 Initially, Melissa was a mortgage banker and she changed industries to pursue a security trading career in 2008. In 2012, Melissa founded the Stockswish LLC and it's an educational firm that empowers traders with a complete and detailed system to become profitable traders. She's a self-taught day trader with over 10 years of experience. Oh, well, there we go. That looks like today's going to be one of those days. Oh my goodness. Well, well, well, well. So just a second from this slide. There we go. Just wanted you to see who we're talking about. The Stockswish is an educational firm that empowers traders with a complete and detailed system to become profitable traders. She's a self-taught day trader with over 10 years of experience. Melissa's specialty is a trading strategy that focuses on shorting stocks that gap. Melissa also appears frequently on TV as a stock market expert. Watch her on RT America, Cheddar TV, CBS, Fox News, and Fox Business Network. And welcome, Melissa. Thanks, everybody, for bearing with me on that. Let me just bring her in as the presenter. And can you hear me, Melissa? Can I hear you? Good morning. Can everybody hear me and see the slide? There you go. Hello. Let me see if I can hear the chat. OK. Your mic might be just a little bit low. What does everybody say? Do we have a good sound there? Can you hear me? I can hear you. Let me move the mic closer to me. There you go. Now I can hear you really well. OK, great. Take it away, and I'll be quiet. Good morning or good afternoon, I should say. I don't even realize it's one o'clock. The day is flying by. Welcome, everyone. Thanks for coming today. Thanks for that nice introduction, Sherry. Beautiful fall day here in Manhattan. I live in New York City. They said I own the Stock Swoosh, and I trade. And I've been trading now for, gosh, almost 13 years. But I did not know how to trade when I started out. And pretty much no one starts and decides to trade and makes money the first day out of the game. I find that people go through a process either of taking multiple classes that may or may not work until they find and actually meet someone that can teach them something that works, or they teach themself how to trade, which was the process that I did. And that is really the most difficult process. Because when I started out and I taught myself how to trade, it took about three years for me to figure out my system. And when you're doing that on your own, and I was trading my own money, you don't know when or how long it is going to take you to figure it out. So I definitely think it's easier if you learn from someone else and have a good mentor, although that may not be the first person out of the game. And again, as I said, it's usually a process where until you find the right person, really that you click with and that you connect with, or that you even say, wait a minute, I think the system, the strategy sounds like something that might work for me. And as Sherry said, I do talk on all major news channels. And we've been talking all the time about what inflation. Everybody's non-favorite topic, I should say. And I think we're going to continue to talk about this into the end of 2021 and of course into 2022. So today I thought we'd discuss how you can earn an extra $1,000 a day trading in this inflated economy. And I'm using $1,000 as a barometer. You could earn an extra $500 a day. You could earn an extra $2,000 a day. It depends on your risk. So I'm looking for a one-to-one risk. If you're willing to risk $500, then you are looking to make a reward of one amount. So you would be looking for a profit of $500. And again, I do do active day trades, but I also do options. And we're going to talk about that a little bit today as well. Market's rolling today. Very, very strong. Big earnings out tonight, which is Tesla. I will be gone before that reports, but it's after the bell if you want to watch that. And that will definitely affect the market. So we're strong today. We're strong today in the market and all the major indices. Where we go tomorrow morning though will depend on, again, more economic data, which is the unemployment numbers that come out, the claims every Thursday morning, and then Tesla tonight. So we're in a good period here where we're getting active, big moves, volatile moves, earnings moves. So it is a good time to trade. So the very idea of being able to earn $1,000 a day is not unrealistic. It's just that many, many people who trade do not know what to do. So that's what we're going to talk about today. This is me for those of you that don't know me. And again, you can always email me questions at Melissa at thestockswish.com or call me at 929-3200-GaP or follow me on Twitter, Facebook, YouTube, or Skype if you have questions as well. And you can watch me on TV. Tomorrow I'm on Real America's Voice at noon. And you can see me pretty much on every channel. I try to tweet when I'm going to be on at the time that I'm going to be on TV. So let's talk about what's inflation. And this may seem very basic, but let's talk about it anyways. It's always good to break it down, step by step. So inflation is the rate of increase in prices over a given period of time, which we've seen. We've seen since the beginning of 2021 and actually we've seen even from 2020 into 2021. Like if you go back a year ago, which you were paying for gas was way different 12 months before this. Inflation is typically a broad measure such as the overall increase in prices or the increase in the