 The Traders Corner for five expert traders shared the winning strategies for 2019. Traders Corner is here to bring you together the brightest minds and the trading industry and have them present to you at a live multi-speaker event. Today it's no exception. We have five expert traders with great diversity of techniques. Software and trading strategies presented will appeal to both the novice and advanced traders alike. So I'm going to introduce you to our first presenter, Melisa Armo. Welcome, Melisa. Melisa Armo, it's actually from the stock storage. Melisa is the founder and the owner of an international educational company where she teaches people how to successfully trade the stock market. Her presentation today is based on one strategy called golden gaps which pinpoint institutional money in the stock market. She's also the executive producer and creator of her own television show title, Make a Million with Melisa. Make a Million with Melisa is what to do and how to do a television show on stock trading. She does appear on TV as an expert stock market analyst discussing the market, stocks, news, and word events on Fox News, Fox Business Network, RT America, Chatter TV, CBS News Corporation. Good. Melisa, it's a pleasure to have you on board today. You're very welcome and we hope that you guys will enjoy the presentation of Melisa and that we will be learning as much as you can from this webinar. Thank you so much. What a nice introduction. Welcome, everyone. Hope everyone is having a great trading day here today. So as the presenter said, my name is Melisa Armo and I own the stocks. Wishing off to forgive me, I'm fighting off the tail end of a cold here today. So I sound a little a little sick but I'm doing well. I'm going to talk about today's trade actually. For those of you that are watching it, you can pull it up. It's probably still going. If we have time, we'll pull up some charts at the end. It was SWK and I'm going to talk about really how you can learn how to trade the patterns of institutional money and gaps. It's one of the ways that I read the market and specifically stocks that I'm trading like the SWK today. If you'd like more information, you can always call me at 929-3200 GATT. I try to get back to people in 24 to 48 hours. So when if you call, leave a message or you can email me at melisa at the stockswush.com. I also have a handle at Twitter, Facebook, YouTube or Skype if you want to follow me in any of these. And I do appear in Fox News and Fox Business on a regular basis and I talk about the market and I've called the market bullish and we are going to talk about that a little bit here today about my outlook for 2019 because I do think 2019 is going to be a good year to actively trade the market. I think it's going to have a lot of volatility. Now what does volatility mean for you if you want to be an active trader? It means that you have opportunity to profit. You've got to get stocks or the market though in the right direction to make money. And when you have volatility, you tend to get big moves. And so that's how you are going to make money as a trader with getting big moves. Now I like to focus on the morning. So I'm pretty much done for the day. But if you want to trade the whole day, you can. And occasionally you can get a really nice gap of which I'm going to explain to you what is in a minute that will run all day. However, that being said, when you have a goal, like say you want to do this for a living and you want to do this for a job, if your goal is to make 500 bucks a day, $1,000 a day, once your goal is in for the day, I think it is important to stop because you tend to give money back if you keep trading. Trading is about not being a jack of all trades. It's really about being really, really good at one thing and taking one trade or maybe two with size, getting your profit booked for the day and being done. Now I'm talking about equity trades, okay, day trades, and you can do options too. And we'll talk about that in a little bit today too. But if you want to become a full time trader, it really isn't one of the nicest jobs in the world because you work for yourself. And I've worked for myself for years. Even in my previous career, I did mortgages and I worked for myself doing that. It's hard to imagine me ever going back working for anyone else again. But if you've never worked for yourself, I'm telling you there's a lot of freedom involved with that. Of course, it's personal responsibility. But having the freedom to work for yourself once you start to do it, it's very difficult to ever go back to working for anyone else again. I was talking about this earlier. I do think 2019 will be a great year to trade. And I think it's going to be because of the volatility in the market. And we're going to have a lot of news that's going to create moves in the market. And as you know, like today the market gapped down and fell. I didn't see where we're at right now before the webinar, but we were read this morning, we were following this morning. When the market moves in certain directions, most stocks do tend to go with the market. So if you've never thought about trading for a living, 2019 may be a year that you want to think about doing it, because you're going to have opportunity and you're going to have an opportunity to make money. Now, if you're in the market long term for investments, I say it may be a time again, January beginning part of the year to sit down with your financial advisor and go over what you want to do with your investments this year. Because volatility if you're in the market for the long term is something that you have to consider. You don't want to be looking at your statement or starting into your account every other month and getting freaked out if you see different momentum moves in the market. And we fell into the latter part of 2018. We fell and we did have a volatile, I'd say last quarter, last quarter of 2018 was pretty crazy. And a lot of people exited a lot of long term positions that they had the market was sold off for about almost the whole month of December till the end of the year, but it didn't mean the market changed trend. The market has still ended up trend. It was then and it still is. Now today, and again, I'm just looking at this Eclipse is the chart of the spies is the spy is ETF for the SMP. And here is a daily chart going back all of 2018. And actually, I caught most of the 2017. So here's 2017. The market rallied up and we really power trended. So we power trended most of the year 2017. Now a lot of people said, Oh, we're in a correction territory at the end of 2018. This is December when we fell off. But I wasn't reading the market as bearish. I was reading the market as bullish. The market never broke the uptrend to me, technically speaking. And again, for those of you that don't know, I focus on technical analysis. So technical analysis means of reading the prey section, the market never broke the uptrend. And people say, Well, you know, if you come down this percentage, this percentage, no, all of that is is is is is not correct for the reading of the market for 2018 and 2019 because of the fact that 2017 was such an anomaly