 Testing one two testing one two. Can you hear me? Can you hear me Kathy? Hello everyone again. Welcome. This is online Trader Central the website is online Trader Central your host presenter today Melissa Arma with thestockswish.com We'll be starting promptly In just a couple minutes. Thank you so much everyone and welcome again online Trader Central Hello everyone again. Welcome. This is online Trader Central. We'll be starting prompting just about a minute or so here Melissa Arma was your host and presenter today and we'll be starting promptly and we do try to stick to the time schedule We do appreciate each and everyone of you here today again This is online Trader Central your host and presenter today and Melissa Arma from thestockswish.com That's H-E-S-T-O-C-K-S-W-O-O-S-H. So again everyone. Thank you and welcome This is online Trader Central. Welcome at the sound of the trumpets. Most of you know that means it's time to begin Please put your hands together and welcome our host presenter today from thestockswish.com Online Trader Central and welcome. My name is Melissa Arma and I own a company called the Stockswish LLC and Tonight I'm going to talk about one of my favorite topics, which is shorting. I short stocks I short stocks in the market every day I just prefer to short and we're going to talk about why tonight and if we have time at the end We can look at some charts of some things that happen in the market today or answer any questions as we go along Just feel free to write. I can see everyone's questions below in here Where I'm typing and I'll answer them as we go along. So tonight. I'm going to talk about making a hundred thousand dollars a year shorting stocks that gap now as I said I prefer to short the word gap is actually a strategy a particular strategy in the market that tells me what stock to trade So I'm looking for stocks in the US market. That's what I trade that are gapping and we'll talk about this in a little bit Now for those of you that are on my email list Watch for the emails out this week because I just rolled out my new website And I'm going to be offering class specials and giveaways all week to celebrate the new website And so if you are not on my list and want to be on the list then email me at Melissa the stocks wish calm to get on My list and you can go check out my new site It's And if you have any questions or would like more information You can always call me here at nine to nine thirty two hundred gap And you can follow me on YouTube where I have most of the previous webinars that I've done with online trader central And I have also market replays and plays of the days on there as well So let's get started one of the questions somebody asked me and in a previous room trial someone was on a trading room trial They said can you make money Melissa? How is it possible making money? Shorting stocks in a bullish market because this is a chart here of the overall spy going back Well since 2008 here was the market when it kind of collapsed in here in 08 no 9 And I had just gotten into trading and I was creating my own gap Method system during this period when the market actually was pulling up and becoming bullish So I've been shorting stocks and making money shorting stocks during this entire uptrend in the in the market This is the S&P now I squished this together here So you can't really see the bars that well, but this is what the chart is. It was just going back About eight years So the question is you know the answer the question is yes You can make money shorting stocks in a bullish market the strategy I trade on gaps has absolutely nothing to do with what the market's doing and Obviously You can make money shorting stocks in a bearish market now We are not in a bearish market But this is a chart of the S&P current for the calendar year 2016 if you go back and look since January the market fell Okay, this was the open in the year in January 4th And we went boom right into January 20th within two weeks. We just dropped off a clip here now We are working our way around today. We worked our way around a little bit, too But if you just look at the year, we're actually bearish, but we're still in an uptrend The point I'm trying to make is you can make money shorting in either trend Either overall trend of the market you can make money if you have a specific Reason for doing that stock. Okay, so I'm looking to short stocks that are gaffing That's it. It isn't about shorting anything in the planet while the markets rally Although things that were strong that are strong did fall when the market took the stipend here We're gonna look at one of those charts tonight So shorting and making money. Okay, how do they go together? because when you place a trade short You are you're betting really what you're doing is you're betting you're saying I'm betting that the stock is gonna drop Underneath the price that it's currently at so for example if the stock is opens at ten dollars You're and you short it at ten you're betting that it's gonna drop under ten That's the only way you're gonna make any money You will not make money going long the stock if it drops Okay, and you will not make money shorting a stock if it rallies you have to look at it and say wait a minute What am I trying to do here with this stock? Do I believe that it is higher on the live day or do I believe this lower in the live day? And this is if you're day trader and what I do is I day trade now You can use my method for doing options trades for overnight, but they're short-term options Not long-term options, although you can look at long-term options too, but in that case have to play the overall trend But you certainly certainly can make a hundred thousand dollars a year doing this as a full-time job This is a trade. I just sit on Friday. It was TRN. We will look at this today If you make a thousand dollars a day, that's way more than a hundred grand a year I'm not saying you have to make a thousand dollars a day trading But if you have common days like this it totals up to be able or six figures a year and well over that if you're Taking and plopping on the size it happens though only when you get the right pick For example, there were many stocks that gapped on Friday. I chose to short TRN We will look at one other one today, but this was the best one to do It actually went to the dream target and it's all about finding that one pick to make money every day I usually do one trade a day. That's all that I usually do And if you do that and you have the right focus, you can make money doing this as your full-time job In fact, not only that it's extremely important to have this as a focus if you don't have another source of income If you have another source of income, it's fine. If you don't have another source of income though When you're up you got to take it off. I'm up. I take my trains and I'm out Okay, I think that's the best way to look at it It's never over to the fat lady sings you could be up money in a train They could go against you so you need to get out of it with the profit one is asking a question here There used to be a rule that you cannot short a stock under five dollars. I don't I don't know anything about that rule There is something though where they take your full buying power. Maybe you're confused about that amaran Is that what you mean in other words if you've an account of the broker and they're giving you leverage Okay Say the stock's worth a hundred dollars a share You will get leverage on that to short it And if you're at a retail place, it could be a 30 percent requirement or 25 percent requirement depends on the stock But if you get down to the cheaper ones five dollars and under there will you will not be it will not be on leverage So for example, if you want to short the stock and it costs five dollars a share You have to have that full amount of the buying power in there for the leverage for the margin It's not on margin. Is