 Testing, testing. Can everybody hear me? Melissa, we're going to get started here in a couple of minutes. Just let me make sure you can hear me. And seeing the PowerPoint slide. Is it good, Kathy? Great. I was just looking at some gaps. Everybody who stays to the end tonight, I'm going to tell you my top gap pick for tomorrow. I didn't rate it yet, but it is a goodie. We'll look at it when we're done here today. You stay to the end. We're going to look at it. It's a good one. All right, I'll be right back. We have the last book. And the Amateur Show. You join us. Oh, and it's here on Java. We do thank you, Sean. But one of you fill up. The alpha dog. And other than being online. And you see if I can round up to the profession section here. Drummers, drummers. you the trumpets. And then with that, ladies and gentlemen, it is exactly 530 Eastern time here in the Boston area. Please put your hands together and welcome our host and presenter for today from the Stock Swoosh. Please welcome this, Melissa Armo. Thank you. Thank you so much, Kevin. Welcome. Welcome, everyone. My name is Melissa Armo and I own a company called the Stock Swoosh LLC. And welcome to this webinar today. We're going to talk about gaps. This is my favorite topic in the world because I trade gaps. And it's going to be a very informative webinar for those of you who are interested in gaps or who are interested at all in trading the market and need a strategy. So we're going to go through the presentation today, go through the teaching, and then at the end we can look at some live gaps that are happening right now, post market. So if you want to stay at the end, we can look at them. I can bring my charts up. There's a great gap that's happening tonight and we can review it at the end of the presentation today live. So welcome. How to effectively and efficiently trade gaps. That is the topic for this evening. And again, I own a company called the Stock Swoosh. If you'd like more information, you can just email me at Melissa at thestockswoosh.com and feel free to go like me on Twitter, Facebook, YouTube, and I have a ton of videos on YouTube. And add me to any one of your pages on LinkedIn, Pinterest, or Skype. So let's talk today about trading and how to be successful as a trader. Finding success in trading is really about finding the right path. Trading is one of these things that just going down one road is really not necessarily going to get you to the right destination. You could veer off course if you choose to trade in the market without having a proper plan of action or strategy. It really is about finding the right path if you want to find success. True, some people get lucky and they find the right strategy out of the gate as soon as they ever enter into the market. I think that's rare. I think most people dabble in different strategies and different genres until they find something that they really like that they grab on to. And for me, it's been gaps. And it's really been gaps since the beginning for me. I was lucky. I learned a lot of different things at the beginning, but only for a short time. I very, very quickly fell in love with gaps. And I'm going to explain the reason for that today. So in the market, the right path or the right road really means the right strategy. What you choose to do when you press your buttons with the computer to enter your trades. It's the strategy that's going to set you in the right direction. So what is a strategy? For those of you that don't know and some of you do, it's a business plan. This is a business plan trading successfully as a career or even part time requires a plan. It's like you wouldn't run out and open up a business without having any plan. How are you going to get clients? Where's the revenue going to come from? What are you going to get up and do every day? That's what a business plan is. You have to have it all mapped out ahead of time and it's no different than trading in the market. I think people don't realize that when they set out to trade in the market, but I'm saying right now, this is just vital, vital to your success and productivity. So what I focus on is gaps. That is a strategy. That is my business plan. What is a gap? Well, for those of you that don't know, it is something that happens in the market every day all over the place and a stock gaps. When the opening price today, okay, like at the close at four o'clock, it's different from the closing price of the previous day's trading. So for example, tomorrow morning when I get up at 9.30 and the market opens, there'll be stocks that are gapping that closed at a different price from today at 4pm. And that's it. That's really what a gap is. It's really that simple. A gap is a break in the price action from one day to the next. So for example, a stock like Microsoft, this is a gap that happened in the last month. Microsoft closed up here the night before. This is a bearish bar that happened. He closed here at approximately 3550. This is a four o'clock Eastern time when the market closes. Then in the next morning, Microsoft gapped. It's a break. This is a break. There's a space here from here to here where it closed at four o'clock at 3550. And the next day opened down here at approximately 3240-ish, like right under 3250. So there's a big difference. It's approximately a $3 gap. It's