year. So 2017, because we power trended up really basically since the day of the election, okay, the presidential election, which was the November 2016, we almost went straight up. So you can't say that any percentage of pulled back meant that we broke the uptrend, even though we broke many pivots in here. And I'm going back again, showing you this is the market for the all last year. We broke a bunch of pivots. We sold off in December, but the trend was still intact. Now you may agree with me here, but I was saying that in here, which was a which was a harder read. Even a lot of people didn't agree with me, especially people I talked to on about on TV that I was on with. But the reality was I was right. And you can see here now that obviously now a lot of people say, well, yeah, we're still we're still the bullish trends intact. But I called it here. And the reason is partly because of the way that I read gaps, which we're going to talk about today, which is my strategy, and also because of the fact that the market power trended in 2017. So that was an unusual time and unusual year. And you can't say that a certain percentage meant that we broke trend. So people sold off of positions they were in in 2018 in December. But again, if you held on to stuff, you're probably happy or glad about it now in the last few weeks of January, because the market really has had a nice recovery. So what's the story for 2019? And how do you read it? Well, you can read it using the patterns of institutional money. And that's what we're going to talk about today. That's how I read the market. And I'm just going to go back here really quickly. This sell off was not what I would consider institutional sell off that was going to have the follow through that was going to break the trend. So I'm trying to read institutional money. Now, what is institutional money? It is hedge funds, big, big traders. I mean, traders that trade millions and millions of dollars every single, you know, week or month, not people that are taking a couple thousand shares or something. I'm talking about huge traders, big banks, hedge funds. Okay, I'm not talking about just the run of the mill trader. So institutional money is big money, money that actually moves the market. That's what I'm looking for. And today, again, we're going to talk about SWK, but I'm looking to predict if institutional money is going to buy or sell a stock on the day. And that is how I determine if I'm going to go long or short something. So it's important to note that people should prepare for volatility in the market for 2019, the likes of which they have never seen. What do I mean? I mean, get ready for this year. 2018 will look like a baby lamb compared to 2019 volatility, which is going to look like a lion. So what does volatility look like? And again, people have been talking about this and talking about this. What it really means is not just that something moves, but it means it's a switch. It means you think something is going up and then it totally goes down. You think something is going down and then all of a sudden it suddenly goes up. It's tricky. And that chart of the market was a good example, but that's the kind of thing that you're going to see this year. And you're going to see a lot of it. So what does it mean? It means you better know what you're doing if you're risking money in the market and you better know how to trade. But if you do, the good news is guess what? You can profit, okay? So volatility is scary to some people, but it's only because most people don't know how to properly read a chart. And that's what we're going to talk about today. Most people also don't want to read a chart. Now you may be here because you want to be an active trader, but a lot of times people just want to take a call, join a trading room, take the trade, and not even think about it or read it or analyze it. In my, I have a live trading room. I run every day Monday through Friday. And if you want to trial the trading room this week, I'm doing a free open house. You can email me and you can join Wednesday, Thursday, Friday, but in order to join my trading room, you have to learn my system and you have to take my class because I think people need to know how to read what they're doing to make choices, intelligent choices before they put their money at risk. But not everybody wants to do that, but you have to if you want to be successful. And that's what I'm telling you. Anyways, if you have money at all in the market, even long term, we have a 401k or stocks invested, you should be aware of what it is coming up for this year. And that's what I'm telling people. And if you have a retirement account and you have an invest financial advisor, get with that person, meet with them this month. We've had, we've had a nice rally, but that doesn't mean we're not going to drop off again or wiggle and jiggle around or see continued volatility because I think we will particularly could be February at March. So volatility is not bad. It's not bad if you understand it. And if you're prepared for it, in fact, it's good. Okay. And it's particularly good for active people. And even if you're in a long-term investment, it could be good because it could give you a chance to take more. A lot of people did not buy into the market before that rally happened in 2017. A lot of people didn't think the election was going to turn out to be the way it did and never anticipated that the market would rally from November 2016 up through 2017. So then the people said, well, I'm going to wait for a pullback. And guess what? The market really didn't pull back. So people missed opportunity to get long the market or other stocks. Amazon, Google, the market movers, Apple. Apple doesn't look so great right now, but it was a really nice buy in 2016. Anyways, for example, if you're an active trader and you know how to capture momentum moves, you can profit with volatility. And volatility can also be good for long-term investors too. If you know the proper place to buy or even sell for profits. Unfortunately, a lot of people did sell out in December and they, and they shouldn't have. Okay. Many investors exited too early or missed the huge rally the market had in 2017. And at some point they may have opportunity to not miss the next big market move up when it sets up. And this is what I teach people how to do and to actively trade. Now let's look here at the market. Excuse me. This was the drop off and I blew this up. Again, this is a spy. This was the drop off here. Now I'm just going to do a brief little lesson. What is the gap? So I read the market based on gaps. Okay. Most people read the market based on support or resistance and things like that. I'm reading the market and calling the market and predicting the moves based on gaps. Now what is the gap? A gap is the difference between the close and the open. So this is a day chart. Going back here in December, the market closed here, gap down. So the market closed at one price here, gap down in the morning, opened at a different price. Closed here, gap down, open, fell. Closed here, gap down, open, fell. Closed here, gap up, fell on the day, but this was a gap up because where we