 go for it. Well welcome everyone good to be here today beautiful Saturday here in New York City and as Jeff was saying I do gaps so that's pretty much what we're going to talk about today and it's interesting because on the weekends if you're an active trader it's nice to take a break give your brain a rest from looking at charts but you know it's been a wild wild couple of days in the market and really since the beginning of this year since January the market has been very volatile so I'm gonna talk today about shorting which is very advantageous we will discuss why but like on Friday for example if you shorted the market you really made bank why the market fell and fall for cliff on Friday and we may be down again on Monday I mean who knows this is the type of market where not only do you need to know how to go long but you also need to know how to short and for some reason and I don't know I don't know why there's a lot of people are hesitant about shorting or they just don't understand how to short I don't know and I'm talking retail traders all of you people that are here right now I consider retail traders but the fact is that anybody can short you can short as a retail trader you can short as a professional trader again you can set up your account your trading account to do that and it's fun to short and we're going to talk today about why this is me if you have questions you can always call me at 9 to 9 30 200 gap you can email me at Melissa the stocks wish calm and you can always go to Twitter Facebook YouTube or Skype and follow me at any one of these places I appear on television and actually about a month ago I predicted that the market was lower it took a couple of weeks but I'm not surprised the fact that we've fallen off I talked about it actually three weeks ago when I was in Chatter TV and at that time we were rallying and probably nobody believed me but but one of the things that I do is tech based on technical analysis and again you know Jeff has his whole charting package I read the charts I look at the price data while you can always look at the fundamentals and say okay I think this stock is higher because of the fundamentals or I think the stock is lower because the fundamentals the reality is that what counts is right now what's happening this second this minute right right now that's what really counts because all that matters is for you to make money at this second I'm trying to open up here to see the questions how do I do that Jeff you know how do I open up a little box to see any questions I don't know how to do it I can see people typing but I don't know how to look at them hey this is Bobby Jeff stepped away for a moment but if you have to go to webinar screen you should be able to drop down the questions far okay now how do I expand undock from panel let me see oh there we go yes I'm not gonna make it larger okay very good I think there's a couple questions there for Jeff he can answer later oh okay people are elected to short because the market goes up 80 to 85 percent of time I don't I don't know if that's true or not but I will say that most of the life of the market the market's in in an uptrend that's true but we're talking about active trading day trading so what does it matter if the market's in an uptrend it doesn't matter at all you can short and get in and get out in one day in five minutes in one hour so it doesn't really matter again we're talking about swing trading options trading day trading no one said that you have to be in something for umpteen years you're talking about long-term retirement account you would want to pick very strong stocks to be long for long-term investing for something like your retirement but no one should be concerned about shorting the market when they're an active trader and again that's what I do and that's what we're gonna talk about here today so the idea of trading is one goal for you that's all that you should have every single day when you get up at a bend in the morning you have one goal when you trade one it's to make money and the whole idea is you can make money going long and short but what I found was shorting is shorting actually gives me a niche one of the reasons is one of the very reasons I just explained is that many people do not like to short don't understand how to short for those that do don't know how to do it well okay but you have one goal it's to make money and that is what you should think about and that is what you should focus on every single day now I plot this in here I'm not going to go over every single trade we've taken since the beginning of 2022 but since the beginning of 2022 with an advanced trader risk this is an average risk of about $2,700 per trade day trades only this is an options this is where we are year-to-date 292,744 it has been a really big year for us why well first of all I have a good system on any given year but second of all many of the trades that we've done have been very big trades because we've had a lot of sell-off moves in stocks and particularly the market so it has been a great year to capitalize on these types of moves and again if you don't know how to short you're missing out you're missing out on profits and not only that you're probably losing in the last few months 2021 was a bullish year for the market where the market really basically power trended up all year so you could have gone long every pullback almost in the market in 2021 to make money that is not working this year and by the way that doesn't work consistently to do even in bullish market times okay which again most of the life from the market it isn't an uptrend whether we go and break in a downturn or not is neither here to there I will short stocks that are in uptrends I will short stocks and uptrends downtrends all around the town and again it is based on my system which we're going to talk about here in a little bit but in order to become successful you absolutely absolutely need a system that's number one whatever you're doing you have to have a system what do I mean by a system you get up in the morning you say I'm gonna look for this and I'm gonna do this and it has to be something you can replicate money Thursday Friday and not only that I think you need a niche because the reality is if you don't have that you're gonna be competing against so many other people millions of people that are trading and if you never get really really good at one thing you're gonna have a difficult time making money again trading is not about having a broad-based view of this thing that thing and the other and I don't have time when I get up in the morning to read research reports and it's earning season right now for those of you that are active traders who know that if you don't there are four quarterly earnings seasons a year stocks report their earnings and they tend to have big moves and earnings and they tend to gap some gap up some gap down somewhere long somewhere short but I don't read the fundamental reports of every single earnings that come out I wouldn't have time to do that and make a decision to trade each morning so it gives me a niche though to short because of the fact that many people like I said do not know how to do that well and that is one of the things that we're gonna talk about today but you can make money in the market people do it all the time however not everyone does why because they don't have a system and even something that they're doing they may say well this is my system but the reality is it may not be a system like buying pullbacks is not a system okay and I think people think it is and it isn't and the thing is that every time you take a trade you're never making and creating as something when you make money it's not like you're going out and