that what you mean amaran because that's the case other than that I don't know what you're talking about. That's not the case right now currently I don't know what happened years ago, but I do know they take the full Requirement in other words, you can't short stocks under five dollars on margin, but that's not a big deal My goodness, I mean you'd have to take a million shares of something to even have that matter So I wouldn't worry about that Although there are times When I actually do short stocks that cheap, I can't remember the last time but there are some times So let's talk about what I was saying one hundred thousand dollars a year What does that equate to when you break it down you chunk it out you don't need to make a thousand dollars a day It's nice when you do and obviously if you do you can make way more than a hundred grand a year But five hundred dollars a day five hundred dollars a day five hundred dollars a day is twenty five hundred a week Twenty five hundred a week is ten K a month and ten thousand dollars a month is a hundred twenty thousand dollars a year and give Or take holidays in the US market because it is close some holidays. We were close for president's day Bottom line is you can make that kind of money What happens is many people lack the focus and they can't see the bigger picture They're so stuck on a set amount of money in each in each trade Okay, that they think they have to make or whatever that they miss the boat of the overall larger picture Which is wait a minute if I just trade the right thing Monday Tuesday Wednesday Thursday Friday not over trade Not have big losses not lose too many days be very focused Pick the right stock only do one trade a day. Boom. There's Michael Okay, it's the fact that many traders are so short-sighted and they're like I gotta make this I gotta make this I gotta make this I gotta make this no You just look at it over on say per week per month whatever it helps you to stay the focus And also obviously one of the benefits of day trading Which is what I do is you can work from home and any kind of job where you can make six figures a year or more working From home is fantastic and many people are doing this in fact I live in a building right now in New York City where there is quite a few people that actually work from from their Apartments from home. It's this is nothing new There's a lot of people in New York LA London people that work from home and make good money So you don't necessarily have to commute or go into an office to make this kind of money And it's a nice lifestyle because you can work and get other things done And you don't have to deal with the stress of the commute Now one of the gaps from Friday was AFOP one of the ones was TRN. That's the one I did again. I like to do one one per day, but you could have done two on Friday You can do two. I'm running the live training room, but this was another good one Look at the move the stock made now for those of you that don't know what a gap is I'm gonna explain a Gap is when the stock closes is a daily chart. It closes a certain number here 1430 let's say approximately it closed at on Thursday evening in the morning on Friday. It opened around 1320 ish So the stock gap down about a dollar and then look what it did It fell more than a dollar on the day and if you shorted it you made money the red depicts The price going lower those of you that don't know candlesticks But all the gap is is when the stock closes at one price at four o'clock eastern time when the market closes It opens at a different price the next day. That's it Now what happened when this open The stock is this is a one minute the stock closed here the night before around again 1430 ish open the next day here boom dropped Here's the short and you're in it and you're out So you shorted on your platform and your live training platform boom And this is what I call the money move and it went right to the target. Do you see how quickly this is happening? It's happening very very quickly That's one of the other benefits of this training method that I do The entries that I take the picks the stocks. I'm looking for is the fastness the speed The execution the the idea of shorting is you're shorting into the panic Now the price of this entry you shorted the stock at 12 dollars and 85 cents stop was 1305 So your risk is a difference between the entry and the stop risk is 20 cents I teach this in the class how to take it where to put the stop This is all important in your risk amount in order to make $100,000 a year you have to risk about four or five hundred dollars per trade So all of these here. I'm looking at I'm looking at examples of $500 per Risk unit. This is how you're going to get to the goal if you really want to do this if you say I really want to do this Melissa. This is I want to make this money. I'm telling you This is what your risk needs to be between four and five hundred Exit was $12. It actually broke 12, but that was the target total profit $2125 if you risk 500. This is a very good trade. You were in the trade only for 10 minutes boom boom And again, it doesn't even matter if you don't even hold the whole thing down You still could have made a thousand dollars or more and if your goal is only to make 500 dollars a day You just made your goal for the week almost here To understand this is what i'm talking about. This is where the idea of checking it out Sometimes I get up in a monday. I don't like anything. I don't do anything Now I did like something today But sometimes mondays are slow and you get a good one on a tuesday and a good one on a wednesday And all of a sudden you're putting together a week. You don't have to overtrain to make this kind of money One of the other nice benefits is you can trade and live anywhere in the world Half the people that are in my live trading room and half the people that have taken my golden gap class are not even in the u.s They're all over the place All over the world. Okay, the u.s market has a lot of volatility of momentum Just like the stock dropped in the move. I showed you in the afop So ultimately people want to take advantage of that there's billions of dollars running through the u.s market And so people want to trade it And it only takes a few hours a week to do it really I run the room till 11 o'clock every day, but we're usually done with our trains by 10 o'clock 10 15 And then I do the review after that So how can you make this kind of money? Well, I told you you need the strategy, which is the gap you're also Being focused by only picking one stock and you're looking at risking between four or five hundred dollars a day Okay, to get to that goal and you're only looking to do one trade a day So that you keep your losses low if one doesn't work that it's not a big deal For example, let's say you took two trains One of them on thursday pretend didn't work. You lost 500 and if you did afop on friday may 2100 That means for two days you're still profitable 1600 dollars. Do you see how you have to have the focus? And you also have to believe that you can be successful and have a shot at doing this But this is so basic what i'm telling you this is so basic common sense This idea of having one focus keeps your losses low the idea of having one strategy Means you have the focus the idea of only doing one directional bias, which I prefer to short Although every once in a bloom and I'll go along, but I really prefer to short The only way i'm going along is if I don't like any shorts, which sometimes happens But the idea of even focusing your focus down so much to doing on one direction This is how you can see that you can be successful It's the it's the over exuberance of traders when they start to get impressed the buttons that they're all of a sudden taking all these trades And I know because I've been there. This is I'm talking from experience But success in the market is really about skill You have to