 Hello, everyone, and welcome to this channel with Online Trader Central. At the time of the Trump, if you know that means it's time to begin, please put your hands together and welcome our host presenter today from thestockswush.com. Please. Much online trader central and welcome. My name is Melissa Armell. I own a company called the Stock Swoosh. Thank you everyone for coming today. I'm going to talk today about making a living day trading and making a living day trading using the only one strategy. I actually am a day trader. And I only trade one strategy in the market. And it's something that I've done now for over eight years. And I literally only do this one strategy. And in fact, I prefer to short. So not only am I doing one strategy. I'm focusing on one directional bias, which is the short side. Although I'll tell you, you can use my strategy to go long as well. But I found that in reference to shorting stocks fall quicker than they actually rally. So let's get started here today. If you'd like more information, you can email me at Melissa at thestockswush.com. And you can feel free to go to Twitter, Facebook, YouTube, LinkedIn, Pinterest, Skype, follow me at any one of these places. I have a ton of videos on YouTube. So if you want to go to YouTube, just click in and Google and subscribe to my YouTube site. This webinar tonight will be posted there and any future webinars I do will be there as well. So let's start out tonight with a quote. This is a, this is a good movie. This was just on recently. I've all the movie channels. This is from Wall Street. Gosh, 1987. Now, can you believe it? 1987. This movie was Wall Street. This is a quote from Gordon Gekko. The public is out there throwing darts at a board sport. I don't throw darts at a board. I bet on sure things. And that's from Gordon Gekko from the movie. Great movie. And it's so true. And the reason it's true is because if you are a jack of all things, okay, and a master of none, it will be very challenging for you to make money in the market. I'm very strategic with what I do. Not only do I only do one strategy. Like I said, I focus on one directional bias mostly. And I also focus on one time of the day, which I'm training in the morning, into the open between nine 30 and 10. And I usually only do one trade a day, maybe two. Some days I don't do anything at all because some days nothing meets my criteria. Okay. So it's, for me, it is about the focus. Not about saying, well, I'm just going to take a million different trades and see what sticks, like the idea of throwing darts at a board. I'm, I'm, I'm literally every day trying to hit a bullseye. I mean, that's what I do. And I very often am able to do that. There are a lot of people in the market and there's a lot of money in the market. And so you can make a living doing this. But what happens is many people start to trade and they lack the focus and as a result, then they're all over the place. And as you know, the more trades you take, the more commissions you'll pay too. So is it possible, like I said, to make a living doing this? Yes. If you have the proper focus and you also have to have the right belief system or mindset. If you feel like a failure and have tried to trade in the past and lost money in the market, or if you don't think it's possible, meaning you think that the idea of becoming a trader is only for very, very wealthy people. And you don't think it's for people that actually are just normal people like you and me. Then you've got to change that belief system because I'm a normal person and I do this every day and the people in my trading room are normal people too. Okay. So you've got to change your belief system if it has some negative beliefs and only you know that this is for you privately to think about. You've got to imagine the possibility that success is your reality instead of the opposite. At the beginning when I was losing, because I was losing money in the market when I first started out, before I figured out my strategy, I lost. Okay. And it took me three years to figure everything out that I now do and practice every day. But in my mind, I always believed and knew that I am a successful woman. So it didn't make any sense actually that I was losing that I couldn't figure this thing out that it was taking me so long because three years was a long time for me. Now ultimately in the lifetime of a person or studying for a career or somebody you go to school for three years isn't that long. It's less than you go to college. But for me, it felt like a long time. And of course I didn't know how long it would take for me to get it. But in my mind, the belief system I had was that I am successful and I am a person that makes money. I always made money and everything I ever did. So to me, it was it was bizarre a world that I was losing. So I kept going and that belief system that I had that I was successful enabled me to stick with it to figure it out to the point that I got where I did. So even if you're even if you in your mind are losing right now, if you believe your success, you will figure it out yourself or you will find someone like me that will teach you. But I'm telling you the mindset counts a lot. And if you've traded in the past and you've lost money trading, you got to get over it. Okay. Everybody starts out when they start out, they lose. That's that's just the way of the nature. Unless you hire a stockburger, that's very, very good. And you probably have to give them a lot of money and pay them a lot of money and they put you in stuff and they're still going to take a cut. Okay. Or you happen to meet someone like me as soon as you start to learn how to trade. And some people actually have met me at the beginning. Those are very lucky people and very few people that I've come across. But what I'm telling you is that you have to have the right mindset. Now, here's an example of a trade. I'm not going to go over this trade specifically today, but I'm going to show you the this trade as it is going along. I took this trade last week. It's actually an option trade. You can use my method, my strategy for day trading equities as far as taking the day trade swing trading or doing options. So I took the trade at first. I have 10 contracts of Amazon and I was up. I was up immediately in this trade, nine hundred some dollars in the day ran over a thousand. But this is my P and L for the first day. Actually, no, this was the second day because first day I took five, then I added 10. Then I added more and I got 20. This was Friday. This is what I was up Friday. I'm watching the trade continue. I'm in this trade as an option. So it's following through. Okay, it's carrying over every day. Today, actually at one point, it was up over four thousand dollars in this. I didn't take any more. I still have the 20. This is essentially 2000 shares of this stock. This is a long, but anyways, I was up four grand in this. I didn't take any out of it yet. So my reality when I took this trade in Amazon last week was immediately a hundred percent conviction that it would work. My reality was this trade is great. This is a great trade. It's going to work and I added to it. So I took five and I took 10 and I took 20. And now I've taken no more because of the fact that my price is very, very good here. And I don't want to do anything with this. My price to the cost of the option was a dollar seventy seven average. So this is very, very good. But what I'm saying is my reality in my mind, every trade I take, I believe is going to work when I take the risk. I never think that a trade is going to fail. I assess the risk and I stop to protect myself, which we're going to go over, but I never believe that it's not going to work. If I feel like it's not going to work. If I feel like it's a fifty fifty, I don't do it. And sometimes I call