you and you knit a sweater and you're selling the sweater out there on the street in Manhattan no you didn't really make anything there's always one winner and one loser and the winner is taking money from the loser you're taking money from another human being from another person could be the guy next door when you win in a trade so it's always the idea always the idea of being the one that knows what to do that has the niche and that is ahead of the game to predict what's going to happen because you know before it actually does okay I wasn't talking about I was talking about day trading I just started talking here I've been talking for about six minutes so so that's what you're here for an hour for me to talk for one hour to hear what I have to say but I will tell you that I can read long-term trends based on gaps as well again we're going to talk today a little bit of an options but even the options that I do are short-term and the day trades we're going to talk about too but you can short and for long term as well there are many many many many many many stocks that you could have shorted at the hit of 2020 when COVID hit in March of 2020 that you could still be short there's lots of them Boeing is actually one of them and that reports actually in a few days the cruise lines other airlines too I could go on and on so you can short stocks for long term if you want to that are against the overall market and I look at that what I'm facing that is I'm looking at the overall trend as well but that is something that where you would invest your money for the long term that is not something that's going to offer you cash flow day trading actively or doing options in and out of options actively gives you cash flow where you are having money I call it chunky do that where you're pulling a thousand dollars two thousand dollars five thousand dollars whatever you're pulling out of the market each and every week and that is something that is advantageous again because you don't have to wait for the trade to move and you don't have to suffer through the swings of something and that's what's happening right now in the market since the beginning of this year 2022 people are long stocks and they're suffering through the swings and the wiggles and the jiggles of the volatility but you need a good system you need a good system to succeed and not only that you have to follow it daily so what do I do by focus as I was saying is gaps that's all I do every single trade and make a decision that I take is based on that and again my niche is shorting but I'm looking at the gap so I look at a chart I'm gonna go over some charts here in a little bit I look at a chart and I will rate the gap and I determine if the stock is gonna move higher or lower and how I'm gonna take it on the debt I prefer to short I created my system in a in a bullish market actually I created my system back in 2008 it took me about three years to figure it out and the market was very bullish then so all of these years that I've been trading for 14 years going on 15 I've been focusing on shorts and we've been in very bullish market times in fact if you bought the market after the election presidential election 2016 we've had such a tremendous move since then it's hard to believe and even with the sell-off we've had this year it doesn't even compare to where the market's gone from 2016 now we're coming up to the midterm elections at the end of 2022 and then of course another presidential election in 2024 it'll be interesting to see where the market goes from there because we're in very different times right now for many many reasons but again if you're someone that's wants to actively trade or put your money at work for you you have to think about what's happening right now today this second this minute between now and four o'clock when the market closes okay so I focus on one thing gap so what is it gap a gap is a difference in the close in the open that's it simple how many things happen every day almost everything gaps it's very very rare that something would close at 3201 at four o'clock Eastern time and open the next day at 3201 while that does sometimes happens it's very rare okay so most everything has a gap it's about finding the right gap or what I call a good gap something that's predictable that I can predict the next direction that it's going to go but really stocks gap most every single day including the market but not every gap is what I said a good gap or what I called a coin to term I called it my system the golden gap I'm looking for gaps that are predictable so you could take it in the direction that it's going how do I do that I use my rating system now let's take a look here at the market this is again a chart of the QQQ just going back the last month we were talking about when I was on on TV and I was talking through the rally well here was the rally hard to believe where we are right now compared to where we were just a month ago so here was a rally up we dropped off here since the beginning of the year back down here March 14th was a low rallied up and this took us into the end of March wiggle and jiggled wiggle and jiggled and then we fell and then of course we had a big sell-off into the last day which was Friday actually I'll have the Friday bar in here I look for gaps based on earnings based on news based on sector based on the market stocks gap for many reasons earnings season particularly though is what I'm saying is a good time to trade because you get a lot of gaps so you might get up in the morning and you might have two or three good gaps on a non earnings day you might get up an earnings season of 30 okay you see the difference so again you can trade as many things as you want to train you can do as many trades as you want I prefer to look at one thing one pick a day and then I trade it with size and I think it makes it a lot easier to focus on that too because you only need one trade a day in order to make money again what is your job you have one job make money that's it okay it's whole the idea about going you know and trading all day from 9 30 to 4 o'clock eastern time you can get crazy doing that you can get money back in the afternoon doing that it's the whole idea again you have one job to make money if it goes a thousand dollars a day once you hit it boom you're done it's very rare that the market will power trend all day long or your stock now while that happened on Friday like I discussed and actually happened the day before too we started out rallying in the morning on Thursday and then dropped on Thursday Friday we just were you know negative a whole day but the fact is that that's rare that you'll be able to get in something to be in it all day from 9 30 to 4 the idea is to get a quick move in and out if you are in something and again it's based on the gap and it's also based on momentum now here was another really good chart here and this is back from the beginning of the year January this had earnings just the other day April 20th this is Netflix here it was a day before so let's go over what is a gap like I said a gap is a difference between the clothes in the open this is a daily chart boom this is right up here before the earnings Netflix closed at 4 o'clock Eastern time and then gap down here snow is above right under 250 fell dropped fell fell fell anyways this is a gap again there are big gaps there are small gaps this is a little gap here closed here gap down it's a little baby gap but again this is still a gap to and if you shorten this to what it made money as well now we did this and we're gonna talk about this of this trade later but anyways this is this is just a lot easier I think for people to see when you have such a big gap like this what about this one over