cost of living in a country. Again, I live in New York. I live in New York City. Prices have increased here. They've increased everywhere in the United States. And I know some of you may be in other countries. I'm not sure what's going on everywhere around the globe, but we've definitely seen a high cost of things and costs going up in the United States. So the current state of things in this period of inflation is that it's not temporary. It's going to be past the temporary mark. I remember the beginning of this year the Fed chair, Jay Powell, he said, oh, I think inflation is temporary. I knew that was a crock. I didn't think it was going to be temporary. No one even knows even now how long it's going to last. So we're already past that point. Okay. What does it mean? It means that gas prices are up, food prices are up, and we're getting into a cold winter. They're predicting, and I've read many articles about this even locally here in New York City, they're predicting a serious cold winter, snow, lots of snow dumped in the Northeast. Again, depending where you live, which will mean higher cost of heating for the Northeast. And again, prices are up. I always order my food now since COVID directly online. I haven't been to grocery stores for probably about 18 months. And I stick items in a cart and I order them from Amazon through Whole Foods. Every time I go in, this is up, this is up, this is up, this is up. Sometimes I just put in things I need and I don't do the order until the end of the week. Every time. And people say, oh, it's 1%, it's 2%, it's 5%. I'm telling you, I've seen 30% increase since some of the foods that I've been ordering. I just buy it, you know, I wanted to buy it, but it's really, really been in a period where you're like, wow, you know, why can't we get things? I mean, it's not like we're not, the farmers aren't farming. I mean, what's going on? Many, many people are worried about this across the board. And they don't know what to do. And again, like I said, go back a year, go 2020. You can tell that the costs are going up. So what can you do as a person if you live in the United States? You're not going to go without food. You're not going to stop driving. You can't stop inflation. It's out of your control. What can you do? Well, how do you beat inflation? Number one, you could spend less. Personally, that doesn't work for me. I don't like to do without. That's one of the reasons I work very hard. And I like to trade, because when you trade, you have unlimited income. The only difference in what I make is how much share quantity is the size I take in a trade. So I don't like to spend less, but you could spend less if you want to. That would be a solution. You could get your job with your current employer. You might get it. We're in a period right now where a lot of people need employees and they might give you a raise to keep you. If you're valued, if you're important, that might be the case. You could ask. But you know what? Your employer may not be able to afford to give you a raise, because it's costing employers more for things too. Three, you could get a second job during more money and work more hours per week or more than 40 hours a week. Are you going to have time to take on another job where you're working 15, 20 hours a week? That's a lot. Especially if you have kids and a family and we're going into the holidays. I mean, we don't want to work 60 hours a week around the holiday season. Halloween is in 10 days. You want to enjoy life. Have fun. You know, it's beautiful weather right now here again. Like I said in New York, it's the fall. You don't want to be working 24-7. That is also the nice thing about trading. I trade the stock market. But the market closes at 4 o'clock. Even if I wanted to trade for the six and a half hours, the market is open. That's only six and a half hours. I'm not even working eight hours a day, quite frankly. But I tend to only trade the morning. But you could get a second job. That's an idea if you want to do it. Or what's another choice? You can earn money trading the stock market. And that's what we're going to talk about today. You do not have to trade full-time. If you love your job, or you like your job, or you don't know how to trade yet, full-time. Do your job and trade on this side. You can trade options on this side. You can do day trades on this side. You can do this to earn extra money rather than doing the other things, like I said, which you were going to spend less. Because at the end of the day, it's out of your control. What's happening? What's happening? The economy is out of your control. They're talking about the stimulus plan. They're swearing up and down. The taxes aren't going to go up for middle-low-income earners. I do not believe that at all. I think they're going to go up for high earners across the board for the cost of this 3.5 trillion stimulus plan. Now they're talking about 2 trillion. Either way, it's a crap load of money that they're going to be spending. You cannot control some of these things. So you have to take it upon yourself to earn more money, and there's ways that you can do it. While you might have to learn what to do and why there might be a cost investment when you initially start to trade because you're going to have to learn, take a class, open up a trading account and what the fact is, long-term or even short-term like 3 months out, this is a better way for you to move ahead rather than taking on an extra job or just doing without