closed and where we opened was higher. So what do I do in the morning? I get up in the morning and you can see the gaps. Again, this is the spy, but this could be anything, Netflix, whatever. And I am rating it using my method in the pre-market or you can do it at night. You can do it in the post-market if there's a gap at night and you can rate it and determine if it's a good long or short. Now IBM is out tonight. IBM, you can look it up. Everyone knows IBM. IBM is earnings tonight and it will gap. I don't know where it gaps. I'm not predicting the gap itself, but once the gap occurs, then I'm going to rate it. And I rate it based on looking at a daily chart. So here's the drop-off. Boom. Then this was the 24th. Closed here, gap down. Now when I was on TV a lot and you go back and watch my clips on YouTube, everyone said we're going to have a Santa Claus rally, Santa Claus rally. I said no, we're probably going to have a New Year's Eve rally. That was a great call because we did. We did not rally into Christmas, but we did rally at the very tail end, the very tail end of 2019. I mean 2018. And then we continued 2019. Now this here was really tricky for people. Now I'm going back the very beginning part of the year because the market closed here, gap down. This is on January 3rd, fell. I guess what? A lot of people that were short the market as active traders thought this is a rally and a resistance. Then we made a lower low and a lower high and then we were going to go and I guess what? We didn't do it. I guess what we did. Boom. We gapped up the next day, rallied. We've rallied ever since. Now I know we're falling today, but this isn't anything to do. But I just want to show you here was a pivotal point for the market. Now I'm not saying we have to hold this or not break it. I'm not saying that at all, but I'm saying this was a pivotal point in the market here after the rally into the end of 2018. Okay, this is 2019. You can see down here the dates. And again, this is a chart of the spy. Any questions so far? Now let's talk about today's gap and today's trade. So you get up in the morning, if you decide to come and learn my method or want to trade with me in the room and you look for stocks that are gapping down first because I like to short first because I find that people tend to sell positions and get short moves quickly and I like to be in and out quick. This was a gap down. Stock closed the night before up here at 1.37 open in the morning around 1.20. This is SWK. You can look at it now. Again, I don't know what it's doing, but this was earlier this morning and it was a nice drop. So I rated the gap. The gap rated per my system that that it was going to fall, which is what it did. So then we look to short it on the live day. But this is a gap. And again, there are bullish gaps. There are bearish gaps. I tend to go to the short side first or the downside first because I like to short. Now it's not that you can't make money going long. You can, but the reality is that you can make money very quickly with panic. And it's called panic selling. So I'm shorting panic selling or institutional selling here. You say, well, how do you know it's institutional? Well, this is what you learn in my class. I rate it. But you know, again, you can say, well, for something and again, look at the price point. Okay, this isn't cheap to be at 1.20. And I have to look it up to see where this is the low of this is right now. This came down broke 1.16. So this fell like four bucks plus on the day. And that's a lot. And actually from where it was the previous night at 1.37 and looking just at the morning's low here. And that was like, I mean, again, let's just say 1.16 to make it easy. In fact, let's figure it out exactly. 1.37 minus 1.16 is 21 bucks. Well, that's not nothing. That's pretty big. Okay. So this is a goner here today. And it was a short. So what I'm looking to do is to follow the footsteps of power, power, power, power, power, institutional power. Sometimes you get the follow through that happens for a couple of days. We can do a swing trade or an option. Sometimes you play it for the dead. Sometimes you play it for a couple of minutes and you're out. Sometimes you can play it all day. And again, sometimes you get the follow through. I tend to want to get in and out very quick. Okay, because I'm doing other things, running the business on TV. But some of these trades you could hold for a couple of days. And SWK maybe one of those that continues, we'll see where it closes today. But for day trading, for active day trading, if you wanted to learn my day trading method, you'd be trading just in that first half an hour, hour, 30, 60 minutes a day. So we're looking to get in between 9, 30 and 10. And we're looking to get out probably by 10, 15, 10, 30 at the most. Okay. I use a checklist when I'm trading to determine if I'm going to actually do it as a long or short. And it has to rate 20 points or more per my 26 point system. So again, doesn't have to get a perfect score, but it's got to be 20 or better. So 20 is a lot of things. SWK rated 20, it worked. 20 is a lot, but I'm not getting in the pre market. Okay. And I'm not getting in the post market. I think that's too wild of a time to trade. Now let's take a look at this one here. And again, if anyone's looking at this, you can tell me where this is at right now. I think this was definitely had some target left in it today that it could be a short that you could do this afternoon if you wanted to. But this was the gap. Okay. Daily chart closed up here gap down. I go through a process in my system where I rated in the morning, it rated as a short. And then we look to take the entry. So here is a one minute chart. Again, one minute chart stock closed up here gap down. Now here's the drop off and then it based out. So then we shorted it here, dropped, rallied up, took a little bit more, got the drop. So this is what I call the money move. You could have done this, you could have done this, you could have done the whole thing. But the idea of active day trading is to get in, get out, get in, get out, get in, get out. So you're taking a position and again, you're taking it with buying power with margin. Okay. You're not outright buying the stock and holding it for the rest of your life. The idea is you're trading with a margin account as an active day trader. You take it, get out, get in, get out. Okay. You can trade with a retail account or you can trade at a prop account. Prop accounts usually give 10 to one leverage or retail accounts usually give four to one leverage. If you're holding the stock overnight, you're going to get two to one leverage. But that's not what we're talking about here. We're just talking about actively day trading there. So the entry today, this was the, this was the, the one minute chart and I'll go back and show you it again in a minute, one 1735 1500 shares initially, then there was an ad when it pushed back at one 1780 added 1500 shares double the position 3000 total. And again, this is a normal size price of the cost of the position then with the ad one 1758 exit was into the drop. And again, I'm very anxious to see where this goes today, but