 talk about shorting stocks. I'm going to talk about making six figures a year shorting stocks and I'm going to do something different tonight. I'm going to talk about, give my information and give my contact information and the information on the class that I teach here at the beginning and then I'm going to switch right over just to talk the rest of the lecture in the next hour about charts and about short. So doing something different a little bit tonight I'm going to go over the information at the beginning here what I offer if you want to learn my nothing which is obviously shorting. I'm mostly short stocks in the equity market and then I'm going to go teach. So we'll do a switch over here. Does everybody can see me? Everybody's good. Again I own my own company and I started my business back in the end of 2012 and I started trading though in 2008 and I went long stocks and I shorted stocks but I found that I was making money more money shorting and faster money shorting so I really got into shorting stocks and you can make really good money shorting stocks just simply because of the fact that stocks tend to drop in price faster than they rally and so that's what we're going to talk about today. So if you'd like more information want to contact me you can email me at melissathestoxswitch.com and also Pauline works for me. I don't know if any of you know Paul. You can email him as well if you have questions or if you remember Paul. He's been around quite a while and he is very good at gas as well. And if you have any questions you can feel free to call me at 993200 gas and I throw in your Jenny's view that want to follow me to go to my YouTube site here. You can follow me at any one of these social media sites but I put a lot of videos on YouTube and and sexual be on YouTube later this evening as well. So my class the one class that I teach the main class that I teach teaches my method and I only do one thing and that's what we're going to talk about tonight. I I did a trade today and was done in a couple of minutes. So it's it's very specific what I do but it is very focused and it allows me to be profitable consistently and and focus on the day usually only doing one stock number one trade. So I do teach a class about once every four to six weeks and it teaches my method. It's a Saturday and a Sunday the class is July 16th and 17th which is not this weekend but the following weekend and I teach a my method on gaps which I'm going to explain to you what a gap is when I bring up the charts for those of you that don't know but for those of you that have never heard of a gap in our training my class is based on a technical analysis and a chart and if you've never traded before and you don't even know what technical analysis is then we're going to go over that tonight too. It's looking at price direction but it's looking at the gap itself. So everything you need to learn to make money can learn in my two-day class and like I said it's July 16th and 17th. It's earning season starting next week so summer is actually a good time to trade my method and gas because there's third quarter earning season companies report third quarter earnings in July and August so it's the time that you can make money in the market. My class is online just like I'm talking online tonight it's a full-on class Saturday and Sunday 9 to 5 and the tuition is 49.99 and retakes are free. If you are interested you can email me after the lecture tonight or tomorrow and I'm offering a July 4 special which I'm running through Friday. If you know you're interested the class it's 49.99 but I'm offering 20% off through Friday. The only time I'm going to do this is this whole year so for those of you that haven't watched me for a while if you are ready to take it you can save almost a thousand bucks which is really really nice and I'm just at the point now where you know we're going into the summer it's going to be a really really good time to be in the trading room with me. I had a nice solid call today which I'm going to go over with you and I've never been more focused on my trading than I am. It was one of these periods of time you get into the period of the year it's half the year is over in 2016 and you start to say wait a minute you know I have certain goals you look at yourself you decide what you want to do and if you are trading and not meeting your goals you might want to learn my strategy. If you are not trading and not making enough money in your own career or wanting to change careers you might want to look into trading the market and for me myself personally you know I started to do options this year and earning season is going to be a great time to do the options and the day trade and then these are the other things that I offer as well you can you can feel free to look at this later too. So all right let's get into the charts I only have one hour to talk and teach tonight so I'll try to you know cover up some basic information a little bit of everything. So this is a chart okay it's a daily chart of ESPR you go up here in the top hand quarter that's the stock symbol I mean you should trade a different symbol every day so I don't get up and trade like apple every day or whatever okay I'm looking every morning for something new okay so this was a couple of days ago or last week or whenever it was it was the 29th yeah it was last week and what happened is this stock closed you see the square up there the left hand corner at 1618 so that's when the stock closed it rallied on the day rallied not quite a dollar okay low it's 15.25 almost a buck and then it gapped down now what is a gap a gap is the difference between the clothes and the open so the stock opened then on the next morning at 10.50 somebody emailed me a question and I think people just don't understand this is happening in the pre or post market so it's not like you don't see this thing until it opens now you see it before this happened but the bottom line is this is a gap a gap is the difference between the clothes and the open and this is what happened here with the stock but you see