things. And again, nobody wants to do without. Nobody wants to spend less, and you certainly don't want to do that over the holidays. And I can see questions here as we go along. I think, hold on, let me plot this down. I just opened up the thing. I can see questions as we go along if you have any. I just opened it up. Thank you. Okay, so getting back to what I was saying, you can work for yourself. You can do that if you want to. And that means what? You could learn how to trade. So you have to get clear with your financial goals. And really, sometimes it's much as just sitting down with a notepad and a pen and paper and saying, where do I want to be in six months from now? Where do I want to be by January 1st, 2022? Where do I want to be in one year from now? I mean, it's just as simple as that. But you've got to face reality sometimes of what's going on to be successful. I mean, if you could speed up the time and achieve your goals for making money faster by learning how to trade or learning a new trading system, if you're trading now and you're failing or losing or not making enough, why not do it? Why not do it? Again, why not invest the time? Why not invest the money? Why not? Because you think you're like, oh my gosh, 2022 seems so far away. It's really not. It's really not when you think about it. I mean, this year has just flown by and you've got to be honest with yourself. What do you want to achieve and by when? Have a plan of action, set it up. And again, I'm very, I'm very much like a person where I write things down. You know, I write goals down. I write things I have to do in a day. I have sticky notes. I think it's good to have a pen and paper and write stuff down. It helps you be accountable to yourself for what you're doing. But the nice thing about trading is it's something you can do with a short time of day. And again, time is money. So if you can make the same amount of money in a half an hour that you can make working 40 hours a week, I mean, what would you rather do? I always say I'd rather be in and out of trade in five minutes. Now, why sometimes it doesn't work out like that and I'm in and out of trade longer than five minutes, I love the fast trades where I'm in and out very, very quickly. I've never traded before in your life. You don't even know what you're doing. The fact is you can learn. I've taught beginners, I've taught people that are doing this forever. They don't know what I know specifically about my strategy. And so they're not new to the market, but they're new to what I do. But if you're new to the markets too, you still can learn. And quite frankly, anyone can learn. And it doesn't take you that long to learn. Really, if you open up your mind to do it you can learn. Trading is not rocket scientists. The reason that many people lose is they don't have a good strategy. And on top of that, they have terrible money management because a lot of people just gamble. They just want to throw a lot of money into the market or a little bit of money into the market and make a lot. And they really don't have a lot of thought process to that. And you saw that really at the beginning of the year with the Reddit explosion where people were doing all these Reddit stocks in the chat rooms and they were just taking a little bit of money and they didn't. And people didn't really have a thought out strategy to it. Trading is not gambling. When I get up in the morning and I look at what I'm doing and I process everything and prepare and plan before they open. And again, any questions, feel free to ask me as we go along here. So you have to earn more money if you want to beat inflation. And in fact, you have to move your income ahead of the inflation number. So you have to actually earn more this year than you earned last year to get ahead, to stay even and then to get ahead. So over a year, over a year, you've got to actually earn more. Not the same and not less. Because if you're not earning more, you're not even at the same point when things cost more. And ideally, you want to even earn more than that. Because year over year, like if this was your... look at my arrow here. You want to be earning more money whether you're trading, whether you're at your job and you're getting raises, whatever. You want your income to go up. Ideally, everyone wants that. So you can find a way to do this. And how do you do it? How can you make money in the stock market? I call it chunking it out. You're active. You're in and you're out. You're actively trading by pulling money out of the market on a regular basis. So what is it you need to be successful? Number one, you need a consistent strategy that works in any market condition. Whether it's bullish, whether it's bearish, whatever. Number two, you need a way to make the daily picks. What are you going to trade today? Why? How many picks do you have? What direction are you going to take those trades? Three, you need a way to enter and exit the trades. You need entries. You need targets. And then four, you need good money management, which sounds very basic. But like I said earlier, a lot of people don't have good money management. If you have $5,000 in a trading account, you can't risk $5,000 in a trade. You can't risk $2,500 in a trade. Theoretically, yes, you have it, but you cannot risk 50% of your account or 100% of your account in one trade. You have to take the cash you have and look at it. And again, I said earlier, one to one. One to one is good money management. Okay? So when I'm looking