have the skill it is a skill best career if you're going to do it for a job And let's just say you don't want to do it for a job Either way if you want to do it for part-time income, you still have to have the skill because otherwise you'll lose All highly paid careers are skill based This means someone like a physician a musician attorneys and you need to have the right skills of knowledge in order to succeed The interesting thing about training is that people either number one Don't realize how important the right knowledge and skill set is before they risk money in a train They think that they're going to throw darts at a board. They're like, well if I take five of these Some are going to work even though some won't that isn't going to get you where you need to be Either I like the trade or I don't do it Okay And the other thing is number two many people think they have the right knowledge But really don't in other words a lot of people read trends based on higher highs and higher lows and lower highs and lower lows A lot of people think the market's in a downtrend right now. It's not it's not and that will soon come about That it is really still in an uptrend But i'm saying sometimes people think they know how to trade but they don't now How would they they think they know how to trade because they have a lot of information But if they look at their bank account or their trading account, they're not up money That tells you then that they don't know how to trade So that's I mean I'm sorry to say it, but that's really kind of how you have to look at it. Okay Uh, we have another question here Of course, I just said that amaran is asking me will I show in the market as a bullish bias? Yes, I just I just said that when we were talking about that at the beginning You might have signed in later, but yes, I said that I said it has nothing to do with that and yes So to be successful you need a successful strategy, which as I said is gaps Okay for me and you've got to have the focus So in order to reap the rewards the market has to offer you need a quality system to follow This helps you focus for me. I have something if I use it's a checklist That checklist every morning is my focus So even if I get up out of the bed late or I'm tired or I didn't have a copy yet I sit down. I just pull out my checklist And then that that sits me focus because sometimes you get up in the morning If you just open up your platform you look at your charts You might be like, oh, this looks good and that looks good and this thing looks good And if you wait until the open till 9 30 to decide what you want to do all of a sudden everything looks good Or you don't know what to do and then it's 10 o'clock and everything's already gone Again, I don't I don't trade like that. I get up in the morning Early 7 38 o'clock. I'm looking at my charts. I pull out my worksheet. I go through my checklist I don't even have my platform open. I just have my charting package up and look at it I don't even have my live platform open yet I'm just looking at the charts and I go through my checklist and I figure out what I like to do today And then I know everything before the open. Okay, it's the prep time And my strategy and checklist helps me have that focus Also this idea of shorting which we're going to talk about in a minute is the topic for today Many traders just don't know how to short. They don't know how to short They won't short. They they they stink at it. Okay, I'm very good at shorting Some people are afraid to short things are down too much. They say some people only short rallies But then then they don't even work and it's not a short anyways Some people think gaps or fill themselves, which doesn't work Okay, and they want to short things gapping up A lot of traders have absolutely no idea how to short Now let's talk about shorts who shorts in the first place and how do you get to the point of shorting? Some insiders indicate that it takes a certain type of person to short stocks. Whatever that is. I definitely have it Many short sellers have been depicted as pessimists who are rooting for companies failure. That's funny. That's not me But they've also been described as disciplined and confident in their judgment. That's more like me. Okay I see something I'm very very confident and I say to myself this thing has panic written all over itself And that's where I get the confidence in the proper judgment to take my short I'm definitely not a pessimist. In fact, I'm probably a really optimistic But anyways getting back to this. I'm very confident when I see a gap in a stock That I feel it's going to sell off that I can take the position betting like I said And I'm saying the word bet to understand what I mean Because a lot of people don't understand what a short means. I'm betting it's going to drop in the price. Okay So here we are who can short wealthy and sophisticated investors hedge funds large institutions Banks, okay, they meet this qualification and day traders Day traders like me and if you want to learn how to day trade like me, then obviously you would learn how to do this So one is a short short sign is a sign of a stock that the seller doesn't own You are borrowing it from the broker temporarily, but you're flat by the end of the day by four o'clock So you're not really getting like a stock certificate or owning or anything You don't own it. You're borrowing it. You're pre borrowing it More specifically a short sale is a sale of a security that isn't owned by the seller But that is promised to be delivered. This is important. So you understand this that may sound confusing But actually it's a very simple concept. It's it's a simple concept But a lot of people don't get it now if you trade it before and you've shorted you might understand this But for those of you that have never traded your life, you got to get this When you short sell a stock your broker will lend it to you This all happens very quickly But you do have to check in the morning you have the short before you take the position live The stock will come for the brokerage's own inventory from another one of the firm's customers or from another brokerage firm The shares are sold the proceeds are credited to your account of the difference of the price of the move Sooner or later, you must close the short by buying back the same number of shares. It's called covering It's short covering you buy to cover and return them to your broker If the price drops you can buy back the stock at the lower price and make a profit in the difference If the price of the stock rises you have to buy back at the higher price and you lose again Like I was saying you're you're betting that it's going down Let's look at one here. This was last week too. This was thursday This was mgm. This was a short So if you saw mgm in the morning This was on thursday the stock gap down it closed the night before up here at 20 and some cents gap down here to 19 dollars and some cents Again, the amount of the difference of the price of the gap doesn't matter But it matters that it gap down because i'm looking to go through my checklist my system that I invented And see this and say wait a minute. Do I think this thing is going to go under? 