it before so on my strategy looks for this one like this jiggy here this espr which was last week and I try to find the best now where did you see it you can see it going all the way back this was one that happened at night so this is at night time after four o'clock the stock is trading so this is live price action where the stock is gapping at night it doesn't on the live day this is the post market I don't trade this time frame but this is when the gap is happening okay so I see this whether you see that night or in the morning and then I created a rating system which is what my class is to tell you that this is going to be either a long or short and this was a short okay and that's what we're really talking about today so my rating system is based on the daily chart going back over here there's a daily chart down here you can see the days and I look at it in the morning or at night and I go to the 26 points I created 26 points to determine if this rates well and what does that mean it means I'm looking for a 20 point rating if I get 20 points or more it's good to do it in the direction of the gap which in the case of this was a short okay so I just want to show you here that it opened at 1050 low today was 958 but you could have gotten a buck out of this a little bit more and we'll look over the setup in a minute but the point is that if you shorted this you would have made money and how would you have known you would have known before 930 if you took my class okay and that counts why because it sets up into the open usually between 930 and 10 and that's when you can take the trade so the benefit of my system is that you can trade and be done very quickly but you don't have to wait and wait and wait and wait and wait for the setup and actually the longer I have to wait for the setup the last chance reason I'm even taking the trade at all because I don't like it the longer it takes to set up the longer something takes to set up the more it has to do with the market in fact let's go look and see I forget what does the market do in the 29th and when I say the market I'm talking about the overall either the QQQs or the spy indexes which are ETFs let's just look at the spy so the 29th okay so here you see this was the same day as the ESPR let me blow it up so the market rally this is the SPY okay see it up here in the ticker symbol so the market rallied on the day so you see you can short even if the market's rally and actually we power trying to this day power trying to stay in the 29th but what I'm saying is that you can make money shorting even if the overall market is higher it doesn't matter sometimes when you get the market going down though you can get somebody to a bigger target although I will tell you to get a dollar out of something that's like a $10 strike price is good I mean this is funny funny to make money now does anyone have any questions about anything before I go over more about shorting anyone have any questions and again I know everybody has a different place that they come from in here is there information there Kathy has Kathy can go over it now let's just talk a little bit about why I like to short because they usually set up fast and it's just common sense it's a common sense that when panic sets into a stock okay which there was panic in this stock that people will sell so the selling creates the move down when you're shorting you're betting okay you're betting the stock price is lower so you're taking the trade here and the setup here actually was 1074 you shorted a stock of 1074 and it dropped the red bars to take the sell off red is selling green is the rally so the price is dropping when it's red so a short is you're betting the price is dropping this is an advanced concept a lot of people don't know how to short and I found a lot of people that do short that are traders have no idea how to take the setup but I teach us in the past too how to take the entry and that's important because if you don't get in this thing here you didn't you didn't get it it kind of pitter-pattered around here you see it dropped a little bit it was like this was the money move in here we take the train and I'm very much like that when I take it I just hit it and you're out and literally you could have taken it and bid out in one two three four five six minutes you could have stayed in it for seven or eight so this is the benefit of shorting the price drops back and you will have moves sometimes that move more than a dollar way more than a dollar but at this price point for this price stock it's actually a really good move and a dollar is good 25 cents 50 cents is good in some stocks I mean that's real money depending on your side so again it's going back to the concept of the common sense which my method is based on a lot of common sense actually the common sense is that things fall fast when there's panic that comes into the stock and again shorting just means your betting the price is going to go down so if the stock is at $10 for example and you short it if it drops under the $10 number you're up okay similar if you bought something at $10 in the stock rally editing over the $10 you'd be up okay and we're focusing on the shorts today and this is how you make money and the amount of money that you make depends on the size it's really just about how many share size you take so everybody has a different amount of money that they can rip and that is up to you you can ask me for recommendations but the bottom line is you can make as much money as you possibly want depending on the share size here so the idea of making 100 grand a year or 200 grand a year or 300 grand a year only has to do with the difference of the size to treat the same if you wish to dollar or you wish to thousand dollars the trade is the same the entry is the same the stop is the same the exit is the same okay and there really wasn't any thinking in this at all because you see here this just was red red red every once in a while you'll get something and i'll show you the one from today where it backs up a little bit into the mood but this was such