anyways, good exit on this in the morning one 1528 profit 7,140. Now, how do you get this kind of money in a day trade? Because this is like literally not that long to be in a trade to make this kind of money. And this is not an option. It's an equity trade, but you could have done it as an option too. You could have bought a put. I didn't look up the cost of the put, but anyways, this is just a normal size position. Now I'm going to go back, take it here, take more here, boom, you get the drop. And again, this looks good. You could actually, you know, be in this probably for a longer time if you wanted to, you could have also done it a little bit earlier up here. The price point up here was around 119. It had opened up here around 120. But how did I know this was going to drop? I rated it per my system. And the system told me that institutions were going to sell this sucker today. And that's what they did. How do I know the price dropped? They went boom, and sold it. So they dumped it. They dumped the long shares of the position. And then also it got shorted. And that's what we did here. And that's the trades I called in the room. Any questions so far? So even if you did have this size, this is an advanced risk, okay? Advanced size at this price point cost of the stock, 3000 shares. Even if you did have that, even if you did a third, if you had 1000 shares, even if you had one third of this position, you only had 1000 shares, look at the drop. It's a really nice move. Okay. So this is what you're trying to go after every day. Any questions so far? Any questions from anyone? Now how did I figure this out? Again, in the pre-market, I rated the gap. It rated 20 points that told me that it was good to launch. And it told me it was going to set up as a short. But again, we don't get in until after it hits. Now this was one from last week. This was SIG, okay? Another one that gapped. This, we did this this day here. But I want to show you, it's still falling. So this is another example of the follow-through and the continuation. You could be in this as a swing trade. You could be in this as an option. Stock closed here the night before around 33. Boom. Gapped in the morning around 27 something. And then it fell. So we did this as a day trade. But I'm going to show you, you could be shorted this today. And you could have entered it here as a swing trade or you could have entered it here as an option as a put. It was selling. And so we shorted it here. But these are ones you can watch for a couple of days down. It's falling because you have pressure, pressure on the stock. And let me look at these questions. How do you find the gap down with a scanner? I just look to see what's reporting, which you can look on any website for free. Most stocks that have earnings do gap. Again, you don't know if they're going to gap up or down. I'm telling you IBM's tonight, but I don't know what it does. In fact, if we have time, we'll look at that chart. But I also, you can pay for a scanner too. I have a free one with my platform. So I don't pay for an extra one because I have a free one. But I also look at what's reporting. But you could pay for one if you want. How do you read from your system to where it's going down? You mean the target? Is that what you mean? Who asked that, John? Well, there's several targets. There's not just one target in a chart. I'm watching several things. I'm watching the candlesticks. I'm looking at the targets. I get the targets off the daily chart and the one-minute chart combined. I'm looking at time of the day. I'm looking at what the market's doing. And if you're in the trading room, when I say to get out, you get out. But I mean there's more than one target in a stock on the day. Morning target on this really was 116, but I thought it would break it, which it did. And then I said 115 could even happen, which it did. And dream target on this today is 112. I mean, someone look it up and tell me where it is. So there's not just one target. But again, if you're trying to make money and your goal is to make one flip. So say you, you risk a thousand, your goal is to make, what, a thousand. So some days you're going to make more, which today was. But it's, you have to have a goal. So say you risk a thousand. It's going, it's going, it's dropping. It's not at the, say it's not at the target. Say it's not at the target and say you're up 875. Are you going to hold it to make an extra 125 bucks when it's 10 o'clock and the market's rallying? I'm just throwing a scenario out there. No, you're probably going to get out. So you see what I'm saying. This is not an exact science. You have an area, it gets into the area and you have to watch all these other things that are going on, which is what I do. So this is, this is not like it has to go there every time. And again, this is working so well today. I mean, the SWK, not the SIG, but the SWK is working so well that it could go to a crazy number today. But obviously I'm out. But if you could still be in it. Okay. But obviously I have my goal for the day. What is the minimum amount to open a live account with a spy? Well, it doesn't matter if it's a spy or anything. If you want to open an active day trade account, you have to grow to a broker. You have two options, retail or prop. Prop gives you 10 to one leverage, some give you more, retail gives you four to one. I'm not a broker. There's about one Cajillion brokers out there are just fine one and you open up an account. You have to be able to actively day trade. It doesn't matter if you're doing the spy or any stock, you will open up an account and be able to trade according to your buying power at that broker. It takes about a day to open up an account. It's not a big deal to open up an account. It doesn't take long at all. Entry on what are you talking about, Yogi? I just, I have the trade in here from this. This was the entry today. I have traded with puts and as far as overpriced, I don't look every day at a put because I'm doing this as an equity trade. I do call puts in certain things, but usually the options and we're going to go over Netflix option. Usually if I'm calling an option in something, it's because the price of the stock is very expensive and it just makes more sense financially to do the option. But for this here, I feel it's more nimble to do the equity trade, but I'm telling you can do an option if you don't want to worry about buying power and we will talk about options in a little bit. But it's not, no, there is no thing as anything is overpriced. There's nothing about where it's overpriced. If you bought a put in this today or if you shorted this as an equity trade, you made money, period, end of story, the stock dropped. Give some examples as an entry on what this is what I have here. Yogi, yoga, I don't know if you're seeing here. This is the trade today. That's, I don't, I don't know what you mean. So anyways, getting back to what I was saying, hedge funds, big banks, they control the market, they control stocks, they move money, you're not going to compete against them. So the best thing you can do is go with them. And if you do go with them, you can make money and profit. It's not that