 Let me know, I'm gonna get the slide up here. Can everyone see the slide? Again, you go down to two individual user, then you choose my name Melissa Armo. Got it? So today we're gonna talk about Advanced Technical Analysis in Gaps. Welcome everyone. My name is Melissa Armo. If you have questions, you can type it in the room. And if I want to go back and forth with the charts, I may do that as well. If I decide to do that, I will let you know because I will have to stop the projection and then repost it on the chart. So we may do that. We may not do that. I'm just letting you know. Does everybody know how to type any questions? Let me know if you know how to chat questions. We're talking today probably about between 45 minutes and an hour. And again, if people come in late, I'll let them in. If you're here, you have questions, that's fine. Some of you are familiar with what I do. I see some familiar faces. Some people are new. David, have you been following me, David? Are you new to what I do? I've been a recognize you. Paulette, I think you're new. Stephen, you've been around. Stephen's trading options with me. Ryan, I don't recognize your name. Are you new or have you been following me a while too? Again, feel free to chat in the room. David's new. Okay, great. All right. Well, you're learning a little bit today. So if you're interested, see if you have any questions and stay or as long as you want. But we probably won't go after five o'clock. Anyways, we're gonna talk today about technical analysis. And this is me. If you've seen me on TV, you know what I look like. If you've been following me for a while, you can follow me on Facebook, YouTube, Twitter. I have lots and lots of videos on YouTube, which you can watch. If you have questions, you can always call me at 929-3200 Gap. Or you can email me at Melissa at thestockswish.com. And again, I have been trading since, gosh, 2008. Really, really feels like a long time that I've been trading, but actually it seems like I knew how to do this forever, but I did not know how to trade when I first started out. I lost money when I first started out. I did not know what I was doing. And most people don't know what they're doing when they first start trading. So it's not like anybody wakes up, and they all of a sudden start making money the first time they trade. It takes time to learn how to do this. It is a process. And I find a lot of people get frustrated with the process, enjoy the process, enjoy the process of learning, go through the steps to do it. Again, this is something that you should find enjoyable, where you want to do it, and you want to get better, and you want to learn more. And again, I do talk on TV about the market. This is me on Cheddar. I also talk about stocks. I talk about the economy. Now there are times when the economy does something we might have data, and then the market reacts exactly like you think it's going to. So we could have bad data, and then the market sells off, or we could have good data, and then the market rallies. But that is not always the case. So it is not always the case that the economy or the market data goes exactly with the market. So what I do is based on technical analysis, it's actually not based on fundamentals. Sometimes the fundamentals match up, but not always. And so that's the tricky thing. People want to look at the fundamentals and then immediately make a decision on whatever they're doing. You can't always do that. You're not always going to get the matchup exactly. It would be very easy to trade. If we said, oh, we have bad economic data, we had a bad report, a bad inflation report, let's short, short the world. If it would be that easy to make trading decisions, and guess what? No one would ever lose money trading, but it isn't the case. So I developed a method to look at charts or what is price analysis in the gap. And that is what we're going to talk about today. And of course, we're going to talk about making money, because trading is a great summer job. Right now it's summer, hard to believe we got another, probably about another month, maybe six weeks or so of time that we can trade and make money. And then it's going to be fall, and then it's going to be fall earning season. And so of course, guess what? A lot of people are back to work. Some people are working from home. Some people are out of the jobs, but trading is a good part-time job, because you do not have to sit at your desk for six and a half hours a day or eight hours a day like a normal job and trade. Even when I'm doing options, I'm in the trade, put the trade on. If you can't watch it, you can put a sell order. You don't have to watch it. You can just put an immediate sell order. If you want to watch it, you can. But for my day trades, I'm usually in and out very quickly in a couple of minutes. So again, trading is a great summer job and a great job in general because of the fact that you do not have to sit at your desk all day. And of course you have weekends off. So when you trade, you have one goal. One goal and that is to make money. And again, a lot of people start trading and they're losing and they're not making money, and then they do it every day anyways, like they're playing a video game or something. You have to take this seriously. You should not trade if you don't have a strategy. And a lot of people ask me questions about different things like my option subscription service, the trading room. It's great if you subscribe to a subscription service if you want to. But if you have no idea why that person or that service is calling the trades that you're doing, I mean, how can you possibly take the trades? And many, many people end up having subscription services to places. And then there's no strategy. There's absolutely no strategy whatsoever at all for the person that there is actually calling the trades. So again, it's the whole idea where you will follow me. If you decide to come with me, you will follow me in what I do. If you want to learn what I do, you take the class. If you don't want to learn what I do, you have to follow me to the letter in the subscriptions of the trades because I'm using a set strategy to call the trades and do the trades. And again, that's what we're going to talk about today. We're going to talk about gaps. So I'm showing in here the results for, this is the beginning of 2023. Hard to believe. Again, here we are midway through August. Tomorrow is August 15th. We will be halfway through the month of August as of tomorrow. Again, seven and a half months through the year. It's almost the holidays in a few months. It's really hard to believe. So far, the results for the day trade run this year, this was through Friday. We've almost hit 400,000. Almost hit. So again, these are the stats year to date from January to the two basically last Friday, $399,095. This is with an advanced trade or risk. You could risk more, you could risk less, but it has been a great start to 2023. Okay. So when I'm getting up in the morning, I'm making decisions for what I'm doing, but I'm making up one day and I may decide that there's nothing that I want to trade. And then I may go through my process and say, I'm going to take the day off or I may get up in the morning. I may say, there's three things I want to trade today and I'm going to do all three. So again, I never know from day to day today what I'm going to trade or when I'm going to do it. But training requires a positive attitude and that may be difficult. If you've been attempting to trade or trying to trade for a very long time and you've been losing money, it may be hard for you to think positive. And if I've heard all the stories, but I want to tell you right now, you must be positive. You must be your best friend in your own cheerleader when you're going into the market and you're trading because really the market doesn't care if you win or lose. So if you're not going to be your best friend and your own cheerleader to be positive and think that you can do it and make money and be successful, then you've got everything against you because you're