a nice just it's just almost went completely down like immediately just straight down see it so does anyone have any questions on this now people also ask me about you know where to put in the stops okay when i take a train i only use a hard stop it's a limit order now what does that mean that means if the train would fail now it did in this case but let's just say the trade would not work you would have a limited loss you would have a fixed loss now what's the purpose of that the purpose of that is you want to keep your losses low in training every train does not work okay most of the trains that i take of the gaps that range 20 points or more work is short and if they don't work the day the gap they usually follow through the next day and that's something else we can look at tonight too but the bottom line is that you have to count for the fact that this may not work if you're doing one trade a day five days a week okay you should have very limited losses i find that people that trade the market one of the reasons they're not successful is because they don't use stops and don't limit their losses and and or they over trade okay i don't over trade and i also shut the room down very early i mean i i really had the room open to 11 o'clock but if i'm done trading and i'm done teaching i may close the room at 10 15 the live trading room that i have okay because i don't want people to keep trading if we're up you take the money you're done and if you take the trade it doesn't work you limit your losses if you had one loss a week which is actually a lot okay i don't have one loss every day a week but there might be one day we don't train like mondays or slow and if you make money the other four days okay you are profitable it's about the focus okay it's the focus of trying to find the best stock to short and if it doesn't set up by 10 o'clock i'm not doing it so i have rules okay and and and these are rules and things that i would do in class as well but it's really a very simple concept let's put this whole chart here this this actually looks lower it's actually looks a lot lot lower even still anyways that was a good one does anyone have any questions about this okay should the benefits of shorting is speeds of the execution of the trade to the move kind of coming in that you get the sell off and the sell off is profit if you take the trade and take it quickly okay now let's look at the one from today okay this was today with a al this is american airlines yep hold on today i just lost the whole system all of a sudden it just lost the whole system there can you hear me that was weird all right very good wonderful okay so this was today so again we're reviewing it what did you do you got up in the morning you looked at this you would know here is in the morning all of this is the pre-market trading of a al it's all here here here here here okay so you can look at this way before you could have looked at this at 7 54 a.m you have a good hour and a half to figure out if you wanted to do anything with this at all now let me take this off again the preparation which is important so what did i want this to do i wanted it to hold twenty eight dollars i said today in the road this isn't hold twenty eight dollars i'm not shorting it because it wasn't an amazing gap but i knew the area that i wanted it to hold to short set up fairly quickly which it did it's not open rally the highest bar here at 931 is what 28 bucks didn't get over it say this is pressure on the stock it's called resistance but it's basically pressure it's institutional pressure which is making this feeling here just saying i'm not letting the stock go over this number here at least not for the morning which is all i care about remember i only trained the morning so then it did the short then it dropped and i actually got out of this really quick i i said everyone we're scalping this today because it's not amazing but the fact is it actually went almost to the target target today with 27 bucks that came down to 2712 you could have stayed in it actually you would have been in it for an hour which is a long time for me but if you stayed in the trade till 1030 you could have got it all the way down this was really nice i got out of it quick i wanted a scalper today that was my plan of action i follow my plan of action but even if you follow this just into 945 you got it down to 2720 do you see this here so low in the day was 2710 low in the morning was what 2720 see it just doesn't even pay to train that long if you had held this till 1030 you would have had a rally back and made 10 more cents so this is what you want to do what do you get out here or here or here or here it doesn't even matter and we were talking about this the other week the idea is to get the right pick get the right pick at the right end boom you want to get the sell-off it's a straight sell-off 90 some percent of the time when i pick something and take the entry and it goes it goes right away sells off right away and let the trade fail okay which which does not happen that often for me but you get the move back so you get the sell-off and this is the money and then it doesn't matter really where you get out but the point is that the sell-off happens very very quick into the open again it's the common sense it's the common sense method of this seeing it and you are prepared before the open to see this because you saw it like i studied eight o'clock in the morning and i do call the trains in live time in the live trading room i do do that for people i say the entry in the stop shop you're there in the room and you want to do it with me you can okay anyone have any questions you have to take my gap class though in order to be in the room to get my calls because i think everybody has to know how to do this and these trains set up very fast and so you do have to know what to do how to size yourself and what to do it so let's talk about that next for the sizing we kind of were talking about that before but let's talk about that again okay so you did this here today and i usually rough it okay exact exact