 We have Melissa Armo. Melissa is based in New York. She's an international business woman that informs clients how to trade successfully by utilizing her system. Melissa runs her own trading room and speaks through online seminars to clients around the world. Melissa also runs regular courses, again to inform and teach people how to make the most of their abilities in the marketplace. When Melissa moved into security trading by studying and researching the industry, she found that she was drawn to a trading strategy that focuses on stocks that gap and created a system. Today, Melissa will explain how to short stocks that gap in 30 minutes a day. Unmuted. Melissa, if you're all set, I'll go ahead and give you screen control so you can take the floor. Good afternoon. Can everyone hear me? Yep, the sound is good and we can see your slideshow. Great. Wonderful. And I've got the questions up too. Thanks so much for having me, everyone. Happy to be here today. My name is Melissa Armo, as Allison said. And I own my own company called the Stock Swoosh. And actually how I came up with that name is it's play that I do in the market. And so what I do is short stocks. I shorted Target today. We'll look at that chart. I just looked at it now. It actually is going to the Dream Target. It's still falling. I quarter of two in the afternoon, but I'm long since out because I do trade the morning. There are times though when you can short stocks all day. However, it is a very bullish market. So what I do specifically is look to get into a stock between 9.30 a.m. and 10 a.m. Eastern time so I don't have to worry about what the market direction is. However, today was a good example where you could have been in that thing all day. Here, let me just open up this little question box here because I think I lost it here. There we go. There, I can see it. Yes. Gravity thing Bill is saying, yes, stocks tend to go down much, much faster than they go up. It's not to say you can't make money going long. Of course you can't. I mean, look at Amazon, look at Google. There's tons of things in the market that have been going, going, going. Going up, it seems like nonstop, especially with the directional bias of the spy and the QQQs. However, when a stock wants to drop, it will drop and it will drop very quickly. So I'm going to talk today about how to short stocks the gap in 30 minutes a day and the strategy that I do is based on stocks that are gaping and we'll talk about that too. If you'd like more information, you can feel free to email me at malice at thestockswish.com or call me at 929-3200 gap. And you can go follow me on YouTube. I have a lot of videos on YouTube of Plays of the Days, like I taped the trading room this morning where I called the Target trade and go watch that today. So let's talk about 2017. It's right at the beginning of the year. It's a good time to set your goals for the year and pretty much put it out there and decide and make a conscious decision for yourself that you were going to have a good trading year this year. And if you're not a trader and you're here to find out more information that you're going to decide that maybe you want to trade this year, maybe you've never traded before and this is going to be your year to start. But either way, you want to set the intention and have a plan of action that you're going to have a successful financial year trading in the US stock market. If this is in fact what you want to do. And what I do is trade stocks that are in the US market in the NASDAQ and the New York Stock Exchange. I don't trade futures. I don't do forex. I do stocks that are gaping in the US market. Now you can use my system for different things. However, for example, in forex, you only have one day where you would have stocks gaping because it's a 24-hour market and it closes once a week. So the reason I like to do my strategy with the US market is as an open and close five days a week, Monday, Tuesday, Wednesday, Thursday, Friday. Now let's look at the US market. Here it is. This is a clip from a couple of days ago. Market is pretty much steady now. My call for the market overall is that the market breaks out again and makes another brand new all-time high. In the QQQs and the SPI, we could sideline and be sideways and baseline here for another four to six weeks. I mean, we're not gonna drop, in my opinion anytime soon, we're gonna break out, but we might be sideways, faking lower and not really going lower for another four to six weeks. So we'll have to see exactly where that's going. So what I do is trade the market and I have a system. And one of the critical ingredients to being successful is that you've got to have a trading system. Whatever it is you wanna do, you have to have a system so that when you go in and you risk money, you know where you're getting in, where you're getting at and why you're doing it. Without that, you'll get up every day and you'll not know what to do and when. And tons of people fail all the time training because they have no system. They don't know what to follow day after day. So I have one system and it's the only system that I follow and it's the only thing that I do. And so I think that I teach because it's all that I know how to do very well. And it is based on shorting stocks that gap in the first 30 minutes of the day and that's where we're gonna go over. So it is very important in my opinion to do one thing and nothing else if you wanna make money. A lot of people that I talk to try to do many, many different types of strategies or systems and things and they never really get good at one thing. So they never become an expert. So they never really get good or gain that edge and they also never end up getting to the point where they have enough conviction or