at doing this, I first look at the strategy. Do I use? I trade gaps. So let's look at what is a gap. I'm showing you a gap right here. This was Zillow. We did this the other day. Actually, it was just Monday. The 18th. So what is a gap? A gap is a difference between the close and the open. So this is a daily chart. Daily chart of Zillow here. Stock closed here the night before. Gapped down. So a gap is a difference between the close and the open. It closed at one price and opened at a different price. It closed here. This was Friday night around 95 and change or whatever and opened down here around 87 something in the morning. This is Monday. We shorted it. So a gap is a difference between the close and the open. In this case, this was a gap down and we shorted it and we made money. Now, what is a gap up? Closed here, gap up. When it closes at one price and opens at a higher price the next day. Which is what this did. We did not do this but I'm showing here this is a bullish gap and it rallied and you could have bought it. So this is a bullish gap. This is a bearish gap. Charts the same in Zillow. Okay. So this thing here that we did on Monday down here is the volume was a short. Okay. But the strategy is gaps. That's what I'm doing right there. Now many, many people do not understand how to correctly trade gaps. They think stocks do gap fills. They do not consistently work to do gap fills as a strategy but you can't short every gap down and you can't go long every gap up. So I determined a way to qualify them and that's what I do for my system and that's what I teach people. But you have to have a strategy no matter what you do every single solitary day if you're trading if you want to make money and you need a way to make the daily pick. For me, I go through a checklist. Boom, boom, boom. I have a checklist in the morning just like if you were a pilot. You get in the plane, you're a pilot. You go through a checklist before you take off. Every person that's an expert, if you were going if you were a doctor or a nurse and you were going to operate on someone there's a checklist, a procedure you go through before the patient comes in before you do the operation. It's everything that I do in the pre-market in the morning where I'm getting ready to figure out what I'm going to do and how I'm making the picks. Otherwise, you just be waiting aimlessly after the open and then going willy-nilly depending on what you want to pick what you want to trade but they want to go longer short and then you're all over the place. You're not organized. So you've got to figure this out ahead of time. Number three, you need a method and structure to enter and exit the picks because entering and exiting is important and like I said, why? You do have to chunk it out. This is not long-term investing what I do. This is active trading. You're looking to pull out a thousand bucks a day 500 bucks to trade. This trade, that trade. You're pulling money out. You're booking it. You're going to buy a stock and you're going to hold it for two, three months. That's long-term investing. So you have to get in the mindset that you're in, out, in, out. If you short a stock of $10 and you had 5,000 shares, what would you make? $5,000. And if that happens in five minutes, you'd make $5,000 in five minutes. So does that happen? Yes. It's the idea of getting momentum and volume and a move within a short period of time and you're getting it and getting out. That short period of time could be a couple of minutes. It could be a couple of hours but it's the idea of being in and out quickly. Okay? So like I was saying, gaps are a specialized strategy. In the market, you need to think and act like a true professional. Just like I said, if you're a pilot and it doesn't matter if you're doing this full-time or part-time, you still have to think like that and it doesn't matter if you're risking a small amount of money or a large amount of money, you still have to think like that. You have to take this seriously with what you do and part of that, like I said, is the prep work. It really helps me. The more time I spend prepping in the morning getting ready to trade in the pre-market, the more money I'm probably going to make and the better I do in the day because I have everything figured out ahead of time and that really helps me get my mind clear with what I'm doing. All professionals have specialized strategy systems and reasons for taking trades. If you do not know the reason that you're taking the trade, you probably shouldn't be doing it. Again, trading is not gambling and you have to take that seriously. Again, let's go over the basics here, the nuts and bolts. What is a gap? A gap is a break in continuity, interruption, hiatus, a divergence, a difference, a disparity. It's a gap. It's a break in price. It's a price break. So I'm looking at charts. Could be the daily chart, could be the one-minute chart. I'm doing advanced technical analysis where I am looking at a chart and I'm predicting the direction of the stock where it's going to go after a gap. Like I said, Tesla's out tonight. You can watch 4 o'clock. I will be watching live. Tesla will report at 4 o'clock and it will move. I do not know where it's going to move. It could go up, it could go down, but it's for sure going to move. After it moves and after a gap tonight in the post-market and then the pre-market tomorrow morning, I'll look at it, I will rate the gap using my system to determine if I'm going to go longer, short Tesla. I don't