trades actually in the room that work and I don't do them, but I didn't have the conviction to do it and therefore I didn't. OK, so you have to believe in your reality that every trade that you place in the market is going to work. And if you don't, then it's probably because you don't have a system, OK, or a strategy like I do that I believe in so much, that I believe in so much, OK, that works so often for me that I believe in it. Many, many times your reality, like I said, is that you just have no idea of what you're doing is right. And so because you don't know if what you're doing is right, you question yourself and you question the market. I will tell you right now the stock market is going to make a brand new all-time high this year and people shorted the rally and the bounce from last week to day. It's going to blow over it and the market will make a new high this year that I know will happen, but many, many people feel the markets lower and it's going to fall again and shorted the bounce today. It's not going to follow through. But what I'm saying is that if I have a system which I do that I know tells me the market's higher, I will stick with it despite a fall like today or the fall that we had even since the beginning of the year. When you have a system that you know works, your reality is that you take trades that work way more often than they don't. And that's how you make money. So the defining factor in what you do really is you. It is you and is your attitude because you have to have a good attitude because even if I teach you everything in the world that I know, you will not do well unless your attitude is good. Okay. And the also another defining factor is me. This is a picture of me is your mentor and if you don't have a mentor, you need to get one. It is so much easier to trade and make money when someone is making the call for you. When I say 10 by 50 in the room and I say Amazon, blah, blah, blah, it's so much easier to have someone that is directing you to take the trade. It is a world difference easier than just going out and doing it yourself. If I could roll back the hands of time and change everything that happened in my past. When I first started, I would a hundred percent. I would actually wish that I had a mentor, but I just didn't. I just didn't. I didn't because no one does a strategy that I do and I made it up myself, but I wish that I had. It would have been a lot easier. It would have been so much easier. So it is important to have that. So how will you get there? How will you get to the point? OK. How will you get to the point that you're doing it? You got to think about where you want to be in a year. A lot of people want to just roll out of bed and make $20,000 a year trading. That would be great if you are capable of doing that. If you know everything that I know, you could. But I don't know if you were going to learn everything I know and have the account to take the risk to make that happen right after the class. It's possible. Some people have done it, but you've got to look ahead. And I think one year is a very reasonable time. When I say a year, I mean the end of 2016. It's January. It's January 25th. So say where I want to be by the end of this calendar year. And then you say where I want to be in five years. OK. Do you want to be a millionaire in five years? I don't I don't think that's crazy. You could say I want to become a day trader at this calendar year as a full time trader and I want to be a millionaire in five years. I think that's actually very realistic with my strategy. You've got to know what the bigger picture is for what you want financially. And it might also have to do with the fact that you don't want to work for someone else. I don't want to ever work for anyone else again. If your dream is to become a day trader so that you can work from home and you can be self-reliant and independent, that's a good dream, too. It's a good dream, no matter how much money you make, as long as you can pay your bills. OK. But it all comes down to you, the mentor you have, which would be me if you learn my strategy and the strategy that you would do, which is the focus. OK. And for me, the strategy that I do is called gaps. Now, this was a gap today. This is the stock. It is a EO. Again, I trade the U.S. stock market, the Nasdaq and the New York Exchange. So this stock today gap down and fell and it worked actually much, much better than I even thought that it would. It went to $14. This would have been what I would have called the dream target today. But it is all about focusing on one thing. I only called one trade in the room today besides the Amazon. It was a EO. That was it. And there was a million things that people could have done today. A million trades you could have done. Would they all have worked? No, they wouldn't have. OK. Market was sketchy today at best. And again, it's the idea of doing one trade. And guess what? If you only do one trade, what if it doesn't work? Big deal. Five trades a week. One doesn't work. Four do. You see how you're making money? And that's how you do it. So if I get up out of the bed in the morning, this is what my my brain looks like. OK, I get up and I'm looking every day for a red circle. I'm just looking every day for my strategy. That's the focus. And and and many people that are day traders get up every day and say, is the market along? Well, maybe I'll go long today, but then they don't get the market right and they lose. Maybe I'll short today. Maybe I'll do a buy set up. Maybe I'll sell something. Maybe I'll do this. I mean, every day they change what they're doing and then they have no consistency whatsoever. This lack of focus, doing something different every day, leads to a lack of consistency in your P&L, which leads to losses. My consistency has to do with looking for the same thing every day. And that shows up in my profits and it shows up in your bank account. OK, so this is what you want. This is the goal. And this is not the goal. And this is how many day traders are. OK, so having one focus helps you to bank money daily. This is extremely, extremely important. I can't stress that enough. And it stops the trading from being a computer game. Lots of times you're pressing the buttons and all of a sudden you're getting in a million things and you're in three, four, five trades at once or you take a trade, it loses and you take another one and then it loses and you all of a sudden you're in your third thing and it loses and you're down three trades and it's 10 o'clock. And that's crazy. OK, you can't act like this is a computer game because it's your real money. And again, this is another mistake that people make. Having one focus helps you stop also when you're up. Some days I take a trade and I get out of it and I'm up a good amount of money. OK, thousand dollars, fifteen hundred, two thousand whatever. And it keeps going. And I say, oh, you know, I could have got I could have held a little bit longer or whatever. I don't ever go back in. OK, don't change something when you've got your goal in for the day. You're done. If you are out of the train and something now sets up, but your goal is in, you're still done. That's where this idea of making a living doing with it where it gets away from the gambling. You have this. You look at this like a business, like a job. This is your job. You get up. My job today is to make this much money. And after that much money is made, I am done. And then I can do whatever I want for the rest of the day. And it's a dream job, actually. But the problem is a lot of people say, oh, I'm on a roll. I just took a good one. And then sometimes people get upset. The trade keeps going. They could have made more money and then they chase it or they take another train in a different stock that wasn't even good and they should have