entry in here with 78 78 by 2810 so again roughiness 30 cents or if you hit it a little bit late at 75 35 cents so let's rough it and say approximately 30 cents open share it's not going to write this in the room times 30 cents equals 300 bucks so your risk is 300 bucks now what if you took 2000 share times 30 cents again the risk is 30 cents you'd be risking what 600 bucks what if you took 3000 shares times 30 cents equals 900 bucks now the trade worked okay say you got out of it kathy says i'm good this is this is you don't even need to calculate or do this kathy save out of it and you made 25 cents you got out the first drop down first target really was 2750 save it out of it made 25 cents okay example the thousand shares you would have made what 250 dollars and the second example with 2000 shares did it mean 500 bucks and the third example 3000 shares you would have made 750 dollars this is not smooth to get out of this right here in three minutes if you held this all the way down okay which i did not do but i'm telling you if you did you made more but this was not so amazing gap so i scouted it so i'm saying if you if you just kind of scout okay like this every day not even looking to hold to the target not even doing anything like looking for the target okay you see how you can you can really you can make money okay but it has to do with the share size if you don't take enough share size you can't get to the number you can't get to that that exact number that you're looking for you need to try to take get to the size how can you get the size where you could risk 600 bucks or 900 dollars even in a tree you've got to prove to yourself that you could consistently do it and make money if you risk a dollar every day for a year from january till first to december 31st or if you risked a thousand dollars in every train for a year your your actual money that you would make by the end of the year would be far different huge difference in the dollars and cents but the actual trains would be the same if two people took the exact trains and took every train that i did in the room what's the difference how can one person make more it's the sizing but if you're someone that has not had success in the market and you are you are afraid to take size you got to prove to yourself that you can do it and that's where the reigning system comes into effect that's what i teach in the class which is the 26 points it gives me conviction to take trains without any fear to take the size and when i don't have the fear to take the size i'm not worried about losing because i know if i lose on monday that i'll win on tuesday and wednesday or whatever the case may be and very often i hold trades longer than this but this was not an amazing gap today so i'm just telling you but even looking at 750 bucks a day scalping that's still if you and i'm just rocking it out here okay five days a week it's still 3700 dollars basically a week that gets you to the numbers of making six figures a year but it's the point that many people can't even get they can't even risk a dollar doing this over and over and over and over again because they have no idea what to watch and they don't know where the entry is and they're scared but people who risk two three hundred bucks in a trade you know not having conviction kind of throwing dark to the board and you can't make any money consistently doing that let alone six figures a year you will lose many people many people just don't understand how important it is to have the conviction and for me it's a daily chart the daily chart gives me the conviction to do it now we have a question here dana you're saying the science is possible for your buying power it does in the sense you have to look at the buying power you can't take you can't take 3 000 shares of disney okay if you don't have enough leverage or buying power in your account to do it again you have to look at your buying power this is different than the 30 cent risk you are you were given access which is leverage or buying power from the broker at utrata how much you get depends on the broker where you have your live account you need to ask them so it's more prevalent and expensive stocks i find that it's an issue for people if they can take the sizing but the 30 cents position has nothing to do with um the stock price it's 30 cents times here this is a good example we'll just go over it let's do 27 i don't even know what the buying power was in this because i only figured out for expensive things 2778 times 3000 is what if you wanted to take 3000 shares just figure it out here's what you would have needed this is a good this is a good question you would have needed to take 3000 shares of this trade today in a i out you would have needed 83 340 dollars in buying power what does that mean it means you have an account with a broker they give you leverage it's not dollar for dollar you don't need 83 340 dollars if you have a retail account you will probably get four to one okay meaning if you have 20 some thousand you probably be able to take that trade if you have an account in a prop place you may get 10 to 1 or 20 to 1 you might have 8000 some dollars with a prop place and been able to take that same trade and have 83 some thousand in buying power so there's different types of brokerage accounts you have to find out when you go to open an account how much money you need to put up to day trade actively and how much buying power you're going to get on the fund you may need to look at that for your risk okay so when you look at expensive stocks which like i said i usually don't figure out the buying power unless i have an expensive one i was talking about disney let's just go look at disney i haven't looked at the chart for a while look at disney disney rally today the short disney because again we're talking about shorting let's have a line to short disney back here in the 24th this is the day i think this fell the day that with the market fell or maybe with the alligator thing uh okay so disney let's say we wanted to short disney in this day let's say we wanted to