confidence to risk a lot of money or a lot of size in a position which is really how you can make a lot of money by taking size and we will talk about that in some of the trades examples I go over here today and target's a good example actually because if you take it a good size and target from the entry day and that it's continued to drop. So it isn't about being a jack of all trains in order to be successful specifically as a day trader. And I think this is very critical in day trading because if a limited time when you're in and you're out of something that you really gotta be good at it. You have to be good at it. You have to have a good eye. You have to be quick when you're getting in when you're getting out. You have to make decisions in a very short timeframe. Really, cause you only have from 930 to four. Now I'm looking between 930 and 10 but even if you trade all day 930 to four is all you got. You don't have weeks and you don't have months when you're a day trader. So you have to know what you're doing and you have to be good. And when you're doing lots and lots of different systems you never really get good. And I've found that a lot of people jump from thing to thing to thing. And then that's how they don't make it. So when you take the time to find something that you like and you enjoy and also works within your own schedule. You have something that works in your daily schedule then you can do it and take the time and make the commitment to learn it and be good. So it's about having the focus and doing one thing daily. One strategy is all you need to be successful in the market. And why? Again, because you take that with size and you get good and that's how you gain the edge. You do not need a general overall broad base view to make money. Tons of people have broad base knowledge and they fail all the time. I talk to lots of people like this and this doesn't help you make money. Becoming an expert in one thing helps you to make money. So what do I do? I do gaps. And for those of you that know what gaps are, good, we're still gonna go over them. If you don't know what a gap is, we're gonna go over them. But my system is based on socks or gapping and it identifies fast moves that occur in the first 30 minutes of the trading day. So the U.S. market opens at 9.30 Eastern time. And also you can do my method or use my method for long-term moves in options trading or swing trading. I do do options, but I don't do them every day or every week, okay? But it's the same philosophy. It's based on stocks that are gapping to even take the options. So I'm doing very simple options, meaning I'm just buying a call or I'm buying a put. Okay, if I'm going to, if I'm betting that the stock price is gonna go down, I'm buying a put and if I look at the stock and I believe that it's gonna continue higher than I will buy a call, okay? So it's very simple the way that I use it for the options. So it's about gaps. Now what is a gap? Stocks that gap in the morning have big moves and they often have a very clear directional bias if you have a method to look at it. One thing that people think about gaps, which is a fallacy, is that stocks do gap fills. Now it is true that stocks sometimes reverse in the gap but that is not how I'm looking to play them because it's not a matter that it's predictable. So my method is predictable, meaning that I can predict the directional bias, for example, target today. There are many times stocks will move up or down but you can't predict before they make them move where they're gonna go. And that's one of the reasons many day traders do not take entries or trades until after 10 a.m. Eastern time. But I'm taking my trades and I'm getting in and I'm usually getting out before 10 a.m. Eastern time because of the predictability. How am I getting that? I'm seeing it in the gap when the stock is gapping in the pre-market or in the post-market. Stocks gap also at night. So what is a gap? A gap is an event that happens every day in the market and most stocks gap every day but not every gap is playable. Again, that you can predict. Gaps can happen on news or earnings. Stocks have post-market and pre-market moves. You don't know which, okay? That happened for various reasons. They can read reports, earnings reports or news that come out while the market is closed. The next morning then when the market opens, the stocks that open at a price that it could be above or could be below. And in this case, I'm looking at stocks that are gapping down. So what I'm looking to do is I'm looking to short stocks that are gapping down for the follow-through, all right? This means though that there's been a change in the price when no one sold or bought it except for whoever made the gap which in what I'm looking at, gaps that are made with institutional money but when the gaps occur and we're gonna look at some charts in a minute, it's a sense of urgency or panic that comes in when a stock gaps down. So if you're in the stock, you see it, okay? Or any investor, okay, for example. And then you panic and this is what I'm looking for. I'm looking to predict that panic action which will create the sell-off like for example in Target today and then I'm gonna short it, all right? And how do I figure this out on the daily chart? So let's look here. This is Target. So this was, I mean, this is happening live here now. I don't know where it's at right now but the stock closed up here the night before at 70 something, almost 71. This is a daily chart. So there's a daily chart here of the Target. And then in the morning today, it gapped down. Now what is a gap? It's a difference between the close and the open. So the stock closed here at four o'clock eastern time on Tuesday night, then boom. Today we are, it's Wednesday, opened