even taken. And then that one loses. And all of a sudden, then they get back some of the money that they made. And this is how a lot of people think the mentality is so warped. You have to look at it like a job. All you're doing is looking for one thing. You either get it or you don't. If you get it, you do it. And if you don't, you don't. If it doesn't work, you stop. And if it works, then you take the money when you're up your goal for the day. Okay. So in order to make a living trading, you need the right business plan. So this is basically my class. My class is a business plan, although I'm not going to tell you how much money to risk. It is up to you to determine how much you're going to risk in the trade. But I can give you ideas about that. And we're going to talk about that tonight. So my strategy, my system is called the golden gap system. I trade gaps. That is what I trade. But I have a specific method that I use. It is a 26 point rating system that tells me which stock every day is the one to do. And today, the only call I made was AEO. The purpose of the system is to help you evaluate which gap to trade each morning using a checklist. And that's it. That's all that I do. I go through the checklist every morning and I rate the gaps. And the philosophy behind the 26 point rating system is I'm trying to just find a stock to trade that has never won a high probability of directional bias for the entire day, meaning that you could short it all day long if you wanted to sit there all day. Again, I don't do that. That it will have a big move in the day and I'm looking for a move of a dollar or more because 5,000 shares if it drops a dollar in your short is five grand. I'm also looking for early confirmation of the bias in the move, right into the open between 930 and 10. Okay. I want to get that momentum in the push into the open. That's why I'm usually done trading by 1010-15 and precise entries with follow through and a good risk to reward and precise means I'm trading on the one minute chart, which we're going to go over here today. This takes a lot of precision. Only professional traders are trading on a one minute chart. There's not a lot of people that know how to do it. There's even fewer people that know how to do it. Well, even the ones that do it don't do it as well as I do and I'm extremely good at entries. And this is where the risk to reward comes from. And this is one of the other reasons to be mentored by me because I am so good with entries. I can't even believe the entry actually called today in AEO. So I use this checklist and that's what you'd learn from me. And yes, you can learn it. This is not beyond the laws of comprehension of man, of normal people. Whether you've traded gas before, whether you've never traded before, people say, well, 26 points, that's a lot. Yeah. Well, if I could come up with 226 points, I would if that means I'd never get it wrong. Okay. But there's a certain element in the market where sometimes the odds are against you and suddenly doesn't work. And that's why I have a set risk amount and use a stop, which we're going to talk about. But why does this strategy work? Why do I even do it? Why do I even train gaps at all because they're made with large institutional money? This is one of the reasons that Amazon is a good trade that I'm in now and I'm long Amazon. But it's being bought with institutional money. And the market is going to continue to get bought as well. And AEO today actually sold off with institutional money. So it was a short. You would have made money shorting that trade today, which we're going to go over. But why do they work so well? Why do they pay so well? Because they're created with large institutional money. And if you don't know what that means, it means hedge funds in the market and banks. Now, a long time ago, I have been out of the mortgage business for a while now, I used to do mortgages. And at the time that I did mortgages, banks lent money to anybody and their brother. And we were lending money to people that have 500 FICO scores. And we were doing a hundred percent and 125% loan devalues. And and this was this was like back in 2004 2005 2006 into 2007. Now the mortgage industry collapsed. Banks made a lot of money lending to people. It is one of the best ways that banks have always made money. Now banks do make money. They borrow money. And then they they they make money with deposit. So you might have you might have, let's say you have $100,000 in deposit at a bank, okay, they are paying you 0.001. Okay, and they are lending money from the Fed at nips to nothing. Okay, and they have your deposit. And so they're actually have that money on deposit. That's yours. Okay, now all of this is insured up to a certain amount. But the point is they don't make as much of deposit as they do on lending. Unfortunately, times have changed. And now, because of the bank collapsed with the mortgage industry in 2008 and 2000 and into 2009 was really 2008 when everything collapsed. Banks now have never gone back to lending that way that they used to and they never will again. Now, banks don't make money lending to people on credit cards and awesome mortgages, but they don't make as much as they used to. And they they're not willing to take the risk. And so therefore, it is costly for them to lend and take the risk. They don't do it as much. They still lend and make money. But they are actually in the market more now. And this is one of the reasons also why the markets higher. So banks need to make money. So if we're not going to continue making money the way that they used to lending, we're going to make it in investments in the market. And they do that with the money they have on deposit. This is how the banking system works. So when I'm talking about institutional money, I'm talking about banks, a lot of banks and hedge funds that are in the market, small hedge funds and big hedge funds and all of them. So they move stocks, okay, they sell stocks and we can short the selling action and make money on the gaps or we can buy them. But that's what moves the market. And my system, my strategy, pinpoints what an institution is going to do in the pre market or the post market before the institution buys or sells a stop on a live day. It doesn't matter if it's after the fact because of the fact that it will be too late if you get an act of the fact, which is why I'm getting in the trades on the one minute chart in between 930 and 10, okay. So my formula to rein and qualify the gap that's being made by the institution, whether it's going to get bought or sold in the day, whether I should go long or short the gap, gives me the confirmation and conviction that the large institutional money is on my side in the trade that I'm going to take and then I play it and I take it aggressively into the open then. Gaps are an event that happens in a chart and they create a sense of urgency, thus an action is being forced by participants of the stop. And this is why gap trading is incredibly powerful. It's incredibly powerful because of the amount of money that these institutions have in the market and will always have and have more now than ever before for the reasons I just told you. And trading gaps is a powerful and profitable way to trade. You're trading on the side of power and you're trading the side of money and that's really the only way to make money in the market. Now, does anyone have any questions about that? I just said a lot of stuff. Does anyone have any questions about anything that I just said right now about gaps? And I'll show you on a chart what a gap is in a minute. We didn't really get to that. I'm just explaining. But the philosophy behind my system is I am looking at a daily chart. I'm looking at a daily chart of a stock where I'm finding the gap. Okay. That's what I'm looking at. Then