 Hello, everyone. Welcome. This is Kevin with Online Creator Central. We want to welcome each and every one of you to the presentation today. I'm on another computer today, so I don't have the trumpets and the clapping and the applause, but we do want to thank each and every one of you for your time and your participation here today. Melissa Armol is here with us. We have a ton of people registered for this event. Again, we do want to thank each and every one of you. Sorry, that's my anti-virus checker there. It's now 4.30. Please put your hands together and welcome our host and presenter. Actually, it sounds almost like you're announcing me to go on television. I just realized. Today I'm going to talk about really a strategy that I personally train. I train for a living and I've been trading for a living now for seven years. I do one specific strategy that we're going to talk about. And the topic today is how to make $20,000 a month in 30 minutes using support and resistance. If you have questions after the webinar, you can go to my website at www.thestoxwush.com and you can email me at Melissa at the stockswush.com as well. Also, feel free to go to YouTube. I have tons and tons of videos on YouTube, webinar replays, market calls, and you can also follow me on Twitter, Facebook, LinkedIn, Pinterest, and Skype. And Kathy has my information in there as well if you want to email me after the webinar too. This is a good quote, really good quote for this time in my life. It's by Elita St. James. I actually met her. She lives in New York and she wrote a very interesting book. You can Google her to find out more. This is a quote from her book. It says, no dream is too big. You just have to become the person the dream challenges you to be. And I think a lot of people dream about becoming traders as a full-time job and then they realize that it's challenging and then they want to give up. But the fact is that I did not give up. I did meet the challenge head on and faced it in the market and was able to figure out how to trade, design my own system, and now I successfully trade for a living. The good news is that if you come and learn from me, you don't have to start from scratch the way that I did because you would just learn my system and also you could follow me and take my trades in the live trading room. It's one of these things where you really have to decide what is the reason you're getting into this. Do you want to make the money for your job or do you want this to be part-time income? Either way, the amount of the time of the day that you spend in the trades that I take and the strategy that I do, which I'm going to talk about today, is really not that much time. So there's not that much time that you actually have to invest every day in doing this specifically. So how can you earn up to $20,000 a month in the market? Day trading. Day trading. You can actually do the state trading. And if you break it down, you figure, well, there's four weeks in a month and I'm averaging here. Some of the months are longer than others. And if you break it down, you're looking to make about, you know, $5,000 or so a month, a week. So $5,000 a week comes out to be about $20,000 a month. And the fact is you can make $5,000 really in one good trade. So who is day trading for? Anyone who wants to make fast money, because day trading means you're in and you're out quickly. You're chunking it out. You're doing it for income. You're not doing it to hold it like an investor, like Warren Buffett. Day trading is you're in, you're making the money, you're done, okay? Very, very quickly. And also you're at left's risk the short of the time that you're in a trade in the market, which is one of the reasons that I like to day trade, because I'm not in stuff overnight, okay? Anyone who also wants the opportunity to make a lot of money, because you can make a lot of money day trading, what do I mean by risk to reward? We're going to talk about that later too. And really anyone that wants to work from home, because all you need is a computer and you could trade on a laptop, anywhere in the world, as long as you have an internet connection to access your broker platform to get into the market. I'm really anyone that wants to be their own boss. I'm never going to go back. I'll never work for anyone ever again. And whether I continue teaching in my business or just trade for myself for the rest of my life, I will never work for another person again. And I think once you go down that road and you start to do your own thing in trade, you don't ever want to go back to working for someone else again, because you really set your own hours. So can you make this kind of money in this short of a time frame? We're talking about 30 minutes a day. The answer is yes. Why? I'm looking at a very, very specific time of the day that I want to take the trades and then I'm looking to them to get to a target in the trades, okay? It's really about an edge in your trading. I think this word gets overused. People talk about edge this, edge that. It's really about having something that sets you apart, and it's not just that sets you apart. It sets you apart in that time element. So you've got to have the edge, but part of that means in the timing, okay, if you're day trading. And we'll talk about that in a minute, too. But my strategy, I term the golden guck, really gives me a cutting edge, because it pinpoints every day what I should be watching to trade, and not only that, what time of the day that I'm looking for it to set up, okay? And this is where the edge comes into it as well. You are going to take the strategy and combine this support and resistance, which we're going to talk about, to give you the edge. So learning how to properly read support and resistance will give you an edge in your trading. If you can learn this, you will press the buttons without hesitation when the time is right. And this is a big deal in reference to day trading, because it's all about timing. If you snooze, you lose kind of thing. Like literally some of the trades that I take, I'm in and I'm out within five minutes. One of the ones we're going to talk about, which was last week, which is GMCR. I mean, literally I'm in and out in like five minutes. And so if you miss it, then you're done. Then you don't get it. So you can't miss it. So support and resistance helps you to not miss it, okay? If you want to produce consistent results in the market, you need something to give you an edge in your trading. So again, you're combining. We're combining the strategy with the support and resistance, which we're going to talk about. Having a detailed focus system, which I do, and a strategy like the Golden Gap 26 points gives you an edge. Now I'll talk about that in a minute. The bottom line is all of these things together can help you make money. So it's the combination. The combination that gives you the conviction that allows you to make the money because of the no hesitation that you can make it quickly. Because stocks move fast in the market when they have momentum. Whether there's buying that comes into a stock, and again, I'm going to trade the U.S. market, but whether buying comes in in money, in an influx of money that pushes the stock up, or in the case of shorts, and I prefer to short, because selling action happens very, very quickly, okay? It happens fast to momentum, whether the money's coming in and out of the stock. So you have to have a good eye, and I train people, and I train them in my class to have a good eye to see that support and resistance. And that combined with the strategy is what gives you the conviction to take the trade without the hesitation, and that's where you have the edge. This is where I really have an edge when I train, and this is one of the reasons that people like to be in the live trading room with me every day because I literally have no hesitation when I see something. I just call it, and do it, and we do it. Because if you snooze, you lose. If you hesitate, then you will miss the perfect price, or you will miss a really, really