short it at 96 bucks okay and i'm just making up a number here for dan's question because he's asking about the stock price you would if you wanted to short a thousand shares of disney at 96 bucks how much buying power would you need you would need 96 thousand in buying power not 96 grand but 96 thousand in buying power but guess what the stock might have been more than 30 cents because the stock price is more expensive so you might not have been trying to take the share size in this as a short with a 30 cent risk the risk might have been 60 cents you know what i'm saying because usually stocks that are higher price also have big stock so if your risk was 900 like in the 3000 share position of the aal you you would probably have a bigger stock it wouldn't be 30 cents it might be 60 cents so if your risk is 900 you can only take 1500 shares anyway talk to your broker about depending on where you trade well let's go back to what we're doing okay this one anyways the point is oh this is what i was saying many many many many many people okay just don't know how to replicate this it's the replication okay it's the it's the replication boom boom boom okay i'm very good at finding this and doing it over and over and over and over and over and over and over and over and over again okay one of one something that i learned very early on and i i learned it's very very early on and no one taught me it no one at all because no one even says this stuff out there because many educational places are trying to teach you everything under the sun and 10 things till sunday i only do that even the other things that i do like the options is based on my strategy on gas okay and i don't do options every day but i am doing some options so everything is on the one strategy that's it okay and if you learn how to you do the points and find the directional bias of the gap you'll you'll you can do it for options or day trades or swing trades or investments long term but it's only one strategy that's all that i do okay so when when i'm very early on i realized that there was too many things to be looking at every day and i fell myself all over the place all over the place i'm wanting to do a million different trades and trade all day and go long and short and wanting to do different kinds of strategies and i and i wasn't profitable but some days it was some days it wasn't and i make money i lose money and i and i and it was just the biggest days i ever had and this is probably how i logically came to the conclusion the biggest days i ever had trading was when i ever did one trade and one stop and then it just dawned on me when i go back and look at my results and said wait a minute there's you know this is like ironic or not really okay and it goes back to the common sense if you're only doing one trade a day you should have very little loss in if you're looking for the same thing every day you should be consistent if you don't find it you don't trade i know that's a bummer some days for people that want to trade all the time but guess what that's that's how you end up making money in the long run the long call in the market some days you just don't do anything if your criteria isn't that but if if someone if you want to look up tomorrow morning and you did some fantastic trade okay and you made $10,000 okay saying you took this you would have made 10 grand now where would that have had to go let's look at it 2778 it would have had to go here not that far away so if you had shorted it here look below this tail 20 look at that yeah look at that it's actually would have been a target now it's flipped on the day and i got out of it but look so actually if you had shorted this here we're shorted this in the day here's the daily chart this is where the short entry was could this have fallen down here absolutely yes it wasn't an amazing gap so i got out of it early and i think it went all the way down here is it again here someday probably if it had the market with it would have gotten down here but would have been a better gap a better range of gaps anyways this is a $2 move so if you've taken 5,000 shares of this in a $2 move quickly quickly quickly somebody tell me what have been the risk if a 30 cent stop with 5,000 shares what is your monetary risk somebody anybody let's see how many people are on that this is the kind of stuff i teach you you guys know how to do it i mean this is just you are i shouldn't even think if you have to think for more than two seconds you got to get a calculator and no one's answering me we're going to be here all night if you risk 30 cents times 5,000 shares what's your monetary risk if the stock had dropped two dollars and we're talking about making 10 grand you're 5,000 shares what's your risk oh my lanta nobody hitting running is more than two seconds hitting run what's three times five yes 1,500 perfect if it makes it hard yes very good what's risking 1,500 is that a good trade the answer is yes does it happen some days the answer is yes but you would never have made that if you didn't risk 1,500 which you might not have done if you didn't really see that the move was going to go there you would have been worried about losing 1,500 so the point is that this predictability i guess of the directional bias which is to the down move here okay which is what this trait was is what is what helps you take the risk and make the trade now getting back to what i was saying let's say this had gone two bucks from the entry and you made 10,000 dollars if you had no idea how to do this not a clue you would think that you knew how to do it and tomorrow's Thursday you would get up you would make the 10,000 then Friday you would be looking to make another 10,000 or some other fantastic trade and what people usually do after they have an amazing trade is they try to replicate it they try to replicate it over and over and over again and and and they end up giving back the 10,000 losing giving back the 10,000 profit and then actually losing in the trade trying to replicate what they did over and over again not knowing what they did or maybe