reported and in within five minutes the stock literally rallied up 52 over night now You could You could have traded this after hours. Okay. I did not but you could wait until the next day and see what it does It held the gap up into the next morning. This is 9 30 eastern time and the stock opened The stock on the live day rallied up Almost well almost 40 dollars on the live day So from the close at four o'clock on this night here until the next day The stock made almost a hundred point move. It was 92 plus There's nothing that can do that But banks are hedge funds No number of traders can possibly make netflix go like that And forget about the price point for a second even though that was it's a large price point Okay, so all of that aside pretend that was the pretend this isn't the cheap stock It's it's neither here nor there. It's the point It's the very idea that this is so such massive of a move That there's this couldn't have done that it held in the sky 52 dollars up in a gap and a 40 dollar plus move And that is an example of big money money again that you can't even conceive of if you looked at it physically Okay, stock even continued the next day and it's it's even continuing. It's going higher But I wouldn't buy right this second now But it was a great buy last week and in the longer term this chart is higher How is it possible again big money? Now if you knew my method to rate the gap using the 26 point method to rate the gap to determine What it's doing on the live day if you want to take a position in netflix You might have thought it was assured because it gapped up 52 dollars overnight And a lot of traders when they see a gap like that where the stock closes night before at four o'clock down here at 475 And gaps up 52 dollars overnight. They want to short it. They want to sell it They want to do what's called a fade in the gap That was not the right play here. How did I know you rate the gap you rate the gap and it was a long It was a great long event The trade in netflix if you went long this stock and i'm giving two examples here One is an intermediate risk and one is an advanced risk The stop was actually four dollars if you took a hundred shares you would have risked 400 dollars in this This is not the high of the day not even close to stock ran 20 dollars from past this price In fact, i'm just i'm just going over the morning trade here I'm going to go back in a minute If you exited on the morning move up into 550 really was the target first target you were looking for It almost got to this Initially it did get over that But you would have gotten out here and i'll go back and show you why 546 you would have made 1250 that's one thousand two hundred fifty dollars and a four hundred dollar risk The risk to reward is three point one two five times the amount risk was made in profit This is a great risk to reward trade and this is a real amount of money and you would have made it in a very quick time Now let's go back Here's the entry you would have gone long netflix. Here's where you would have put in a stop This is a one minute chart. This is 9 30 Now you couldn't probably this up and taken out half here But here's the exit here into the morning time Now the stock like i showed you here ran all day and actually ran over 20 dollars past the exit at 546 So let's just say you believed that netflix was going to the dream target And you actually bought the stock here at 533 50 which was the morning move on this Okay, the dream target in the stock on the day. I said was 565 65 if you held it to 565 it went there You if you took a hundred shares a 400 dollar risk, okay, you could have made over three thousand dollars But you would have had to be in it all day The morning move the morning trade was 1200 bucks You had to risk four hundred dollars. This is an intermediate risk okay That is an incredible amount of money to make in a fast period of time you made this money in 30 minutes This is not holding the trade all day. If you held it all day, you made three times that much made over three grand This is just holding the stock for less than 30 minutes One of the reasons that my method is so appealing to people is because I only trade the morning for the most part Every once in a blue moon, I will trade through the afternoon, but that's very rare. I might do it twice a month at that But one of the reasons why people love my strategy is not just the momentum that the stocks have But the fast plays that they have in the morning and if they don't set up in the morning, then I don't do them I don't do them at all. I pass. I don't do anything that day Stocks make their moves in the morning because banks and hedge funds put the positions on And have their plan of action to put the position on into the open Whatever they're doing whether it's selling it or shorting it or buying it So my method works very well for people because you don't have to sit and trade all day to four o'clock And I find that many many people when they're sitting and trading all day to four o'clock Actually give money back. They make money in the morning. They give it back in the afternoon It's not the right way to trade you have a goal when you're a day trader and you trade And you just take it And you take it for the move and you get out and you could have done that here with Netflix But like I said, if you held it all day It actually went 20 dollars past that first initial target number Does anyone have any questions about Netflix or anything at all so far? Let me know Let me know as I'm going along here So again, this was a day trade. Okay Now if