good price, actually. Okay, so let's get into the support and resistance. Support and resistance can be read in many different ways. Like, for example, five different people could line up in a room, and all of them would look at support and resistance differently. Why? Because people think that support and resistance is an easy read. Most people assume that it is not as important as it actually is, okay? Most people do not take a lot of time to focus on the complexities of it. Support and resistance is complex, and there is a sophisticated way to read this. If you can learn how to read support and resistance properly, you will have an edge in your trading if you combine it with an accurate strategy. So, support and resistance alone is not enough. If you aren't using that as a strategy, meaning you're buying support and shorting resistance, I'm sure you're losing, okay? Because that is not enough, and it's not a strategy. Now, this is the one I was talking about here, the GMCR. Okay, this was from last week. GMCR was a gap. Now, the strategy that I do is called golden gaps, okay? That's why I have this up here, the golden gap. Now, this is a one-minute chart. The stock is GMCR. So, you can see here, it gap the night before. So, up here, the clock is in front of it, but it's the close of the business of the day around four o'clock Eastern time, and this is 9.30 a.m. when the stock opens in the morning. So, you are finding the GMCR, which is the strategy, which is the gap, a stock gaps when it just opens at a different price than it closed the day before. That's all really a gap is. But I have a rating system that tells me that GMCR is a good gap to do what? To short, because you have to know if you're gonna go long this or short it. Anyways, the reality is that this was a good gap and it was a short, okay? But you're looking here and combining this strategy, the gap, with the use of support and resistance, which I'm gonna show you in a minute, is actually take the trade without hesitation to do it. Manish can't see the chart. Can everybody else see it? I've been, I'm on the slide here, the Golden Gap GMCR. Can people see it or not? I can reset it quickly. Hold on. There. Can you see it now? Everyone see the chart? I have a one-minute chart of GMCR up. Okay, don't. All right. Anyways, let's go over this. Okay, getting back to the time of the day. The time of the day that I trade is when? Between 9.30 and 10. 9.30 is the open. Here's 10 o'clock. Let's see what happened with this. I like the gap. I wanted to short it. Here's the trade setting up. You short it there. No hesitation. Boom. You're out. And you could have had a little bit longer, but that's it. That's the trade. Literally, that's it. Price of the entry is 53.80. Stop is over 54.20. Risk is 40 cents. And this is actually really good for a stock that's over $50. On 1,800 shares, if you risk 720 bucks, okay, this is an advanced risk, the exit was $1. $1 out. 52.80. Total profit is 1,756. This is for me in this trade. And to be honest with you, I was sick last week and I did this trade. You could have had a little bit more. It actually did have a little bit push of a move to it. And I might have risked a little bit more, but I wasn't feeling good last week, but I did do this trade and I was out in five minutes. It just was perfect. The risk to reward was 2.4. What does that mean? It means that for every dollar you risk in this, you made $2.40. And this is going back to what I was saying about the reason that I love day trading and why you can make a lot of money. Because where would you invest your money or put it anywhere that you could invest in five minutes, five minutes, and make $2.40 on a buck? Nowhere. But the market. This is where the money comes into it. Because how do you make more? Taking more size. Risking more. You can't do that until you know what to do. But I'm telling you that to risk a dollar and make $2.40 in five minutes, you can only do that in trading the market. This is the reason that I love this whole thing. Everything that I do. Here's my P&L from this. Right there. I made that money in five minutes. It really doesn't get any better than this people. Now, what did I say in order to make the money that you have to do? You have to make approximately $5,000 a week. Some weeks you'll make more than that. Some weeks you may make a little bit less. This is an average. But do you see here that in five minutes, if you made this, and I didn't even take my full risk because I was sick, but either way, this is almost $2,000 in one trade. And there's five days in a week. And some days it's actually more than one gap. I usually tend to like to do one gap a day, though, to be honest with you. All right, let's get back to this. Oh, no, here, I want to show you this slide here. Okay, let's talk about the combination. The combination is what? The gap, which is the gap of the GMCR, golden gap. I rate the gap using a 26 point rating system that I know I want to short it. Now, if you look at GMCR, how do we use support and resistance? Okay, hold on. Lewis has a question. What suppose is a huge account balance? Lewis is asking a good, good question. Let's take, for example, I'm just going to use a number. Let's just say $50. If the stock price costs $50, Lewis, and you took 1,000 shares, that would use $50,000 in buying power. That doesn't mean you need $50,000. It means $50,000 in buying power. You use, it's called leverage, okay, with a broker. You don't need the cash price cost, and you don't need a huge account to take that trade. Now, you did need $700 to be able to take the risk, because that's really how much I risk was $700, okay? But if the stock costs $50 a share, this is, Lewis, there's a little bit more to that, but I'm just making it easy, and you took 1,000 shares. Well, let's just say 2,000. You took 2,000 shares. If it costs $50 a share, you would need $100,000 in buying power, but not $100,000 in cash. You get leverage from the broker. Every broker gives you different leverage. Retail places and prop places give you different leverage. You get more leverage in the prop place, but you can trade it either one. So you don't need a huge account balance to take that trade. And if you don't understand it, we can talk about that more at the end, but it is very important actually to understand that. In fact, I was having a conversation with somebody the other week about that, that they thought they had to be rich to trade. No, you don't. No, you don't. There wouldn't be half the people in the market if you had to be rich to trade. I mean, you do realize that. Anyways, we'll talk about that more at the end. Okay, let's get back to here about supporting resistance with the GMCR. I have the actual, okay, this is the one minute chart of the GMCR. This is the gap that was happening live at night. Now I squished it together because I wanted you to see the morning this is on the day. Okay. Now here's it happening at night, the night before. Then we have the morning pre-market of GMCR and then you have the open and it drops. And so I'm in this short in here. Actually, I was out here. It pushed back. Now how do you do this? How do you use it? First of all, you have to rate the gap using my 26 point rating system to know that GMCR is the one to watch and it's a short. Then you are going to use the combination of the support and resistance area to actually take the trade. Now I want to show you something. Support and resistance are areas. Do you see this? Take it across, take it across, take it across. It's an area. Okay. Like you can have exact numbers, but they are area. Support is an area. Resistance is an area. Okay. And in reference to GMCR, the resistance was saying, if I'm in control of the stock, say I'm in control of the stock. Okay. Say I'm a hedge fund and institution, I'm a bank and I'm in control of the stock. I'm in control of it and I am controlling that I am not going to allow the stock to go up. Therefore, I'm going to keep selling or shorting the stock to press on top of it. That is what resistance is. It's a