every trade that I call works, some trades do lose. That's why you stop. But I will say that more trades that I do work than don't work. So I have a high win ratio. And that's what you want to look for in a system. You're never going to get it right all the time. If that was the case, I'd risk my entire account in every trade I take. And that's totally unrealistic and ridiculous. You will have trades that don't work. I will tell you that we watched pets this morning. You can look it up P E T S. We never took a trade in it. We didn't lose. But I did watch that too. It didn't work. So I saved us out of that one. We didn't lose any money. I didn't like the way it was setting up. We never did it. Okay. So I try to focus on one or two things a day. Again, the control, I'm looking for the control and then I'm looking to just plop it on in one ticker symbol to make the money. It's not about like I'm not trying to trade like most trading rooms are calling out this thing, that thing, this thing, long shorts, everything, everything in the world. I have the trading room only open in the morning. We're doing one or two things. We're usually looking at one thing at a time. That's it. If I do one thing and it works, that's it. I'm done for the day. I'm not doing this one and this one and this one and that one. Okay. I'm also not going long and short the same stock ticker symbol the same day. Okay. That's a no no two. I talk about conviction. Something is in the hands of the control of the institutions and that's it. So an institution here, I'm just going to go back to this here. This is the SWK. This doesn't have two controls today. There's one person in control today. Now I'm again, I'm not looking at the daily chart, but I just want to say there's one control here where is the control? The control is in the bears. So there's only ever one in control. You have the bears in control or you have the bulls in control. There's no two controls. Does that make sense? So you want to be with the control and the thing for people that are trading, many of you, is you have to determine where the control is and that's what people struggle with. But I read the gap and rate the gap and that's what tells me where the control is ahead of time. It tells me in the pre-market ahead of time and that's how I know. So I'm all set up and ready to go and watching it. So my expectation is that the control is to the bear side. The control is to the downside. I'm going to look to short this or I'm not going to look to do anything at all because I never would have bought this today, but it didn't set up that way anyways. But anyways, the point is that the genius in my system is that I am already knowing what my expectation is for where I want to see the control goal and then when I see it, then I take it. I don't take it until again after the live day, but you can only have one control and that's one of the reasons why and I'm just going to flip back to this really quickly here, the market here. That's why the market's going to be nuts this year because people are confused even now, even with the rally, even though this is very clear to me and even now, even though I was on TV saying the market was bullish and people thought it was nuts, but I wasn't. I was right. Anyways, even now people are like, oh, we're still bearish. No, we're not. But this is where you're going to see the volatility because people think we're lower, but we're really higher. Then we're going to move higher and the people are going to think we're going to move higher and then we're going to go lower again. So the point is that reading the control is not always easy for people. In fact, it's very challenging. It's easy for me because I've been doing this for 10 years and I have a specific way that I'm reading it, which is gaps. Okay. Not moving averages, not Fibonacci's, none of that other crap. Let me just see her. I missed a couple questions and forget where we were. Oh, here we're going to go over Netflix. The SWK was on a scanner. Yes, was on my scanner this morning. How do you recognize the system where it's going down on the daily charge on Mrs. Questions? I got everybody. I think I got everyone. As far as stop loss, you have to determine your stop loss based on your money and your account. So say you have $5,000 in a profit account, your stop loss is not going to be $1,000. That's too big. Your stop loss should be the same amount of money each day in each trade. And it has to be based on the size of your account monetarily, not just buying power. You can't take, you can't put 25% of your account as a stop loss. That would be silly. So, or 20% if it was $1,000 or $5,000. So you have to look at what your money is and say, okay, well, I'm going to risk this much per trade and it has to be consistent. You can't say, well, today I'm going to risk $500 and tomorrow I'm going to risk $1,000 and the next day I'm going to risk $10,000 because if you take three trades, two could work and be fabulous. One could lose and you could still be down money if you have, don't have consistent risk amounts. So you determine your monetary stop loss. As far as where to put the stops go, I teach that in the class, but I do call it in the room. I do call it in the room if you're following me in the room where I call the trades. And again, if you come to the trial this week, you'll see that because I call it live. I don't know where the stop's going to be until I see the stock trading live. I know if I'm watching it to drop in the pre-market, but I don't know where I'm entering and where I'm putting the stop until the live day. And again, Pets is an example because Pets didn't work. And that's also, if we had gotten in Pets, we would have lost today because Pets never set up on the live day. So you don't know the stop where you're putting it, the price or the entry until after it sets up. And I teach that in the class more specifically, but as far as the stop loss of your risk monetarily, you determine that it should be the same every trade and it has to be based on the size of your account. I think 10% if you have a prop account is good. Okay. And if you have a retail account, then it's a different story because you could you could give more than 10%. All right. For example, if you have a $25,000 account, I would mean less than 10%. If you have a $25,000 account, you're probably not going to risk 10%, which is 2,500 per trade. I mean, you could put that stop loss in for the day. I wouldn't risk that per trade. I'd go more with, you know, 2%, 5% max. If you have a retail account, make sense. But you could put a 10% stop loss on the day. I wouldn't risk that in one trade. But again, that is based on something that you have to work out yourself with your account in the broker. So let's talk about Netflix. So I called an option in this, this was a nice move. Now this was before the earnings. So Netflix had earnings last week and we didn't do anything with this. It was just a bummer. This fell on Friday, but it wasn't a good gap to short. Even though it fell, you couldn't predict this was going to fell. It was really like a nothing. It was, it was just a bust. We didn't do anything with this on Friday. And