down here around 67 something. Actually it opened at 67 something, came up, retested 68, set the high of the day, never went over 68 in the morning. And I shorted it in here. The stock is still dropping, okay? Again, I'm long since out but this was a good short. So a gap is when the close and the open is different. It could be a bullish gap or a bearish gap. I'd like to do the shorts. So this gap down, here's the gap up. This is back here in the beginning of the year. Target closed here, gapped up, closed at 72.50-ish. Gapped up to like 72.60-ish or whatever this is. The stock gapped up. So you could agree to this as a bullish gap up to go long in if you wanted to, if you had it worked. Okay, but I prefer the shorts. And as someone pointed out earlier because of the fact that short moves do happen quickly, which I like. And also the fact that I just like to short. I think that actually shorting gives you an edge too. Here was one from last week. Now I said earlier that we're talking about the stocks, which the name of my company, it's a play I do in the market. HES was a gap last week and it opened and swushed. So it closed here the night before. This was Wednesday night, gapped down. This is Thursday morning. So closed up here at like 61-something. Opened down here around 60-something. Opened and dropped. Low of the day, here is what? Like 56.50. Do you see this? This is a monster move, people. And here's, I mean, you can see this in the target. Again, monster move. Okay, see this? So this is what I'm looking for every day to pinpoint what I'm gonna do before the open, before 9.30, so I can determine if I wanna short it. So I have my pick every single day before 9.30. I know what I'm going to do, okay? So as I was saying, gaps are a very specialized strategy. And if you wanna make money in the market, you need to think and act like a professional, even if you're only doing it part-time. Which really the hours that I'm trading are part-time because I'm only trading between 9.30 and 10. Now, I may prep in the morning for an hour before 9.30 or an hour and a half. It depends how many gaps I have to rate. But the time I'm in and out of the trade is so short. And any professional trader has a system, a reason they're doing the trades, okay? And you have to have this if you wanna be successful. So what are some of the benefits of trading gaps? You know, it's one system that you're using. And you can do it, like I said, for the short-term trades, for the day trades, for swing trades and for option trades. For example, you could have done an option in target this morning. You could have day traded the option or you could have done it as an option that you could still be in it for the next few weeks or even one week out if you want to. In fact, the target, what did I give here for the, 66 I said, 66.35 and 66 I have here on the sheet I gave for the targets on target today. It looks like it's gonna get there. Again, I was out in the morning. But you know, it's the idea of having one system you can apply in many different ways. You just gotta get the move right, which in the case of target today was a short. Now let's look at the day trade here in HES. As I said, this was last week's, okay? So, this is a one-minute chart. That was the day chart. This one here is the daily. Okay, so I'm figuring out if I wanna short the gap or go on the gap here in the daily. In the morning in the pre-market or you can do it in the post-market. So here's the gap happening in the one-minute chart. Stock closed here, gap down, boom, okay? So this is a one-minute chart. Open here, go all the way over. You see it was approximately 59, 59.80-ish. Open, dropped. Now let's see where it dropped over here. Go all the way across. In the first few minutes of the day, the stock dropped what? Two bucks. Do you see that? So this actually, I did not do this move but you could have shorted this move in here. You could have shorted this move in here and made two dollars and put out. Now this happened so quickly, I didn't get this but then I did it when it set up in here, okay? And then I took it down. So you could have done a quick trade in here. You could have been in it for three minutes. I didn't get this one. I got the second one. So entry 57.99 if you shorted it. This is a day trade. I use hard stops. What does that mean? It means I put in the stop. It's a real stop, not a paper stop so that if the stock stops me out, then I will be out of the trade with a loss but I have this to protect myself because I don't wanna lose more than I'm willing to risk on the trade. Share size is quantity of shares. In this case, it was 1500. Exit into the first drop, 57.18, okay? Every day when I'm taking a trade, I'm looking for a move. It could be a dollar, it could be more than a dollar. Some trades it's 50, 60 cents. You get in and you get out into the quick moves. Profit on this is $1,215. Now let's go back and look at it again. You can ask me any questions in here. For those of you that are asking, my name's Melissa Armo. If you signed in late here, there was a change in people. So my name is Melissa Armo. Anyways, if you shorted this in here, you could have shorted it, boom, got the drop. So again, do you see the time down here? 9.30 to 10. So you could have shorted this here and got out here. You could have shorted this here and got out here before 10. You could have shorted here and got out here before 10. Either way, this is the time, you could have shorted here. Like I said, I didn't get this one. It went so fast. This is the time frame you're looking. So you can get in and out in this time frame here. Here's where you have the big flush and the big sell off, okay? See that? So as a day trader, to make a thousand bucks in a couple of minutes is a