ready to have people against you in the market because you're ready to have people that actually want your money, that want to take your money into the market. Remember, when you go in and you take a train, you're not really knitting a sweater and selling it okay to somebody all out on the street. You're just taking money from somebody across the aisle in another train. Every time you make money, somebody else is losing and every time that person makes money, you're probably losing. So there's one winner and one loser on every single side of the trade and that's what the market is. Like from the movie Wall Street, Gordon Gekko, it's a zero sum game. That's pretty much what it is. So the person that is right is the person that's going to win. So your objective always in every single solitary day is guess what? To be right. To be right. That is your objective. That's what you're trying to do. That is what you want to do. So in order to become successful, you need a system okay and you need a niche and that is what I've developed. That's what I've developed and again I started doing this in 2008 but it took me about three years to develop my system. It is not impossible but if you're starting out from scratch and you have no system then you either have to pay and learn somebody else's system. If you come and learn my class, you learn mine or you have to create your own and the way that I did it was through actually live trading real cash. Okay so you know I mean you're not going to really get a feel for it whether it's something works or not if you're trading on a demo. You must trade real live money to see if somebody's going to work or not. You do not have to trade big size like the like the stats that I showed you. In order to earn $400,000 so far in the first seven and a half months of this year you can have as big of an account as you want but if you don't know what you're doing you're not going to meet those figures. You're not going to meet those numbers and again I've been doing this for 15 years. You can make money trading with a hundred shares of something. You can make money doing options with one contract. Okay I have people that are doing it and again I say start out slow and be reasonable with what you're doing. If you're risking $500 to trade on one contract for example or in an option per say $250 with 50% return investment that is a good solid trade. That's a good winner. If you take four trades okay for example and they're winners that's $1000 or $250 at 50% that's good. Say you have one loser in the week so then you take off the loser then guess what you're still up for the week. That's still positive and that's with only a $500 risk because again it's about having more winners than losers. You have to have to have to have to have more winners than losers in order to be successful and again any questions as we're going along you can plop it in the room but you can make money in the market. People do it all the time it's just that not everyone does and if I had this if someone said to me why do you think so many people lose money? The number one reason why people lose money is actually they're taking the direction in their position wrong and if someone said why do people do that Melissa I would say because they don't have a strategy so they have no idea where they're going long and they have no idea where they're shorting. For example today today's a good example actually the market rally today people went long why today was a terrible placement in the market to go long absolutely 100% terrible terrible idea bad idea we did not go along the market today horrible trade and yet you could have made money in this trade today so you could take a bad trade you could take 10 trades 10 bad trades two could make you money and eight could lose you're upside down you're down in your account if you do that but because two times it worked people will do it do it do it even if they're losing most of the time do you follow me so again most people lose money because they're taking trades in the wrong direction and if I say why are people taking trades in the wrong direction it's because they have no reason to do those trades they have no idea if somebody went long today they have no idea why they went long they couldn't tell me at all why they did it and if someone said because you were buying uh buying the dip I'm I'm just gonna tell you that that is not a strategy that is not a strategy at all and it doesn't work consistently in the market or to trade stocks even in things that are in enough trend so ultimately you need a good system to succeed and you have to follow it daily and you can't veer from it because again if you veer off of that system okay then you are going to have difficulties or if you don't have a system at all you're going to have difficulties too so what do I do well my strategy focuses on gaps so again if I get up in the morning I'm looking for the best gap every single solitary day and I'm going to explain to you when a gap is in a minute again this is a review for some of you some of you have been following me so you know but I focus on gaps and I'm looking to short gaps so I focus on the short side on the downside of things why because I found that that could be an issue because many people do not know how to shore they don't know how to shore well also things tend to fall big and fast more so than they rally okay because of something called panic which we're going to talk about a little bit too but I focus on the fast moves I focus on the volatility and I focus on the short side when I'm trading now this is a chart of Tessa so let's talk about what is a gap again there are most every single day something gaps in the market or the market gaps things gap up things get down I will go along but I mostly focus like I said on the short side now what is a gap a gap is a difference between the close in the open here's an example Tessa I'm going back here to July Tessa closed at one price at four o'clock and open at a different price at 930 so what is a gap a gap is a difference between the close in the open so it closed at four at one price and open lower at a different price at 930 so what is technical analysis technical analysis is looking at past price data to predict future price data and that is what I do and if you come and learn and take my class that's what you're going to learn from me so I predicted on this particular day again I'm going back to July this is an example here that Tessa would fall fall fall fall in the gap down now can you only short gap downs no can you always go long gap ups no can you always short gap ups no can you always go long gap downs like in the market today no no you can't again you're looking for a specific specific specific gap in order to make the determination to be able to predict the direction and again this is what I do so there's two basic things you're going to learn here one is what is a gap a gap is a difference between the close and the open okay so that's what that is then we have to go through the process of determining if this gap down in Tessa is in fact going to drop or is it going to rally and that is the genius in what I go through my process in doing and again why do I prefer to short well you can see the big fat bar here in Tessa you can see the big giant bar and again this was back on the 20th 20th of July so we're not quite a month away from that but you can see how take it over again we're the daily truck this is around 280 you can see how this has fallen off ever since so actually you could have done a swing trade short in Tesla too you could have actually shorted Tesla as a swing trade or done a longer term put in this it has sold off ever since that particular day there was a very good gap and we did we did short that okay but also talking about again momentum and movements to the downside so again what is it got I'm taking everything off the daily chart we were just looking at Tessa we were looking at the daily chart so a gap is a difference between the clothes in the open stocks gap most every single day but not every gap is