here we did this one too this was fresh quarter earnings season for Netflix it was up here at 4 o'clock at what price hard to believe this was just January people look what the stock has done and again this is the power the power of trading momentum in the gap and again that's what I do and this is this was a short again we're shorting anyways this is back here January this wasn't like a hundred years ago that was January the stock price was over 500 look at it now it's lost more than half its value from January to April so within two earnings it's dropped and lost whether 50% of its value and again you can go into the wise and the things and then this and then that it's neither here there for there for me I look at the gap and I'm reading it to determine okay what's gonna happen here today should I short this yes boom it rates good do it you can do it as a short as a day trade short on margin you do it as a put we did we did both same thing over here now it might have flipped okay it might have flipped around it might have gone long okay but it didn't it was a short okay I'm focusing on the daily chart I'm looking at the gap on the daily chart whoever asked that you can I like to take well the gap itself is happening in the post and pre-market that is where I'm making the decisions whoever asked that Ari I don't show that on here because I'd like to take it off when I'm trading on the live day you can keep it on if you want to but that's where the gap is happening that's how it's happening the first place so good question it's happening because after four o'clock or before 9 30 you have trades that are going off you have professional traders institutional traders that are buying and selling stocks and that is what is creating the gap we're gonna talk about that more a little bit this was another one here Facebook again beautiful one talk about shorting I love to short this was up here back at the end of January stock was right over here over 320 boom gap down here this was February then the stock had another tremendously big move down open here fell fell fell again you could have done this as a put or a day trade short and you can see again see the gap all right we also did this this week this had a big sell off this week actually nice trading that this week I think I have this in this webinar but we were talking about what's happening the post and pre-market guess what again selling selling selling and buying but these ones here we're talking about in Netflix and Facebook we're selling so I'm looking for the footboards of institutional money when I make a decision what I'm doing with a stock or a gap if I'm gonna go longer short it I'm looking for big big money to come in I'm looking for big buying or big selling that's how I'm making the decision whether or not I want to go longer short and again I do prefer to short but I'm following the footprints of institutional money because that's what drives stocks that's what drives the market it's big money and momentum okay and then the momentum is created by big money and momentum is how you make money as one individual trader in the market okay if you are scouting like five pennies ten pennies eight pennies you know it you have to take a tremendous amount of size fifty thousand shares or something ridiculous and it just doesn't make any sense and that's too risky to trade like that and we don't trade low float stocks everything that we trade you've heard of these companies you know what they do they have huge volume Facebook Apple Netflix zoom all of the things we trade have volume and we're looking for momentum we're looking from loose okay I don't know what you're talking about about a green bar there are gap-ups and gap-downs today we're talking about gap-downs the node getting back to momentum if you have a thousand shares of the stock save a thousand shares of the stock and you short it and it drops a dollar boom say you short a stock at 230 and it drops to 229 how much you're gonna make if you a thousand shares a thousand dollars if you have a thousand shares of a stock and you short it and it drops ten cents how much will you make a hundred bucks that's not much that's not much so again it's the idea of trying to find stocks are gonna have a big move a big move we want momentum so would you rather make a hundred bucks or a thousand obviously a thousand again this goes back to the idea where I said the focus so you don't have to take ten trades to make a thousand dollars or five trades then making two dollars of trade it's the idea they could do one trade and you get it very precisely which size and you're in and you're out so the key today trading stock successfully is using a system but I think that this is true at anything that you do even swing trading a long-term trading either way you have to have a successful system that you apply your your you have the information you're applying it and you're using it and again this doesn't mean you never have any trades that lose there will be trades that lose I take trades that lose I showed you the stats at the beginning we have some losers but we have way more winners and losers and that's how you get ahead and that's how you can be successful to do this whether you want to do it part-time or whether you want to do it full-time is your career like someone like me that's up to you I have people that are trading with me and doing options that are doing all kinds of things and they're not full-time trading at all I have one guy it's just a great story because he's a truck driver he's literally delivering packages and doing the option straights and he does it he makes it work so there's people doing all kinds of careers and all kinds of things that want to make money in the market and right now because we're in this time a period of high inflation and it's not going away it is not going away it's probably going to get worse before it gets better high inflation rising interest rates everyone is looking for a way to make extra money and you've got to take it upon yourself to do that and if you're the type of personality where you're an independent person and you have an entrepreneurial spirit then active trading is something that you might want to think about and if you're here and you're already doing that you probably already have those types of feelings where you want to be independent you don't want to rely on a boss and you want to work for yourself but for me every day I get up and I use my system so number one you have to trade a system that sets up with a high level of predictability in the directional move again I never go long and short the same thing then I will trade a system that works independently in the market and does not in the market with it to work I just told you I created my system in a bullish market so I don't even bearish market in order for my system to work to short stocks but what will happen if we go into bearish market and I am not predicting that I am not predicting that at all it's a possibility of course but the reality is that then there'll be a lot of things a lot of things to do even outside of the normal earnings season which again will be a very fruitful time for us to trade so let's talk again here about what is a gap this is the daily chart going back basically a year here February to February 21 to 2022 you can see all the gaps in the market again let's just look at some of them here this was back in September this is the cues we were running up like I said very bullish last year ran up made a new high close to your gap down boom again what is it gap it's a difference between the close and the open so we closed your gap down this was a short boom here's another one over here close to your gap down fell boom fell fell fell could have done