great thing, okay? And this is what I get up in the morning and look for every day, just like today in the target. I get up, I look for a move, I look for a gap, and I take it and I trade it and I get out. And that's the level of consistency. And I usually do one trade a day. I do not like to do more than one trade a day and I think that also helps as far as the focus. And then you have less losses because you're doing less trades. Does anyone have any questions about this? Let me know. Let's go over the next one here. This is Oracle. This was back in December and I wanted to show this because it had a huge, huge move. Who knows where Target will end up today? That could have as big of a move as this. But this gap down, close up here, around 480-ish. Gap down here to 420-ish, okay? See this? Dropped. This is a very large move for the stock. More than a dollar, $1.50 plus. So again, I get up in the morning and I'm predicting that this stock is a short, which it was. And then you take it and you short it when it sets up. Also, do you see here how it had the follow-through? So you could have done this as a swing trade. You could have done this as an option trade all based on the stock that's gapping. Now, let's look at this one here. Again, I'm a day trader. I decide what trades I'm doing on the daily with my system. That's where I'm seeing the gap in the daily chart. But then I'm taking the entries on the one-minute chart because as a day trader I wanna be very nimble and with position sizes and I wanna get in and I wanna get out and I also wanna put the stock, okay? So let's look at this one here. Again, stock opens, wrapped. Nice red bar here to start out the day. Rally back, push back, broke. Boom, you're in. You get the drop. Again, time of the day between 9.30 and 10. Boom, boom. And some of these here you can hold longer. Like I said, but I usually, I usually don't. But you can if you want to. Entry of this one here, 39.95. Stop 40.20, okay? Again, you put the stop in, it's a limit order stop so that if this would have hit out of it you would have lost. It didn't, but you do this to protect yourself. Not all trades work. Although with my system I do have a high win percentage ratio of trades that work. So share size on this with an advanced risk is 5,000 shares, exit 39.25. This did continue, but this is the first drop. And again, that's usually what I like to do. I think that once your goal is in for the day, part of the discipline of trading is to get in, get out, get in, get out, okay? So profit, $3,500. Again, all you need is one trade like this really a week or two trades like this a week and then you keep yourself under control the rest of the time. And what if I get up in the morning and I don't have the gap at all, then I don't do anything. Yesterday there was nothing. Day after holiday, there were no good gaps yesterday and Tuesday. Money in the market was closed. And do anything at all yesterday and Tuesday. So there will be days when there's nothing that meets my criteria. Again, this is part of becoming good and seeing it and having the focus and the quality, all right? I get up and I rate the gap. I see if there's any good ones. So there's not any good ones, I don't do anything. Okay, this isn't like your regular job. You know, and even if this isn't your job, you know, you have to look at it like it's your job for the period of time you're doing it. Even if you're only doing this to make extra money if you're tired or you're doing it part time or you have another job, you still have to look at it like a job and you have to take it that seriously because you don't get paid if you go in and trade and you do something and there's nothing good to do. The market will take your money. So you only go in when there's something that you can see the opportunity. And in good quality gaps, which I prepare for and predict in the morning before I trade is where I see the opportunity for me to make money, okay? Now, any questions from anybody at all so far? Okay, I'm gonna keep going. So again, I was talking about shorting. Why is shorting the way to go? Because of the panic that comes in. The panic that comes in. That's why many times 80% of the move will happen to the downside in these shorts between 9.30 and 10. Sometimes you get bigger moves later, but really because of the extreme panic of investors or people that see the gap, whether it's at nine or in the morning, wherever they see it. And people are watching the stock. People are watching the stock, for example, if it had earnings they're watching it because they may have a position in it. Then we know, oh, so-and-so, JPM has earnings or MS has earnings, Amazon has earnings, Netflix has earnings tonight. So they'll be watching it. If you're invested in the stock, if you have a position, whether long or short, you're watching it. You wanna know what's it gonna do? What are they gonna say, okay? So you have, and people that are in it, and because they're in it, they're watching it so you have a lot of volume, volatility, momentum, and then of course the panic that comes in that creates a sell-off. So I'm shorting on that selling action. The best, best trains I ever get to the downside where I short as a day trader is I'm shorting selling action. And that is what I'm predicting in my system. I'm predicting institutional selling because you don't have moves like this, at this bar in Oracle, the bar today in Target without institutional selling. This is not just everybody here that's traders. This is like full-on. You can see the volume here. You can see the way it dropped into the open, boom, okay? That's institutional selling. I mean banks, funds, they're selling off the stock. Question here. Can you give your opinion on Gimo today? Yes, I did rate