a break. It's a break from price action from the day before to the morning. That's it. That's all that it is. And this is a strategy, playing this move here when it happens on the day of the gap. So how do you pick which gap to trade? And how many gaps are there in a day? Hundreds, thousands, hundreds and hundreds of thousands a million. Okay? In fact, almost everything gaps every day. Now, does that mean everything that gaps is tradable? No. Okay? Something could close the night before at $30 and open the next day at $30.10. That may not be a gap that I consider rating or trading. Okay? So it has to be a consequential gap or a gap that needs certain requirements. But the reality is that almost everything gaps every day. It's very rare that something closes at $30.02 tonight and would open tomorrow morning at $30.02. That's very rare. So you really need a proven system to find the best gap. Why? Because there's so many. There's so many. Even if you picked a scanner and bought a scanner to look for the gaps, there's just tons, tons and tons and tons and tons and tons. So what I teach is a way to find these gaps. And I call it the Golden Gap System. It is a 26-point professional bearish gap rating system. And the purpose of this system is to help you evaluate which gap to trade each morning using a checklist. And this is essentially my trading plan. This is it. This is I made this for myself and then I decided to teach it to people. So this is my business plan for my trading. I get up in the morning and I rate gaps using a checklist. So why would you maybe want to learn this system or checklist? Why? Just for the reason I just said. Because there are so many stocks each day that gap. So using a system is vital and significant to your trading success. I can't tell you how important it is to have a certain plan of action. When you start trading in the market and putting up your own money and risking it to trade, if you don't have a plan of something you're supposed to do, you're still going to start getting too focused on the money and obsessed about it. Are you up? You're down. You're up. You're down. You're in something. You've got to have a plan. That way, it's so much less stressful when you choose to make a trade and you're not concerned about the money. You're concerned about what you're doing in the trade and the knowledge of the focus of the strategy. And the plan, the business plan. So having a detailed way to find which stock to trade will make it easier. I'm telling you it makes it so much easier, so less stressful in the morning to choose what to do. It makes it easier for you to make money and therefore then to achieve success. So the checklist tells you which direction to take the trade. Direction is important in trading. Again, you can't make money going down the wrong roads. You can only make money trading going in the correct direction of the road. If you're caught going the opposite direction, you may end up falling off a ditch. You've got to go in the right direction. So the 26-point checklist tells you what to look for. You go through the checklist, boop, boop, boop. You mark everything off and follow the plan. And here's a clip of Facebook. What's so great about gaps is gaps tell you the right direction if you know how to read the price. So for example with Facebook, I knew how to read the price in Facebook that I knew that the gap that happened back here, this was the end of July in Facebook, was a bullish gap that was a good gap that was a buy. Even though Facebook closed the night before here, under $27, it was like 26 something and gapped up way, way up here the next day. Almost an $8 gap up, you would think some people would think that it's going to fall into itself, but that's not the case. The price told me when I read the chart that this was a buy and that Facebook was moving forward, moving higher, and was going to break out to all time highs this year. And it is heading to do that. Even though it's just pulled in for one or two days, it's still heading higher. So what told me this and how am I figuring all this out? The next target's everything because of this, because of the gap, because of what this happened, what this did here the day that it did it. And it was on earnings by the way as well. Gaps can happen for many, many different reasons. News related gaps, earnings gaps, downgrades, upgrades, sector gaps. There's lots of reasons something gaps. There's not just one reason. So the philosophy behind the 26 points is really to find stocks to trade that have number one, a high probability of directional bias for the entire day, meaning it would trade red all day for shorting or green all day for buying, big moves in the day, and a big move to me means a dollar at least or more. A dollar is a good move in something and some stocks you want even more than a dollar. Early confirmation of my bias, meaning I know right of ways in the beginning of the morning between 9.30 and 10.00 a.m., if the stock's going to work, if the gap's going to work, and not only do I know, I mean the trade. If I'm not in the train by 10.00 a.m., it's a bust. It's not going to work. I'm not going to do it. It's not going to set up right. I'm just not going to flat out do it. In fact, if you go look at 15-minute bars, the first 15-minute bar of a charts, you can do this, you