that as a day trade could have done that as a swing trade could have done that as a put a put is a short okay let's look at some gap ups just to talk about it here was a gap up close to your gap dot rallying you could have gone long here or done causes options took the market to new highs this was in October feels it a long time ago and then we rallied up here made a new high the last new high we made was the week of Thanksgiving and the overall QQQ so despite did make a new high at the first week of the year we have not made a new high in the markets and said this is the longest longest we've gone without making new highs in the market since I can't even remember when and so it's very interesting like again we're in interesting times and for the people that are actively trading that do not know how to short you're missing out you're really missing out again let's take a look at it what is the gap close to your gap down fell boom here's another one here close to your gap down fell boom here's another one here this is a gap close to your gap down fell this was money if you were short before it flipped okay I just look at the chat charts everything I do is based on the gap and the gap in the chart so it's all price action that I'm seeing live in the chart the chart data which is in live time so success or failure has everything to do with the quality of your system so how can you become successful day trading you need to have a system and a strategy that you can use consistently in a regular basis and I also think it's important to have a niche I really really do some of the things that I do that I have a niche in is shorting in gaps I don't do anything else but also I'm very very good at reading the first half hour of the day in the market on a one-minute chart so I'm making decisions very fast very quick my brain works very quickly so if you decide in you come and you want to trade with me I'm calling the trades live in the room and basically I'm shouting it out as it's happening sometimes we get a trade and they happen in five minutes and you could be in and out and we were talking about dollar moves sometimes you can make a three dollar move in five minutes and then your goal is in for the day or you surpassed your goal for the day and you're done I would rather be in fast trades and in and out in five ten fifteen minutes and being trades for six and a half hours your brain gets tired the longer is staring at a computer it's better if you can be in and out of things fast so I like to do things fast but again the philosophy the basis of everything that I'm doing is based off of institutional money big big traders hedge funds banks that are in the market is one of the reasons why my bias for the market has been that we would drop and not continue higher is because I don't see the institutional money buying the market it's not coming in it's not buying the market up it's not supporting it that's one of the reasons we have not been going long view of wrong market okay this was another one we did this was the 21st to continue the 22nd this was an earnings this was a a this again is a gap again this big fat red bar here so again we got in and out this actually ended up continuing way past where we get out of it it fell all day this was a nice trade take it up to the lap this was a 20th she were this closed closed up here well above 85 boom gap down in the morning here snug as a bug right at 80 fell all day again I got in and out of this fast in the morning but you could have been in this to the close I don't like to trade all day but that was a nice short again shorting selling this fell okay that was Thursday then it continued here on Friday so again how can you make money shorting you make money when the stock price drops that's what happened here so this stock a a boom fell it dropped if you were long you would have lost money you have to be short to make money again who can short anyone can short as long as you have an account to set up to short and again you can buy puts which is an option which is basically shorting all right so retail traders and professional traders both can short and again this is very advantageous you need to know how to short if you want to be successful in all market conditions but particularly in this market so I was talking about options now what's the benefit of doing options well people love options because you can open up an options account a retail broker with as little as $2,000 so you do not need to have as much money as you would need necessarily to trade on margin and you only have to pay the cost of the option for example if the option cost a dollar you will pay a dollar you can't lose any more than that dollar say by one contract to cost $100 you can't lose any more than that and so very often the price of the stock will be dependent on exactly as far as what the price of the option is in other words an option in Amazon may cost you $50 for one which is $5,000 but that's still a heck of a lot cheaper and shorting Amazon for example at $3,000 a share so people like to do options because it's cheaper and you can trade them with less money and you have a fixed risk and you can also trade options overnight okay so the whole idea is that again options is another way for you to do it if you don't have a margin account and the market the overall market I say the market when talking about the QQQs here today I also trade the spy and the diamonds but I we're talking about the Qs here today this particularly has had many setups from many options in it since the beginning of this year to do uh somebody's asking something you identify the gap after the fact yes I'm not predicting what the earnings are going to be on Apple okay so I you know Apple has earnings as well I just talked about BA it's the 28th I don't know if BA is gonna gap up or gap down no I'm not predicting the gap I'm not privy to that information no I wait for the gap after I see the gap and I rate it to determine if I'm going to short it or go long it okay does that make sense so again you have to wait for the gap to happen my rating system helps me determine what I'm going to do with it after I see it I'm not predicting where it's gonna go I mean sometimes I have an intuition where I'm in a trade I'm up at a trade and I decide to hold a trade because I think it's going to continue and gap down again or gap up again but that has nothing to do with the system the system is you wait until it gaps like this Netflix here and to be honest with you I was surprised that this had this type of move was it a second time around I mean again we did this one this fell out of the sky another fall out of the sky one here so again you wait you wait this could have gone against you could have gone up to 500 I rate the gap to determine here to treat it on the live day do I want to short it or is it gonna flip okay hopefully that makes sense and answers that question we were talking about the market we were talking about options okay so let's talk about options a little bit I have an options newsletter you get the trade it's emailed to you always talk about the truck driver you get it you take it you you this is just a newsletter you do the trade so I called in Tuesday April 5th and we'll go back to the market chart and a minute I'll show you the gap the 363 strikes and the queues that expired that Friday so again you're in your out you're in your out a putt is a short okay let's look at four or five four or five was here okay so market close to your gap down again we're on the QQQ is daily 363 you see where it fell boom closed here gap down get the drop boom boom boom and again this is momentum that is a move it was a huge move why because I called the trade fell that day then it follows through