that. No, I didn't do it. I did rate that for the room. So people in the room did do that and Target. Some people just did Gimo. Some people just did Target. That was a good one today that I rated and met my criteria in Target, but I did the Target. I did see that Gimo continued today as well. So yes, you could have done that too. That was a watch for me today. I used my system and I rated it. So I have a system, it's based on a 26 point system. We'll talk about a little bit later, but that would have met the criteria. And the last time I looked, that was still going too. I don't know if it's still going now. But any other questions you can let me know. So can you make money shorting in a bullish market? Yes, somebody asked me this the other day before taking the last class. Of course you can. I actually created my system way back starting in 2008. And so the market has been bullish for a long time now. Yeah, I mean the market was really bullish last year in 2016. We started off the year down and then we rallied all year straight up. So, but the market overall in the last several years has been bullish and I've been shorting all along. And when I created my system, I started out in 2008, took me about three years to pull it all together and the market was rallying. So bottom line is it has nothing to do with the overall trend of the market. It has to do with the quality of the stock itself and the direction of bias that it's gonna take it in the gap. And remember, I'm not at all these things overnight anyways. You can short something on the day, boom, make money, take it out, not everyone has followed through. Some do so don't. It depends on the gap rating and the quality of the gap, okay? So one of the nice things I like about gaps is that you can do them independently on their own regardless of the market. And many times the market hasn't even known it's doing till after 10 o'clock. So I'm in and I'm out till the market even sets the tone of the day. And market was really squishy today. It looked like it was falling and then it looked like it was rallying. Market was red, then it was green, and it was red again, okay? So it's kind of back and forth. So how are you going to find a pick which gaps to trade? You rate them. This is what I was talking about. I have a rating system. I use a 26 point checklist that I... And do some... Hello? There's audio and stuff too, I is... Is that John? Is that a day trading program? Yes. I think we have a little guest speaker that's talking while I'm talking. It is a day trading program, BC. Oh, it's not even plugged in, no one's there. Oh. Okay, I'm not getting any sound. Permission, difficulties. Say a 26 point checklist. That's how I figure out what I'm doing. Do I swing short? I do with options sometimes. Yes. You can use them for options or day trading. Is this a day trading program? Yes. But you can do it for options or swing trades as well. But I prefer to day trade. Yes, that was funny, PS. Anyway, as I was saying, I do it in 30 minutes, I'm in and I'm out. So it's nice if you've got other things to do. If you were trying to make the transition into becoming a full-time trainer or doing this for a living, you can learn the system trade in the morning before you make the money that you need to make before you quit your full-time job. Or you can do it on the side because of the idea that it doesn't take up that much time during the day. You don't have to do it every day till four o'clock, okay? Now here was another good one. Again, nice sell-off. Nice full-on sell-off bar. Stock close to your gap down. This is Tiva. This was the other week. December 6th. Do you see the move the stock had again? A nice big full-on red bar institutional bar. Here we have the Tiva. This is the one minute chart. Stock gap down. Open, dropped. Shorted in here. Dropped again. Do you see again? Time of the day between 9.30 and 10. Do you see? Everyone, everyone, everyone opens drops. Opens drops. You get in, you get out between 9.30 and 10. I'm just looking for that day after day after day after day after day. So that's how I do it, okay? Now what was the entry in Tiva? Entry was short 36.71. Stock 37.10. Share size 3,000. Again, this is an advanced risk. Profit on this, 2,130 bucks. This did continue down, though, as well. Again, I like to get out in the morning, but do you see here where this went? Fell into the lunchtime period. I'm just gonna go back. Do you see where this went? Actually, this still followed through. You could have did a swing trade in Tiva, or an option trade in Tiva. This did follow through for several days. It eventually broke. Over here, this area was like 35, 34 something. All right? So I did the day trade in many, many stocks, but you can do swing trades and option trades because these do follow through. This is one that followed through. HEFs did not follow through, okay? So again, it depends on the gap rating. I'm not looking for a 26 point gap every day. I'm looking for a stock that gaps of 20 or more. So sometimes you get a gap that rates 23, 24, a very highly rated gap, and you can follow it through for many, many days. So I'm looking for the quality if I'm doing something overnight like an option. Otherwise, I just do the day trade and then in and out very quickly. And here is another one that had the follow through. This was last year, and the reason I wanted to show you this is because if you pull up A&F right now, this thing has collapsed. This thing has absolutely collapsed. This was a gap back from September of 2016, where it's up here at 19 bucks, ran down. It absolutely fell off a planet. You can have huge, huge follow through that you could do some of these for longer term investments for months if you want to. And what are the other