a good gap or what I call a golden gap so I coined my term my whole system the golden gap because it's like finding gold in the market but again things gap every day it doesn't mean I'm playing everything every day not even in the trend I'm looking for gaps that are predictable okay and how do I do that I do that using my rating system so again what is a gap this is a chart of the spy let's take a look at it let's go back again we can go back to the beginning of august stock close your gap down again this is the etf for the s and p closed here gap down fell boom so again the spy gap down and you could have shorted this or you could have done a put okay so again the market is something that you can do many many different ways you can do puts in the market you can short the market on margin you can do swing trades as well in the overall market there's many many different ways to trade the market if you don't like the price of the spy right now to trade it on margin you can buy a put that is a cheaper way to do a short which is really basically the same thing okay or you can do it as a day trade but everything that I'm doing is based on momentum so I'm looking for momentum in the gap in order to make money all right so it's having a conversation with someone the other day about you know what do you pay for this option when do you get in this thing and that thing if I call a trade on the options newsletter at 7 a.m. in the morning I can't take that trade till after 9 30 okay you cannot trade options in the pre-market you have to wait till the open to enter the trade so I get in the trade in the first 5 10 15 minutes of the day I get in it pretty quickly the whole idea is not to scalp options we're not trying to make 25 cents unless it costs 25 cents if I'm paying two dollars for an options trade for example I'm trying to make a dollar or more so whether I pay 175 180 or 215 for that trade if that trade goes and it gets momentum and it drops and it falls and it sells off like Tesla like the spot like the examples I'm showing you here in the daily charts of these of these stocks you're going to make money okay so again momentum is a big move that is the whole point of pinpointing on the daily chart what we're trying to get and again this is all based on price action based on the gap so again let's talk about a little bit here about momentum so if you have a thousand shares and again this is if you are doing a day trade so if you do a day trade you have to have a margin account to do it if you have a thousand shares of a stock and you short it and it drops a dollar how much do we make a thousand dollars say you short it at ten dollars drops to nine you have a thousand shares boom you get in get out quick you would need a margin account to do a trade like that okay if you have a thousand shares of a stock and you short it and drops ten cents how much are you going to make a hundred dollars I say okay fine that's a hundred bucks but which would you rather make you obviously would rather make the thousand risking whatever you're going to risk depends on the stock and we're going to talk about the difference between the entering the stop and a little bit here but it's the whole point if you can make a hundred dollars in five minutes or a thousand dollars in five minutes of course you'd rather make a thousand then your day can be done really really quick it's the idea of getting the momentum and getting it into the open quick quick quick as fast as you can get it or really if you want to hold it longer from nine thirty to four you can get it but it's the idea of playing momentum not waiting waiting waiting waiting waiting for somebody to go and again a lot of people that are trading the market one of the other mistakes that they make is they may take five trades and maybe they're all profitable ten cents five cents fifteen cents twenty five cents thirty cents but then they may have just as many losers or they may have two or three losers and those losers are way bigger than the winners because the winners that they have really don't go that big does that make sense so trading momentum is key it's key when you're doing day trades like this example here but it is also really really key when you're doing options because when you're doing options if you take a trade on a Monday that's an options trade that expires on a Friday you got five days to that thing expires and preferably you're going to get a move in that you can be able to get out of that trade before the expiration date you don't really want to hold something to the last day you want to get a momentum move in an option so that it can pay you okay the whole purpose of trading options is to get the momentum which is why it makes them profitable if you're if you're just getting a little bit here a little bit there every day you're losing losing time value in an option and it's just going to be really really difficult for you to make money and unless it moves so a lot of people look at so many different things with options if you if you're trading the option that you're getting the momentum you're fine okay you're going to get it you're going to get the trade it's going to go and you're going to be profitable whether it happens on Monday or Tuesday or Wednesday if it hardly moves at all for Monday Tuesday or Wednesday say for example for three days if we do it on a Monday it you know it could even be going on your favor and you could even be down if it's hardly hardly moving okay anyways getting back to what I was saying the key today trading stock successfully is using a system so you will trade a system that sets up daily with a high level of predictability in the directional move trade a system that works independently of the market and does not need the market with it to work this is another thing as well if I take a trade for example and it has it's it's a good gap and I don't need the market I'm great I'm golden if I take a trade and it's with the market it may reverse if the market reverses in the gap so I'm trying to look you know 95% of the time to find things that do not need the market okay because if you need the market every day Monday Tuesday Wednesday Thursday Friday either better read the market direction and predict where the market's going to go correctly or you're not going to make money okay and the market can be tricky many times the market seems like it's going to go up and then it reverses we had that last week the market flipped last week Thursday particular the market rally and then completely fell off and and that that caught a lot of people that were long off guard and then it sold off and then we sold off on Friday morning and actually we sold off today in the morning before we flipped too okay but success or failure has everything to do with the quality of your system again why do people take trades in the wrong direction because they don't have a system so then you need a system but you still need a good system and you still need a system that has more winners and losers so for me my niche is really shorting it's trying to get the fast move it's trying to get the downward move it's trying to get the sell-off and and again this this is one of the reasons why I'm able to sometimes get in trade so quickly too so sometimes I'm going to trade at 931 932 935 934 and then I'm out in five minutes okay so whether or not there's an FOMC announcement whether or not the administration has an economic data whatever it is I'm in I'm done I'm out of the train before anything even happens so getting in and out quickly it also counts too and if you're trying to be like everyone else buying the dip or buying support which is exactly what happened in the market today overall even if it would have paid off today even if you would have made money going long today the market and a gap down on support you still overall will lose doing that in order to have outstanding results you have to be different with what you're doing and when I say different I mean different in relationship to what most day traders are doing most day traders lose again there's many