and continued in a gap down the next day as well this is very reasonably priced 250 for one if you bought 30 contracts and advanced trader risk of 7500 you would have sold it at 1250 profit was $30,000 on a $7500 risk if you took three and we're $750 you still could have made a 400% risk I'm gonna go back to the chart a minute but this is just one trade okay and again for an options account you can you take the position the position is you the max that you can take you can't lose any more than that so this trade would have gone bust you would have lost the whole amount and if it works then you let it right out options as you know we're tied into what direction and timing and again we're talking about momentum gotta get the direction right and options but you got to get the direction right in every trade that you take but again the momentum came here so nicely so nicely so here was the fifth of April it dropped boom close to your gap down boom you see this move and again this is one I do not think people should hold options to the last day if they're up in them if you're down that's one thing but you would have made more money in this like I don't know what it was worth that last day it was over 400% the last day even it continued to fall in the last day and again I'm not saying you should hold the last day but this is one that you actually could have okay well again these are the met the the meta stock charts you can see the gap here how do you use the charts you seen the gap I this is what I'm doing you come and learn my class and learn how to raise the gap to determine to short the cues here and here as far as the charts they are the the resources that help you to be able to see that you will need charts in order to see the gap at all okay so that's how you would utilize it Jeff can talk about that more when we're done JPM then we did this here again this was earnings doesn't look like much but it was a nice trade this was a day train stock close here gap down boom again closed up here that I before around 131 and changed open in the morning down here was around 127 ish or something and again we shorted this doesn't look like much but we got in and out quick so the entry was 127 99 this is a day trade which you would be margin to take the train and if you don't know what a margin account is you can ask me or email me later or or Google it 4500 shares was the risk of 2745 exit at 126 80 again we're talking about momentum so this is a little bit more than a buck a dollar dollar 20 in and out you flap on the size and you take it and you're out profit was five thousand three hundred fifty five dollars here's the one minute again I can use the charts to take the trade so again here's a one-minute chart rally boom short it get the drop in out done and sometimes it's just like that you might be in something for three minutes two minutes four minutes five minutes that's it again this is not long-term investing when we're day trading we're trying to make money every day every day okay now we did talk about Netflix this was a beautiful one April 20th okay here was the daily here was the trade that we did so this is again an advanced trader risk you can you could take a hundred shares okay you take what you can afford these are squished together pretty small but this is a one-minute chart we entered it here 245 05 got the drop boom we were out at 234 55 and this kept going this actually continued down again I like to do the fast trades and this was basically more than a $10 move a huge trade huge returning investment huge risk rewards 6300 profit doubled your money with what you risked but it kept going so we got out to do 34 and change in the morning really fast here look where it went this is crazy and again I called an option in this too so I think if you want to hold stuff maybe you do the options but in this case here you could have held the day trade down way past where I got out of it and and look where it went I think it was at 215 or something that low so this again shows you go back to the daily the power of the gap and getting the direction right because you got to get the direction right someone's talking about gaps and this and that and gap fills gap fills do not work consistently while sometimes something goes against it it doesn't consistently do it anything sometimes something works do you understand what I'm saying it's not the idea about any time it's the idea about high high high times high number of times that something's gonna work in your favor calculated risk that you're determining this is a high win ratio and and that's where I think people are having difficulty in 2022 because in 2021 like I said people were buying every dip in the market and it worked but that is not something that you can use forever even in a bullish market even a bullish market okay why because there's a million supports in the market they're not all gonna hold even in an uptrend Verizon we just did on Friday again take a look at the chart the daily chart this is a gap again loved a short we shorted good at it in and out of this quick too but it kept going stuck closed up here around 55 boom gap down in the morning here was around 53 and change we did a trade we got in and out in and out but this kept going to why it had the market in its favor the market fell Friday as well and we didn't do an option this but she could have done an option this too so we entered this short and again I call the trades live in the room 5305 shares was 4,000 risk was 3,000 your wish should be the same and almost every trade you take so if you're gonna risk 2,000 it's 2,000 2,000 2,000 or if it's a thousand whatever your wish should be similar in the day trades rolling ever in one thing at a time usually sometimes too but that's so rare exit the 52 37 boom in out again you're trying to turn it over once if you risk 3,000 this is close enough close enough but again this kept going so we got in it kept the drop boom out and then it continued I mean it broke 52 it went down to 51 60 or something I don't know so I mean we literally could have made almost another dollar out of this which was crazy I never go back and look at something to say I wish I could have made more and I should have made more or anything be happy and grateful when you make money now getting back to shorting shorting shorting shorting that's a topic today and gaps short moves happen fast why again I personally like the fact that it happens fast if someone said you can make $2,000 in three hours or $2,000 in three minutes what would you prefer I'd rather make $2,000 in three minutes and have the rest of the day to myself to do whatever I want so I mean I like the fast moves it shoots me but why does it happen how can you do it because of panic selling happens because of panic panic is fear the fear creates the selling okay so people are scared and they sell sometimes they sell when they're down sometimes they sell when they're up but they're not up as much as they were before okay or specifically before when the mark was up at the highs or things were up more so it's the idea of panic and that is why it happens so quickly too now how do I make the picks I go through in the morning and I rate my gaps who's in a checklist if you come and decide you want to learn from me this is what you'll learn this is a meat potatoes of what I do it's a 26 point rating system that tells me that I'm gonna do Netflix or not do Netflix or that I'm gonna short it okay but it's really the niche of the following the institutional money gaps are created with large institutional money that's what makes the gap in the first place the professional gaps that happen and play out in stocks are formed by one thing and one thing only large institutional money that's