you took an advanced risk of Netflix same exact trade If you took 200 shares if you could afford to take 200 shares, it's an 800 risk Exact same trade stops the same entries the same exit the same 546 you could have made $2,500 Same trade 3.125 risk to reward and you made this within 30 minutes That means for every dollar you risk you made $3 and 12 cents Day trading is not about percentages It is about how much money are you risking a hamamachi looking to make In other words, if you risk 10 pennies and you make 30 pennies That means that's a three risk unit. That's a great trade That means for if you risk a dollar and you make $3 That's what this trade is exemplifying here. A lot of people don't understand that about day trading But it is not about percentages And actually if you look to percentages percentages are huge or massive But the right way to really look at it is for every dollar you risk for looking to make Three two in the low end could make five six or more in the high end And you have to hold it to the target though. Netflix was a huge risk reward trade if you held it to the target It was almost 10 hours Now getting back to what i was saying. How do you find these picks? How do you find these? I use a checklist the checklist tells me what to look for in the price of the stock It tells me in the morning before the open and you can find them at night like netflix happened at night You could have looked for that one at night to see what it was doing golden gaps Are a secret ingredient that are in charts because they demonstrate an event that's happening It is a price event It's a price event that is being created by big money Whether it happens to the downside of the upside or either direction You're trying to figure out when you see the gap in the chart if it's going to follow through in the gap or flip For example, okay And the great thing is that they happen on a regular basis Meaning you look for the money tuesday wednesday thursday friday The most important gaps are ones that signify though a change in direction or a bigger move in the same direction Which which is what netflix was actually? And you've got to understand which gaps are meaningful which gaps are not meaningful in the market that will help Help you decide what to do and when a change is occurring a great example of this is the market the market gap down friday But it was not a gap that was meaningful Then the market gapped up today That was meaningful and you could have gone long the market today So how do you know which gaps are meaningful which ones are not and how do you know which gaps are made by The power of money the big money that banks the hedge funds are not again using the checklist This checklist helps you Keep your discipline It tells you what to do So you don't have to be stressed out to decide Many people get up in the morning and they are totally stressed out They don't know what stock to trade whether they should go long or short where they should take it What time they should take it what they should do with it Having this checklist is like your trading plan. It takes away all that stress for you All you do is rate the stop And that tells you whether or not you can take it long or short Or whether or not you can't take it long or short at all and you can't do anything with it It takes away the stress And it forces you to be disciplined It's about using common sense of where to put your money and it common sense common sense tells you You want to be with the big money common sense tells you don't want to be against the big money Common sense tells you don't want to play something that doesn't have any money in it Stocks that are too thin don't move aren't going anywhere have no money in them. Okay Common sense says put your money at work for you to utilize it to be effective And efficient and the efficiency happens in the time frame If someone said to you would you rather invest your money in something that's going to pay Three pennies or would you rather invest your money in something that's going to pay 30 pennies? You'd say 30 pennies. That's a better investment. Okay Common sense is you want to be in stuff that moves So you've got to use the 26 point checklist to guide you The checklist doesn't work for you. It takes away the emotion. So you don't make mistakes Many many people struggle with training because their emotions are all over the place Like I said earlier today people are stressed out. They are in fear. They're unsure of themselves. They feel 50 50 That's why they make mistakes The uncertainty the fear issue and then they make mistakes So I I teach a class in the class. I teach the rating system It pinpoints the direction of control by trading where the banks and hedge funds are putting their money and reading the price You are looking at the gap And then you are rating the gap with a 26 point rating system And then you're determining whether you can short or buy axp Acabu has asked me a question. I teach the 26 points in my class Which I will talk about At the end of the webinar Now let's look at axp axp Close the night before I appear around 80 dollars in some sense Gap down here at around 78 dollars. This is at 9 30 in the morning So this is at 4 o'clock and now here we are at 9 30 in the morning Now what do you do with this? You rate it with the checklist You don't have to stress yourself out if you're not sure if it's a long or a short you will rate it And then you'll know it's a long or a short and you don't have to be in fear And then you take it when it opens if it rates well enough to do it now It may not