reasons for that I gave you a few or what I find are the are the most valid ones the most common ones okay but but the thing is that when people are back and forth attempting to trade for I'm gonna say five years or five years or more people then get down that it can't be done but it's the fact that people are going with the crowd of traders that aren't doing well so my method is designed and based on not following the crowd of day traders but following institutional money and I'm telling you right now that institutional money is not buying this market which is exactly why we did not go long today and why I'm not long the market all right if you follow institutional money you're going to have a higher success rate you're going to be able to make more money you will be in things that have larger moves where you could keep your risk low medium or big okay and you get a big move again Tessa was a good example of that that was sold off with institutional money and that gap in that particular day that I just talked about but there's one reason why people often get confused reading gap direction it people just get tripped up with it because again a lot of people want to trade gap fills and that does not work consistently either but my niche again like I said is shorting and it's shorting using the daily chart and I look at the daily chart and I'm looking at technical analysis and what is technical analysis? Technical analysis is using past price data to predict future price data like if you said to me Melissa okay where do you think Tesla is going to be between now and tomorrow morning or between if I got up tomorrow morning and it was 9 a.m. and you said tell me where Tesla is going to be by four o'clock today and then I would give you an estimate based on where Tesla is gapping tomorrow morning at 9 a.m. when I roll out of bed okay and so that advantage to be able to predict where it's going to go whether it's in six and a half hours or whether it's in five days if we're trading an option really is quite beneficial because you really don't know what's going to happen with the economic data you don't know what the fundamental reports are going to say you have no idea what the earnings are going to be on anything when they come out the earnings are tomorrow morning and HD and Home Depot I have no idea what those earnings are going to say I am not in Home Depot I'm not long it I'm not shorted I have no idea what it's going to do at all but I will know tomorrow when I see the gap in it if I want to go long if I want to go short so I wait for the gap to occur and then I look at the chart I look at the price of the data on the chart using past price data to predict where and again I'm just using HD as an example where it's going to go tomorrow if we in fact decide to play it okay any questions here as I'm going along anyways my niche is gaps and also shorting so again I'm hoping that HD is a good gap down but I don't know I might go long it tomorrow if it's a good gap up we'll see but I would prefer to short because I do prefer to short so how can you make money shorting you make money when the stock price drops okay you're not if something doesn't fall you're not going to make any money if you're shorting in fact you'll lose okay so again it has to go down now who can short anybody anybody can short at all so you can buy a put you don't have to have a margin account to buy a put you have to have an options account you have to have a cash account or you can have a margin account as an options account but anybody can buy a put which is basically shorting in an option now if you want to short where you press the button on your keyboard to short you have to have a margin account to day trade short in and out like I said where you'd short something and you get the drop in a dollar and you get out anyone can short as long as you have the account to set up it as a short and you have to call your broker to set it up okay retail traders and professional traders can short if you don't have 25,000 in a retail account you may be restricted where you can get in and out in and out every single day as much as you want then you can do options set up a cash account or you have the 25,000 or more or you can open up with called a prop account you can open up a prop account at a prop trading firm where you can open it up with $2,500 or even $5,000 you will get 10 to 1 margin you will be able to short so that's a way to short on a margin account with less than 25,000 those options are available to people now or again you buy puts okay but these trades that we're doing set up fast they go fast they go quick we're usually done quick and early in the morning now I'm going to go over an apple trade that we did a little bit ago that took all day it was a good trade but it did take a while to go but most of the trades that we do most of them are fast they go quick we did a trade last week I forget it was either Wednesday or Thursday where it went so so fast we were in and out in three minutes and again that's what I'm trying to do that's what I'm trying to look for every single day it's the consistency of applying the method and the direction and taking the position and getting in and out quick that's really going to pay you again nothing goes straight up and nothing goes straight down so if you can make a thousand dollars fifteen hundred dollars two thousand dollars in five minutes seven minutes fifty minutes a half an hour you're safe you book the money you've got it you're done boom walk away enjoy the rest of your day trading is not about it's almost like less is more it's not about being a pig with every single solitary thing that you're doing because ultimately the more you train the more trades you take and you're trading all day long for six and a half hours your accuracy level is going to go down it's just the way the odds are so I look at my my I look at trading as a job where I'm actually taking the trade and my job is to make money and be done and the faster I can be done the better so if I take a train I make money I'm done I don't sit there looking for trades all day long you know for six and a half hours so if you look at trading as a job you're going to do a heck of a lot better than if you're just thinking oh I just made money in five minutes I'm just going to keep trading and keep trading and keep trading and keep trading I made that mistake very early on that was a huge mistake I would make money fast I started figuring it out and then I started making money fast and then I started giving it back and it really took me a long time for the discipline to get to that point where I stopped doing that it was difficult for me actually and what I ended up doing was then walking away and leaving my house and changing my workout program where I worked out later because it was hard for me to stop trading you have to look at it and you have to be serious and look at it like a job even if it's not a job you have another job and it's a part-time thing you're doing you're just making a little bit of money on the side if you look at it like a job and take it seriously like a job you will do so much better in the end any questions here so far about anything I just said okay all right well let's talk about apple so I said we were talking about apple so apple closed here gap down again I'm going back so this is august 3rd to august 4th apple closed here gap down fell so on this particular day it was a friday we did a day train and then we also did putts and again a putt is a short as an option okay now this was the day train I'm going to go over this here this was an advanced trader risk again you can risk uh more money you can risk less money you can take a hundred shares unless you if you have a retail account you can take odd lots but if you have a prop account you can't you don't have to take a hundred shares would be the smallest you could take anyways the entry in this and we're going to look at the chart in a minute was 185 60 1600 shares the risk was 30 40 again this is a trade on margin okay so you would have had to have a margin