what drives the market that's how I've read the market so well to even say on live TV that I know the market slower which is very I mean that's you know it takes touch but to do that and I said it I said it right there I said it when we were rallying I said it because I saw that the institutional money wasn't buying the market anyways you need a way that will help you pick the correct direction to play the gap and then confirm it the large money will flow with it so you have to look at something and say I'm predicting at nine o'clock in the morning eight three in the morning eight a.m. whenever you get up whenever you're seeing the pre-market whenever you're seeing the data whenever you're seeing the gap you're rating it then you know all ahead of time what you're gonna do I don't train until the open I may send options trades out at 7 a.m. in the morning okay like I didn't know if this was gonna work when I get up that day but the fact is we don't take the trades until after the open but my whole system is really based on common sense because we're looking for institutional money and again think about it the common sense and reference to the idea of shorting again I don't know why people are scared to short that are retail traders mainly because they understand they're say okay buy low sell high people get that you got to get the concept of shorting and if you don't that's another reason to come and learn from me but shorting it gives me a niche people get scared they get scared they get scared and they sell okay and that's how you're gonna take advantage of that opportunity and that's what you're gonna do and again a put if you do an option a put is basically just a short all right but some people like to day-train some people like to do options one of the pros of options like I said is you do not need as large of an account as you will for day and trading and you can hold overnight to get the overnight moves so for example if the market gaps down on Monday morning and you were in puts that I called on Friday which I did call puts Friday you will be up way more than you were at four o'clock Friday so that is the advantage the overnight move and you have the insurance is that you have the protection of the risk in that the risk itself isn't any more than you took that you paid so if you paid $2.50 for an option and you bought one contract if the if the market would be if you were to put for example if you took a put on Friday and you were up in the closing you didn't get out and you're like I think I'm gonna hold this I know it's lower and then it goes against you you can't lose any more than $250 if you tip one if we're up at the highs you can't lose any more than 250 so that's a difference between swing trading and doing options but you got to get timing right with options timing is so important with options but again time is important with everything too because when you're in a day trade you have to get out of it before four o'clock okay I don't use a scanner I don't use a scanner if you if you want to use a scanner you can use a scanner yourself okay so overnight moves so we sort of talked about this one before we did talk about this one before so this was a nice trade why because it followed through in the gap again I called the trade on this day close to your gap down called it trade was up I thought it would drop and continue I was right but thinking isn't knowing the system told me that this was a good trade to take on this particular day whether you hold it a day or two or three that's up to you you have to have certain mat money management principles when you're doing something for example if you want to take four contracts get out of two into the first drop hold the other two there's another idea show again but one of the reasons that trading options as gap is advantageous is you can capture the overnight moves and again you have the fixed risk it's not like a swing train because swing trades is something where you don't have a fixed risk something can go against you say you were short and again it will be all the way up here over the highs you be you essentially are down an unlimited amount of money depends on your size in your position okay so this is a nice way to do it but you got to get the timing right and we do the weeklies now what can you expect to earn as far as trades one-to-one and I think that even if you take an option 50% return investment is good but if I'm taking a day trade I'm looking for one if I'm taking an option I'm trying to get one out of that two or a hundred percent some trades go more but I think 50% is normal and if you can't watch a trade after you buy an option put it a sell order immediately at 50% it's a day order it's a limit order it'll cancel out if it doesn't fill by the end of the day and you can get up the next day you'll still be in the train it may be up more or you just put a seller again at 50% okay so how do you make good choices this is critical you have to find quality trades and I think that that with the evolution of Reddit and all the chat rooms out there I think people why they love to come Rotary and there's come Rotary and coming to these these types of lectures like of these all-day lectures to the fact is that you've got to find quality trades when you're taking ideas from strangers and you don't understand their system or what they're doing how can you have any conviction behind it and you're still risking your own money you have to understand what you're doing you got to take it seriously if you wanted if you want to do well it's the idea really really understand what's happening so that you can make good choices making good choices it's important and I know that people when they're training for a while and they're losing money what happens is it gets away from them and they start to make worse choices and then they spiral out of control don't do that to yourself be honest with yourself and say I have not been making good choices I'm going to do better starting Monday and I'm going to make better choices and it really is about common sense good money management don't ever train don't be picky about targets know what you're doing have a system all the same things that that you've heard in many times before and things that you know that you know you've been training for more than a year you know these things but you may not follow them all the time and and again a lot of it is because people are chasing the money the money is your goal but you still have to know why you're doing something okay and money management is important I discussed having the same risk on every trade and also using stops is important too in the live trading room I'll call the stop I call the entry in the stop okay you gotta put the stop in otherwise something can go against you you know you don't even know where it can go against you okay I buy or sell the put that's it and again I'm using my gap rating system to do the option it's very simple we're looking for momentum in the options if I'm buying a put I think it's going to drop big time if I'm buying a call I think it's going to rally big time same thing okay we we were going long CVX a lot at Chevron it's an oil stock I haven't I haven't looked at that actually for the last couple of days but we did a bunch of trades in that for calls and that's been working this year too why oil's been running up again I'm not in anything with that right now but that's what we've done recently as far as the call side any other questions here so again you have to win more than you lose training is about it's put the odds in your favor how do you do that use a system take calculated risk have a niche get good at what you do when you're doing all kinds of things you're doing crypto and this