1950 or wherever it's opening and I go through the checklist the checklist says yes Yes, melissa. It is going to or maybe it won't you don't know every stock is different every gap is new So anyways, you figured out before 9 30 now. What happened with this one? It did drop Drop like a cliff fell more than a dollar And so this was a good short it actually continued could have done this as a swing tree fell into itself the following day as well What happens how what made MGM dropped like that panic. It's fear and panic like this guy here. He's going nuts. He doesn't want to do He's going crazy The fear and panic are real emotions that affect people's decisions and trades they take in the market If you've ever traded before you know what I mean because you've had these feelings No one that has ever traded has never had not had this feeling Any person that has ever traded in their life has had this fear And panic feeling in trades you might have had them when you were down You might have had them when you were up you might have been unaware of it You might have been fully aware that you might have even aware of it after the fact Many many times what happens when you fear and panic comes over you guess what you lose But if you're smart if you're brilliant if you understand this Okay, which is I understand this and I'm teaching people this you can use that information by seeing the fear and panic And others to profit on Now I hope I'm making sense Panic also sets in fast. Okay People just want to dump stocks That are sometimes gapping down because they're panic panic panic Okay, it happens very quickly and as I showed you in the AFOP Stock fell first 10 minutes of the day set the low and the first 10 minutes of the day People just panic sold Okay, and that's the nice thing about my strategy where you trade in the morning And you've got to become an expert in this because this is how you're gonna get the edge You're gonna get the edge by reading the stock that's gapping Okay And predetermining with the checklist that I use and teach people to use before the open What is going to have panic on the live day? This is where you get the edge. You see it beforehand in the gap You know what to do before 9 30. You're only taking one trade because you believe in it You understand panic and how it works to short against to short into for the selling action You're shorting with shorts and you're also shorting selling action too So this kind of thing is exactly what you want to see and do Big nice fat red bars like this and it doesn't matter what color you make your candlesticks But this like I said depicts selling action So I teach a method and a rating system to find stocks like AFOP or MGM Because the fact is that there's thousands of stocks in the US stock market and not only that There's hundreds that gap every day. So you couldn't you can't possibly short every stock that's gapping down They won't all work and this is where some people misunderstand and they end up saying well, wait a minute that stock rallied It filled the gap. Well, that probably was one. I didn't short. It probably was one. I didn't touch as a short But I didn't buy it So I developed a system It's a 26 point professional bearish gap rating system because I like to short because I like to get the fast moves I like to get big moves and I have an edge by doing this into the panic of selling action And of course with more shorts the purpose of the system is to help you evaluate which gap to trade each morning Using a checklist and this is where you get the focus because you have a checklist next to you And then it stops you from doing the fatty fingers on the live day And for those of you that are training have a problem with discipline. You know exactly what I'm talking about and you got to get it under control The philosophy behind my 26 points is to find stocks to trade that have number one a high probability of directional bias for the entire day Because AFOP actually you could have been in short all day closed at the low big moves on the day Which to me is a dollar or more unless you're playing a very expensive stock Early confirmation of a bias in the move between 9 30 and 10 a.m And precise entries with follow-through and a good risk to reward and you really got to have that risk to reward if you If you if I don't have the risk to reward I don't do it And I'll tell you every once in a while there's something and I see it's going to go to a certain place As a trade is a longer short and sometimes I don't take it I and I and then I wish I would have and then I said, uh, I should have taken it But I don't see the risk to reward even though it was a trade with money and profit in it This is a personal preference, but I really am always looking for the good risk to reward But I have a checklist and I teach this checklist in a class. I go boom boom boom In the morning every single solitary trade I take I go through the checklist for But I'm looking to analyze the daily chart That's where I'm looking at the checklist Then I'm taking the entry on the one minute chart as I showed you on AFOP That's how I'm getting the good risk to reward because I'm taking the trade and like with that one in a 20 cent stop Otherwise, where are you putting the stop? You can't have it on a limited risk So this again is the genius behind my system because I'm looking at a bigger time frame to determine the directional bias stock's going to move in the live day And what institutions are going to do with it buy it or sell it and then I as an individual as one person with a fixed amount of risk and money And buying power is taking the position and I want to get in and out and for that It's really the shorts and it's not that you can't make money going long You can make money going long, but it takes longer I'm sorry to say it does and so I prefer to short Now again looking at MGM. This is the one minute chart of MGM See the panic What makes this all of this bars these bars down here actually are volume bars. Okay? This is a one minute 9 30 9 31 9 32 9 33 9 34 in the first five minutes of the day the stock dropped more than a dollar This is one of the beautiful reasons to trade gaps too because an institution Whoever whatever it was hedge fund whatever sold this position into this open here because this is too big of a move to happen With too much volume too quickly in minutes by individual traders And this is what you want to learn how to do so that you can play this Any piece of this you got is real money And you you're done. I mean you're done literally in five minutes So you but you have to have the accuracy you have to have the right pick You have to have the right pick and not only that you have to have it most of the days Most of the days you have to have it there are people that are out there and saying oh I saw MGM had earnings and it gapped and they might have done it and I might have done it But did they do it with the same entry as me? And how many days in a calendar year did they get the number one one? I get the number one gap most of the days of the year that are as ever out there I picked the best one just like t or n on friday because of my rating system So you've got to have something that gives you that precision with the entry With the pick Okay, the points in the right direction Because it's just too much risk out there to be in too many trades at once And that's not to say you couldn't say well, I'm going to risk $500 a day melissa But I'm going to take five trades and risk $100 per trade. All right What are your risk to rewards going to be then? Okay, maybe you make one hour and one a half an hour another losing two You're all over the place. Where's your conviction your confidence or discipline? You see what I'm saying? I'm so focused that I've honed these things within myself Which you need to do too if you want to get good at trading specifically if you want to make $100,000 a year or more You've got to hone those discipline and confidence skills within yourself to do it And you don't really get there if you're doing too many trades Because in generally just plopping things on and and just you know some are just not going to work And then you feel like you did something wrong, but you didn't do anything wrong at all You just didn't have to focus or the detail And you have to have the trained eye the trained eye matters I've been calling the market bullish and then it's going to make a new high and no one believes me I'm certainly no one believes me anymore. If you watch all my videos I called it accurately for the last few years, but I did believe we would continue it I didn't know we'd fall since the beginning