account to take this and if you're like oh my gosh I don't think I could have done that it's too expensive you could have bought a putt I did call the 185 puts so you pick the one if I call the trade in the room you pick the one closest to the strike I did call the 185 puts on the options newsletter and again you could have done the 185 puts okay then we added took more the position total shares was 3200 this took a while to go so I added average price was on 95 40 X was 182 15 this was a nice trade this is this was a huge straight actually I was in this trade I'm going to show you most of the day it fell into the clues it was a Friday the only reason I was in it all day is because it took all day for it to go and here's a 15 minute I just want to show you again here's the gap stack closer gap down wiggle and jiggled and wiggled and jiggled this is the day of the fourth and here's all the money and it fell right there so you could have gotten the day trade in the morning you could have scouted and got out I did not I did not I waited to get paid in this I believe in the gap I liked the gap I was right I thought it would sell off it fell into the close again same thing with the putt you could have bought the putt in the morning the 185's you could have got out here or you could have held it into Monday so this is a 15 minute in Apple and again I'm just showing you here this was an example where it did take a little bit longer but if I'm in something and I'm I like it and I like the gap and it rates well I'll hold it if it didn't have a move yet now we talked about the Tesla we talked about the Tesla we did this a couple of times so this was on the first actually this was before the Apple this was August 1st here here's the day stack close here gap down fell this is a day trade again if you do not want to do a day trade on margin you can buy a putt you buy the closest put as close as you can you buy it at the strike or you buy something away from the strike okay we entered the day trade at 264.05 1200 shares we did an add in this a 264.40 we doubled up on this average price was 264.23 again momentum is what two dollars three dollars four dollar two three four it depends what the price of the stock is this is a move for Tesla two and a half bucks three dollars that's a move again profit was five thousand nine hundred fifty two dollars this was on this day here so let's take a look at the one minute on the Tesla again stack with your gap down fell boom again shorted add get the drop boom and there it is so again we were talking about momentum this is it people boom that is a sell-off that is a sell-off that's momentum that's momentum that are the downside again we're not scalping this for 10 cents five cents 25 cents in something like this if you're taking some a position in something like Tesla that costs as much you have to make it worth your while you've got to get the move you've got to get you've got to get a move you've got to get the momentum and you got to get it right as far as the direction to i'm usually doing the week lease i'm usually doing the weekly option so if it's a friday i'm not doing a friday expiration i'm doing a following friday expiration david's asking about the apple trade anything that you would do you have to look at the dates i'm not doing it so tight that i'm giving myself the day okay so if a trade is on a friday which apple was i'm doing for the following week now that doesn't mean i'm holding it to the following friday if it has a move in 24 48 hours i'm out you could have got out of that trade the day i called it you could have got it the following day that apple though you actually could have just going back here you actually could have held this into the last day of expiration which was this past friday what was friday 11 you actually could have because look how far this was through the strike this was down at 176 and change on friday that trade would have been profitable to exit on friday i don't suggest people did that why because you could have given that you could have given it back remember this is not swing trading we're momentum trading we're booking money remember i said this early what's the purpose of trading making money i had that slide in here somewhere let me find it this is just a reminder here i thought i had it in here here i do you have one goal when you trade you have one goal that's it make money your goal is not let me hold this to the end of time that's not your goal let me get a piggy target in every trade that's not your goal let me take this trade and make all the money back i've ever lost since i started trading no you're gonna lose you have one goal and that goal is to make money that the squeeze every penny out of everything your goal is to make money and once you have accomplished that goal you exit the train or you're gonna get burned the problem is let's go forward here we're talking about the problem is that so many people are losing so when they get in a good trade they tend to hold it too long because they're like oh my god one trade's actually working if you're if you have a lot of winners you're not going to feel so much pressure on yourself to hold and squeeze every penny out of it you understand because you're like oh i'll get out of this i'll make a thousand bucks i'll take another train and i'll make it and you also won't have so much pressure on yourself when you lose you take a trade you lose you say oh boom i'll do another one we lost today we lost today we we shortly tested today we got stopped it didn't work i'll make money tomorrow okay so you have to understand that some trades will lose but if you're winning more than you're losing when you have a losing trade it's not going to be the end of the world and people hold winning trades too long and sometimes screw them up because of the fact that they lose so much when they actually get in a winning train they they're like oh my god i'm i don't know when i'm going to have another good one like this i gotta uh and they hold it too long and they mess it up you can't mess around with that with options you have an expiration date and you honestly can't mess around with that with day trades either why because you gotta be on a contain trade by four if i we did test today i got stopped but if i had been in that trade all day and it hadn't stopped i would have killed it i would have killed it wherever it was i would have killed it with a loss with a partial loss with a break even with a little bit of up if i had not gotten stopped today in tesla i would not have said well i'm gonna hold this overnight into a swing trade at two to one margin or cash no i would have killed it before four whatever wherever it was but it didn't work anyways we got stopped in the morning so anyways that is you know you have to be aware okay of what you're doing with the train when you're up now here you know here it is here it is my assistant put this in here friday august 4th i called in the morning in 48 in the morning it was way before the open the the 185 strikes for the 11th there you go so it was $1.75 it was priced well and you had you had all morning really to get into it and so then it dropped it was a huge trade this was an exit not the friday but the following week i do not know what this was worth the last day as i said i didn't go back and look at it after i get out of the trade and book the money i never go back and look at it i don't second guess myself i'm happy this is a good trade why would you hold a trade if you were up this bunch that would be crazy that would be nuts if you risked 1,050 you could have made 3450 on this train that is getting in it on friday in which case again if you if you didn't do the day trade which i did i did the day trade so i was sitting here all day friday but if you said uh this thing is not going to go i'm going to go go to work go to do whatever you get up monday morning it's still enough like a hot cake monday you say oh boom great i can get out of this today bang bang boom and you get out of it your trading momentum when the momentum comes in you're