I'm looking at the one-minute chart as a day trader to make entry decisions and exit decisions which is where I'm getting the precision. And that's where I put the stop. This allows for accuracy in the actual trade but the but the day chart is telling me the accuracy for the directional bias whether long or short. Okay. So risk to reward trains to me or as a good train where I'm getting in the trade on a one-minute chart and I have the possibility of making three dollars for every dollar. I actually didn't think AEO was going to be as good of a risk to reward trade as it actually was today. It worked extremely well. It had a small stop and it went to a dream target. That's the kind of trades you're looking for. You don't want to look for where you're risking a penny to make a penny or risking a dollar to make a dollar. And actually the Amazon trade that I'm in right now I have made more than one R in that trade today. So I could have if I was really taking trades to make one dollar for every dollar I would have exited that trade today. I didn't I didn't do it. In fact, I was up more more than the dollar that I risked per dollar but I did not exit the trade. Okay. Because of the quality the quality of the thing that I'm looking for. Okay. So what is a good risk to reward trade? Three, two, four, five per dollar. Not one to one. What's a bad risk to reward trade? This is what many scalpers do. They risk a dollar and they make 10 cents. Okay. For example, most scalpers don't have risk good risk to reward trades. They're risking a lot of money taking a lot of size there and they're taking a lot of risk and they're not getting the move. They're not getting the momentum. Okay. Most scalper traders have to take multiple trades equal one risk unit at profit. I'm talking about. Gap training is so much more powerful because it's not scalping. It's the momentum which again, you're getting from the banks and the institutions that move the stocks. And gap training involves quick moves meaning I could get the thing happening in a minute like a scalp but the move is bigger than a scalp move. Okay. It happens quick like a scalp but bigger. And that's what is good about what I do. So a good risk to reward trade is risking one and making one at a minimum. A good risk to reward trade is also always has the potential to make three and sometimes more. A bad risk to reward trade is one where you risk one lot. And you make a half or less than a half. Okay. Well a bad trade is where you lose but sometimes you just lose in trades that are good trades that set up that just fail. Okay. Trains that make less than one risk unit do not result in profitability over the long haul because you have to pay commissions and you have to pay your broker fees and you have to pay the platform fees. You have to be in a trading room. You need to make money. So the key is a system which is what I have where you can make profitable trades. Good risk to reward trades. They have to work often and they also have to move. Okay. So when people condemn me they say well what how do I do this Melissa where do I start? There's three trading levels. Tier one is a beginner. You're brand new. You don't know anything about gaps. You've never traded before in your life or you traded before but you don't understand gap trading or day trading for that matter. Maybe you're an investor. Tier two is intermediate. Okay. Intermediate risk. Maybe you risk 200, 250, 300 dollars on a trade. Tier three is advanced. You have a good amount of money. You picked everything up in the class. You could be at risk even a thousand dollars in the trade. You often know where you are at any point in time as you're doing this and be willing to adjust yourself accordingly along the way. Let's just say you start out here but you think you know what you're doing and you make a mistake. You may have to go back to here or vice versa. It's better to start here and just work your way up because you have all the time in the world to make money in the market. So I always help people right after the class start small and then go up, up, up. Okay. And go from there. And again, if anyone has any questions, please put them in the room. I can see where everybody's typing. Here's the AEO. Okay. This is a one minute chart. This is a one minute chart of the stock. The stock closed up here the night before around $14.90 some cents and it opened today down here. It gapped down around $14.65 or whatever. Should the stock open, rallied went over the high, base, base, base, broke. So I call this trade right in here. Stop was here. Now what's a stop? It means it's a limit order. So you put the stop in, you're saying if the stock goes over this price, then I want out of it. Okay. You just say I want out of this puppy if it goes over the number. Okay. And by doing that, actually, you allow the, you allow yourself the protection. It's like the insurance. Okay. You're ensuring it that you will only lose whatever you risk with the stop amount. So it's like you're saying, well, I'm ensuring myself that if this goes over a certain number here that I'm not going to lose any more than $100 or $200 or $300. So I use stops. No matter how much size I take, I always use stops. Now if you're doing options, you don't have stops, but you only have a set fixed risk and that you can only lose if it doesn't work. And that's it. Okay. Until the expiration date. Anyways, here's this nice move. So this is, was it a short? You short it and it dropped. So you see the time of the day down here was in the first five minutes of the day and the stock dropped into the first 20 minutes of the day. And it actually kept going and here it went down and actually broke and ended up going to $14, but you had to be in it for a while. So if you're a beginner person and you did the AEO today, price of the entry, $14.67, stop $14.85. This is a, this is a very conservative stop. You could have put the stop at $14.85 versus $0.18. On 600 shares, it's $108. Okay. This is very beginner, but if you could have made $250. $250 a day is $1,200 some dollars a week. Okay. That is a good amount of money for somebody that's brand new that isn't risking a lot of money in their trades because it starts to add up. That's over $4,000 a month. Five, depending on how many losing days you have, but you should only have about two a month, three at the max. Okay. And this is not even holding this to the dream target. It's holding it down in the first drop, which is about $14.30, $14.25, but it did go $0.25 more cents. So you actually could have made more than this if you held it down. The risk you wanted this trade is $2.3. So for every dollar you risked an AEO to short it today on my call, you made $2.33. That's a good trade. And if you had held it, you would have made even more. You would have made over $3 because you risked $0.18 in the stop and it dropped another $0.25. Okay. You can start out like this trading and trade and trade very quickly in the morning. Let me go back and do other things until you can work your risk up. So you could take a trade like this, risk $100, make $2.50, make $2.50, $2.50, $2.50, $2.50, $2.50. This, you're done here. This is 10 o'clock Eastern time. I don't know where everybody lives, but do you see here the time of the day you're done? So the institutions come in, they go, they sell out of it, but if you don't take the trade here, if you don't know to watch this or do it or don't know the 26-point rating system to rate it to two of the call or to take the entry or know the numbers of the targets or anything, you won't get this and you will miss it. But this is the way you make money and you're out very, very quickly and then you go on with your day. And if you live in the West Coast, this is very early. It's before 7 a.m. Eastern time. And depending on where you are at other places