pressure. Okay. It's a pressurized formation. That's really what resistance is. And I'm explaining this in layman's terms. Even if you're not a trader, you can understand this. Why isn't the stock going further up? Because it's getting pushed down. What is making it hold it down is selling action or shorting action. Okay. Now we're talking about shorts. So I'm talking about resistance. But you see it over here to the left. So it's pressurizing the stock. It's pressure on it. You could look at it like this is a ceiling. Because that is what resistance is. It's a ceiling. That if the stock goes over that ceiling, it's going to die. And the stock doesn't want to die. The stock is fine staying here at this price and living. It would rather stay here at 50 some dollars or 54 bucks and be alive than go over 55 20-ish, which was this resistance here and die. So it doesn't want to die. So it says, all right, I'd rather not die today. And I'll just go along my merry way. But this is the resistance. But this isn't the strategy. The strategy is the golden gap in the 26 point rating system that tells you GMCR is a short and you use support and resistance to know how to trade it, to take the trade to make the money with no hesitation to do it. That you can make $1,700 in five minutes. Okay. All right. We have a couple of questions here. Are you trading options? Dame? I don't. I trade equities. You could use options in my method. Some people do. I personally just do the equity. Okay. I've always done that. I just always did that always. Would my technique work on futures or 4X? In reference to 4X, you have to have a gap. There's only one gap a week in 4X because it only closes once a week. In reference to futures, you could if you use the market, ETS. And some people do that, Tim. So let's get on with what I was saying about the strategy. Is support and resistance a strategy? No. Absolutely not. And again, many people don't get this either. I ask people, what do you do? What's your strategy? I talk to people on the phone. They say, well, they buy support on the 20% moving average on a daily chart or whatever. That's not a strategy. And that's why it doesn't work. If it did, we'd all just all do it. We just buy every support area in short of a resistance area. And you can't do that. This is not a reason to trade a stock symbol on the day. You are not shorting GMCR and the one minute chart to make $1,700 in five minutes because it held resistance. That's not the reason you're doing it. The gap is, because the gap rates 26 points on the chart. And so therefore you're doing it. But you're using the support and resistance and combining that. So you have no hesitation. So you take the trade so you can make this money in five minutes. It's the culmination. This is where you're getting the edge. An edge is something that is in black and white. I've talked about this before. And I want to go too far off the tangent here. If we have time, we'll do it at the end here. Let me write that down. And then also the other question about the leverage. It's not black and white. An edge is not, oh, I'm going to do this and I'm going to have an edge. An edge is a culmination. That's what a system is. This is why I'm a good trader. I have a system. I have this thing and this thing and this thing and this thing. You take it all together. You don't get it wrong that often. Like I don't get it wrong that often. I have never traded better than I have this year. And why? Experience and combining everything. Everything together. Like more and more and more and more and more and more to just go in and do it without any hesitation. And the longer you trade and the longer you make money actually then you just don't have fear. And I find that a lot of people even though they want to do it they lack the conviction. And if you don't have conviction in what you are doing to know that this resistance will hold or this support will hold or this is definitely a short and I'm shorting this and this is not long today. It is a short and this is the target that people hesitate. Then they miss it or they question themselves or they flip it and they go short and they flip it and then all of a sudden they've done 25 different things and they're down and then one of them obviously worked because every day I've stocked a something of some kind of thing. Whether it's up or down but you have to get it right at that specific point to take it and get out. So I'm looking to get in the edge is getting in to grab that puppy in that five minutes to get that move to know that that's the place to get it and get out. And that's all you're doing as a day trader. You're just chunking it out and say Thursday, Friday. You are not holding it forever or all day long. Can you sometimes get bigger moves on second entries? Yes. I'll talk about one trade in here you could have done a second time. We made a lot more in the afternoon. I typically trade the morning though. Okay. Now why getting back to this is supportive distance on a strategy. You've heard people do this. Are they incorrect? Does it not work? Why not? It does not work. I know this place is out there to teach this but it doesn't work. I'm just telling you it doesn't work. There are about one bazillion support levels and resistance levels in even one stock. Now I didn't pull up GMCR to show you every single one but I could point out 25 just in that one minute chart. Okay, let's just go back to this here. Here's one resistance level. This went over it on the day. Here's another resistance level. Here's support level. Here's another support level. Here's another support level. Again, do you see? So it's not black and white. This is where you get an accommodation of the strategy with the support and resistance area because it's not just buying support or shorting resistance as the strategy. It doesn't work because there's too many support and resistance areas combined in any given chart on any given day. Whether you look at the one minute, the two minute, the five minute, the daily no matter what. Do you see? So that's why this trips people up. It's not a strategy. If you don't have a strategy you just want to buy every support area and short every rally you will not consistently make money over the long call. Some days you will and you might think then it works but it doesn't consistently and the only way you can make $20,000 a month is if you can consistently take trades and make $1,800, $1,200, $500, $4,000 you've got to it's got to total itself. It's got to you've got 20 days to do it however it comes together but you can't make money to the tune of $20,000 a month by making $1,700 a day and losing $3,000 the next. Do you understand? That doesn't cut it that way. You have to be consistent. That's how you do it. So the answer is very simple. You've got to consistently make money over the long haul if you want to really, really do this for a living. And just to say you just want to make $2,000 a week. That still is a grand a month and that's nothing to sneeze at and some people could live on that. But it's the idea that you have to be consistent. Okay? The reason it doesn't work consistently though just buying support and shorting resistance is because stocks got and this is the real crux of everything that I do which is the strategy. Stocks got and can get big or small but they can get big. So not knowing how to read support and resistance can trap you in trades that go against you because of the gap. Just buying dips and shorting rallies is not enough to make money. The key to making money trading is learning a good strategy to train. That's the foundation. Then you take the support and resistance with it and also learning how to read support and resistance in a sophisticated manner. Trading gaps is a very profitable strategy if you know how to trade them and if you combine this with a sophisticated read of support and resistance which really is just advanced. Then you will be able to have the edge that you're looking for in trading. It's not just one thing. It's the combination and understanding that and that