Do anything And then you don't play it Okay But at least you have the checklist to tell you To help you know what to do with it. So you don't have to be stressed out or make an emotional decisions Now here is axp then what did it do into the open now? We're in a one-minute chart stock closes a night before here gaps down drops rallies Drops again rallies drops false. Do you see here? This is 9 30 a.m Where did the stock drop into this actually ended up being the low of the day right in here in 955 This is what I call the money move in the stock. This is big money. What are they doing in axp? They sold out of it. They sold out of it here into the live day From 9 30 into 10 o'clock if you knew that this would happen You could short the stock and you would make money on this move The price of the entry and I'll go back and show you a minute was 7805 This is a really good risk on this 20 cents. Now. This is an advanced risk again You would be risking 800 dollars if you're an advanced trader Dropped more than a dollar, but you probably would have gotten out here at the target 77 Total profits 4200 that's 4200 dollars risk reward is 5.25. What does that mean for every Dollar you risk you made five dollars and 25 cents and you made it in 10 minutes. This is phenomenal Now yes, you did have to risk 800 dollars on this if you wanted to do advance to make 4,000 But I'm going to show you two other examples where you didn't have to take this much risk same trade You shorted the stock here stop over the screen bar. Here's the drop. It actually went past it It actually went 50 cents more under 77 into the bounce But 77 was a target and so you were up a lot of money and the right thing to do was to get out How would you have known how to do this this falls out of the sky If you were waiting for after 10 o'clock for the stock to set a trend of the day in today You missed the whole trade this never set up right is a short the rest of the day You never made any money and this is a short the rest of the day Even though the stock closed right on the day There was no short setup in the stock anywhere else in the day and you couldn't have gone along it And if you were to go along you would have lost this was not along. This was a short big money sold axp on the day Into the open and the move was to the downside to get paid and it happened in 10 minutes in 10 minutes Okay, and actually moved to dollar 50, but again exit was 77 now if you took a beginner risk You only wanted to risk a hundred dollars fine. It still moved huge okay You could have taken 500 shares of this 500 shares of this you would have made $525. That's a beautiful trade Again for every dollar you risked me $5.25. It's not about the share size as far as the risk reward It's about the entry and the exit and not only that the pick The pick and knowing what to pick and the direction to pick it knowing that xp will be a short I'm a mom because if you thought it was a long you would have lost in the trade And you would have never even gotten the short because it didn't set up again as a short So this is where the 26 points tells you way before the stock even opens before 9 30 that this is okay Too short and that you want to short it and you don't want to buy it Okay Now you could have been in an intermediate risk 250 as an intermediate risk $250 you could have taken 2,500 shares or this or there about okay If you wanted to take 2,500 actually this is a $500 risk. I'm sorry I put 2,500 shares that actually would have been a $500 risk not 250 This number is wrong here. I wanted to say 500 bucks. Just so you know 500 shares is a $500 risk But if you risk 2,500 shares and a $500 risk, you would have made 26 25 So how I divvy up risk is like let's just say if you're new You have a small buying power small account Okay, I tell people to risk $50 $75 a hundred dollars on the low and beginner Intermediate you can risk anywhere from 250 up to 400 500 Anything over 500 dollars is an advanced risk Meaning that you don't want to take that risk unless you're trading for a few weeks or months And you know how to trade But the point is that even if you took the beginner risk of a hundred bucks You would have made 500 some dollars Okay 500 dollars a day day trading is $2,500 a week and $2,500 a week is 10 grand a month Now will you get a five r trade on every trade? No, no, you won't Some you will some you'll get more some you'll only make two risk units Some days you'll risk a hundred dollars and only make 200 Okay, but the idea is knowing how to take the setup Which is the same no matter what your risk is Knowing what the directional bias is that axp was a short and also knowing where the target is to get out Okay And what tells you you can do it? The gap and the rating of the gap that it's going to tell you what big money is going to do Because you can't make any money unless you've got the big money with you because that's what makes the stock drop two dollars Big money sold out of the stock on the day and that's what made it drop more than two dollars Okay And again, this goes back to playing with the banks and hedge funds because that's how you're going to make money and not only that It has how you make it quick quick quick quick quick in a few minutes or within a half an hour It's all about having the conviction. I don't want to risk pennies about out of conviction I'll risk a lot of money if I have conviction in something whether the stock price point is Something like axp or netflix or something that's even a cheaper stock It's about the amount of money of the risk that you're taking of the