of the year we had we're still going to make a new high this year I'm probably the only person out there that's saying that but I have a huge huge Uh What's the word like I just I have so much confidence in what I see I've trained my eye so well That I know that I'm not wrong How do you get to that point while you could trade for eight years like I have the same system That's going to take you eight years or you learn and mentor under somebody like me Where you get that knowledge and information a lot faster By doing the trades and seeing the trades that I'm taking and learning the stuff that I know from me And being mentored by me to train your eye because you may not want to wait eight years And the reason it's you know, I've been training for eight years. I lost for the first three until I figured this stuff out But I have such a trained eye that I can see something And even though it looks absolutely impossible that it's never going to happen in a million years And then it happens because I've trained my eye to read charts so well because of the way that I read gaps And that's how I'm able to pick something like this. Now, let's look at tier Tier and was the gap from friday beautiful fabulous went to the dream target I didn't even hold this thing all the way down. You could have been in this trade into the afternoon Again, I don't like to trade into the afternoon Especially on a friday, but this was amazing dream target was 16. It broke 16 went to 15 70 something I think it was crazy, but it was good And how does something go like that? How does something drop like that momentum? This is how you get it the momentum comes into the stock in the first half hour of the day The panic selling comes into the stock in the first half hour of the day And the panic selling comes into the gap and then follows through in the gap Here we have the mgm now. I said earlier I showed you the first five minutes of this. What was the trade? What was the trade entry the stock opened at 9 30 boom you're in right of ways You get it a dollar and then you're out. That's it. That's all that you need If you have a thousand shares, you make a thousand bucks and a dollar two thousand shares You make two thousand dollars on on two on a dollar move But you've got to get it because if you go look after the fact to see what this does This was the low of the day in the stock This was the low of the day in the stock It set the low of the day in the first five minutes of the day never broke the low Had a couple of the plays in it, but no not like this. Okay So the entry was 1925 stock was 1945. This risk is great. Look at this again 20 cents 20 cents in the stock of this price point is amazing If you want to make a hundred thousand dollars a year or more, you've got a risk 400 to 500 same risk on every trade Here you could have taken 2,500 shares nice position. This is not at the low This was a target 1850 if you held it down all the way it went and broke 1820 You could have made another 30 cents Okay, you could have made another 700 bucks on this But this was a target and again if you're doing this for a living Then you have certain monetary goals and you're up your goal Your goal is only 500 dollars a day or a thousand dollars a day. You're up almost 2000 You take it again if your goal is 2,500 dollars a week, you're almost there with this one trade Okay And and you might have done AFOP on friday as well. This was thursday Risk to reward was 3.75 times amount risk made in profit time and trade was four minutes again What I love about selling and panic and shorting This is huge. I'm not saying you can never make money going long in five minutes. You can sometimes things open and swoosh I'm not going to talk about that today, but there's bullish swooshes but but I Definitely have found over the course of trading in eight years and why I've gravitated to a short So there's an edge in that because of speed And because of the panic because people just can't stand it They can't stand it when they're down. They can't take it. They can't take suffering And again, I say people and I like to talk about stocks because I talk about stocks Like they're people because they almost are like people because it's people that are trading them But i'm telling you it's like people can't stand having any type of pain We're very adverse to pain as human beings. We don't like it That's why half the planet is on medication pharmaceutical drugs. I mean come on. This is just like You know, I this is just like common sense too people cannot stand to have any pain and when you are down money You can't take the pain And so this is where the panic comes in and as a person as an intelligent human being that has a method and understands Shorting and selling and panic action You're going to take advantage of that to make money in the market and you really have to have an edge to make Money in the market. I mean, you can't just be like la la la la If you're la la la la lying all the day, you can't understand what's happening in the market right now And you really want to understand when it turns around again But it's like this is you are in there Deep in the waters of the muckity muck and the ocean of the market with people that are that have tons of money So much money that you can't even fathom it if you thought and thought and thought you can't fathom it That's the people that are moving the market. They own Everything they are doing it They are controlling stocks and doing stuff and they are in the market And they are doing what they're doing and so you have to learn how to read and to be with those people Okay Can everybody hear me? I just saw a little click Am I still online here? I had internet issues today. I just saw a flash a flash there. Just give me a heads up and let me know if everybody can see me Okay, that was weird. Something just flashed. All right, very good Uh, what was I saying? Oh, you have to have an edge because there's people in the market that have lots of money and they're smart So and this is nothing to do with day trading. This is just in general. You want to be invested in the market You got to be with those upper crust of people that Control stuff You don't have to have a lot of money necessarily to trade You can take whatever money you have and make money on it if you know what to do playing with those people But you have to be able to read what those people are doing the people that have all the money and are controlling things Controlling the stocks and buying and selling them and shorting them And you have to be able to read it ahead of time because after the fact it's too late Okay What's my life? Schrodery, I I I missed what you were saying or what I don't know if there was a delay with that So you have to be able to find it ahead of time. Okay So I have a checklist that tells me mgm is a watch or in this day here. TRN is a watch Oh the flash ain't I know I know Now what can I say? I'm amazing with numbers. I'm gonna I'm a I'm a I'm amazing with numbers love numbers When it comes to machines or those types of technical things. I'm just like I'm really good with numbers these other things. I'd rather not deal with them As Kathy well knows because she helps me every day Let's look at TRN. Okay going back here. What happened stop close here the night before gap down Beautiful beautiful beautiful dropped. Okay, this again dropped more than a dollar Almost two dollars. I think now here we have TRN. Here is a one-minute chart stock closed up here 21 something gap down here to 17 Something so this is a one-minute chart. You watch the stock Here's the short You shorted here again. Look at the move in the morning of the selling action and the shorts Okay, so I like to be done by 10 o'clock now that's not to say this stock didn't go lower It did it did not hit 16 dollars a dream target by the morning It broke 16 later on the day and you could have shorted it later But I will tell you that