looking to exit that could happen the day that we call it it could happen the second day in an ideal world it happens within 24 to 48 hours if the trade goes negative the first day i take it i'm not killing it some people do i don't do that but if i have a week left why would you kill it anyways okay but don't think that it's going to keep falling every day monday tuesday wednesday thursday friday and you're going to get out of it just with more money in a friday no no no no no no your exiting trains into the momentum when you get the momentum when you take it i don't care if you're going long or short okay but again in the case of this it was a short okay so short moves happen fast i think that apple move happened fast if you look at the bigger picture again the market was sluggish that day if you go back and look at the fourth so did that affect apple even though apple was earnings probably apple it you know goes with the market it's a market stock but eventually it tanked eventually it did it and that was a prime example where knowledge and information and understanding that gap in the gap rating would have helped you help do you make money in that tree it would have helped you stay with the tree hold the trade in the afternoon hold the trade into monday because the quality of that gap and the raining of that particular gap was high so i have a 26 point rating system it's a sliding scale the higher the rating the better the gap the bigger the target the more money you're going to make you can do a day trade and an option and an or swing trade two or both okay so again the reason i like to short though is because short moves happen very very quickly it's panic panic comes in panic is fear fear creates selling now i have no idea where the market goes the rest of the week will i be surprised if we do not continue to rally no no i won't so yeah we we rally today big what it's only monday will i be surprised if we fall the rest of the week at some point could even be tomorrow no i will not i will not because again there is you could you could say well we have panic because of that and people are afraid in the recession and interest rates and this that the other thing i get it but the reality is when people see red it does create panic so you as an individual as an intellectual as someone that really wants to make a lot of money and be successful successful at this and once to separate yourself from the regular everyday people that are trading you're going to say wait a minute this actually makes quite a bit of sense and i think this is something that i think i can do and it actually makes quite a lot of sense because again getting good at something where you can take advantage of the sell-off and the panic it's good for you okay it makes money for you and again we're not talking about a retirement account or making money your retirement account or your IRA or things like that this is income generation you're chunking it out you can buy a put and get out in a week and still be long in your IRA or retirement account but you're taking advantage of that panic and the selling action that comes in for people when they're when they're well okay and we've had a bearish start to august so tomorrow like i said is august 15th we've been selling off ever since the beginning of the month we'll go over that here when we're when we're done with this power point i'll pull up the market at the end how do i find the best shorts daily how do i make the best picks my goal every day is to find the best pit whatever it is so i have a rating system to do that it's called the golden gap it's a system that i devised myself over the course of three years and i'm looking for institutional money in the gap gaps are created with large institutional money that is what makes the gap in the first place it is the gap that is created in the pre market or the post market so again like the like the apple i called way before the open okay you would have gotten a trade to your email if you were trading options with me on the newsletter the professional gaps that happen and play out in stocks are formed by one thing and one thing only large institutional money therefore you need a way that will help you pick the correction correct direction to play the gap and confirm that the large money will flow with it despite is a great example of that because again many many traders are long the market right now we have been rallying since the beginning of 2023 since january like we're up for the year if you go back all the way seven and a half months we're up for the year so people are long what if we don't continue the rally so we got two weeks in august then we got september october november december so we got four and a half months left in the year well so what's going to happen in the market either we're gonna flip rally go up go over the highs make brand new all-time highs and the qqq's in the spine many stocks will too or what will be sideways for four and a half months that's not going to happen that's absolutely not going to happen we might be sideways for a couple of weeks four weeks five we're not going to be sideways for four and a half months or what is the third option we could sell off we could fall we could drop we could drop and go sideways we could go sideways then drop but if we start to drop the chances of us making new highs by the end of the year are slim to none which i thought maybe we could in the month of june we rally but i thought since the beginning of the year that we wouldn't be able to do it but i'm telling you that again people are along this market they believe the market will make new highs soon okay you can look at the fundamental reasons and make an argument for both sides bullish embarrassed that's neither here nor there for you you are looking at the gaps you were going to look at the technicals and that's how you're going to make the determination to take a trade so i do that based on my golden gap 26 point checklist it's a trading system that's based on common sense because when you think about it you're like oh gosh this makes a lot of sense you know it makes sense that shorting would be something in particular that would give you an itch many traders go long they prefer to go long they don't know how to short or when they short they do things that don't make sense so again you say oh if i can get good at this i can see how i can make a lot of money i can see how things sell off faster than they rally okay and then it makes sense shorting gives me a niche and that all the people that i teach what i do people get scared when they're in positions and they're selling on so getting back to what i was saying about the market how the market's been up since the beginning of the year you see where i'm going with this again i just told you three different scenarios for the market or you know any of the market stocks that are out there apple microsoft netflix all the things if you don't know how to short you will miss out if that in fact sets up that way but you're missing out on any normal day even if we continue rallying even if we make a new high with the market you're still going to miss out because there are things that aren't going to go with it one of the reasons why i'm not for this market continuing why i think it's a very different scenario in 2023 unlike prior years when i have traded is that you're not seeing an overall broad-based rally in every single sector to go with the market well number one there's a problem still with the banks a few banks look good and some of them look like crap you're not going to have this buy it brand new all-time highs without the financials and if you've been following that it's happening with the banking sector you know that some of the small regional banks have gone under and there will be more there will be more to go under between now and the end of the year unfortunately okay but again think about the common sense that makes sense about shorting and then think about how it makes sense to get good at something like this too how that could really benefit your trading how you could