know. I might not do anything with it, but I might. But I don't predict where the earnings are going to take it. I predict where it's going to go after I see the movement, after I see the gap. Does this make sense? And so that helps you still get clear before you're doing it. Now, what am I talking about the pre and the post-market? Here's the chart. This is a 15-minute chart of the QQQs. So this was back 12th and 13th. Okay. This was last week. So the market fell, fell, fell. Boom. Down in here, you see this. This was the 12th. So we fell in the post-market at night. See that? Then we gapped up in the pre-market in the morning. Again, the next day. So this was, you know, 4.30 in the morning. And this was at night. So we were like at 3.55, 5.75ish. And we opened like two bucks higher early, early morning the next day. So this was a gap up. So you're seeing the gap here a lot. Gapping down at night. And in the morning it was gapping up. So you can look at it that way too. All right. Again, this is a 15-minute. So this was in that day, the 12th. So on the 12th here, we were selling off down in here. And then we ended up opening up here the following day in the 13th. So trains go off after 4 o'clock. So I don't trade that period. I don't trade in the morning before 9.30 either, but people do. Big institutional money trades the pre- and post-market. Some retail traders as well. Again, I do not. But you get volume and movement and that is what I'm watching. Again, you're going to see that in the Tesla tonight. Now we're going to go over here one week of results. This was two weeks ago. You're going to ask me just to see what kind of results you could have if you want to make this kind of money in a week. Now, again, $1,000 a day is an average. But you would have to risk $1,000 minimum to make that much. There might be some days you don't trade. You can risk less than that. You can open up a trading account at a retail broker with as much as $25,000 or more to get margin. You can open up a prop account at a prop broker with $2,500. You will get about 10 to 1 margin. So again, your risk has to be similar to your cash size when you're taking trades. And again, any questions on that, you can ask me now to or email me. So $9.27, feels like a long time ago. We shorted the market. We shorted the QQQs. Here's the day. Closed here. Gapped down. This was on the 27th of September. The market fell. We shorted it. We shorted it here. We made money. Okay? So we entered the QQs at $369.80. 1,800 shares in an advanced risk of $2,700. Again, you can take 100 shares. Either way, you see the move here. We exited at $368.28. Profit was $2,736. So this was a really nice move. More than a buck. About a buck 60-ish. Here's the one minute. So here's the gap. This is the daily. That's where we did it. Here's the one minute. Closed here. Gapped down. Rallyed. Boom. We shorted it. Got the drop. Boom. So again, you could have done this trade. Time of the day here was down in the 945. You would have been done trading in less than 15 minutes. Again, you could have taken 100 shares or 200 shares or 500 shares. Now you might say, well, this was a little pricey to short the Qs. You could have bought a call. I mean, you could have bought a put. A put is a short. So this is an equity short on margin. But you could have bought one put or two put or whatever you wanted to do and gotten this trade and got in and got out. That would have been cheaper and you don't need margin to do an option. A put is a short and a call is a long. And again, any questions, let me know. But really, you can do this with a smaller size. Either way, this is what I call the money move. This is what? This is selling. So the stock or in this case, the QQQs, which is the marketing TF, collapsed and we got it quickly. That's the whole idea. Now then we did Apple the next day. Closed here. Gapped down. This is the 28th. Apple we lost in. I'm going to show you what happened here. I did not go back into this, but this did end up going and selling off in the day. I shorted this though in the morning and got stopped. I did not retake it. So this was a loss. Entry was 143.30. 2000 shares, risk 2600. I got stopped out. So I use limit order stops when I train. I think stops are important because it's like the insurance you that the trade is a run too far against you. But I'm going to show you here that this did end up going again. If I had retaken it, I would have made money. So I got in here cut the drop didn't get out. It was up only a little bit booped over the high. I got stopped. If I had gone back into this Apple, I would have gotten the drop. Here's where it went again. 10 o'clock dropped here into lunch into the one o'clock period. This is a one minute chart as well. But I did get stopped in this and I did not retake it. It was here. That was the 28th. So again, trading is not something that's 100% of anything. Your idea of finding a good system is to find something that you have a high win ratio system, that you have more winners than losers. If you have more winners than losers you won't make money. And again, I purposely use stops so that they protect me so that my losers don't run away from me. Sometimes I do retakes I did not in this. However, I did another trade on that same day. Instead of retaking Apple, I did the queues again the second day down which was the 28th. The queues got down again. So this was the day we first did it. Then it got down again. Then it rallyed. Then it broke. This had a huge