in the world, who knows. But this is so early even for an Eastern time zone because you can go do something else with your life. So my strategy is good because you don't have to sit at a computer all day. You can use it for options and you don't have to sit at your computer at all. And but if you do the day trains with me where you're in and out very quickly in the morning, you're still done within the first half hour, 45 minutes of the day and you do not have to sit at your desk for four o'clock and stare at screens. Which is what I love about what I do. Now, if you're an intermediate trader, you are working it up. You can risk more than 100 bucks. You might want to risk close to 300. So you can take 1500 shares of AEO. You risk $270. Same exact trade. You short the stock at 1467. You put in a limit order up at 1485. Excuse me. Then you exit the trade. You're watching it. As soon as you take it, you're up. Most of the trains that I take or call are up as soon as I take them. Actually, that includes the options I'm doing now too. You take it, you're up. The profit on this is good. It's $630. So you see here, you risk $270 a little under 300 and you made more than twice that. $600 a day is a good amount of money. $500 a day is $2,500 a week. And again, maybe one day you lose. So maybe you make $2,000 a week. $2,000 a week is $8,000 a month. $8,000 times 12 is enough money to support some people, not if you live in New York, but it is enough money to support a lot of people and it's certainly a good part-time income for people that live in expensive cities. And if you can risk $270 and make $8,000 for, let's just say, six months, okay? Say you train in the morning part-time and six months, you're up, you know, 40, 50 grand. You might say, well, I can start to increase my risk here. I can start to risk more than 300. I can start to risk 500. And then that's how you get it going and you take the step and go to the next step, which would be an advanced trader. Okay, again, I'm an advanced trader. I've been trading now for eight years. But I'm giving you the steps of how to do it. Anyways, you could do this as an intermediate. Well, actually, no, I forgot to put this here. This is advanced. This is wrong. It's advanced. So it's a $1,260 risk at 7,000 shares. We're going to go over buying power in a minute. But anyways, you can take 7,000 shares of AEO if you have the buying power and you could press the button and get filled too. This is not a hard stock to get a position sized in. It trades with a lot of volume and I take stocks that have volume in them. So the profit in this, if you did this exact same trade, the exact same trade as the person at risk of 100, the exact same trade as the person at risk of 270, you could have made $2,940. You would have had to risk $1,200. And take 7,000 shares. How can you do that? How can you press the button and put a stop in with 7,000 shares and not get stopped out and then make this kind of money because you know what you're doing and you have a mentor and someone like me that makes the call and tells you the numbers and calls the trade and says when to get out and what the entry is and the stop. And you have the rating system which you learned from me to rate the gap, to know that it's good, to know that it's a short, to know it's not a long. You can't take five trades like this a day. It would be crazy. Even if you had the money, it would be very stressful. It would be incredibly stressful. I don't take five trades a day and risk this kind of money. I'm very, very specific. And the more money I'm risking in the market, the less trades I'm taking. The more money that I'm risking, the less trades I'm taking, the more money that I'm making, the less days I'm trading. That sounds, isn't that funny? But it's true. Someone made a comment in the room this year, oh my gosh, Melissa, you're hardly even training. I mean, I've traded out the last month but I'm being so picky poo, mostly because of the market. But I'm up. I'm up. I'm doing so well, so well. And so, again, your confidence has so much to do with it and the pickiness and I'm becoming more picky. So the more money I'm making, the more picking I'm becoming because eventually I want to get to the point where I'm risking maybe $3,000 in a trade like this instead of $1,000 or $1,500. And how do you get like that? You get like that where you just hone it down and you just get so good. And you know that you're not going to go crazy taking two, three, four, five trades. Okay. Because it reeks havoc on your confidence as a trader. So how many gaps do we get per week? Now, during quarterly earnings season, I get three to five gaps per day, per more. Okay. In not earning season, it's usually three to five a week. Okay. So I only do usually one trade a day. If I get one that rates 20 points or more, I'll do one trade, but I might rate three. And if you want to do all three, if they rate well, you can. It's my personal decision only to do one trade a day. You can do as many as rate well per my system. A quality gap is one that rates high enough to trade based on the 26-point rating system. That means 20 points or more per my system. If there are multiple highly rated gaps, then you can take more than one trade gap pick per day. Each trade is on its own and should be managed accordingly. And because I'm taking size in my trades, that's why I also only like to be in one. But if you can look and be in a couple of trades at once, you can. Some people do that in the room. Now let's talk a little bit about leverage. Leverage is the use of a small initial investment, credit or barred funds to gain a very high return in relationship to one's investment or to control a much larger investment or to reduce one's own liability for loss. Leverage means that you can take a trade like AEO without having the dollar cost price of the stock. And what this means is this. Most traders use leverage. Now it depends if you trade at a retail day trading place or a proprietary day trading place, you will get leverage or buying power from the broker depending on the type of brokerage account that you open and where you go. But everyone trades with leverage, mostly. And because we're flat before four o'clock and in and out, you don't have to worry about holding the stock overnight. If you're in an option, you don't have a stop in it, but the risk is still fixed for the amount that you have with a position. So you're protected for that too. But you protect yourself from losses using money management during the live day when you put in the stop like I showed you in the AEO. That stop is the insurance that protects you from the loss that you won't lose any more than that. And you also are flat every day by four o'clock so you can't get hurt in an overnight trade. And if you're in an option overnight, you still have a fixed position size and risk that if it doesn't work, that's all that you can lose. Leverage helps you make money if you know how to trade because you don't have to have as much. That's why it's good. Leverage is a good thing if you know how to trade. And all intelligent traders use leverage. Even really big traders use leverage and they use it to their advantage. Leverage gives you buying power to take a position without needing the full cash value across to the stock outright to purchase it. For example, I have 2,000 shares. Let's just figure that out actually. Let me just, I'm just going to figure this out right now. I have 2,000 shares right now of Amazon as an option. And I just did that. Let me just figure out how much money it actually, I forget the day that I actually, I forget the cost of the day that I bought it. But let's just say that it was around, I think it was like 590. So at 590 a share, I never figured this out but let's do it because this will be funny. At 590 a share times 