here's today. But this was a nice move here. Boom. So if you wanted to do the Netflix option I called, which I'll show you in a minute, the cost was $10. And again, someone asked about the price for the, for what Netflix costs for the stock to buy it. This is actually, you know, good. You could say, well, this is expensive, but it actually was good for the price of what the stock is. If you would normally just buy it outright as an equity trade. One contract was $1,000. You could have sold it for 20 bucks. I made $1,000 profit. So that's a good trade. You risk and what you make is one 100% return investment. Again, this is an option cost here again in advance, six, 6,000 sold it for 20 made 6,000. So again, whatever you would have risk here, you would have made the turnaround 100%. So I call this on January 8th. Okay, it was expiring last week, the 18th. I called the 330 strikes. So let's go over here and look at the chart. Here is the eighth. So I called it here. And then it went poop. So when you're buying an option, you can buy a call or you can buy a put. So this was just a one son, once and done quick one. And what made this go really nicely was poop. It gapped up here. So it closed here and gapped up. And then this was the exit into this move up here. And you see it. You see it. So here's the gap fell fell gapped up gapped up to and you had to get out of this here before the earnings because actually this could have gone up in the earnings, it could have been a more the earnings were the night of the 17th, but it's good to get out before the earnings because it could have fallen which has did. But it went through the 330 number here on this gap up. So you get a ran up and ran up, boom. Okay. So this is just another way to do it. And to do the trade, an option or the equity trade. Very nice move in here. But I use the rating system for either one. Okay, you use the rating system, you're looking for institutional control. Again, the control for Netflix was what the bulls, the bulls were in control. The stock was getting bought. It was moving higher. Okay. So someone asked about this earlier, what kind of training accounts you needed, how much money you need to do it? All you have to do and the only kind of account you need is to actively be able to buy options by puts or by calls or to actively day trade the trades with margin to do the day trades. So you need an account at a broker retail or prop to trade. And whether you want to get in and out the same day, whether you want to hold that's up to you. But you do have to be able to short whether you're buying the put or shorting the stock. So you have to have an account to do that. But the reason I like shorting, you know, again, today's a great example is because panic sets in so quickly when power money sells off. It's like when you take a trade, if you're down, you're going to tend to kill that probably pretty quick. And so panic is what we're looking for institutional selling and panic. And that's how you're going to make the money. And that's how you're going to make it quick. We're only in and out of it for a couple of minutes or even a half an hour in the morning. I believe that getting education is very important before trading. That's one of the reasons I require people to take my clash before they join my room. Now you can do a trial this week, like I said, for a couple of days, and just watch or follow or do small size. But I think it's important for people because you are risking your own harder money when you trade. Excuse me. And when you're doing that, you need to have a full understanding of why you're going to buy something or why you're going to short something. And if you don't have that full understanding, it's kind of like, well, why why are you doing it? Okay, when you believe in the trade yourself and you have conviction in the trade yourself, trust me, you're going to do so much better, you're not going to kill trades too quick, you're not going to kill trades that are that are down that go into work, you're going to hold them like the SWK, you're going to do the right thing, you're going to be able to risk more money, like take 3000 shares of the trade today, you're going to do so much better when you understand why something is falling or why something is rallying. Okay. So what makes some people successful and some people fail at day trading? Well, there are many reasons. However, one big reason that people fail is a lack of clarity and a lack of focus. And that's one of the reasons why I try to focus on one tick or symbol a day. Many traders are second guessing themselves a lot. You need conviction to trade well and you need conviction to make money. And if you want to do this as a career, make six figures a year, then you really have to know what you're doing, especially if you're going to do this to pay your bills. But the conviction comes from the knowledge. Okay, that's where you get the conviction because without the right knowledge, you're never going to be successful. You might think you're going to be successful, but you won't unless you really understand what to do. And people do follow me in the room, but they're learning it as they're doing it and they learn it in the class. And that is important. And everyone has a different learning curve. Some people learn everything right away and go out and run out and risk and advance them out. Some people take a little bit longer. Okay. Either way, it's the idea where you're going through that learning process, but knowledge is the key. It's the key to conviction and conviction allows you to take the risk and be successful and then feel more relaxed in your choices instead of stress. It's not good to be stressed. You are risking money to trade. There's no way getting around that. You won't make profit unless you take the risk. So you've got to try to make it as least stressful as you can to yourself. That's why you stops. That's why I prep in the morning before the market opens, before I even take a trade. I get the conviction in the rating system that tells me it's good. And that's why I only like to watch one thing. Excuse me. It's a lot less stressful to only watch one thing or being one trade at a time rather than being a million different things. So do yourself a favor and try not to get stressed out. You won't make more money the least stressed that you are. And again, that comes from the knowledge and it comes from the conviction. All right. But day trading is not investing just so you know these trades that we talked about is not investing. It's you're producing income. You're in, you're out. You're in, you're out. Okay. You're taking money out of the market and quick moves, whether it's in a day or two days or in a couple of minutes. Okay. And you are getting in and getting out. It's not long term investing. You're looking for the move, the momentum, okay, the volatility. So I always say it's good to chunk it out where you have goals. So say your goal is you want to make 400 grand a year. Look at how much you need to make per week, per month, because some trades, like I said, are going to work bigger than others. And you can't like live and die on a target. Again, if your goal