move. Again, this is in the 28th. So I got stopped in Apple. Then I did the queues. So anyways, entry in the queues was $3.65 $3,000 shares. It's a good size. Again, you could have bought a put cheaper or less size if you want to. Risk was $2,700. We did an add. I added to this trade. I took more of it because it was really, really good. $3.63.60. Total share $6,000. Average price $3.64. Boom. Got the drop. Basically almost $5. Huge move. So again, if you had taken a thousand shares you would have had a huge move. I mean it was a really, really, really nice trade. Anyways, here's the move over here. So you see this here. We got in. Dropped. Did the add. Got the drop. This is small but I wanted to show you the one minute. So again, $9.28. Stop close to your gap down. Show it close to you in the 27th. Gap down here in the 28th. We shorted it. Got the drop. Again, you could have bought a put in this. You could have bought the $3.65 put if you wanted to do a cheaper version of this. Or you could have taken a hundred shares. And then added and had 200 shares. Either way it was a huge, huge move. So again, this is the daily. This is a gap. Down here is the volume. And this is the same day I did the apple. So I got stopped in the apple and then I did the cues. But I still made money in the day and I didn't even get back into the apple but I could have. Okay. So again, consistently, consistency, boom, boom, boom. Now, on the 29th, we didn't do any trades at all. No trades on the 29th. There wasn't anything that met my criteria. That doesn't happen that often, but it can happen. And so I'm pointing to that in here so you know. Now, this was before the busy season. Last week started the busy time where earning season starts in the fall. So we're pretty much trading every day now. But this was two weeks ago and we didn't have any trades on the 29th. Then on the 30th, we did KSS. Sure, you've heard of KSS. Retailer. Let's look at what happened on this guy. Stop close to your gap down. Again, close to the day before. Gap down here the next day fell, boom. We shorted it. Actually, this had a nice continuation if you had wanted to do this for a swing trade. Again, this was September 30th. So we did it. This was an equity trade. Entry 15. 4,000 shares. Risk was 2600. Exit 4739. Boom. Profit 3,040. Again, closed here. Gap down. We got in it. Shorted it. Got the drop. And this was a nice move. And to be honest with you, you know, I didn't even get this whole shebang. This kept going. I had an early exit on this because I like to be in and out in the morning quick. Like I said, this continued down all the way down into here the whole day if you wanted to, or most of the morning, actually, if you wanted to hold it. So again, you see you're getting in, you're getting out. A buck is a move. 90 cents is a move. This was almost a buck. It has to do with the share size and the quantity, but you've got to get the precision of finding the best pick and then getting the right entry, especially if you're going to take several thousand shares of something. Okay. So this was KSS on the 30th. And, you know, again, it's, I'm very focused. I tend to only want to do one thing at a time. Sometimes I will do two, like I got stopped in the app when I did the QQQs, but I will prefer to do just one stock pick and one trade per day. Again, then adding size to it. And I think that helps you stay focused. And it's just about that fine tuning it. Then on 10-1, no trades. No trades again on 10-1. Again, this was before earning season. So in the week of, this week here, that was the week of the 27th, there were four trades. One loser, three winners. Average win ratio was 75%. So if you come and you want to trade with me, you figure out that every 10 trades, 7.5 are going to win, 2.5 are going to lose. So that's why, again, you stop. Total profits was 32,276 with an average risk of 2,700 for these trades. Divided by half, if you wanted to risk an average of 1,300 or by 30%. If you wanted to risk slightly less than 1,000. Terrific week. And really, again, it's the win ratio. Win ratio, high. Quality trades. Quality trades. Good picks. Get up in the house this week if anyone's interested. If you want to be in the trading room Thursday and Friday, you can email me at Melissa at thestockswish.com for entry. I do not know what we're going to do tomorrow, like I said. I never know what we're going to do until I get up in the morning and I go through my process in the pre-market. But you're welcome to a trial if you want to email me and come to observe Thursday and Friday this week. It's the idea of fine tuning what you're doing to make money. Now, let's go to part three. How can you find these trades? You scan. You use a system. And you follow it. And anything that you do when you're trading, it's never just one thing. One thing is not enough. You say, well, it's on the 20-period moving average. I'm going to buy it. I'm going to go long. The market's up. I'm going to buy this. The trend is up. I'm going to go long. It's not that simple. It's a combination of thing after thing after thing. You put the whole puzzle together before you see what it looks like. Unless you cheat and look in the box. It's the idea of a layering to get everything right. It's never just one thing if you want to be successful and make money. You have to have a whole thing together which is what a system is in order to get organized to do it. Okay. Any questions here so far? Let me look over here. Not so far. Okay. Anyways, the