2,000, wow, this is crazy. This is the total amount of the cost of the position of the buying power that if you didn't have, if you didn't need leverage, but I'm telling you that we've got leverage to work with. That is it. Now, I would, I would, with a retail account divided by four, 25%, while I need 295,000, actually that's not that bad. That's actually not that bad. Is that right? Yeah, that's not as bad as I thought. So the position actually would have cost me 295,000 in cash that I would have needed to do it, but I didn't because I didn't have the option. But as a result of having leverage or doing options in expensive stocks, you don't need to have that much money. Actually, that's interesting because I actually thought I would have cost more. So let's look at AEO. So if you wind a short, for example, 7,000 shares of AEO, you would have needed, if you needed the cash, if there was such a thing as that we'd say pretend leverage didn't exist, you would need 102,690 dollars. But you don't. If you have a retail account, you could have taken this position with a little over 25,000 cash. And if you had a proprietary day trading account, you could have taken this position probably with like 5,000 dollars in real cash instead of needing 100 grand. Do you understand? So this is what leverage does. Now, Bendel is asking, you will scan looking for the gaps. You can look for gaps in the post market and the pre market. You can scan to look to find them. And then after you find them, you rate them. So you could buy a scanner. You could use the scanner that's included on your platform. If you have a live platform, you get the top 20 list of stocks that are gapping up or down in the NASDAQ and New York exchange. You can look at them tonight and tomorrow morning. You could also print out all the earnings on Yahoo Finance that are going to happen for the rest of the year, pretty much. And you look at stocks that have earnings reports and what happens is they usually gap in one direction, up or down. So you are scanning to find them, Bendel. And anybody else have any other questions? I'm going to have to bring up a chart then to show you a day chart of a gap. Well, let me get through this here. The position size you take in a trade depends on the amount of money you choose to risk based on your level, whether it's beginner, intermediate, or advanced. You're putting your stock in the trades based on using your required monetary risk amount. You're using hard stops and that means you're risking a portion of that money. You need leverage though and by and power to take the position. You get this from the broker. So that's why you're really paying the commissions and it all works out because you need them, okay? And they are good. You're deciding on each and every trade you take what your monetary risk is and it should be also roughly the same on each trade. The only difference between a beginner, trader, intermediate, and advanced trader is size. That's why I'm saying learn it. Learn it first and do it and then bump it up as you go along because there's really no different from somebody that just did the class and me other than size, okay? An experience allows you to take more size which is why I'm taking the size and I'm taking in the trades now. A trader cannot risk more money per trade and take size until they know how to accurately trade over a period of months. However, trading with size is the goal because that's really how you make a good amount of money and one play with size can just make your whole week. Two or three great plays a month can make your whole month. So for example, if you have 200 shares of a stock that moves $1, that's $200. If you have 2,000 shares of a stock that moves $1, that's $2,000. If you have 20,000 shares of a stock that moves $1, that's $20,000 profit. This is a lot, but you can do it, okay? So trading with size is the way to make a living trading and I trade stocks that have volume to be able to take these kinds of positions and trading with focus is a way to make a living trading, okay? So how much to risk to make a living day trading? On average, a lot of people consider making $100,000 a year a good amount to make a living. Again, it depends where you live or your expenses, but that is a great income to work for half an hour, hour a day. And I think if you risked about $250,000, $300,000, you know, you can do it. You're looking to make two hours, risking $250,000 to be $500, basically a day. And as you get better, you can increase this and get to the point where you're making, you know, over 20 grand or so a year. So what are you trying to do? $500 a day is $2,500 a week. That's $130,000 a year. $300 a day is $1,500 a week. That's $78,000 a year and $150 a day, which is so reasonable, and some traders aren't even making this. This is so reasonable. I can't tell you. $750 a week, but that's still $39,000 a year. And if you're doing this part-time, that's 40 grand extra. That's 40 grand you could go buy a car with. That's 40 extra grand you don't have. Now, okay, should I be able to make $39,000 a year risking this much money per day is so good. This is amazing. And if you're retired, this is like extra money. Am I, I am in the Amazon art of trading. I thought you knew that. I thought you knew that. Weren't you in the room today? You were in the room last week. I thought I'm still in it. So let's talk here about this success wheel. Okay. What do you need? The success wheel here, the stocks, which trade or success wheel is what? Well, you need a good mentor and that's me. Okay. You need a good strategy. That's the 26 point rating system of the golden gap. And you need good entries because you can't get the money with the risk to reward without the proper entry. Even if you pick the right stock, you got to get the entry. You could say, oh my gosh, I love this thing. If you never get the entry right or if it goes without you and you don't take it, you won't get the money. And this is where the mentor part has because of the fact that I'm calling the trades for you if you join the live room. You must take the golden gap class to join the live trading room. Everyone in the live trading room has taken the class. Oh, I have these at 1-77. I can't touch that now. Art of Trading has asked about the Amazons. That I can't touch it. I was so, I almost bought more today. I almost bought more today and actually, I almost bought more today and then I wished that I would and then I said, I can't do it. I just can't do it. I'm done. I'm done now. There's nothing that I can do. That's the prices. It's never going to go anywhere near the price that I have ever again. So that's my price. So there you have it. Sorry, that was the Amazon. Anyways, the time of the day investment for this strategy is what? Is what? It's very little. You get up in the morning, you roll out of bed. Stocks start to trade in the pre-market very early. I usually start scanning between 7, 7, 30, 8, 8, 30, depending on what time I get back from the gym. You can eat breakfast and scan for things for about an hour and then you trade. So I'd say budget about an hour, hour and a half each day. You're still done by 10, 10, 15. And if you want to just join the room, some people don't do anything. They just join the room and not call the trades and they don't prep in the morning. I think it's good to prep in the morning, but some people just roll out of bed. And come into the room and I call the trades and then do them. Okay? I prepare for myself. So really, this is about job security because if you are whatever age you are, 45, 55, 65, you want to think about what is happening with your current job if you're not retired yet and where you want to be to get to the point where you want to retire. Okay? And if you're not getting annual raises at your current job, you might want to think