really get the big momentum moves to that and then think about what i'm saying if the market turns what are you going to do keep going long you're going to lose lose lose and that is what happened in 2022 for many many traders you know that were going long in 2022 when the market was selling off any questions here so far about anything i just said anyways what if you have a small account can you still short yes you can buy a put you can open up a an options account with $2,000 and buy a put i would i would not risk more than $500 i would risk like $200 $250 if you have two grand in account 2500 something like that you could buy one contract of something okay and some of the things we do are on the smaller side but you can buy a put a put is a short so you can do options if you can't trade with a margin account options are a way to take advantage of the sell side of things so again a lot of people when i call a short in the room in the spy they're even if they're day trading with me on a regular basis they're buying the put close to the strike or away from the strike as close as they can because they do not want to spend the spies over $400 a share they don't have the margin to get 500 shares maybe of the spy you know again you get buying power from your broker so people are doing options but i'm doing options and day trades some of these have been priced very well this was a big trade we i call the 454 puts on the first let's take a look at it this is a little bit after the open 454 oh this was the apple day here show called those that there $1.25 a contract would have been a thousand dollars for beginner risk sold at six again this followed through in the gap down then the following monday okay you could have made $3,800 risking a thousand dollars you're where are you gonna do that nowhere you're not gonna do that even in today's money markets even in the 5% money market you're not going to get that kind of return and investment so again a lot of people say well i can't trade if i have a small account i can't do what i can't do what i can't do it yes you can if you had $10,000 in an options account you could have taken this trade and you could have made then 40% almost of your cash and then all of a sudden you're up to 13,8 and then you could take another trade with a thousand and then you're up to 15 and that's how you build it i was talking to someone earlier today i said you've got to get your account up take it chunk it get in get out chunk it chunk it chunk it chunk it she's holding things too long take it book it get in get out boom $200 $300 $400 $200 $300 again the the newsletter is an active letter it i'm calling a good amount of trades you may not even be able to do all the trades but the whole point is again this is momentum trading it's not holding it forever this is you're not this is not your IRA you're taking it getting the momentum getting out you can open up at a retail brokerage firm yes you should be able to open up an options account with $2,000 that is the minimum requirement yes most of them allow that you can call each one individual and find out but that is what most of them will allow i would set it up as a cash account so you're not flagged as a margin account in order to have a margin account you need $25,000 if you set up an options account as a cash account whether you're of $2,000 $3,000 $5,000 then you're not going to get flagged and what do i mean flagged where if you take the trade and get out if take two trades and get out the same day again if you're really active you've got to set it up as a cash account if you're under $25,000 good questions let's look at Tessa again this is expensive to do on margin so we did options with this some people are doing these 265s we called i called this in the morning on the first okay the first was oh that was the day that here close your gap down fell boom gap down again the next day so i called it was $5 one contract would have been 500 bucks okay you would have needed to be able to risk at least $500 to do it this was a nice trade again just going to the daily so again i'm calling this before the open the 265s i'm right there falls boom you see where this is take it over how this fell who was straight so the momentum came in on the day and then in the follow through and the gap down in the following day and actually could have held this a little bit more but it expired on the fourth so again if i call a trade on a tuesday you know you've got less than a week you've got to watch your timing remember take it get the move get out take it get the momentum get out again if the momentum comes in the day that i call it get out the day i call it you know anyways this was a nice trade return of s 180 percent again this is an advanced trader risk you could risk more than this but it's the idea where you would have made nine points of the five that you risked okay nice nice nice trade so what should you expect to earn i think one to one is good but many trades that we're doing and more than that whether the day trades or whether they're options if you can't watch your trade i say put a sell order an option of 50 percent if you really can't you can't even look at it you can't even look at a chart you can't look at targets you can't look at anything buy it at a dollar into the open put a sell order at a buck 50 walk away if it fills it fills it's a day order it's a cancel it'll cancel out if it doesn't fill if you can watch you're looking for targets you're trying to get them to 100 percent if it doesn't go you're in it overnight fine you're in it see if it goes the next day okay and again our day trades were ending out very very quickly but the reigning system looks at 26 points this is what you'd learn from me on the daily chart of a stock i have a range of people that are trading with me everybody in the room has done the class that's a benchmark to join the trading room to do the day trades on the options newsletter there's no prerequisites you can sign up for the options newsletter and you don't have or have to have taken my class if you do take my class i think you will do better trading options you will know why i made the pick and you should be rating the gap yourself the reigning system is a checklist the checklist tells you what to look for in the price of the stock to read the direction correctly to know what stock to short and when okay so that is the difference and again think about what i said about having a positive attitude because it's very very important you need a positive attitude it's going to get you through the days where you have a loss the days you make a mistake or the days that the market's hard i have those days too but i easily get over it because i've been doing this for so long and not only that my confidence level is very very high my confidence level is high and my conviction in what might do with my system is high so i know that the next good one will come around again and this is where the proper education really can help you the problem is that so many people have paid for classes and they haven't learned how to trade but that's that's that's the brakes you go like i'm trying to find somebody right now to fix a piece of furniture for me what do i do i call this person i get a quote then i talk to this person i get an idea and then i'm gonna have to hire somebody i'm gonna have no idea if they're gonna do a good job or not and if they come and do what i have to pay them i have to make the best decision i can to hire this person to fix my piece of furniture which is damaged and i want it fixed i can't fix it myself i don't know what i'm doing i have to pay someone to do it and they're going to come to my house and they're going to touch the furniture and hopefully they're going to fix it and not make it worse but they could this is this is life you have to hire people and trust in people if you don't know what you're doing it doesn't matter if it's trading it's anything anything at all it's just like uh i moved and i i had to hire a cleaning lady you have no idea how many different cleaning services i have hired