thinking that they knew what they did but they don't because how did i know that because it couldn't replicate it this is a trickery or really get out of it i mean i i have had the business now for four years i've been teaching people and i can't tell you how many people tell me the same stories it's one of the things that people think that they know how to trade and they know what to do but they're not profitable how do you how do you know what to do when you're when you're doing it consistently and you can do it when whether it's january or february whether markets rallying or falling whether it's 2014 or 2016 or 2020 you are you are you are seeing the trades and you're doing it over and over again it's the consistency the point i'm trying to make is anybody can get up on any given day and have a great trade and make money but you're not going to be profitable makes it bigger over the course of the year or months and weeks or days or be able to go the distance to quit your job and do it full-time or do it part-time or even rely or have the conviction to take that risk of 1500 bucks to make that kind of money on any given day now this didn't do it that day but another day another example i'd show you we're going to look at the market in a minute but the point i'm trying to say is that it means learning it and really getting it and really having a consistency because that's how you make the money you want to do something to make money and have a good day it's the replication of it and i have made it a science i mean quite frankly 26 points is an awful lot of things it's an awful lot of things to look at it but if i ever could look at 260 points and never get it wrong i would do it i would get up at 6 a.m every day and never take a loss and then guess what my risk would be you know $10,000 a trade instead of a thousand or 1500 bucks you know you it's just it's a lot of understanding that it's the accuracy okay it's the accuracy and getting it that allows you to take the signs but if you can prove yourself that you can for however many days or however many weeks risk a buck or 100 shares and do it do it do it do it do it do it you will then say yes i know this works and i can do it and i will start to bump it up and start to risk more so it's about the conviction and i have a high level of conviction in what i do and and and i've been doing this for eight years but i did create it myself i think that helps with the conviction that i have and gaps are a sophisticated way to look at something in the chart many many people don't understand gaps in this reason now let's look at the market here look at this close we had here today unbelievable does anyone have any questions here before i look at the market wow what a day in the market what i was saying the selling the shorting okay it's selling action is panicking now if you didn't watch the news in the last two weeks which maybe you were busy it's been the holiday and stuff maybe you missed it but probably you saw it somewhere somewhere on the news the net there was a a vote in great britain and there was a news reaction that created a gap down in the spot this is go up here again you see the symbol here to the left is the etf of the market so here we were the night before this is in the 23rd we actually closed at 21081 boom the next day i think this was friday yeah it was a friday we open at 20363 so there you see it now we're talking about gaps so we closed at 21081 let's just figure it out exactly 21081 and we opened 20363 okay so we got down seven dollars and 18 cents my system what would you get up in the morning you roll out of bed you see this you would see it way before the open you wouldn't have seen it at night actually we closed it night up so you would have had to get up early anyways the expectation was a certain way for the vote it turned around market gap down pretty big then in the morning and guess what it created panic it rallying hard first the panic came in and then fell into itself in the afternoon it followed through the next day on the monday we got down again not as big as the gap down but still gap down and we sold off hard then broke 200 this is on monday to 27th after the weekend a follow-through continuation of the gap from friday the reaction of the news and you will have this in the market you will have this in stock, stocks will gap for news for earnings for anything anything to feel like it somebody can go on TV right now and say something and something could gap it's the idea of the panic and the sell-off okay now i want to show you this is again why i like shorting because you can see here what transpired i mean literally this is a big move to the downside that happened very quickly now we reversed it because the people that are in charge of the market the power money people the institutional money came in and bought the market back up again and bought it today right after this reaction but this was a strong reaction that if you were on the market a long stock or long anything at all you might have gotten scared like a scaredy cat not knowing about the brexit are great written or anything else and you might have got in the morning and data positions are worried or stressed or crazy and you might have sold and this is the spain that i'm looking for every day now now take away this and pretend this is a stock or anything this is what i mean by the profitability that's involved with the shorting okay because even from the open on the friday through the low of the of the monday okay that's a big move and that's not even including where it closed the night before on the thursday gap okay so you have people panic and you could have shorter the market here on monday on the on the second day down it's just one of these things where if you know what to look for you can predict them it's i'm very good at predicting what something's going to do before it does it and quite frankly people that's how you make money if that no one makes any money if it's after the fact and if it does you make a little bit of money and you're and you got to be actively and