if you do this again for a career and your goal is in in the morning Wherever it's in you don't want the stock to back up against you You just take it once your goal is in or you could lower the stock You could have lowered the stop on this one down But this ended up not being the lower the day. It actually did go lower than that Price of the entry and this one was 17 25. So the stop was bigger in this 17 75 was a stop. It's 50 cents if your risk is 500 dollars. It has to be the same You can't take 2,500 shares of this if you normally risk 500 Okay, you have to have this this is the number that has to be the same This number varies see people get confused about this And listen to what i'm saying this number is the same this number will vary and this number will vary You don't know until the stock opens and it sets up, you know, you like this You don't know how it's going to set up you learn the entries in the class There's more than one entry. You don't know until it opens But this number has to be the same or your or your results are going to be all over the place Exit really 16 50 was the target on this 16 50 was a target if you get out at 16 50 made 750 bucks This is still a solid solid train 750 dollars again your goal is 500 dollars a day 500 dollars a day so your goal is in but I will tell you that it went and kept going boom boom boom Broke 16 50 and then fell harder low in here is around 16 14 16 15 ish But it did break 16 dollars went to 15 80. I think or something Gary's asked me a question. Do I scan for to find potential candidates? Yes That's how I find stocks. I scan them, but I only scan them on my platform I don't have a special scanner you can buy a special scanner if you want to that's not necessary Now how many gaps do we get per week? Usually there's one a day. That's a good one Now in earning season there could be two or more per day For example a thop and to ren were beautiful fabulous gaps. I love them both on friday And it is earning season right now. It is a good time to make money. It's winter You hunker down in the cold you make money you trade It's a good time to do it now February march, okay during non earning season There's still gaps to do every day But maybe you don't do anything on a monday. Maybe you do One on a tuesday one on a wednesday one on a thursday There's not as many in non earning season in between the earning season quarter results Some days there's four some days. There's five in earning season. You just never know, okay A quality gap is the one that rates high enough to trade based on the 26 point rating system And this is the system that I created 26 points gosh, it's you know It's so weird because i'm trying to think when I actually had all the points together I have to think about this because I had started writing my book It wasn't like I rolled out of bed and had 26 points I started training at the end of 2008 and and this kind of it was just like it just developed with itself It's like anything else that you want to do in your life You want to you want to make you say I want to make a million dollars. All right, let's back it off Let's start from square one Do you even know how to trade it all and then you have to find a system that works Then you have to find a good trader that can mentor you someone like me that can help you get through the system and learn it Because you're going to go through ups and downs and you got to learn what you're doing and it's a process It really really is an absolute process when you're doing this, but I will tell you that It was a process for me to come up with this many points I have not changed my system in any regard for years So it's a very very good system and most days of the calendar year I picked the top stock to short. I'm very good at spotting the shorts So you need a plan for booking the money quickly This is a personal preference and luckily because I like to short I have that ability every day, but there are days like I showed you with TRN You could have been in it till the afternoon But you need a business plan. What are you doing? What's your trading plan? In other words, say you're into your end and you're up $2,000 or $1,000 whatever But it starts to push against you Well, you better know what you're doing because what if it doesn't go to the dream target What if it doesn't go to the next target and then you're going to be up $1,000 and then you're going to be down So you can't do that Trading can't be about gambling. You have to say I'm doing this because it rates this many points for the system I'm doing this because it's a short. It's a good gap I'm risking this much money. Here's my target. If it gets close to the target amount Okay, I have two top picks today. I'm only going to do one You've got to have risk to reward in every trade you take. What do I mean for every dollar? I risk I'm looking to make at least two or three preferably three But there are days where you get a tron in the stock falls and could be a 10-hour trade But you got to hold it down So The people that are out there scouting. I don't I don't scout. Okay. I'm playing momentum that happens fast The speed and execution may be like a scout for the speed of it But it's really not about That is a scout because I'm looking to make three two to three on my trades And scalpers are looking to make a half or quarter or a little bit. Okay Or one is a big trade for a scalper So again one to three in the low end I'm looking for four to six in the middle end of risk to reward for trades and eight to ten in the high end This means for every dollar I risk I should have a minimum of a three dollar potential as I was saying earlier Sometimes I see a good trade to make money and I pass because I think the stop's tubing and then it ends up working Also, there should be a potential for even more of a payout if the stock goes to a dream target and that was the case in the tron But you really have to have Knowing what you're doing for something and saying I'm going to risk this much money I'm going to make this much money. I'm going to get to that point. What is your goal? You must chunk it out Here's the chunk you want to say to yourself I'm going to make $2,500 a week and then you back it off from there $500 a day. Okay So if you're brand brand new, I'm saying you should risk four to five hundred dollars per trade If you get good though, you can get away with risking $200 a trade and make $2,500 a week But if you're new you're probably going to take the train and get out quickly when you see you're up I tend to find that new people get out too quickly. Okay It's like the opposite traders have been training for a long time. Hold too long Give back money that they're up wanting it to go to some crazy number and people that are new get out too fast It's like the opposite So i'm giving you like a good starting point here Now if you cannot afford to risk $500 per trade or $400 per train Then you risk what you can afford to risk. For example, $150 a day profit Which is very reasonable It's still almost 40 grand a year and some people don't make this at their job a year now You know, this isn't maybe i'm gonna pay your bills, but it's a good starting point for a part-time income to sub you know to uh Substitute another job that you may have until you get good at doing this Where you can start to make more money and actually 300 dollars a day is almost 80 grand a year and that's pretty good That's pretty good. And this will pay the bills for some people not everyone but some And again, you're trading so quickly so fast you're in and out of these things in minutes minutes Okay, so to be able to make even 40 grand a year trading something for five ten minutes is that's amazing. That's huge So I can teach you how to make this kind of money shorting because I have such an edge doing it I have a great focus a good eye. I have a system which is a checklist that I Personally invented for myself never for