benefits? Again, volatility, which I've been talking about all along, volatility because the institutions are dumping their positions, and I'm looking to predict that they're gonna dump it. So I'm shorting the selling action of the dump that's happening into that period between nine, 30, and 10. We have a question here. How long past the opening of the market do you want to wait to place a trade? It depends. I wait for the setup. The setup could happen early. The setup could happen later, but the setup has to happen before 10, by 10. I'm not taking it if it doesn't set up before 10. So 10 o'clock is a cutoff. At what time it varies, you don't know. Every one of these happened at a different minute, but it's gotta happen by 10. If it doesn't set up by 10 o'clock, the chances of the stock going red in the day are less than zero. So I'm gonna short a daily bar that's gonna be red. I don't wanna short a daily bar that's green. If the stock is green and it hasn't set up and it's rallying, rallying, rallying, and it's going green and it's green on the daily at 10.05, well, what the heck? I can't short them. I'm not gonna make any money. The stock is rallying. You can maybe as well go long it. Yes, I trade off the one-minute chart. That's all these ones here I'm showing you. This is a one-minute chart, but the daily is how I find the gap and rate the gap to know which pit. Cause every day I'm trading a different stock symbol. Okay? So what do you need to do to make money with this? You break it down with a share size. Share size is how you make more money, not more trades or systems. This is the point I was trying to make earlier. A, you gotta get good at something, but B, then when you do, you can plop on the size. So you can start out taking a couple hundred shares, 400, 300, 500, right after the class. And then if you get good, however long it takes you to get good, couple of days, a couple of weeks, you bump it up, 1,000, 2,000, 3,000. This is how you get good, because you're doing the same thing. If this same trade, you would not have had to risk to take 3,000 shares. You could have taken 1,000 shares. You could have taken 1,500 shares. You could take 500 shares. The trades the same, the amount of the share size, but you make more money. Make more money if you take more shares, okay? So this is how you will get to the goals, whatever your goals are. You gotta figure out, first of all, what are your financial goals? How much money you wanna make a week or a month trading? And then you back it down, say, okay, I have a 50 cent move on average. I need to make 500 bucks a day, you say to yourself or whatever your goal is. I've gotta take a minimum of about 1,000 share lots. Okay, you have to figure out what your goals. Some people wanna, are happy making $300 a day. Some people need to make 1,000, whatever it is, but it depends on the share size. And the nice thing about being a gap trader, like I said, it just takes a couple hours a week. I do have the prep time in the morning. I prep for at least one hour and sometimes more. And then of course you have the rest of the day to yourself, so it depends where you live. Half my clients are in other countries and many different time zones. Then there's people on the West Coast, it's very early there. They can go to jobs after that and they can go back to bed. So here on the East Coast where I'm in New York it's convenient, done by 10 o'clock, 10.30, I run my trading room, I close it down after we're done trading, I teach a little bit and I don't really keep the room open until after 11 o'clock I'm shut down, I'm just done. And some days I'm done by 10, 15, 10, 30. So it depends how long it takes me to review the trades when we're done but you definitely have a lot of freedom if you're a gap trader because you don't have to sit in front of the computer. And I think your eyes get tired and your brain gets tired the longer you're sitting in front of a computer. Let me see if there's any questions. Your pre-market routine consists of finding the best three or four stocks to short when the market opens according to their overnight gaps. Not necessarily three or four. Some days I'll look at one or two, Robert. Some days I may look at eight. I don't know. I don't know how many I'm gonna get. For example, in earnings season I could have 15 and it takes me longer to go through them. In non-earning season I may have one. You know what I'm saying? Like one to eight. I may scan a bunch, but I may know just looking at them because I've been doing this for so long that they're not gonna get the criteria. So talking about what kind of money you can make doing this, it depends on the amount of money that you're risking in the trade and the share size just like I was showing you on that chart. If you wanna make a living doing this, it is possible you have to break it down. Your goals will be what they are but you chunk it out because you won't make the same amount of money every day. Like I said, yesterday I didn't trade and today was a good day. Tomorrow I have no idea. I might do Netflix, I don't know where it's gonna gap, I might do something else. And then I'll do something different on Friday. So you take your goals and you look at the weekly goals and the monthly goals and the annual goals because some days you may have huge days. Some days you may do nothing. One day you may take a loss. You have to expect that maybe two times a month you are gonna have a loss. So the idea of trading, day trading or any system is not the idea of having 100% win ratio. Nobody has that. It's the idea that you make money more than you lose and part of the thing that I do extremely well is the focus. I'm not really doing any more than one trade a day. So it'd be very difficult for you to lose money with me because