you're scouting every single thing that you do and a lot of people do do that but it's able is are you able to predict it doesn't mean that you'll predict it right every time no that's you know no one can but i do predict it right a lot and i predict the market will make it up behind it's going to do it it's way way late but it is going to do it so it's you know you you have to be able to predict the price action to take the trade before the momentum and move happen and what i found is that gaps are so specialized and many people have absolutely no idea how to trade them don't pay attention to them if they do even notice them they don't pay attention to them correctly and do not give them the weight that is critical for in order to make money and don't get the entries in the moves like i do into the beginning part of the day and sell off and that's really where the profit right it is because you don't have to be in something long and you shouldn't be in something till four o'clock and the longer you're in a position the more you're at risk again that's common sense too if you take a trade at 935 and you're in it till 355 anything can happen you're better off getting in at 935 and out at 940 you know what i'm saying obviously and then if a new thing happens or this thing happens you're not really effective by it it doesn't really affect you negatively dials asking about goals give me a give me a ticker symbol and gold gld what do you want me to look at it give me just give me something you want me to look at that i mean there's so many different ones here but what do you want me to look at it just something that you're in right now or just what i haven't looked at any in a while but i'll look at this one here now oh our our our gld and anyone else asking questions Netflix okay no doesn't look bad at all here actually this looks fine this chart has made a correction here it it's it's just done it though i mean i i mean this is just done it has to hold here this has to hold here it has to hold here here this is where it has to hold and an ideal world is hold 73 otherwise it's not going to be right again uh netflix so that looks higher but it's got a hold there and it's just done it so it's you know it's just done it literally so it has to hold netflix looks like a piece of crap here this isn't this is trying to situate a slice here geez i haven't looked at this in a while what are the earnings on this somebody look it up trend but it is struggling to save its life so i don't i don't know why this doesn't look better other than the fact that the market has made it over the high this could go either way in here it's still in enough trend i'll tell you that but this should look a heck of a lot better here this is trying to figure its life out here let me get back here this is the beginning of the year i don't i don't know when these earnings are it'll be interesting to see i this is going to be something something in the next earning critical i don't know what so in other words what i mean i mean this could break or it could finally look much much better than it does right now this doesn't look this doesn't look as good as it should but it's still in enough trend let me put it that way the next earnings are going to be critical on this whenever they are it's going to be something significant either it's going to break itself or it's going to turn around and all of a sudden look like a buy again i wouldn't buy this here today but i wouldn't short it either if you're long it you're in the right direction i wouldn't be shorted but it doesn't look as good as it could or remember the market is the market's been back and forth back and forth back and forth i mean unless unless unless you're in like amazon the amazon here it's you know it's been hot look at this today oh my lanta this is going right to 750 holy cow i just gave an option call on this the other day gala had did you do it unbelievable gala had did you did the option call that i gave in the amazon you're on the list so so here this is like breaking out and it's it's been hard for people you did do it wow good for you yeah you're going to get this to the strike price five at the end of the week so i made a call on this just two days ago two days ago i did it i think was it yesterday yeah 750 calls and it's going to get there it's going to be through the number it's going to be through the strike price way before the the expiration this was a nice call and the point i'm trying to make though is that and this is just a call this wasn't even this wasn't even earnings i just saw it i was like oh and then i saw it wow i have to email everybody and see who did that so gala had did it good job anyways the point is though that that many many people it was with the exception of a few few picks market has recovered from the brexit it's been hard for people to it's been hard for people to have conviction in the staying power staying with the stock and going along it what's the word too nervous too nervous or like nervous nelly and that's why the even happened to following through the continuation day into the monday of the brexit people are like okay the money is in and i said listen listen people the only way to get out of this is if the powers of b come in and buy off the market again and we gap up and literally it did it it did it so aggressively that i would be most surprised and even today but i'm not surprised because the people are in the market long and a big big time that people the big money people but regular people get scared and people don't know what to do and so people are like back and forth back and forth so the commitment has been hard this year for people to go along and stay betrayed and left something like amazon but i will tell you you got something like that you got some of the other high flyers i mean they're just going to the moon and when the market makes over the high they're going to even go more than that so it's been hard for people to commit in either direction this year our lungs are short and it's if you don't have something like i have here to day trade