is to make a certain thing, you have to look at it in the bigger picture the entire year, the entire month, the entire quarter, the entire week. But if your goal is to just for living or make six figures a year, you can do it. You can do it. I mean, I have people doing fabulous that I've taught. One woman's doing, you know, making $1,000 a day. She just did the class in October. Okay. In fact, I have some mentoring videos of her on my YouTube channel. This is not impossible. But what I do, I will tell you is very unique. It's very unique. It's very specific. And since I've been on TV, I realized how unique what I'm doing is because how well I've read the market and how, how people have read the market incorrectly, even that I've been trading or talking about the market on national TV for longer than a lie. What I do is very unique. So you will, you really are lucky to, if you can come and afford my class and pay to learn it because what I do works and it's, it's very specific and it's very unique. But you can trade and make money in the market. It's just that most of the stuff that's out there doesn't give you enough information to consistently have the wins and you got to have the consistency. If you're going to do this for a living, that means you have to win more than you lose. And that is what people find challenging. And for me, it is reading those gaps and it's reading what the institutions are going to do in the level of the control. Now again, if you don't have time to trade each morning, you can do the options, the benefits of trading options versus equities, no margin requirements in an option account, no day trading margin requirements. The only cost you pay has to do for the cost of the trade, whether it's a dollar or $10 like Netflix, and you can make active money trading, you don't have to worry about margin. And you don't have to be sitting at your computer between nine 30 and 10. The options trades I call in a letter that you can subscribe to, and I could call them before the open after the open or any time during the day. But you can still make good money doing them. You may not have a trade every day, but you could have a couple of trades a week. And some of them can have really good moves, particularly right now because we're in an early season. And IBM could set up, I might be calling an option and a day trading IBM tomorrow. I don't know. I just don't know what it's going to do. And I don't know if it's going to rate good. That's the thing. Any questions so far here. But options are a way to make money if you can't be in the live trading room daily, so something to think about. If you have any questions, plop them in the room. This is about determining your own direction in life, your own financial freedom. Again, getting an education first is very important and following the power of money. Again, that's the common sense part of this and focusing on one thing a day. And for me, I like the morning. So my system, if you want to come and learn it, measure its gaps by rating them on a daily chart to find stocks to trade that have number one, a high probability of directional bias for the entire day. Number two, a big move in the dead. Number three, early confirmation of the bias and move between 930 and 10 and four, precise entries with follow-through and a good risk to reward target potential, because that's what I'm looking for. Now, it doesn't mean everything goes to some crazy number, but I want it to. And I'm in it for that. And if I see that it has the potential, which we did with SWK today, then I'm going to hold it a little bit longer. So my class is six grand. It's 59.99, which may seem like a lot for some people. But if you learn a method to make you money in the market that you can use for the rest of your life, it's cheap. Because you will lose in the market if you don't know what you're doing. You absolutely will. And that's just the reality of the situation. I find a lot of people try to trade and attempt to trade for years and years and years, and they just never figure it out. Again, what I'm doing is very unique. You're not buying some kind of scanner. You are not buying some kind of automated system. You actually have to use your brain. You have to use your head. You have to pay attention. And you have to learn it. And you think when you're processing it, when you're writing the gaps, and if you're in the live training room after the class, you're following me. So I say to people, be realistic with your goals. But I think it's good to have goals. And if you have goals and you're realistic of how you're going to achieve them, you will achieve them. Maybe right now, making any money at all seems unrealistic. Maybe making 400 grams seems unrealistic to you right now because you could be losing in the market. But if you learn how to make money, the only difference between making 20 grand a year and 400 grand a year is size. So if you're doing it and you know how to do it, then all you need is size. You can take a small account and build it up to a big account. However long it takes you to do that is up to you. But guess what? You have to know what you're doing in order to make that happen. And for the people that are out there that are telling you you can take $500 and make 100 grand in a month or two months or three months, that is not realistic. That's totally unrealistic. And people that tell people that you should not listen to, that it's not someone that I give any credibility to. I'm talking about having a reasonable size account to make this kind of money. I'm talking about risking too grand a trade to make 400 grand a year. So you have to have money if you want to make money, but you can start small. You can make $100 a day and take a small account and build it up over a couple of months or a couple of years to get to this point. But if you're losing, guess what? You're never going to get there. And so it's about learning how to do it. Okay. Any other questions here? So my system is called the Golden Gap System. It's a 26 point professional bearish gap rating system. The purpose of the system is to help you evaluate which gap to trade each morning using a checklist. The checklist tells you what to trade in what direction and the 26 point checklist predicts directional bias in a stock. Okay. So one strategy is all you need to be successful in the market. You do not need a general overall broad view to make money. Tons of people fail and know a lot of stuff all the time. Fundamentals, everything. I don't use that stuff. Okay. I'm technical analysis. That's what I focus on in the gap. And if you learn how to read institutional money and price patterns and gaps, you don't need to do anything else. Because if your reason for doing this is to make money, you'll make money, and that is all that you have to worry about. Okay. Follow me. So you have to be available if you want to actively day trade between 9.30 and 10 and be able to take the trades actively in and out. If you have a passion for the market, if you want to work from home and are thinking about a new career, then this may be something that you might want to look into. And again, you're doing this and working from home. So