position size It is really all about who has control JPM had a gap that happened last week the stock had earnings and it gapped up Here was the day of the earnings. This was last week. It was a bullish gap It had a beautiful bullish move here in the morning And then it fell through on the live day then on the second day after the gap again The conviction the conviction to tell you that you could buy the stock that even though it's up Seven days here in a row that you can buy the gap up The stock was just rallying for seven days straight and gapped up Administrators might have thought it would sell off because it's been running for seven days But guess what? Per the rating system It was a long and it held us along and the right thing to do was to buy it after you rate it If it rates well, which you did and if you went long and you made money and if you went long and here you made money It's about having the conviction to know what to do And if you don't understand how to read this you might think this is going to sell off because it's run out for seven days straight Longer than that here actually Okay It's very easy to press the button once you have conviction It is very hard to press it if you don't It's nearly impossible to make money in the market if you don't have conviction But it is very easy to make money if you do have conviction So you have to learn what conviction is And if you don't have any conviction at all in what you're doing you should just stop because chances are you'll lose because You cannot make money consistently in the market unless you actually believe it's going to work And what do I mean by conviction conviction means it's a belief it's a strong belief You believe that it's going to work the stock's going to work in the direction that you take the position You believe that if you risk this much money, you're going to make this much It's not about like you're going to the casino It's about you're doing it because you think there's going to be a payoff there has to be a payoff There always must be a payoff you want to pay off if you take a trade you want to get paid You want to pay off if you take my class which i'm going to talk about in a minute That you want to be able to learn that information to make money Everyone wants a payoff in the market. That's the reason that you're doing it If you don't believe you will have one don't take the risk Because chances are that it won't work out You have to understand what this is This idea of conviction and you need conviction to take the risk Ultimately is about treading on the side of hedge funds that went banks in the market because this is what gives me the conviction You want to know what gives me a conviction take risk in stocks You want to know I can call something like netflix and rally up and gap up 52 dollars overnight And so called to get to all-time highs and to go to 565 because I have conviction I have conviction that stock would be bought by hedge funds and banks So I read it in the gap and I called in the gap when I called it two years ago And I called it even a gap before it even gapped I called that stock before it even had the earnings to gap up over 500 That's how much conviction that I had that that stock would be bought And that is not the reading system at all that it's me being able to have seven years of experience training Reading money in the market reading real real big money in the market Which is hedge funds and banks and this is a skill It is a skill that if you learn how to do it You will have the skill and you will have it for the rest of your life And no one will ever be able to take it from you and you'll be able to actually make money in the market And then you're really going to have conviction and you'll be able to see how much money You could really make doing this thing this thing that you might have been trying to do for years and fail That and could never do right and they're losing and didn't have conviction in anything Including the market or yourself. You will regain that passion. I will reignite that and you once you understand why I'm saying these things and how often they work But until you understand it, you won't make money and you certainly want to conviction if you don't understand it You've got to learn a method that gives you an edge earning power really and knowing how to earn money counts And in fact it counts more so than what you have In other words, if you say to me, I have this much money to make money the market I've got a hundred thousand dollars to do it Okay, great But you know what if I had somebody that had five thousand dollars and knew what I knew I bet on that person over the person who has a hundred grand Because the person that knows what to do With less will make it and the one with a lot will lose everything he's got and more Because he has no idea what to do It is not about how much you have it is about what you know And you can take a small amount of money and turn it into a lot if you know what to do You can have all the money in the world and if you don't know what to do with it, you'll lose This is why a lot of rich people Take their money and they sit under stockbrokers in the stock price They're not going to trade and they lose their money and then they wonder why You've got to be in control of your own positions Even if you have someone else managing them to understand the person that you have that is managing your money knows what to do Or they'll lose it Okay It is so important to know what to do And to have conviction in such and your investments whether the long term or for the