i mean i got you were doing one trade today you were very disciplined you're focused and you're doing it it's been a tough year day trade because you can't figure out what the hell you're doing today you go long you're short what do you do do i do i get out do i scout do i take it down do i need the market do i stay in all day do i get out quickly i mean you know it this market has not been easy to read i have done a good job reading this but i couldn't have predicted brexit who the hell put a crane who's in the 23rd i never in my life saw something like this happen in the night but then it was the expectation that didn't fall through here it was but this is crazy this was all at night this wasn't even in the morning and i've seen moves like this in the morning the economic news but this was a night i never saw something like this at night in the market never in all the years i've treated the market was getting bought bought bought bought bought bought up all into the night look at that 212 was a hot so obviously everyone bought them the market was stacking up after hours and then it got down and so there was the sell-off and this is the shot so the shot came in the gap from monday and this is how you make money shorting but this very well could have opened this way in the morning if the vote had gone different but it didn't i suspect they're in fear they're in panic they lack something but they're not sure what to do people are waiting in the sidelines but once the market gets over the high then people are going to be committed again and it's going to be a great time to trade and i'm telling you i i i don't see us going back up to this level and not getting over the high the next time we go there and i said this for the last three months six months we're going to get it over we're going to get up over we're going to get up over any time we even get anywhere near to pre-defy at two thirteen seventy eight this far we're going to get we're going to go right on top over it so when that next month it's going to happen this summer i believe i we are keeping very important and i asked the question short long again and right now people don't know what to do so when the market starts to make sense again to people people will get back to trading actively again and we more volume and volunteering the market even the market makes it over the high and makes sense again and then you will have more shorts and more long the more opportunity in both directions to do it but again i still like to do the short but the other reason you will have the short is because people will dump crap okay they will sell it gaps and we rate 20 points or more people will sell crap then they will once the market makes it over the high because people will dump crap to buy good stuff because people only have a certain amount of money if you have even a million dollars you got some stuff that's moving stuff that looks good like amazon to the market if you're going to call it you'll sell it it'll make the sell off and you'll take your money and take a million dollars you have and you'll buy something good so everything is not making sense right now and this is why but it does to me because it does but i'm just saying it's going to be better once you get up over the high for as long as the short and it's going to have more opportunity all over the place you've got to take the right stock because you can't you can't make any money anyway so um the market is a rational need to afford to lose that's how you stay solvent yes more than you can afford to lose and when people take trades in the room that i don't call or don't look good to me i i get upset with them because i want to see people do well i don't want to see people lose i want people to do well and i want people to make money and there are people making money with me and doing very well but they listen to what i say and and they don't deviate from the system it took me three plus years to figure this out you don't have to reinvent the wheel if i say a al is what we're doing today or do nothing if you held this longer today it did go 10 cents to the target but what if it wouldn't have and look what happened today what happened today in the afternoon actually was what i thought might happen in the morning it flipped you that you went up over the high it did go up over 28 when that happened it was above so it was a morning short as a scalp and i saw that it would probably do this and i didn't know what time so i said i'm in and i'm out quick do you see again i'm really good at predicting what something's going to do so this wasn't a good enough gap to follow through all day but it was a short in the morning and it was out to class the only time i'm doing it this year it's actually the price of 15 so for those who've been following you a while and you want to do it it saves you a thousand bucks no exceptions after friday so if you want to sign up email me and if you want to travel to the trading room you can do a trial it's just that you wouldn't get the 20 off normal price of the class is 49.99 and it's well worth it because it teaches you how to trade and replicate these trades that i do over and over and over and over and over again and that's what you need to learn how to do to make money consistently otherwise you take the trade like i said you make ten thousand dollars you never know how to take that trade again and you will give back that money and way more trying to figure that out and and and you and this is you know it's been one of these years where you really were tested it it wasn't about loss this year in the market at least not so far the first six months of the year half the year is over more than that you still have six months is enough time to turn around your year no matter what you're doing and and make something of the year okay if you're down for the year trading some other system you've got plenty of time to turn it around okay so think about this market here today fabulous market and amazon is amazing too so good job galahad for taking the amazon option and any questions any questions