the purpose of teaching anyone, but I do teach people now I teach people successfully and my golden gap course had a short stocks that are gapping It is based off of a 26 point rating system on the daily chart It tells you what stock to trade the best one each day today You can go look at it was ll The course also teaches you how to enter and exit the stock on the day to get goodness to reward trades Because that's how you make money Okay, because you're as a day trader in and you're out The course also teaches price analysis and technical analysis and an advanced level And technical analysis is based on chart reading with candlestick patterns And you can study that stuff on your own if you want that's not the crux of what I do But it's something that you will learn or you can work on that yourself Reading about candlesticks the course teaches a more proficient way to read support and resistance in the right direction And the course also teaches you how to focus on one strategy in a detailed manner So you become a good trader and ultimately you want to become a good trader your goal should really I mean everyone obviously is doing this to make money and that's why you want to trade But your goal should really to be to get good your goal should be you want to get good at this thing Because if your goal is to focus on the money, you may actually miss the boat Of what you're supposed to do with the trade in other words, you might actually Screw up the target, okay So it's all based on a 26 point rating system you go through Check check check and you tally them up every day I do this with every gap before I trade it before they open so I know what my pick is Now some people ask me as a class beginner advanced My class is advanced. Okay. My class is an advanced class. It's a lot of information It's 16 hours if you have never traded before does that mean you can't do it or you won't get it? No, not at all In fact, I found that many people that have never traded in their life before and have no preconceived notions about anything with trading tend to do well because they don't have any bad habits They're not in fear about it. They don't think things do gap fills or whatever They don't think things that don't work and so that they start with me and they learn the right thing So there's no downside here if you've never traded before learning my system Or if you've never traded gaps, it's okay. You will learn from scratch with me And you know it is advanced because we're looking at a lot of things on the chart And that's why the class is 16 hours But you have to understand there's there's just more than one step on the ladder in people's journey And even if you've taken classes before and you feel like well, I didn't get my money's worth out of it Why might you have taken a class before not got your money's worth because you didn't you didn't make money in the market After the class Usually what happens is people take a class feel like they got gypped because they didn't make money after the class I have a very successful business and run a live trading room and call trades So people take my class after the class you're eligible to join the room and you can take my calls You are not eligible to join the room unless you've taken my class But it is a stepping stone to help people after the class to be in the live room to take my calls to make money So that they can move forward on their own ladder getting it and doing it themselves Because ultimately I am teaching you to do it for yourself I'm here as a support system in the room if you need it But you go in the ladder yourself so you can get it yourself and get it down and do it And I think that is very important because ultimately you're risking your own money You are risking your own money no matter what you're doing. So you still have to know it I'm your support system in the class. I'm your support system in the room. Okay You um have to learn how to do it to make money But I do have a system that allows people to make the money back for the class rather quickly Now let me ask a question here And really if they're in the room Gary says what platform do you use to execute your trades sterling? Although I've talked about this in several videos. Sterling is having charting issues I have I have had outages on my charting platform with sterling on and off for the last Month and a half and it is not improving. So at this point Gary I can't tell you really what you should do or where you should go go with whoever you want to go with Because I may be switching myself Okay, look into a platform You have to have a live level two and you need charts that work The level two has been working. Well, no, that's not even true I had the level two freeze up twice on me in the last month So They're working on changing servers. It hasn't happened yet You got it. You got to practice and check ones out You got to understand what you're doing before you place a trade with live money Okay, very important and and you got to have a system that works You know that you can be have a reliable but I've been on sterling for so so long now It's really hard to change but I haven't changed yet But I don't know what I'm doing with that at this point I don't advocate any platform per se right now. That's the truth I want to make it. I want to make a one for my own. I'm going to create my own charting package and my own platform That's in a dream world. That's what I'm doing and my own scanner And someday that's probably going to happen But not right the second at some point you need to get on the right path though If you if you want to make it and that really has to do with the foundation of the strategy that you're doing And having an edge and for me, it's really shorting. Okay But try not to let things that happened doing in the past if you've had negative experiences In the market losing money and doing strategies that didn't work or in classes Try try not to let those stand the way of your success It's really has a lot to do with your mindset Now does this mean that you're going to be successful if you have a good mindset? No, because if you have a crappy system, you're still not going to make money Even if you're positive You need to be positive though and have a good system Because if you have a crappy mindset and a positive system, you may make mistakes And and it all may be as a result of you feeling so down in yourself and negative and negative about the market Don't be self-destructive So get your mindset on correctly when you're trading and focus and you only have to do this for just several minutes every day You can just that first half an hour period. Okay But it is worth it if you can figure out how to do this because you're only trading in the morning If you're in the eastern time zone and I through the west coast it's early morning If you're on the other side of the world, it could be at night But it's such a small period of time that my strategy sets up And I'd love to trade I mean, I don't I don't know if you do a job that you love But one of the reasons that I switched careers and wanted to day trade as a career is because I didn't like doing mortgages anymore It was very tough and I was working seven days a week You've got to sometimes you're willing to take risk to do something you love and and and if you can make good money doing it I mean, it's like a no-brainer. It's a no-brainer You work from home make good money and you enjoy it But it doesn't mean it doesn't involve any work The work is that you will have to learn something The learning curve is different for everyone. I don't know everyone individually And I don't know people that are brand new that I never talked to before and some people have talked to before I still don't know what they know until they do the class You have to know yourself and say, you know what I whatever it is I'm going to learn it because I really want to do this thing And I've been trying to