the market of black and white in your trading philosophy really helps you make money because you take everything together all of it and that's how you do it. That's how you get the edge. Now, my big thing with my strategy is I have a checklist. I just get up in the morning and I use a 26 point checklist to pick which stock I'm going to trade. That's how I know whether GMCR is a short or a long. So I rate each gap I get in the morning that I want to look at. I prefer to look at shorts but you can go long. If the gap rates per my 26 point checklist then I am looking to trade it on the day and I watch it with a setup and I'm looking for the combination of this board and resistance to take the entry. So it's combining a strategy with the support and resistance. Now, a lot of people have been talking about the market. A lot of people are thinking that the market is just exhausted from this year because it really hasn't gotten going anywhere to the upside really much this year. We were pretty much sideways for most of the year even though to me we were bullish. A lot of people were saying sideways and the people thought we were going to crash and people still think we're going to get crash and that we're extended but I'm telling you we're not. Now, last week the market did have a red day on this day this was the Thursday. Okay? This market in the last week even kind of look bearish but we're still bullish in the overall picture here. Okay? So again let's look at this to figure out you could use my strategy for ETFs. So you'd find the ETF in this case this is a daily chart of the QQQs and you could rate any gap in here. The market gapped up today. I actually did call the market long today in the room. It was an aggressive call and it worked. So you could have gone long the market on my call today it was a bullish gap up. I gotta be honest with you though this wasn't an amazing gap. It did work though. I saw it in the first five minutes of the day and called it. You had to hang in there just though into the close. But I will tell you though that many people feel that this kind of look to the market this year means that it's done that it's not going higher but it's not. It is higher. Now how am I combining the strategy and the support and resistance by looking at the market and saying I know that it's higher. Well first of all you could look at every gap in here and you could rate everyone and the market gaps a lot. You could rate every bullish gap here and you could have rated the bearish gaps one and here's one. There was one on Friday. You could rate all of the gaps in the market every day. Because the market actually gaps almost every day which is not like a stock. But if you wanted to you could then you would figure out the support and resistance to combine that to take the entry and the trade just like I did today when I called this in the one minute chart. Now I didn't put that up but I did call this in a one minute chart today long and it worked. And I used support and resistance to call it combined with the gap. Now I'm going back here now you know 16 years almost okay more than 15 to look at support and resistance in the QQQs. This is us in here today or close to it. These are really squished candles because I wanted to show you the whole thing. I went back all the way to 1999. Now back up here the QQQs had made an all-time high back way back in 2000 up over 120-ish. The high, the previous high we had made was like 114-something which was the other week. Here you can see a better pair. We got a little bit over 114 this was back actually this was the middle of July now this was a couple weeks ago but this is the big big picture here of the QQs. You can see that we're in an uptrend. I mean no one would contend that I couldn't even possibly see why you wouldn't even say anything other than that but there are many people that are looking at this and thinking that the market is done because it has had a rally really since this is even after all the bank collapsed and then all the craziness that happened with the mortgage business then the market started to rally in 2009 this is 10, 11, 12, 13, 14 and we've been running up here now for a good five years plus and a lot of people feel that the market is extended now in this bullish run and that we're not going to keep going and the fact that we have not continued aggressively this year we're not going to keep going but the fact is we are and how do I know that we're higher and we'll get over this high because I take the combination of what I know about gaps, bullish gaps and bearish gaps in my 26 point rating system and rate all the gaps in the market which I see every day when I call it just like I did today and then I also take the combination of support and resistance that I see in the market to allow me to know that in fact the market is higher this high now could you look at this here this 120 number is resistance yes you could again as I discussed you can't just use support and resistance as a strategy because there's too many levels of support and resistance particularly in the market and again this could be anything but I'm just pick this chart of the QQQ because it's been such a big hot topic that people think the market's not higher but it is it's this seduction of tops and bottoms that really is a way to tree it does not work and people now want to short this market because they think it's extended and it's getting topping and I guarantee you that if we ran up tomorrow which we're not going to do but I'm just saying if we ran up tomorrow we will get up to that 120 number the previous high but if we ran up there tomorrow whenever we do it people are going to short that as a double top in the market if we hit that or slightly above it or close to it people will traders will short it people will short that saying it's a top it's extended they'll short it but it is the wrong thing to do because the gaps are telling you which is the strategy that the market's higher and the support and resistance can be looked at in two different matters and this is what I'm saying to you this idea of seduction of tops and bottoms is incorrect as a way to trade it does not work consistently could you sometimes short a top and make money could you sometimes buy a bottom and make money yes but you can't consistently and again it isn't a strategy of this port of resistance to know how to do what to do with it okay which is the strategy it's not about getting a cheap price in something and actually it's better to talk about this in reference to buying something lower in the reference to the market you're shorting the people who want to short that top in the market but I could talk about a million stocks that are way way way way down that are cheap that people want to buy at cheap prices and they think that they are getting a steal and that if it goes up with the XYZ amount of money they'll make all this kinds of money because it's cheap and they figure well it's a penny stock I can buy a lot of it here cheaply and if it goes up just like 10 cents I'll make all this money that's really not the correct way to trade is it cheap to actually short 1800 shares of GMCR no but I don't think it's expensive either okay what is expensive well Netflix isn't even expensive anymore because the price changed Amazon's expensive but you could either way making money in the market is not about getting it on the cheap it's just the same way if you wanted to go out and you wanted to go out to an expensive dinner you get what you pay for if I go to Ruth Chris I know I'm going to get a good stay I can go at any Ruth Chris anywhere and I can get a wonderful meal if I want to go someplace else I can't even think of any because I really don't go to crappy places but say I want to go to some crappy place on the corner down here you know I'm going to get what I pay for so you have to consider that when you're trading you want to make money you want to do something that's good I'm not saying it has to be the most expensive thing out there but it definitely has to be worth it because