about making more money doing something like this. I was talking about this in the trading room the other day with the room and I was saying, you know, what's the solution? If you have expenses that come upon you that you're not anticipating, what's your solution? Well, you can downgrade your lifestyle or guess what, make more money. That's the only solution. The problem is that a lot of people have regular jobs where they can't make more money. They have to wait to see if they get a raise. They may or may not get it. It's not even across to living anymore. And then what do they do to make more money? How do you ever get ahead? If you have a regular job with a normal salary, even if it's a good job, how do you get ahead? You can't get ahead with a normal cross to living raise and people are not offering overtime and double time and all these extra hours that they used to even for people that have hourly jobs. And even if you have a really job, how do you get ahead? How do you ever get ahead? This is where people are and they're working like crazy and why now two parents work. You've got a mom and dad working full time because of the fact that you've got to to get ahead. So the thing about trading and it's really stock market is that first of all, you can make money doing it, but you have to learn how. But it is a way for you to make extra money in your life to try to help you get ahead. And so it is time to do some forward thinking. Today's world is not the same as 25 years ago or 10 years ago, even five years ago before the bank bailout, which actually is more than that now, what we think about is a secure job today may be gone tomorrow. We can be great employees, very productive, outgoing, hardworking, it may not even matter to our employer in the end if the company cannot keep you on. If a company has poor management, they might fail, it has nothing to do with you or your industry might fail, it has nothing to do with you. You are a skilled person with a great mind and you can work for yourself in the market. You can create your own job security and you can create your own opportunity by taking upon yourself to learn how to trade the market and make money trading. I have a friend, he has not gotten a raise, he has worked for the same company now for over seven years. For whatever reason, every time it came up to look for a raise, the person that was his boss had left and then that person quit and then that person fired and it went on and on and on and then he always got skipped over to look for the raises. Same job, but he is well overdue, even normal cost of living, a raise. And I sat down with him, we were talking about this at the end of last year and I said, you have to go in there and demand this raise and this is what I want you to ask for. And it was a crazy amount of percentage and I think he's actually going to get it. I talked him into motivating him to get the mojo to go in and demand it because he's a great employee and he's been with them for a long time and he deserves the raise now and he just deserves it. And now he's waiting to hear back to see if he's going to get it and he's probably going to get it. I don't know when, but he's probably going to get it. Anyways, he started now trading with me too. So the bottom line is that he's looking for ways to make more money and everybody is. And I will tell you, he has a great job. Even if he doesn't get a raise, he makes good money, but he's still looking for a way to get ahead. He's still looking for a way to get ahead because he's a young guy and how do you get ahead? You don't have two incomes, you're not married yet. How do you get ahead? How do you save to buy an apartment? How do you save to buy a house? How do you save to go on a fabulous vacation? You've got to do it somehow. And unfortunately, what it means is you may have to do some work. You may have to take two steps back to take five steps forward. And the two steps back is you're going to have to put the time investment in learning something new and paying for my class and time out of your day and maybe your weekend to learn it. But then once it's done, it's done and you know it. And once the class is paid for, it's paid for. You can retake it as many times as you need to and then once you know it, you know it. It's about forward thinking. So what does forward thinking mean? It means planning, planning, planning your head or planning to plan ahead for the future. You are looking forward. I am planning for the future. I'm going to do this thing for the future. I'm going to move forward and do this thing. Self-reliance matters in today's world. I am a strong person and I'm trying to teach people my best to be strong too because the market is a challenging thing and there will be days where you have amazing trades and there will be some days where you don't do well but it doesn't mean you give up. My strategy and system works and I tell people do the calls I make in the room and don't deviate. A lot of people listen to me but some people don't. You have to go through your own process but you do need to have a good attitude about it. So how long does it take to learn my system? Two days. It's a 16 hour class and a one hour break for lunch. That's it. You can learn it in the two days but it is a lot of information in two days so I let people retake it for free as often as they need to if they don't get the whole thing in the two days. But the power of the gap is what really creates a huge opportunity in a short time frame in the market and you've got to have the right knowledge to do it. So you can make money in the market. This is not something beyond the realm of us understanding. It's not like trying to discover the atom bomb or plutonium. This isn't... You don't need to be Albert Einstein to do this but I will tell you, you've got to learn it. And that is up to you to process the information and go through it and do it. And a big part of it is you think like a professional like it's your job. Even if it's not your job yet. If you think of it like that and take it seriously, you will do well. So remember, you can do it. If you want to learn how to trade, my class teaches the complete system how to do it. The targets, the entry support resistance, the 26 point gap rating system. I'm teaching you what stocks to pick to do. Okay. How to size yourself and where to put in the stops. The class is called the Golden Gap Course. It's a full two-day course on how to strategically find pick and play stocks at our professional bearish gaps. Retakes are free. So if you sign up once, you can redo it as many times as you need to. And the class is online. You can be anywhere in the world and take it. And I would say about half the people to trade with me are not in the US. The US market is amazing because of the volatility that happens in it that allows for people to make money. And a lot of people that trade in other countries want to make money in the US market. And the more the merrier, they can all come and put their money in the market. And that's how we're going to make more. So it's a good thing. Dates of the class for January 30th and 31st is Saturday and Sunday. From 9 a.m. to 5 p.m. Eastern Time. Class of the class is $39.99. If you would like to sign up, email me at melissa at stockswush.com. The brand new website will be done this month. But you have to email me for now to get the forms to register for the class. And I will email them to you. And then you fill them out and fax them back. So if you've never had a mentor before, think about it. It is something that's important. And if I had had one, it would have helped me a lot. But I didn't. But I understand the value of that. And I'm doing my best to help people now too. I also teach a class called the Trends Course. This is $9.99. This is a course how to read trends and stock charts