do this thing for years and all of a sudden now This is just making sense to me that that this idea of shorting the panic action The idea of gaps themselves, which are created by institutions Something has to click or resonate within you that the strategy that I'm talking about in all the videos that I do and all the Web desires I do with online trader central clicks with you And not only that that you that you see that I know what I'm talking about Which which I absolutely do or I wouldn't have a successful business now For the length of time that I have and been trading for eight years and I've had the business now for over four So it's way past the point of you know being a new Educational business the amazing thing is actually that I'm still doing everything myself I don't think that's going to last for long But at this point now I still run the room and teach the classes myself and you're getting the personal touch from me So you're getting the advantage of learning my system from me and trading with me And I created it for myself and I'm the expert at doing it right now at this point in my career and in my business And in my life and you want you want that this is the best case scenario for you for for you and for me Okay, because I'm the best person to learn it from because I'm really the expert at shorting So empower yourself today to trade the market And my class is a complete system to day trade and short Stocks that are got me. I teach you the entries. I teach you the reigning system I teach you the targets you learn the stock swish in the class And we also go over some some mental programming that is important too. Okay The class is called the golden gap 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 in the classes online classes online, which means you can be anywhere in the world and take it And the class i'm doing is going to be saturday and monday I had a very successful turnout for the for the day two that I did in the monday with live Trading and gap analysis on day two So i'm doing that for this next class because it was it was very successful So normally I do classes in saturdays and sundays if you can't do the monday on this class You could sign up for this class do the saturday And then do the day two the next class in march, which will be saturday and sunday But i'm doing saturday and monday this class because we're going to do the live gap trading analysis on the monday Because obviously the market's closed in the weekend cost of the class is $39.99 if you would like to sign up Email me at melissa at thestockswish.com I remember your path to success really has got to be With a system and for me, it's the golden gap course I I just I've never I don't trade anything out in the gaps I do it for everything that I do and it's a great time to short during earnings season Now I also teach another class called the trends course This class is going to be in march. It is about long-term trends in stocks If you want to do swing trades, this is a good class Although it does help you become a better day trader. This is $9.99 It's a two-day class. I do this during the week 12 to 4. This will be in march If you want to sign up for this you can email me too And all the class information is on the new website the the papers and forms to fill out though You have to email me. They are not in the website and they're not going to be in the website You have to contact me if you want to sign up to fill out the registration forms But you could do the trends class and the golden gap class for one price for 44.99 With a discount you get half off the trends class. You save almost 500 dollars This is the special for this month You would do the class this weekend, saturday and monday and then the trends class in march Okay, and I am rolling out a gap options course Which I don't have the dates for yet. If you want more information on this email me This is going to include a subscription for the year for option calls So it's not just going to be the class It's it's going to also include a subscription for option calls Which you would get emailed to do the option on that specific day to take the trade For the year, which is actually this is a good deal. So email me if you have more interest in that I don't have the dates for that yet But everything is based on gaps every single thing that I do is based on gaps And I've been doing options now in the last few months and have had some just huge huge massive success with them Ridiculous ridiculous amounts of money. I've been making in them and I thought gosh and I sat down for a week The other week and took off and Wrote it all out. It's you know, there's money to be made in the market. I am doing it I am teaching people how to do it people are doing it with me It is real if you are not take a break Get your head on straight think about what you want to do if you still have conviction and believe in the market If you do, you know call me and talk to me if you don't take a take the year off. You gotta Gal head says yes. Yeah, uh, you got to really Know what you are capable of Okay, just because maybe you're not in your mind making the money that you want to make right now It doesn't mean you're not capable of it, but know that it's possible It's only you that is holding yourself back. Okay 2016 is here. It's still the start of the year. It's not too late for new year's resolutions You can have a new resolution saying, you know what this year I'm gonna make money in the market Gosh darn it. This is my year. You can say to yourself. I'm gonna do it this year. I'm gonna follow my rules I'm gonna listen to what melissa says. I'm gonna take the class. I'm gonna learn something new I'm gonna short or whatever you say to yourself You've got to make the decision This you do have a choice. Everyone says, well, I don't know what to do and I don't know this and I don't know that Find a way figure it out. There's always choices the worst thing that you can do I'll say this one last thing and let everybody go The worst thing that you can do is live your life with regret It is the worst thing that you can do. Don't live your life with regret Don't don't when I see a trade and I take it. First of all, I'm taking trade so quickly, okay And I just take it. I just take it Don't don't live your life with regret and say I wish I would have done that trade And I wish I would have taken this class and I wish it would have dated and I wish it would have short And I wish I would have done this and I wish I would have gotten married and I wish I wouldn't have whatever Don't say that to yourself. Don't live your life in regret wishing for things You are in control of your own destiny. I know you may not feel like it You may feel like a victim to your circumstances or things that happen or trades you've lost in or Classes you took that didn't work out, but you can only turn it around You as long as you're alive on this planet. You can turn your life around I truly believe that it matter what your circumstances are But you do have to believe that you can and have an optimistic attitude It may take you time if you're feeling down and out, but you can do it, okay Please think seriously about the course of your life and your destiny because what you don't want to do is live your life with regret And and have missed opportunities Because there's opportunities all over the planet all over the place every day Tons and thousands of millions in new york, even the city that I live in don't let them pass you by Gala that says correct. Yes All right, does anyone have any questions about anything else? If you would like a trial of the live trading room this week email me at info at the stockswish.com And look for giveaways. We're going to do this week for the website roll out And and and some specials, okay Thanks everyone for coming. Thanks online trader central Any other questions? You're welcome. Thanks everybody I'll see you tomorrow Okay