philosophy behind what I do with gaps is what? I'm looking to analyze a large time frame to make the trend decision on the directional bias for the gap. Okay. All large traders of every kind look at large time frames to make decisions. Particularly institutional traders which is what I'm looking at. I'm looking to see what is institutional money doing in the stock. Are they buying it? Or are they selling it? And then I know what to do to make I'm looking also what you're doing on a daily chart. And then I'm honing my entry and exits down any one minute chart or smaller time frame for accuracy. Because again, if I'm actively day trading which I am quickly, quickly, quickly I've got to hone it down for the focus and accuracy. Using the daily chart to make the decision for the stock pick allows for accuracy in the direction and using the one minute chart allows for good risk to award trades with accuracy. And that's what you want because ultimately if you were, if you started out to be accurate, again a 75% win ratio you can see how you can make a lot of money if you risk more if you have that type of accuracy. How are you going to get to that point? You have to learn it, you have to do it and prove to yourself that you can constantly keep hitting the winners that much. That's what it's about. It's not about just holding everything to the piggy target and having some big home runs. So many people want to take one big trade and make all the losses back from everything that they've ever traded before in their lifetime all the losses they've had over umpteen years trading and not being able to figure it out. That's not realistic. Again start from today and look at today as a fresh start and if you come to me and you want to learn from me and you want me to mentor you, start fresh. Don't look back. I think have amnesia about the bad things that have happened in the past. And to be honest with you, I think we need to have amnesia a little bit about what's happened in the country with COVID because everybody is so out, out, out what's happening so much with us COVID. People are getting so negative anymore. We have to move forward. We have to move forward with our lives. So let's talk more about the strategy. Many stocks on any given day have no strategy to trade as a day trade. That's why on most day stocks do not have a proper entry. There's just no strategy. Okay? So you've got to have a strategy that's very important. One is a strategy. It is a foundation. It's a foundation to trade. You need an infrastructure for every entry and that's the strategy. The strategy is the core reason behind why you're even watching that stock in the first place or even contemplating an entry or trading it. An entry in a stock should not be taken unless the trade has a foundation for supporting it. It's like if you were going to build a house, first of all I wouldn't want to live in a house that looked like that made of sticks in the water. But I mean, actually, you know what? Remember that terrible story that happened over the summer with the condo in Florida? Oh gosh, that was a foundation issue. I'm working with real estate agents here in New York because I've been shopping for apartments. They also sell in Miami. Huge foundation issues there. Low elevation and not a good foundation. That condo, that collapse where they had those people that died. Remember that? I don't remember. That was June, July or I don't remember when that was now. It was a couple months ago that it was collapsing. Years and years and years ago they did not have the same foundational structures where they built them on stilts down there and then they have the concrete and they have the concrete on these stilts. They didn't do that back then. So again, the foundation for a house is just as important as the foundation that you need for a trade. And if you don't have any foundation do not expect yourself to be profitable. It's a crapshoot. It's a 50-50. It's like going to the casino gambling and that's a problem. That's a problem. Okay? Sherri, I'm seeing your message. I can keep talking as long as you let me talk. Yeah. Just let me know when to be done. So let's get back to the foundation here. So gaps are a strategy or a foundation for your trades in the market. When you choose to take a trade there has to be a support system behind why you're taking the trade. Gaps are the support system and they're the reason why you would enter a position. Okay? The reason you're choosing to enter a stock or the foundation for your entry should be because the stock has a quality gap. Like that's how I look at it. That's how I personally look at it. And if it doesn't meet the criteria I don't do any trades that day. Like I showed you that one particular week was slow. We didn't do anything two days out of that week. Now that's unusual this is not like, you know, you go to your job and you get paid no matter what. Even if you show up sometimes you go to work and you're sick. No, no, no, no. You train and you're sick and you're not focused and you shouldn't be trading. You're going to lose. So you're better off zipping it. Not trading, okay? Anyways, let's go over the basics of a gap. Again a stock gaps in the opening price today is different from the closing price of the previous days of trading. A gap is a break and the price action from one day to the next. Simple. Let's go over another chart here. This is Facebook. Lot of gaps in this guy. Let's go over it. So back in September and we had a lot of shorts in this