for long-term trends. This is good for if you're doing swing trading. And if you want to do both, the Trends class for long-term swing training and options and the Goal and Gap class for equity trading, for day trading or swing trading, or options for picking the gaps and taking the trades on the live day, that you can do them both and save $500. The cost for both is $44.99. And you can email me if you want to sign up for this too. So earnings season is a really good time to trade. This is a chart of Apple. Apple's out tomorrow night. Okay. Apple has earnings reporting tomorrow night. Ben Dill asked me, how do you know Apple's going to gap? Okay. It reports tomorrow night. You can Google it and it'll pop up. Okay. So it's earnings season right now. You get four quarters of earnings season. You get lots and lots of gaps during earnings season. So there's stuff to do. The heaviest, busiest days to trade are Tuesday, Wednesday, Thursday, Friday. Monday is typically a slow day or after a holiday. But you get most of the, a lot of stuff in the earnings season. Now, does anyone have a question about anything at all? Anything at all that anybody wants to go over? We do have a couple of minutes here. Anyone want to go over anything? If you would like a trial to the trading room this week, email me at Melissa, the stockswish.com. I'll give you a trial to the end of the week. You must take the class to sign up for the room, but it is worth it because you can make the cost of the class back in, you know, my calls. Whether it's, depending on how much you risk, it could be in one trade. It could be in a week. It could be in a month. Hey, you have to email me here. If you would like a trial, you can email me here. Can you finance your tuition? PayPal offers a six months, zero percent interest. You can go, you can pay me through PayPal. You have to go there through PayPal, but you have to pay the cost of the PayPal. So it is a 3% upcharge if you pay through PayPal for the class, but you can finance it for 0% for six months if you get approved with PayPal credit. I don't know what the requirements are. You can go and fill out the jiggy for free and see if you can do it. But it's 3% cost above the price of the class to do it. Otherwise, I take all major credit cards. Can you talk more on the pro trading account? To have a retail account or proprietary day trading account? Are you talking about us? A proprietary day trading account is where you, when you go to a place and they're saying, we're going to lend you this much money, buying power, based on this much of a percentage. Like, for example, you could put up $5,000 and they're going to cap you, though, as your daily actually amount to lose. They're going to say, well, we're not going to let you lose any more than $500 a day. You would be cut off, okay? Whereas a retail place wouldn't do that. But anyways, they may give you leverage of, you know, 10 to 1 or 20 to 1, okay? You will have to talk to them about what they're going to lend you based on the size of your account. They're all different, Oz. All of them are different. But they give more leverage than a retail account, which only gives 4 to 1. If you want to refer for a broker, you can email me and I will refer you to 1. But all you need is any broker that will allow you to short stocks or buy stocks. Specifically, you want to have one that has a good short access, okay, which I would know, because I'm mostly short. And you have to have live charts and you have to have a live level too. Hank is asking me for a 2015 track record. I do not track my trains on the website. That is something that I'm considering doing for 2016. Once the new site is rolled out, I might do that. I'm not sure how I'm going to track it. Even if I track it, I probably wouldn't give the stock I did every day. I'd somehow find a way to track the risk units and the calls I would make in some way reference to that. Because the people that are paying me there in the room have got to get the benefit of being there. And if I'm giving all the calls I'm doing on the site, then it's a loss of benefit for the people that are there alive. So I haven't decided if I'm doing it and if I do, it wouldn't be a way where you'd go back and be able to look at the stocks anyways, if that's what you want to do. It would be like we made this many risk units per week on the calls that I did or something like that. You have to decide if you want to learn something where you're willing to take risks to pay for a class, you are never going to get any kind of guarantee from me that says, you know, XYZ or whatever. Some places give guarantees. If you want to trade the market, you know that you're taking risk. And it is you that are the responsible adult to take that risk. And many people that come to trade with me are very, very happy. And I can give you referrals or a trial to the room. You have to decide that you want to be an adult and you want to do this and you assume the risk of paying for the cost of the class and taking the trades that you take. So that's something that you have to consider. I have 1200 videos on YouTube. You could watch them for the next year. You could follow me for the next year on all my videos and come to all my webinars. There are people here that have been following me for a long time. Irwin is one of them. Irwin has been following me since the beginning. Irwin has been following me since the beginning. And he eventually will do the class. The people that have been with me for so long following me know that I am really making good money. But you know, sometimes it takes time for you to be convinced that I know what the heck I'm talking about. And that is something that is different for everybody. You know. What is the minimum capital required to trade? If you have a day trading profit account you can open up an account with 2500. With an options account you can open up an account with 500 dollars. I never heard of that Michael. You can email me that if you want. I never heard of it. I'll Google it or have my assistant look into it. And Michael, you were in the room last week really quickly and let everybody go. Michael did a trial last week. Michael, are you doing the class this week or not? You were there and you made money last week. I know you did. Are you doing the class or not? You live in France, don't you? Some of you have come and made the money for the class in my trials and you haven't done it. And I'm telling you right now the price of the class could go up in the next 12 months. Some of you out there are just like waiting, waiting, waiting and you should just be making money with me. I'm telling you that the trade I'm in in Amazon right now is so good. The entire room is going to do it. It's so good it's silliness now. Email me that please. Everyone's a believer just needs to find enough money to trade and pay for the class. Learn the class first or when. Then worry about the money for the trading. It's a one-time payment. One-time payment, Ryan. One-time payment once and done but you can retake the class as many times as you want to. So that is a huge benefit and call me and ask me questions. What do you mean by CFDs? I have a retail account so my leverage is four to one and in some stocks I trade it's it's 100% if it's under if it's under like $16 and 50 cents I have to figure out 100%. Retail accounts have weird things with leverage or some stocks that are cheap where they take 100% but generally my leverage is 25% or four to one. Okay. If you have any more questions email me. Well the cheaper ones at the retail places they take full value but at the prop places they go. Email me there if you'd like more information. Okay. Have a great night everyone and thanks for letting this go over a minute or two here at Online Trader Central. Thank you so much. Have a good night.