short term And you will sleep better at night if you have conviction you will be less stressed when you trade You will not feel the need to be Disciplined you will know that such and such a trade is not a good one And you won't get sucked into doing it and then you won't take a trade Maybe that day or do anything if you don't like anything and you won't be stressed out about it Or you will take a trade and you will keep the conviction and hold the conviction Even if it hasn't broken yet or run yet or worked yet And you've been in it for six minutes and you're waiting for it to go and it's sitting at your price Or it may have been backed up and you might be a teeny weeny bit down And then it goes to work and fall off the planet And runs and drops three dollars and you're up thousands of dollars And if you had killed it and lost the conviction and you wouldn't have been up the money That happens all the time Having conviction allows you to profit in the market I teach a class on my method is called the golden gap course the golden gap course teaches a 26 point rating system To find the best stock to trade each day the course also teaches you how to enter and exit the stock on the day The course teaches price analysis and technical analysis on a very very advanced level It teaches one solid strategy to trade gaps effectively by reading the side of power and big money and charts I teach the entries. I teach the targets. I teach how to what stock to pick each day What direction to trade it I teach support and resistance to take positions in the right direction And I teach a more proficient and advanced way to read charts focusing on technical analysis and gaps It is a trading strategies is adaptable for your trading and And your life and you can trade gaps from home and you can work for yourself trading really is about chunking it out Okay, it is about chunking it out. Is it about income generation? You are going in every day looking for a good trade of making the money and you're taking it out And you're booking it and you're done and I usually like to do that quickly quickly in the morning You've got to have though what I call a hundred percent conviction There is nothing else if it's not a hundred percent then it's none then you have no conviction. There's no Maybe I have a hundred percent conviction or I don't have any that's why I say a hundred percent I have a hundred percent conviction. It's gonna work. Boom. That's it. I have a hundred percent conviction The market is higher. We'll make a new high before May 1st. I have a hundred percent conviction That will happen not maybe not kind of not 50 percent conviction I have a hundred percent conviction the market will run bullish all of the year 2015 and we'll make a new high in the next two weeks Come back and see me and email me on May 1st Or December 31st the market will be bullish all year It's a hundred percent conviction You've got to know what this feels like once you know You will feel like you can risk money in the market not just a hundred dollars, but a thousand dollars or fifteen hundred dollars like I have in some of my trades You will be able to press the button on a one-minute chart and risk a thousand dollars And let me tell you something when you got the guts to do that You got the guts to trade and you got the guts to do this thing You got the guts to make money and everybody comes to me and say, oh, I've been trading for 20 years And I've been training for 30 years and I've been doing this and I've been doing that and I don't have any fear And I know how to trade. Yeah, right You take and trade a stock and enter that stock within 60 seconds of trading and risk 1500 like I do Then I tell you that is guts that is guts my people and that is conviction and I do it I do it and I put in a stock and the stock holds That's how you make money though. That's how you do it That's how you're making thousands of dollars to trade thousands of dollars a week and thousands of dollars a month and thousands of dollars a year And that's how you get to the point where you can make over a million dollars in your trading And you want to be on that path you got to learn what it feels like And the only way to do that is from knowing and whether you have one dollar left in your naming your trading account Or a hundred grand. I don't care. You will never make any money if you don't know what to do And it's from the hedge funds and the banks who control the market. They control it. They control everything They control the whole thing But you can read it And that's the great thing you can read it in gaps So empower yourself to trade the market. I teach a class. It's called the golden gap course It is a full today course on how to strategically find pick and play stocks that are professional bearish gaps That is the class i'm teaching this weekend Retakes are free if you sign up for one so you can retake it any time in the future for free The class is also online the class is this week in april 25th and 26 from 9 a.m. To 5 p.m. Eastern time Class to the class is 3499 If you're interested in signing up you can email me at melissa at thestockswish.com Captain you put my information there back again in the room I'm offering for free The wealth manifestation course for this class for anyone that takes the class this weekend. I'm offering this class free It's normally $400 399 and i'm doing this because it's a good time of the year It's earning season at second quarter This class really gives you the motivation the direction that you need to go and make the money That is going to be possible