thing in futures and day trades and options you're never going to get good at anything if you're all over the place get good at one thing you size add size to it and that's all you need that's all you need you can make a lifelong career out of doing one thing trust me I've done it and now I'm teaching people how to do it so you don't need to be all over the place you're never going to get good at one thing if you're all over the place and again we don't really scout if I'm if I'm desperate for a trade and we don't have anything good I might scout something for 25 cents but I'm trying to make a buck I'm trying to make more than that ideally but you need an edge in order to get a good return investment risk to award and that's my goal every morning in the pre-market I'm trying to figure it out and the edge I have is focusing on gaps and then really the downside so I rate the gaps in the morning and I'm making the prediction before the move occurs I'm talking about on the live day not the gap itself I'm rating the gaps so the gaps are ready there for me to see it okay if you know what direction and where stuff will go before it goes there that's how you're going to make a lot of money so again we shorted the market before the market in the morning at 9 a.m on Friday morning I said we're going to fall today it's crazy people are going along this but we're going to fall we're going to fall all day 100 conviction a thousand percent conviction no chance of failure that's exactly what we did that is just pure talent on my part to be able to make a prediction like that before the market falls like it did all day and I made that prediction at 9 a.m before the market opened before we took a trade the reality is that comes from experience experience that I know how to read price action in the gap of doing this now for almost 15 years when you have experience to do something you can be aggressive you can get in in the first five minutes of the day which we very often do and sometimes get in and out in 10 minutes now as far as options again I'm holding them for longer but again experience understanding how to do something really goes a long way and then when the market rallies like it does like it did at the end of March if you happen to be in shorts or for example you want to lose conviction or kill trades if it rallied against you we are going to go over a facebook here I called this trade this was just this week it was an option it went against it it was down it rally there were some people that were on the options letter they haven't done my class yet they killed the trade with a loss that was crazy I tell people not to do it and that's why you shouldn't risk more thinking before to lose it went not only did it go it went huge I thought this was a good exit here it kept going and going and going again can't be piggy about stuff this was a huge trade right in here but the trade first was down then it went having conviction which comes from experience and knowing a system and believing in the system helps you make money it helps you make a lot of money and it helps you from not making mistakes here was the trade I called the 205s on the 18th again this little tiny tiny tiny tiny bar but the trade didn't go right it was in fact it was down and the market rallying here too then it went boom and that was there on the 20th class was 225 40 contracts risk as an advanced trader risk of 9 000 sold at 850 that was that was the first day at bell I don't even know what this was the last day it was probably something stupid like 700% return in investment or whatever it it went to 190 it broke 190 it broke 185 you could have held it all day on Friday it was crazy I don't know what the low of the day and this was Friday and this is again I don't sell people to hold trades the last day necessarily if they're up a lot which you were in this this is an exit on that first selling move on the drop in the momentum and it kept going and going and going and going this was a sick call but again some people messed it up because they they get scared don't get scared take your risk accordingly so you don't have to be scared if taking one contract means you're going to make money and hold the trade through do it rather than taking five or 10 or outside of your risk parameters so if you did a beginner trader risk of five 11 25 you would have made 31 25 again this is a 278% return in investment with an exit this first drop day but it kept going here and the way I don't have the last day here it was a ridiculous trade it was a great call but I want to point out again how having an understanding of a system and following the system a good money management would you kept you in the trade you take more risk you can afford when the trade goes against you get scared and then you'll kill it and then you not only take the loss you miss out on the money when the train goes your goal is to make money not to not to not lose and I think that many people that are trading for a long time when they're losing for years and years and years they're they're in the mode of trying to not lose you know I get up every morning to my goals make money you know while I size myself accordingly and I use stops I'm not like my goal isn't to not lose my goal is to make money if you see yourself you as your goal is to not lose your head is upside down upside down and you have to straighten it out because all your focus on that is losing losing losing losing losing losing you understand um let me see what the question was let's say there's only one kind of gap in my opinion I know you can you can name and term a lot of other things to me there's only one type of gap I think somebody's asking something about meta stock Jeff Jeff's there okay so again question oh go ahead how to rate them for continuation so you know like it would be fairly easy to do a scan for a gap in meta stock I think really kind of what it comes down to is how you want to rank them I think that's really kind of where the class comes in so finding gaps is easy but standing for them is actually pretty easy such as well so Mike if you need any help with that in the meta stock side we'd be happy to help you put together a quick gap scan that's all the input I have so yeah so so so Jeff can help you find them and then you would come to me to learn how to rate them I think that answers the question yep that's exactly what I was trying to say but you said it's so much better than I did thank you so anyways correct trade selection is very important I think it's important on any type of market bullish or bearish but we are in a volatile market this year 2020 I don't think anyone would deny that now at this point and so knowing that knowing that you really have to be super duper picking and I'm not saying 100% this I'm not going to make a prediction 100% this but I realized a couple of days ago and I talked about in the trading room there is a possibility there is a possibility that the market does not make a new high at all this year in 2022 in the queues that's a distinct possibility if we do we're looking into the late summer early fall type of part part of the year and that's going to be really difficult for people while we could Apple could gap up and have fabulous earnings and Amazon and Google and Facebook and everything else it doesn't report in and we could blow it out of the water and rally up in the next two weeks that couldn't happen that's why I'm not saying 100% but I'm saying I realized a couple days ago that man there is a possibility we're so far off the highs right now that we don't get there for months or at all this year the backdrop of what's happening overseas and everything else that's happening with inflation and rising interest rates coupled with bad earnings