you're not going to get it on the cheap it's not about that okay price matters that is the only thing that matters and you have to think about that and use your head and you have to consider that when you're taking the trades that you're taking are you taking this at the right price because you may be taking this at the wrong price and the only way you can make money is if you take it at the right price at the right time and GMCR within that 30 minute period to make the money as a short then you lost why? because it flipped over the high of the day so you got to use your head and know what you're doing in reference to the price of you taking it and you combine this with the timing again which gives you the edge because you're in and out very quickly as a day trader whether it's in 5 minutes or 10 minutes or 30 minutes you're looking for the setup between 9.30 and 10 why? because of the strategy of the gap because gaps are created with institutional money and you don't know how to trade that part of the day into the open then you miss the move and the stuff with the actual exactness of the setup which allows you to see the numbers and the price very very clearly with accuracy so trading with an edge means using a system combined with support and resistance you use support and resistance assist you in your entries and exits just like I showed you in the GMCR you use it in your place and to narrow down quality picks and you use it to help you make money combined with strategy it is not one on its own it's together everything else okay everything together so the strategy that I trade and teach a class on is the golden gap strategy I use the 26 points in the golden gap course which I find on the daily chart of a stock that's how I pick which stock to trade the points used math and science in conjunction with technical analysis that's how I make my decisions to analyze the price patterns to choose which stocks symbol and gap to trade to the day 26 points is a lot of things to look at to rate a stock it is a very detailed system you're looking at an enormous amount of things that everybody always says how long does it take you to do that Melissa you are not rating a thousand gaps in the morning and since I focus mainly on shorts I'm really only looking on the down gaps okay so that automatically just squishes it down and then I'm using a small watch list which I rate so once you learn the system you immediately can flip through manually and say yes, yes, no, no, no, no, no, no, no and you make a short watch list of maybe five, six, seven things and you rate those and it takes less than five minutes to do it it's less than two minutes if you're really good at it so you need about a half an hour to prep in the morning so what gives me the cutting edge is you learn how to trade gaps you learn how to intelligent read supporting resistance my class teaches I was trying to offer some momentum news and stocks each day and you're in out quickly for consistent profits and it teaches you how to pick which symbol to trade now I briefly talked about this before about the idea of the gap I just want to show you this was back here from the end of the July WFM gap down but I want to show you here why you have to have a strategy that tells you what to do which is the rating system because WFM gap down here at the end of the July and it was a short and actually this was a nice swing trade it's continued but previously back in May it was not a short it gap down and failed as a gap down it actually was a long do you see this here this is back a couple of months before I don't remember the reason for this gap but the reality is that this was a short and this was a long okay so you can't even short every gap down you can't even buy every gap up you can't even do every gap in the direction of the gap there is it's not black and white that's why I have the rating system that's why I have 26 points to tell me what the heck am I supposed to do with this do you mean anything short it buy it or what should I do that's why you have to know otherwise I just short every down gap and buy every up gap but it's not that simple you take the gap rating system it tells you which stock to trade it tells you which direction to trade it and then you use supporter resistance to help you determine how you're going to enter it and where you will get out and this thing is really nice here look at this this is going to fall off a cliff any second here I mean it's already started so it's about how what and when how do you make money in the market you trade a strategy that's profitable professional gaps are highly profitable strategy because they create large momentum to trade what stock should you trade stocks that gap and rate 20 points or more per the golden gap 26 point rating system trade the gap in the direction of the gap after it qualifies how do you know what it qualifies it's 20 points you don't need 26 to make it this is a perfect score you could get it but 20 or more and a 19 is a 50-50 chance of working or failing but I really have been very, very strict with the 20 when do you trade them early in the morning between 9.30 and 10 that's it and that great thing is say you don't get one it's 10 o'clock you don't get anything boom off you're done with your day you don't do anything at all go it's like you don't even have to sit there all day and wait for things to set up a lot of traders sit and wait till 10 o'clock to even decide what to do and start scanning that would drive me crazy and not only that I miss 80% of the move with the stock even if I wait until after 10 to take the trade I'm not saying you can't take a trade in it but I'm saying it's you can't stop and you can't take as much size when with the same risk and then you ask them his 80% of the momentum so it's like pointless like if I don't do it by 10 I'm not in I'm not giving you I'm the trade alert Dave is like a trade alert I'm the alert here boom right now 10 by 40 let's do it there and done go I'm the trade alert live me Melissa Armo so trading golden gaps means fast promises you know if I like let's just say first of all I wasn't feeling good last week but let's just say GMCR would have dropped another dollar do you think I would have cared no I would have rather been out I made that money in five minutes then hold that for another six hours to make another $1500 I just could care less like you say what I'm saying I mean it's really about the time of your day and the risk that you're in the trade and what you're trying to do with your life for the time of the day that you can make the money it is such high this is high quality this is like like how could I even use as an example like it's like what is it worth your time doing like what like you have to really decide like what your time is worth like my time is worth this my time is worth a lot okay and that's where I it all comes down to it like it's about the quality of the time in your life and I I think I really got to this point I don't want to get too off track here but do you know that when I worked and did mortgages for a long long time working on loans for people that never closed I mean I I would take loan applications for people because I was a mortgage broker and half of them couldn't afford it they had crappy credit I tried to help the people that would never figure it out they didn't have the money to buy the houses I was talking to the real owners they never found a place or they give up and they not want to buy I mean I wasted so much time on loans that I never got paid on and I think that like when I found this career then I said you know what I have to get paid for my time and I have to get paid a lot for my time because it came down to for me because I wasted so much time on loans in my past career and I never got paid and if you're in the real estate market right now you know exactly what I'm talking about it's just I just can't work and not get paid anymore and I have to get paid a good amount of money for my time anyways trading gold and gaps means good risk to reward setups which we're going