here. So anyways here's this. Close to your gap down fell close to your gap down fell close to your gap down fell close to your gap down fell close to your gap down fell so we have a series of gaps here in Facebook. We did do options in this. We did do puts and we did day trade shorts too. Okay. So why are gaps so profitable? They're creating large institutional money. That's what makes the gap. The professional gaps that happen to play out in stocks are formed by one thing and one thing only large institutional money. Therefore you need a way that will help you pick the correct direction to play the gap and then confirm that the large money will flow with it by having a formula to rate and qualify the gap. You get confirmation and then you get conviction that the large institutional money is on your side and you play it. Gaps are an event and a sense of urgency. That's an action is being forced by participants of the stock. This is why gap trading is incredibly powerful. Trading gaps is a powerful and profitable way to trade because you're trading on the side of power money. Okay. I'm seeing a message here from Sherry. I have five more minutes. So let me skip ahead here and again if anyone has any questions ask me now. I mentioned earlier that I also do options. I have an options newsletter. This was an Adobe trade that we did the 620 puts. These were a little pricey. Okay. But it worked. We did puts in this. I just want to show you here was the sell off. We did. We got in these in the 22nd. It fell off a cliff. Okay. Beautiful move in Adobe. I haven't looked at that for a while. We'll have to look when the earnings are coming up. The general thing I'm talking about here today was about earning a thousand dollars and how in order to beat inflation you have to move ahead of inflation making more money and earning more money and it's the idea that you can trade but you need a plan of action to trade and you need a system and I think that it's important for people to have this whether they're trading full time or part time. You can train actively and learn at the same time. You know, I'm teaching people and mentoring them again just because you've taken classes in the past does not mean that you're never going to learn how to do it. Finding the right strategy and finding them right mentor and finding the right fit. So my system is called the golden gap. I teach a 26 point checklist. I think it's very important for people to take charge of their finances and their own life while you could give your money to somebody else to train. You're going to have a better understanding of what you're doing and feel more self empowered if you take it upon yourself. Plus trading is fun. The idea of making several thousand dollars in a few minutes a day is really, really exciting quite frankly. And if you've got the time to do it or you're working from home right now because of what's happening in the economy and you can work from home and trade and you can do it part time, then it's a great time to learn and it's a great time to do it. But you don't have to trade alone. Again, I'm calling the trains live in the room. I'm doing an open house this week. If you're interested you can email me to come to the open house. But my class 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. It's a rating system. You will learn the entries, the exits, and again, it's a full two day class where you're going to learn all the information that I do, how I make the picks. Will you know everything after the class? You will, but will you retain everything? Well, you're going to have to ask me questions. So, you know, that's the whole idea of being part of the group, being in the live trading room. After the class you can ask me questions on a daily basis. Okay. So again, the first class is a full two day course. Class is online and the class is this weekend. It's October 23rd and 24th, 9 to 5, class is online. Class tuition is $6,999. If you want to sign up, you have to email me for the forms that is not on the website. I'm running a special through Friday, which is actually in two days, but it's a good offer for this webinar. If you sign up for the class for this weekend, you get the options newsletter and the trading room free through Memorial Day of 2022. So you get all my trade picks for the options newsletter and the trading room free for almost seven and a half months. So, any questions here? Sorry, I kind of feel like... I have one for you, Melissa. I want to know, we are going to be posting a recording of this. So, if somebody is watching this and they are not doing it by that timeframe, could you go back one? I just want to know how you want someone to deal with if they want to get in touch and it's after that date. Sure. I'll honor the sale if they want to email me for the class. If they watch this and it's past the class time and they want to do the class in November, I'll honor it for anybody from your group from the webinar short. Awesome. Thanks so much. I really appreciate your flexibility. I didn't know how long I had to talk then because I was reading the message so that I feel like a rush. Usually we have four speakers, 45 minutes and it's just kind of I've never had this happen where somebody cancels like minutes before the webinar starts but I mean, you can't control life and death. I'm glad it all worked out. Thank you so much for having me. Thank you. I appreciate you coming on and I can't wait to have you back again. Thank you so much. I appreciate it. Bye now.