and the financials and some other things too means it's going to be a struggle for the market to get back up to the highs a struggle and again I'm not saying 100% prediction but I have a feeling that that's a possibility and that's going to make it for very difficult trading for individual traders like you people here if you don't know how to short you're going to have a hard time finding good opportunities to the long sign on a lot of days so you need to understand that and you need to learn how to short if you don't know how to short and you should not feel comfortable doing it it's just a function of learning how to do it just like you learn how to do how to go long in the first place but everything for me is reading the gap I'd go through the checklist in the morning the points tell me where the money is flowing whether in or out okay and it matters so that you know what direction to take a position to profit so again what do you need to make trading work number one a strategy for me it's called golden gaps I do it every single day okay number two you need a rule a daily system to follow the rules for the picks you can't just take whatever all the time you can't short every gap down you can't go long every gap up and you can't do the reverse okay and you can't deviate from it you have to have a set of rules you have to follow those rules and then you need a method and a structure to enter the picks so if I write something like I said at 8 a.m. and I know I want to do it where am I getting in where am I getting out all of these things this is what I teach in the class but you have to have a structure for that too and again letting things play out which means not risking too much so you need monetary goals this is number four day per week per year I say chunk it out sometimes I talk to people they say well what do you think about this this much money they count I said listen what's your goal break it down you know one guy was talking to he will be happy with 500 dollars a week it's very realistic you know I'm sure he's making more than that now but the point is just break it down for yourself sometimes people like oh you know if they've lost money the last five years trading the idea of making even 100 grand a year seems completely insane to them it's like a million so you know just break it down you say I want to make $2,500 a week $500 a day whatever it is okay you will get there if you follow some type of structure you need to follow a structure but it's really the reliability of the system and sticking with one thing and not deviating from it it's about calculated risk like I said if you want to take risks for Rick's sake then you're just gambling trading is not gambling and you should not think of it that way and again trading has to be something you take seriously if you want to be successful and I would think that you would want to be successful otherwise what's the point of doing it if you just want to gamble then go to Lennon City have a good time go out stay out late go to Las Vegas this is about something you should take serious like a business no why you don't have to trade all day for six and a half hours like a normal job for the 30 minutes you're trading if you're sitting at your desk for 30 minutes you better be on point have your coffee have your breakfast be focused on what's going on and have some clear decisions in your head where you're getting in where are you getting out and how much are you risking and again how much you're risking really has to do with the size of your account if you have questions about that you can always ask me but I say start out slow start out slow as a beginner you have all the time in the world to build it up if you're doing well and again we were talking about confidence too and conviction if once you build your confidence that you can actually do it you will risk more over time because you will have the confidence and I think some people are so inconsistent with their trading with what they're doing that they lack the confidence and confidence is extremely extremely important uh you can trade ETFs like I said we trade the market we trade the market so the QQQ is an ETF for the market and we do the spy and we do we do other ETFs too so yes ETFs too yeah as far as options you we're not again we're not trying to save pennies someone's looking at the difference of the bit in the ass we're not looking to try to make pennies or save pennies um we're trying to make dollars so if you pay 25 cents more for something or 30 cents more for something if it goes two dollars who cares everybody's going to pay an exact price it's slightly different some people pay a little bit more some people pay a little bit less some people take it right out of the gate some people wait till 945 it's it shouldn't matter if the trade's going to work but no it's going to work if the trade's going to lose it's going to lose the way that I call them that's how it is because hopefully that makes sense but again I teach a class on this once a month if you want to come and learn my system you'll learn more in detail what we talked about today which is really the point structure how to take the trades how to get in how to get out and again the whole idea is for you to make money but it's a 26 point checklist that measures gaps are rated in the daily chart looks for high probability directional bias for the entire day big move in the day early confirmation of the bias precise entries with follow through and a good risk to reward this is the meat potatoes what I do and again this is the whole day of the Saturday of my class one system is all you need to make money and you will learn it in the checklist so the class is next weekend April 30th at the May 1st 9 to 5 tuition is 69.99 everyone pays the same that's the price of the class it's online if you're interested you email me at melissathestockswish.com if you want to sign up and I am doing an earning season special because it's a busy time to trade right now if you sign up by Thursday it's a deadline to sign it for the class anyways the 28th again it's Saturday and Sunday Eastern time then you would receive a trading room free to the end of 2022 and the after his newsletter that's a huge deal I'm doing that for an earnings season special for this week I had a girl that signed up Thursday for the class was in the room Friday we did Verizon she made money she didn't even do the class yet so she's thrilled to bits and pieces so again if you want to join you can get in and start trading this week there's a lot of stuff out this week it's a busy time to trade I think giving people the opportunity options and the equity trains of the room helps them decide which one they like best or both I like both I like both because I'm not day trading Amazon but I'll do options in it and then I also get the overnight moves in the market which I like as well um I think that's everything then out I've seen you at a million webinars I hope one day you join thank you so much for having me Jeff thank you everyone you're welcome we did have one question from YouTube if I can ask go ahead Jay wants to know will we learn how to do everything by ourselves yes yes you will it's sick the class is 16 hours and we have one hour break each day for lunch so yes you will learn how to do everything with yourself as far as me you get the support by being in the room after the class which I think is good for people to start out but I have people since I've had the business for 10 years that are not in my room that have done the class many people have done the class and they're trading on their own I think the support helps you the room afterwards but you will learn to how to do everything on your own all right thank you very much as always