I just don't take that many trades. And that's one of the reasons I use my system, okay? You apply the system, you follow the discipline. What time do you get to your computer in the morning to start your pre-market routine analysis? Robert, I look at the market when I get up at 5 a.m. You want my honest opinion, I look at it. And if I'm in an option, I'll look at my overnight, okay? I do like to look at the morning before I leave the house. And then I come back and then I start my routine after I have breakfast, probably between seven, three and eight o'clock and I just take my time unless I'm running late. So I get up early, go to the gym, come back, but I do like to look at the market and if I'm in an option, I look to see if my position is very early because the market's usually gapping at 5.30 a.m. You don't have to do that, I'm telling you my routine, you asked. What percentage of your portfolio would you put, hold on, let me go back. Somebody just has a question here I missed. What percentage of your portfolio would you put risk on in any one trade in general? I appreciate that some setups look better than others, but generally. Percentage of portfolio, if you mean your account, you mean a percentage of your account that you'll risk in one trade, Helen W. I think that's what you mean. It depends if you have a retail account or a prop account. If you have a retail trading account, you need a minimum of 25,000 and actually more than that because you can't fall into the 25,000 day trading rule or you won't be able to trade. So you really need more than 25,000. Your leverage would be four to one at a retail broker. Options, you don't have to have that set amount. So as far as percentages, if you look at a prop account, let's say if your prop account with $5,000, your leverage is 10 to one, so 50,000 in buying power. And if you have 25,000 retail account, you have 100,000 in buying power. So looking at the amount of buying power you have and percentage of your account, it's gonna vary depending on the type of account you have for retail or prop. Your prop place will put in us a fixed stop for you. You're probably not gonna be able to risk more than $500 a day with a $5,000 account. So what would you do? You would divide 500 maybe by two trades or you could take one trade and give yourself a cushion. So you could take $250, two trades, $250 risk in the trade with a $500 daily stop loss for the $5,000 account. So that would be five to 10%. I would not risk five to 10% in a retail account. If you've got 30 grand in a retail account, I would not risk $3,000 a day, no. So it's different. It depends on where you have your account. If you have a 30 grand in a retail account, for example, how much could you risk in a day trade? You could risk 500 bucks on a trade. You could risk $1,000 a day. That's perfectly fine. You give yourself two trades because you might end up retaking something. So you could risk $1,000 a day. So there's an example. But it really does depend where you have your account set up. Yes, I would, and 10% is an average because what if you have 100 grand? If you have 100 grand in your trading account, I wouldn't risk $10,000 a day day trading, no. You might be in a couple different options. You might day trade. You might be in two option positions. Maybe something like that, okay. I think that answers your question. So you gotta get a plan of action together to win and start moving forward for 2017. Oh, we have another question here. Toa, how many losers in 10? My win percentage of ratio is about 75%. Sometimes it's over 80, sometimes it's around 70. Depends on how I'm doing, how many good gaps we get, how things are working, the market. So to give you an average, I'd say 75. I've had some people in the room track me. They say I'm well over 80. Some months are better than others, all right. But I would say you gotta count in at least two losers a month. So you figure 20 trading days in a month, two losers. And maybe two days a month, you don't trade, okay. So that's how I would plan it. And that's typically what I do. And the slowest days of the week, to be honest with you, are Mondays. Or in this case this week it was a Tuesday because of the holiday and the busiest days of the week are really Wednesday through the day Friday. Wednesday through the day Friday we usually get tons of stuff to do. So it's important to learn what to do from a mentor and this is what I do. So I train gaps, they have predictable moves, fast moves, it happens in 30 minutes. And one of the very important things I teach people, and this is the last thing I'm gonna say and then I'll answer the questions here and then go over about my class. You want to get a sixth sense and an intuition about trading. You never gain that if you do too many different things and you never gain that if you don't get good at one system. I absolutely have an intuition for trading gaps and predicting where stocks are gonna go. That's extremely well. If you don't believe me, you can go back and watch every QQQ and spy video I did since 2012, 2013, I predicted the move that the market has made in the last four years before it made it. I predicted the numbers it would go to and the people that are trading with me in the room see me do this all the time. I mean, I predicted Netflix to go to the number that I went to. I mean, I've made incredible, incredible predictions in stocks based on reading gaps and I do definitely have a heightened intuition and a sixth sense for doing it. And the reason I do is because I've been doing nothing but gaps for more than eight years. So this is an edge. It's an edge that I can't give you. You would learn my system and then you would commit to learning something that you would gain that heightened intuition