my class is called the Golden Gap, and it's this weekend for the January class. If you want to get in and trade for earning season, which runs the whole next month, it's January 26th and 27th, 9 to 5 Eastern Time. Class of the class is $59.99 US. You would email me for the forms to sign up if you want to sign up and the class is online. So it's 9 to 5 Eastern. I'm in New York. I live in Manhattan, but you could be anywhere in the world and take it. I have a question here. And then I think we do have a minute. I can bring up the charts. Excuse me. What's your percentage winning trades against losing trades? I've been tracking it online on YouTube. You can go back for the last few years of percentages, but to give you an average, I'd say around 70%. So there are times though, where it seems like I can't do anything wrong and every trade seems to be working. But as far as average, I'd say 70, 71% average. That's a good idea. So say you take 10 trades, you've got to figure three will lose and seven will win. Okay? And that is a profitable system. So you're not going to make money in every trade. There's no 100%. You have to put stops in because their expectation is that the stop is the insurance. The stop protects you. The stop protects you that if the trade does not work. Okay? Let me see. I have another question. Can you use your course for currency trading? Unfortunately, for forex, there's only one gap a month. Yes, you can, but you would only be trading one day a week. So you wouldn't be that active. It's the difference between the close and the open. So there's only one close and one open once a week in the forex market. So you can use it, but you're not trading daily. How much is your risk to real estate average? My goal is always one. That is my goal. And that's what I shoot for every day. I don't know what my average risk to reward is. It's higher than one, but my goal is one. Today's a good example where it was more than one. So you just, this is what I say to people. Let the stock, let the market give it to you. So you're not forcing it when you're in something and it just goes, and then you're up a lot right of ways. It just gave it to you. That's not forcing it. I have an expectation. My expectation is one to one. That's it. But lots of times we make more than one to one when it gives it to you. Does that make sense? You can't force it. There's nothing that you're going to do to force anything to move because you can't. Let me just see. I think I answered all the questions here. Let me just try to go through all this. I do have a, I do have a trends class I'm doing in February. We signed up for both. You'll learn how to read long-term trends. This is good for swing trading and options. The course is all weekend, this weekend. It's nine to five to get an hour break for lunch, Paul. It's full on, like full on. You get an hour break for lunch. Anyways, I'm doing an earning season offer. If you sign up by this Friday for this class, you get the options letter free and the trading room free until the end of March, which is the first quarter earning season here for this year to make money. Normal price of the class, you wouldn't have to pay for the letter or anything extra for the room. Normally the room and the options letter is separate. Okay. And this is from, this is actually from an option student where he's loved being in the classes to learn about my reading on the market. I read the market really well. And I gotta tell you, being on TV has helped my own conviction because I've, it's been, my knowledge has been tested by being on with other experts and I've turned out to be right. Nothing that I've said on TV has been inaccurate. Everything that I've said on national television has been accurate so far and I've been very careful to make sure that's true. Anyways, 2019 really is going to be a good year to be active, to be active trading. And anyone has any other questions? I have an options letter for five grand a year. I have an options class. It's January 31st. It's $800 for the class and I have a market report. If you're interested in my report for this year, which was $99, it's a 26 page report that you would get an email to if you're interested in that. And it looks like someone was talking in the mic so maybe my time is up. Does anyone, does anyone have any questions? I didn't know if I had right till one o'clock or I don't want to go over. Do I have a few more minutes or not? Here, I'll try to pull this up really quick. Can everybody see the chart? Actually this, can everybody see SWK? And then I'll just look at this real quick and this is trying to go again. So the low this morning was 1.1502. Do you see where this is trying to go again here? Can everybody see it? Now I'm not doing this but theoretically you could. This is trying to break down again here this afternoon. It's going to try to go. This will not go green today. So the red here in the daily chart here that's going to hold the red. So it bounced here this morning, which typically happens. This is going to close red. I don't know what the size of the body is. The size of the body will be medium, small, or big. So, but if this goes down to the low, if it happens, which is probably going to happen, if it does it all between 2 o'clock, 2.15 this afternoon, probably not for another hour or longer. If it does go down and break 1.15, it's going to fall off the planet. It'll fall into the close. I don't know if that'll happen, but you could be back in this. This looks good. Let me just quickly look at the market here for everybody. And what looks good about that following continuity is the market. The market won't recover today either. We're going to fall into this area here in the market snug as a bug in a rug. It'll be very interesting to see how we end up being the rest of the week, because we are in danger here falling back down in here, or we could gap up and then flip on through all of this like we did back here. I don't know where we go from here exactly tomorrow in the market, but I'll be telling you if we do fall and continue to fall, you're going to see more selling in here. We're still going to hold the uptrend now in the market. Let me just have one more quick question and then I'll everybody go. Is the query any issue with your strategy depending on the size of the trade? No, because we always trade stocks with volume. Look at the volume in this. Here's the volume. And even in the pre-market, I'll just quickly do this and then I'll everybody go. This is all this morning. This is 8 a.m. This is plant. Look at that. This is moving. You can see the bars, fat, big. You can see up in the square of the volume. This is this morning and then here's the first 15 minutes of the day. No, actually that was 9.15. Here's the first 15 minutes. So no, because we trade stocks with volume. I don't do any penny stocks because they're junk. Listen, good day, everyone. Have a wonderful trading day. Be careful with the market this year. If you're interested in my class, it's this weekend. If you're interested in a trial, email me. Melissa at the stockswish.com. Thanks, everybody. Sorry that I was sick on this, but I'm glad I made it through. Thank you.