to talk about here in a minute and it means large profits okay so gaps offer a payout with good risk to reward trades and there's just no substitute when to do it means you take it without hesitation and that's how you make the money that's how you make 20 grand a month okay or even more depending on what you're really willing to risk but you can't get to this point until you learn what to do alright I use the checklist what you just check off and tally up the points to rate them to tell me what to watch so the radiant system gives me a high probability of directional bias early confirmation or I'm not taking it between 9.30 and 10 because I won't get the institutional move in it if it doesn't come into the open and precise entries with follow through and a good risk to reward target potential which is what I'm looking for every day now here was the one from the 31st this was the end of July this again was a good gap it was a short okay the stock gap down the night before this is a one minute chart okay you are looking to do the setup in this you are combining the gap the OCN to know it's a short with the supporting resistance to know where you're supposed to even take this tree in the first place okay now here was the setup again you're looking to get in here it's around 9.40 and the stock drops and goes into here into 10 o'clock so the price of the entry you would have shorted it and again this is how I make the call 10 by 25 so you'd shorted it 10 stop over 25 the risk is 25¢ so here you have the risk here is $1,250 if you're taking the advanced risk if you take a thousand shares you would have only been risking $250 okay so I do trade stocks in way cheaper price points then what you call it then GMCR usually I don't trade that many over $100 and usually I'm not trading stuff under 3 okay but this did drop almost a dollar into 9.10 this is the morning move because it did continue but if you took this trade and got out into the first drop again very very quickly you could have made $4,500 do you see how you're getting to the $20,000 a month this is a good trade it's a four risk unit let's go back and look at it so you're in here and you're out that's it and it actually continued which I'll show you in a minute but boom boom guess what you lose one risk unit and that's it so let's just say you trade Monday Tuesday Wednesday Thursday Friday let's say Monday you get up you don't your gap doesn't work you make money Tuesday Wednesday Thursday Friday you have one loss and four winners do you see how you're making money okay plus the risk to reward which you get from knowing the entry and the stop and this is how you're using all of this combined together plus the strategy otherwise you wouldn't know that you could even do this here with the stop that would hold and not ding you out and go on to work a lot of people say well I don't like to use stops because it's going to take me out and then it's going to go on to work and they always say see my stop to take me out you know what I was talking to my broker about this the other week and we were chuckling about it because I don't I don't have this issue because I'm in so aggressively in a time period the traders really aren't trading I mean most day traders are not trading this period here because they have no clue how to do it not only am I trading it I'm really good at it and I'm in and out and then most traders are trading after 10 and I don't I don't I'm not even doing anything after 10 so I have the rest of the day to myself I made the money in the morning or the thing didn't work that I stopped and either way I don't have any issues with anybody booping me out of the stops or anything else why because I mean this is you know this is like the professional people here that are trading this this is the edge but you have to know to do this one or you will miss it it literally happens in 5, 10 minutes and if you don't get it then you don't get it if you don't know watch it you won't even get it if you're waiting for the scanner or something to happen you won't get it you have to know to watch it and I know before the open I know way before 9.30 that I like this or whatever I'm doing like I have it all figured out beforehand I don't know if I'm exactly doing it here until I see it but I know that I like this and I'm doing it way before the open okay so fast means fast you're getting the trade quickly and you're in and you're out I just want to show you this here this setup is a nice short if you wanted to do a late trade typically I don't do these but everyone's in a blooming new cut here's a 15 minute this setup on the 15 minutes and then it dropped into lunch this isn't crazy late and you're not holding this all day but you could have done a second trade in this and it dropped another dollar this is what I called a dream target price of the entry was 9.15 to get in a stop was over 9.40 this is still a really nice stop 35 cents and particularly for a 15 minute trade this is the second trade in this it's a short if you took You took 3,000 shares. Again, your risk unit should be close to or the same in each trade. Exit was $8. This is a dream target. It broke 8 a little. You could have made over $4,000 in this trade. This is the second trade. This is not even the first trade. Another four-wiss trade. So you could have done OCN. Again, I typically don't do anything past the morning original. But if you want to, you could have risked the money that you made in the first trade in this in the second trade of a piece of it and still been up if the second trade failed. If you had taken two trades in OCN, you could have made over $8,500 in this one stock and two trades in one day, which is almost half your profit for the entire month. Now, you don't get trades every day that give you two setups, but you absolutely get a bunch in a month's time. I cannot tell you. It's the strategy that's so profitable to know that the stock would have a move like this or the potential for the move like this, the potential for the move like this, which is what the reading system points me in the right direction and say, oh, OCN, this is the one. Boom. But I like to get out into the first target, but every once in a while, they set up again. And sometimes I call them in the room and sometimes I do them and sometimes I call them in the room and I don't do them for the second trade, but I always do the first one. So trading golden gaps is a strategy that can pay you income for a living, as you see. And even if you don't want to risk this much, even if you don't want to risk this much, then risk less. Either way, it's profit. I mean, money is money, whether it's $200 a day or $300 a day or $500 a day or $1,000 a day, it's money. And it's nothing like making money to help you gain confidence. Now, this was another really nice trade that I did. This was Yelp, okay? I made $2,700 and this one, this was another quickie. This was a gap. Once again, I love the shorts. So the night before on here, this was the 28th, stock gap down, boom, okay? So here we are at a one minute chart again. And again, you're using the golden gap strategy combined with the support and resistance to take the trade. Price of the entry in here is $24.45. My exit in here was $23.75. I had more size in this one. I took as much as I could have taken. I loved this one. I ended up risking almost $1,500 in this one. Tell the profit, $27.54. Again, time in the trade. Let's look at the time. Here's the open, 9.30. Where's 10 o'clock? Here, whether you get out, here, here, here, here, who cares? This is a really nice trade. And again, do you see this? Time of the day, time of the day, time of the day. And your day is done, $2,700. $2,700 in 30 minutes and your day is done. So it's just, you know, this is why I love to day trade. There's just so much money that happens so fast. There's nothing like it, it's just a thrill. You can trade this on any platform that you want to that will allow you to do equity trades. You don't have to have a set platform to do this. There's no requirement for that. You have to be able