and fired in new york since i've been here like where they've broken stuff or this thing or that thing like and again i'm just like i just want to get with one good person and i'll stay with that person like i'm very loyal when i find someone that i hire it could be whatever i hire them for it's finding the good people it is not easy to find good people to hire for something that you need help with it doesn't matter what it is from furniture to trading education to trading subscriptions to doing options to cleaning ladies it is the same across the board this is life people and when people say this thing that thing you can't do it on your own you can't do it on your own i mean you can you can try but it's going to take you a heck of a lot longer it's the same thing to me i can clean my house every week by myself i don't want to do it i have other things to do i'm going to make more money spending time trading in the hour that i can trade and make money in the market and pay someone to come in and clean my house it's going to take three and a half hours so you see it's just you you break it down and say i have to hire somebody because i don't know what i'm doing and i need help and that's what it is but this is just the same thing with life it's just the way that life is with anything that you do but anyways getting back to trading take calculated risk not risk for risk sake when you trade so think about what you're doing do the good ones do the apples do the tassels do the spike don't just take pot shots at things for no reason and again that's why it's dangerous when people go into these reddit chat rooms and they're following strangers and they're taking ideas from people where they don't know why they're calling the trade there's no strategy backing it up and again create a plan of action to achieve your financial goals whatever amount of money that is unique i say start slow a thousand dollars a week fifteen hundred dollars a week do that for a week do that for two weeks do it for a month fifteen hundred dollars a week after one month is what oh you're like oh i'm up six grand did you make six grand trading last month again people will say oh my god i want to make fifteen grand i want to make twenty just make six first then make ten then make twenty you know you have to start somewhere particularly if you're not doing well and you're losing you got to see yourself going up the ladder where you're making progress but if you come and take my class we'll learn the twenty six point checklist it measures gaps for reading them in the daily chart to find stocks to trade that have number one a high probability of directional bias for the entire day a big move of the day early confirmation of the bias and the move between nine thirty and ten and precise centuries with follow through and a good risk to reward target potential which is of course what you want so the meat and potatoes and what i do is the reading system that is what you'll come and learn with me if you want to learn it the purpose of this system is to help you evaluate which gap to trade each morning using a checklist the checklist tells you what to trade when and in what direction the twenty six point checklist predicts directional bias in a stock it's all i do it doesn't matter if i'm doing an option it doesn't matter if i'm doing a day trade it is based on the rating system one strategy is all you need to be successful in the market you do not need a general overall broad base view to make money tons of people have that and they fail all the time again getting back to what it's saying this is based on technical analysis not fundamentals because you don't always have them match up hd could have a fabulous earnings report tomorrow and yet it could cap down and fall for cliff and we may short it and it may work so you can't look at the fundamentals learn how to read institutional money and price patterns and gaps because gaps tell you so much so much information i prep in the morning in the pre-market to decide what i'm doing and and and that's when i make all the decisions so i don't have to rush i'm not making decisions in the fly i'm figuring out the morning in the gap and if you want to do this you the reason for you doing it has to be to make money it could be small it could be medium it could be large but if you're doing this and losing ask yourself if you have a strategy if you can't explain what your strategy is you probably don't have one and that could be why you're losing you don't know why you're taking the trade you don't know why you're going long you don't know why you're shorting okay anyways getting back to the checklist this is it's a rating system it's 26 points i'm looking for 20 points or more if i get a gap that rates 20 points or more i'm taking it in the direction of the gaps i'm shorting it if apple gaps down it rates 21 points boom we're going to do a put we're going to short it as a day train we're going to do it if it rates 15 points i'm not doing it all i'm not going to even touch it and again i'm not reversing the dirt gap direction so the class that i teach once once a month is called the golden gap course it's a class on how to find pick and play professional bearish gaps now i'm doing it back to school special this week the class is this coming weekend i already have people signed up but if you want to do this class you can still sign up i still have spots available the deadline is friday this is a special class because i'm doing a bonus day three the class is usually starting sunday i'm doing a bonus day three on the monday where we'll trade in the morning and then we're going to pick it up in the afternoon from 11 to 2 and do three hours of gap ratings the saturday and sunday is 9 to 5 again everything's eastern time zone monday is going to be a bonus day we're going to look at live gaps that happen on that monday and rate them which is a good good exercise to do so this also includes a trading room free for one year and the options is that are free for one year with the court cost of the tuition which is 69.99 it's always 69.99 you get the bonus of the room the newsletter for one year and then the bonus day three so these are the class dates these are the hours if you want to sign up you will email me for sign up forms now does anyone have any questions about anything at all anything you want to go back any charts you want to look at anything you want to talk about any questions like david's about trading options or anything like that you must email me for the forms if you want to sign up if you want a trial to the trading room you can email me and i will send you that for this week if you would like to do a trial again the room is a day trade room it's not an options room the newsletter is options where the options are emailed to you in live time the day trading room is where you will come in and i'm calling the trades live in the room i'm saying we're to take it we're to put this job and we're to get out paulette i know your nudity any questions i see some familiar faces and some new people i'm really looking forward to the fall i'm looking forward to the fall for so many reasons i think it's i think we are going to turn to the market that's number one we've had a good start to the month of august two here for shorts i'm looking forward to fall because it's a mic going to be my first fall watching the lean's turn in central park so i think it's going to be beautiful and um i'm finally getting situated in my new apartment so i'm really looking forward to fall for many many reasons and it's going to be here before you know it it's going to be here before you know it so this is a good class to come in take learn get prepped and ready to go for the fall again some kids are ready back to school i have a friend whose kids went back last week and some kids are going back next week it's back to school for everybody education is an important think about what i said and again here is my email if you think of anything you can always email me here at bonelessa at thestockswitch.com all right have a good night everyone