yourself. The only difference is because you're learning the system from me, it won't take you as long to gain it. I don't know where the shift came from me that my intuition just became so heightened. I mean, teaching people definitely has helped, longer that I trade has helped. I definitely make more money now and have less losses than I did five years ago. Every year that you trade, if you know what you're doing, you should be making more money. Many people don't but I'm an anomaly and one of the reasons is because I only do one thing. And so I've gotten really good at it. But I'm telling you that's how you make money in the market. It's about the consistency. You can say, well, this system works for a period of time and then it doesn't. Then you don't have the consistency. You gotta have something that consistently works specifically if you're gonna do it, that you're gonna do it and commit to it for a living and quit your job or commit real money to it or commit money to a class like mine. I mean, there's a commitment to even take my class, a time commitment or financial commitment. So my class is called the Golden Gap System. It is a 26 point professional bearish gap rating system. You're gonna learn how to rank gaps in short stocks and be in and out of the trades quickly. You're gonna learn to rate them on the daily chart and take them on the one minute. And the purpose of the system is to help you evaluate which gap to trade each morning, using the checklist and the checklist tells you what to trade and when. And really the success or failure what you do has everything to do with your system and it has to do with your discipline. And it has to do with getting in and getting out and not being greedy in the trades, okay? Like I could have held target longer today. I could have, what if the market would have broken out higher? You know, I did and I did what I do every day in and out, in and out, in and out, 9, 30 and 10, 9, 30 and 10, okay? So if you have a set goal for yourself financially you need to make to do this, you will back it up, figure it out, figure out the share size but you definitely have to get good at it in order to do it. And then many people come to me and they think they know how to train and read charts but I'm telling you, gaps is it people. It is how I predicted the market to make this move. The market is not done moving higher. It is still gonna continue into 2017 and even though it costs money to take a class like mine or any other people's here today if you learn a system that works it will save you money in the end because the market will take losses from you and you won't know what to do. And when you learn from someone like me or you follow me and take my trades in the training room you have an opportunity to learn information and actually follow an instructor which I think is important and looking back on me and I wish I had had that. So my class is called the Golden Gap course. Earning season starts this week. The next class is January 28th and 29th from nine to five it's Saturday and Sunday. Retakes are free so once you sign up for the class once you can retake it anytime. The class is 49.99. If you'd like to sign up you can email me at Melissa at thestockswitch.com and go to my website. Wherever you have to email me for the sign up forms to sign up. And I'm offering this for the webinar special for today. I'm offering the Trading and Freedom Memorial Day which is great. It's five months free in the trading room. You can take my trades for free and you can get also a class I do which I'm gonna do at the beginning of this year in the first quarter of the year. It's called the Wealth Manifestation Course. This really helps get your mind on track to be able to be profitable in the market. It's one of the other things that I talk about in the gap class too, how important your brain is. We kind of briefly touched on that today. I just didn't have a lot of time to get into it but this is one of the reasons why I'm extremely good at seeing things and making money in the market and plopping on the size without any fear at all. Many, many people are afraid to trade and risk money if they've had losses in the past but you've got to get out of your past. You will never move forward and make money if you don't get out of the fear situation of living in the past of things that you've done or classes that you've taken or trades you've lost money in. You will never move forward if you keep living in the past of that anxiety and I talk about a lot of these things in the wealth class and you'll get this for free with the class if you sign up by Friday. Let me just see if we have any questions here. I do teach a Golden Gap bullish class but only about once or twice a year BC because I don't go along that often. Actually, I did go along in a bullish gap last week was JPN, but I prefer to short. So the class I usually do every month is the bearish class. I don't know when I have the dates yet for the bullish class for 2017. I'll do at least one. Investing, what do you mean investing? I day trade and I do options. The wealth course is about your mind and how you think about money specifically it has to do with trading. You can use any platform for shorting but you really should have hot keys set up on the platform. In general, what's a risky warning to trade? It varies anywhere from one to three in the low to mid-end and then you get some trades. If you hold them longer, they could be home runs. You could make seven to eight to 10 but that isn't every day, Robert. Email me at melissathestockswush.com if you have more questions I think we got to get going here but it was a good talk everybody. Thank you so much for joining us, Melissa. We really appreciate you being here with us today. Thank you.