to short in an equity account as a day trader and I like to use hotkeys. So I would prefer people to use platforms with hotkeys, but you can use whatever platform you want. There's no special requirements. So in today's world, more income really means more security, but you have to put a plan of action in place how you're gonna get to that goal. If you really wanna make $250,000 a year, you've gotta be able to risk at least $500. So you don't have to risk a thousand, but you gotta be able to at least risk $500. And once you get more experience, you can up it. And you can also do something called ads, which I can talk about in another class. One is a risk unit. I kind of was talking about this. This is a review for some of you and new for others. A risk unit is the amount of money we're risking for trade in dollars and cents. This is where the high profitability margin comes in day trading because it's not about percentages. If you look at the percentage of money that I made in some of my trades, just even in the last three weeks, the percentage is enormous, gymongous for the amount of money that I risked and the amount of money I made. That doesn't even include the time that I made it because that's really like incredible actually. But the reality is it's not about percentages because if you look to percentage it's the profitability in my day trading method and the trades that I take personally, it's over like 100%. Some of the trades are like 300%. It's not about that. As a day trader, you're looking at the risk unit. If I risk a dollar, I'm trying to make three. Some days I make two, some days I make one and a half, some days I make two and a half. But when you combine that with how fast I make the money, this is just, there's not, this is, as far as I'm concerned, this is the only way to consistently profit when we make money as a day trader in the market. There's too many other back and forth things that are controlled and happen after 10 o'clock and you are basically relying on the market after 10 to get the trade that you gotta have the market with you. And many people fail to read the market correctly and the market can be choppy. It was choppy last week, okay? And people are getting chopped to bits and pieces actually in the last month, all of July and even the beginning of August because the market has been choppy. Why? Because it's showing like and acting like it's weak but it's really not weak, it's strong. And that's one of the reasons this is a sidebar here. The market has been choppy if you've been day trading and you know this, it has been hard to predict even though I do it well. The reality is it's been choppy if you trade all day. Why? Because of the fact that it is still strong even though it's showing signs of weakness, it is not. And that is what's faking people out and making it choppy and the choppiness is some people are buying it and some people are shorting it and some people are selling it and some people are buying it and that is the choppiness you experience if you're in the market all day long, which I don't do. So it doesn't matter to me. The market can rally like a banshee and I could care less. I'm shorting my gaps if they rate 20 points or more because I'm in and out so quickly that I don't care what the market does. I do not care, okay? If the gap is good, it will work. We're living in the market. So I'm looking for a good risk to reward trade. Dollar risk, you make $3. That's what you're looking to do, okay? A good risk to reward payout is one of the most significant reasons to learn the golden gap system and that's what you really, really, really wanna do. So how much to risk per trade to make up to $20,000 a month? Gotta risk at least 500. So if you make three hours, it's 1,500, six is three and 10-hour trades, which happened, you can make 5,000, all right? You might wanna take two trades a day in some things. Again, I try to do one, but you're looking really for 40 hours a month if you risk 500. You gotta at least risk an advance amount if you wanna make this. If you have a smaller account that you cannot risk $500 per trade, then you can risk $250. But either way, I'm not taking a million trades a day. If you're only taking one trade a day or two trades a day, do you see also? So it's about the accuracy. It's not about taking umpteen thousand trades a day. If that's why it's very easy to follow me actually in the trading room. I'm probably one of the easiest trading rooms to follow out there because I don't call a million trades a day. Once you become skilled at trading gaps and rating them, you can increase your size over time and that's where you get to the point you can start risking from 500 to 750, 750 to 1,000 and so on and so forth. Couple questions here. Can I show us an example of a gap up? The market today, I did show you one. I showed you one, the QQQs. We can go back to that then. What is a starting capital for a beginner? If you open up a prop account, you can start trading with a prop account with $2,000. How can you achieve the income you dream of? Learn it, get good at it. Combine a strategy with support and resistance or something to give you an edge. I'm telling you what it is. I mean, I'm telling you what it is. It is not about just doing one thing. You have to look at, what am I trying to accomplish with this thing? Do I just, do I wanna work all day at four o'clock? What are my dreams? Is my dream is to have a lot of money and not work that much? The answer is yes. That's my dream. So you have to think outside of the box. If you are stuck and like this guy here, which all you have to do is just look outside and see the horizon here, which is the gaps, then you're not gonna get very far. You're gonna be right around in this thing like a circle. Combine every support and shorting every resistance and doing three different things in the same stock every day. You have to focus on the right information combined. It's the combination of it. That's how you get it. So I teach a class, it's called the Golden Gap course. It teaches a 26 point rating system to find the best stock to train each day. The course also teaches you how to enter next to the stock on the day, which you need to know how to do in order to make the money. It teaches you price analysis and technical analysis on an advanced level and a very proficient rate of support and resistance, which you have to learn how to do because there are multiple levels of support and resistance in any chart. And if you don't know how to read it, you'll think something's resistance or support and you'll take the trade and be wrong. What teaches you that is the gap and the quality of the gap because you can't short every down gap and you can't buy every up gap, all right. The course teaches you how to focus on one strategy in a detailed manner. So you can pick up a good trader and it's really the points that tell me what to look at and that's what gives you the conviction to do it. And that has what has made me a good trader and that's how I've been able to call the market so well, reading the gaps in the market. So who's a golden gap system for? It's people that wanna make $20,000 a month working 30 minutes a day from home. It's for people that don't wanna work a lot. It's for people that wanna work from home at all. People that don't have a lot of time to devote to trading. Maybe you wanna make the transition of a career, but you can't quit your day job until you're making enough money trading. This is a good strategy for you because you can learn it and do it and keep your job until you're making enough money trading to make the 20 grand a month to quit your job because you should not quit your job until you're making enough money to support yourself trading. And there is that process that you have to go through and approve to yourself that you can do it. Not just one day, but consistently. And then you have the confidence and conviction to leave your job and do it as a full-time job. But this is a good strategy because you can do it and do it in a short time frame. So you don't have