to make in april and may in the market in this earning season period So i'm offering this free to anyone that does the class this weekend any new sign ups You're saving $400 and this is a really great class. It's not about charts. It's about manifesting wealth and your trading and your life Okay, so that is a great course if you sign up this weekend you get it for free Now i'm doing a nerdy season special Okay I teach another class. This is brand new It is a bullish gap class for those of you that love the netflix disney jpm The market calls i've made i'm teaching a bullish class too If you want to sign up for both The gap class which is this weekend 25th and 26th the bearish class and the bullish class If you do either one on their own, they're 34 but 99 if you do the bearish class is 34 or 99 If you do the bullish class you can do that class is 34 99 But if you want to pay for them both at once i'm doing a special You could do both classes and save almost $2,000 So if you know you want to learn how to do the shorts and the longs and you want to do it all at once you can do Both classes in the next month and learn how to short and how to go long how to rate the bullish gaps How to rate the bearish gaps? They are different and you will save almost $2,000 You could take both classes you pay for them sign up for them both at once This is the earnings season special for 49 99 and you get the wealth class free as well The last thing I just want to close with is to tell you that you can do it success is within your grasp I am a normal person. Okay. I'm a normal regular woman. I Happen to be very intelligent. Okay, but many of you are too. I taught myself with my own live money to trade the market And it took me a few years to figure it out But I did and now i'm teaching people how to do it in my classes and they're successful and are doing it So this is something that it was within your grasp It is about you. This is not about me. This is about you. I teach you how to do it What if I go on and I start my own hedge fund? You you need to know how to do it yourself. Okay I I am investing my time in teaching you in the class to do it And that's why I charge for the information because it's good It's high quality information and it's something you can use for the rest of your life It's something that you can use for the rest of your life Because as long as the u.s. Stock market existed will always have a time close and an end close and an open The market will never have a 24 hour period like the forex market It is a controlled environment It will always be a controlled environment in that method and as a result of that there will always be gaps to trade companies Are things that people have emotions around whether it's apple or necklinks or the banks Okay, and people love to buy them and sell them But you have to read what is going to happen to it Before it does it Otherwise you don't make any money Because after the fact like you saw in the xp and even in the netflix even in the netflix after the fact It's too late. It's too late. Okay You can't be asleep at the wheel when you trade you've got to know what you're doing And I have it all figured out in the morning before the open before 9 30 So thank you for coming everyone. We have a few minutes here. Does anyone have any questions? Any questions at all? Thank you, alec any questions at all from anyone? whatsoever about any topic here, I got a couple minutes left If you would like a trial of the live training room You can email me you can trial the room this week before the class if you want to see me trade live See what we get this week I would suggest you observe Not take the calls because they set up quickly until you learn You must take the class to join my live trading room Because I think it's important for people to learn how to trade before they do it Although I have had people that are experienced traders that have trialed the room taken trades and made the money for the class in the trial And then taken the class and then joined the room So it is up to you But i'm certainly welcome to send anyone a trial that wants to observe me trading this week There's going to be a lot of stuff this week. I haven't looked at anything yet tonight But I know the market's going to make a new high the next two weeks Does anyone have any questions about anything at all? Here's my email again Think about what I said Today, I'll leave you with one more thought If you are trading right now, I want you to think in your head You can go think in your own or write it in a journal or your notepad next to you Or think about it tonight when you're laying in bed If you're trading the market now, do you have a strategy? If so, what is it? Could you define it in one sentence? Could you define it to me if I grilled you on the phone? Would you be able to define it? Would it make any sense? Is there any common sense method to what you're doing now in the market? If you are losing and not making money You may not have a strategy at all or you may have one that Simply doesn't work and it really doesn't have any common sense to it The idea of trading with big money with hedge funds and banks Makes a heck of a lot of sense So think about that Okay All right. Thanks so much online trader essential for having me. Have a great night everyone. Enjoy this beautiful evening You're welcome Thanks And everyone thank you so much for your time and your participation here today We sincerely appreciate each and every one of you We especially want to thank our host and presenter Melissa Armo and again everyone have a great day