to devote a lot of time every day so that you can keep doing it, keep your job and then eventually, if you wanna quit, quit. But for me, it's the freedom to not have to work for anyone else ever again and to be able to consistently book money in those moves. And it's very nice because I'm in and out quickly. And actually, some days if I see it quickly, if it doesn't even set up, then I don't even take it. I know right away it's not gonna work. Then I don't even do it. Then I'll even waste my time or waste my money. And people always ask me if I'm a trader. Yes, obviously I showed you my P&Ls here. The Golding App course is a complete system to use to trade. Again, it's about taking the pieces of the puzzle and you take them all together and that's how you have the total trader. It's not just about support and it's not just about resistance and it's not just about the gap or moving average or whatever, okay, or the market. It's about taking everything in combination and that's what makes you good. So I teach a class that's called the Golding App course. It's a full two-day course on how to strategically find pick-and-play stocks that are professional bearish gaps. Retakes are free. The class is online. You can be anywhere in the world and take it. And again, retakes are free, meaning if you take it and wanna retake it, you sign up and pay for it once. You don't have to pay a second time. Some people wanna retake it. The classes this week in August 15th and 16th from 9 a.m. to 5 p.m. Eastern time cost of the class is 34.99. If you're interested, you have to email me for the signup information to register at Melissathestockswush.com. Now I am offering a special. I do have a swing trade letter. If you want to sign up for this class, if you sign up by Friday, you will get the swing trade letter free until the end of 2015. This is a nice offer. And you could do the swing trades. You could do the swing trades as equity trades or options. And then you could day trade with my method. So this is a webinar special for this class if you're interested, okay? This is one of the swing trades I called. This was Michael Kors, way back in May. This went to like the dream target. This was a nice, nice call I made. Beautiful. And if you had the swing trade letter, you would have gotten this. This was a huge call. Look at this. So this was a good gap here. Then I did the swing trade letter on it. This was a great call. Okay, so you would get the swing trade letter free until the end of the year if you want to sign up for the gap course this weekend. And the class is 9 a.m. to 5 p.m. Eastern time. I already have people signed up. I don't take 1,000 people in my class because I have to, you know, I can't talk till midnight and I have to answer everyone's question. So if you really want to sign up, I would email me to get the registration information sooner rather than later. It's really about making money in the market. And I'm telling you, there's nothing better than being able to make that kind of money that I make in such a quick timeframe. I love it. If I could trade and make thousands of dollars in five minutes every day, that would be my dream life. And I'm really basically living it. Now there are some days where I have to hold something for maybe 30 minutes, which is hilarious. But it's just, you know, I still do it. There's everyone's in a blue moon. I'll have to be in something for more than five minutes, but I will tell you that in my dream world, if I dreamed every gap at night, it would go to the target in five minutes or less than 10 minutes every day, you know? And it happens a lot. But every once in a while, I have to hold something for like a half an hour. But you cannot make money without taking the leap to learn something new. So if you don't know how to trade gaps, you learn it. You learn a new. I taught people that don't know how to trade it all. You learn all of this from me. And I'm really good with people because I understand that everyone comes from a different background. I understand everyone's traded different things. A lot of people have been taking different classes before they come to me. I hear that, you know, I can sympathize with you. But the fact is that if you wanna learn how to trade and you're not making money, you have to stop and reevaluate what you're doing and decide if you wanna learn something different. Don't spend forever doing something that you're losing. Okay? How much cash value do you need for $500 risk value? Okay, let's answer questions here. And then I'll go back to that QQQ trade from Manish because I did show you a bullish gap. Well, again, it depends on your, if you go to a prop place or retail place, but I'm, let's just say in general, Joe is asking me if you risk $500. Well, let's just back it off. If you're gonna take one trade a day and you're gonna risk $500 in one trade, that means that you would be risking $2,500 a week, Joe. Are you there with me? Okay. So if you risk $500 a trade, that means you have to be able to cover $2,500 a week. Okay? So let's say in a month, let's say if you have, you have to, in a month's time, you'd be risking 10 grand. Are you with me, Joe? And this is pretty much the same question as 10 George is asking me. So somebody asked me earlier what's the minimum of account size, 2,000, but you're not risking $500 of the $2,000 account, okay? So if you back it off and figure you're risking $500 a day as 2,500 a week, that's 10 grand a month, you better have 10 grand in that account. You shouldn't have a $5,000 account and risk $500 a day and you shouldn't have a $2,000 account and risk $500 a day. You could have a $10,000 account and risk $500 a day, but you have to have a prop account to do that, okay? Because you need more at a retail place. But you would get enough leverage with 10,000 at a prop place because it'd probably give you at least 100,000 buying power or more with 10 grand. You gotta talk to the prop places about that to get the leverage, but that's plenty. I mean, that is absolutely plenty because again, if you took 2,000 shares of a $50 stock that's 100,000 buying power and you could have done it and you could have done it and made like 1,500 bucks even in a GMCR or whatever, you don't need a million dollars. That's the point, but you can't risk $500 if you only have two grand in the account. 10 grand is good, 5,000 I'm not saying you couldn't but you better be good. I mean, I could do it, but I wouldn't suggest anyone else do it. I mean, I've been trading now for seven years. I'm also very disciplined too. So you'd learn that from me as well. Sometimes people take too many trades. Now, Mattnish was asking about this and then I'll quickly finish up here. If you have any questions, email me at malice at thestockswitch.com. You can only join the trading room if you've done the Golden Gap class. If you want to trial email me, I'll send it to you for the week. We will have good stuff this week because it's earning season for the next few weeks. Now, here is the gap up Mattnish. I call this today long, boom. That's a gap up. And there it is in the QQQs. But I will tell you that I call this today based on the trading action. This was not an amazing gap, but it held and it's proved positive in the market strong because it is people. Email me if you have any questions. Thanks so much for coming everyone. Thank you for coming. Again, email me at malice at thestockswitch.com if you'd like more information and the classes this weekend. If you want to sign up, email me. I'll teach you how to trade. I'm having fantastic results with mentoring people this year. I'm so proud of so many people. I'll just tell you one quick story. I had a guy that has doubled his account in a month. I mean, he's doing everything I tell him to do. He's taking all my calls. He's not going off on his own. He is doing exactly what I tell him to do, but you could take a $5,000 account and double it a month if you're in the room with me. So just really, you got to be there though to get the calls. All right, have a good night everyone. You're welcome.