can do this a lot actually, on gaps and look at the daily chart. There's so many that look exactly the same. In fact, new one is one from today. The first 15-minute bar of new one today was a gap down that failed. It looks exactly like the same as the daily bar. So right of ways I can tell something's going to work and I can tell something's not going to work. So I either do it or not depending on what it sets up right of ways in the beginning of the day. So I get the early confirmation. I'll have to waste my time on something that isn't going to work and I can play something and go hog wild and something that I like. So precise entries with follow-through and a good risk to reward is another reason that I made the system as well. So remember, success requires preparation. Like this guy here, he's fully prepared to take his lichens if he wants to get the cheese. He has a helmet on and this is going to protect him when this tries to come down and get him when he goes to grab the cheese. He doesn't really have any choice because there isn't any food around. It's winter and it's pretty bare here. So if he doesn't go get this cheese, he's going to starve. What's he going to do? Prepare himself. Prepare himself for success to grab the piece of cheese and protect himself from getting killed with this guy. He's not going to get stuck in the trap. The helmet's going to help him. He's going to grab the cheese and go. So he is prepared. It's just like a trading plan. Just like the 26 points. Anything you want to do requires a plan of action to do and for mine it's a checklist that I write down every day and checklist work. It's like if you have a list of jobs or chores or things to do or things you want to do around the house. They help you. They help you get organized sticky notes. Having a checklist keeps you organized and focused. Having a checklist forces you to look at what you should be doing at on a chart in a stock to make the correct decision instead of focusing on the money. There's too much focus on the money. You're not going to make the right choice. I know that sounds like an antithesis but that's the way to be successful. Having a checklist helps assist you with directional bias which you've got to get right to make money and having a checklist keeps you in track to reach your goals. So a checklist is a plan of action. You've got to have it. Everyone that puts money into the market should have a plan of action and a checklist and if you don't it's not a good idea to trade. So why did the 26 points work? Well the point-raining system works because it is such a detailed analysis of the price action. This is the whole way that I trade. It also works because everything that is being looked at in each point uses a daily chart of the stock. Now why is it significant? Because a daily chart of a stock is the most powerful and real indication as to the trend in a stock for any trader of any kind. The price reading on the daily chart tells you everything you need to know about who is controlling the stock and in what direction and you want to be with who is controlling that. I call it the power of money but you've got to be with the power of money if you want to make money that's what creates momentum. You've got to get the direction right and you've got to be with the power of money and you ride the coattails of that money to get paid as an individual, as one person, or even as a group of small people. You must get the direction right in the daily chart if you want to make money trading. I know people do things in the opposite direction all the time. Does it make it right? No. Lots of times people take trades in the opposite direction of the trend. They may make money one day and lose money four days in a row after that. It's not the right thing to do. The idea of the trend as your friend is a motto that I did not create but it is certainly on point. So remember, a checklist is effective to bank results and the way to do that consistently is to trade with the trend. And it also saves you time. You can be more efficient in the morning. So efficiency counts. How much effort and how much time are you putting into your trading each day and how much money do you have to show for that effort? If you're prepared to have a checklist, you can be done in 60 minutes. If you have no idea what you're doing, you're getting up in the morning, you're rolling out of bed, you're searching, searching, searching, scanning. It's 10.15. You've barely found two things to do. You're not sure if they're right or not. You take them, one fails, one works. It's two o'clock in the afternoon and you made $200 and you waste it all day. Trading efficiently helps you get better results in less time and less work and more money. And less stress. And less stress and better results. And when you are less stressed when you trade, again, I know this sounds like an antithesis, but when you're less stressed when you trade, your results will be better. They will be better. You will be more relaxed. You will let things go to target. You will do the right things. You will make the right choices. Gaps are done in the AM, early in the morning, and have great momentum results. So here's an example of momentum. This was a gap back in July. And look, this gap, this first day here, this was July 2nd. And the second day, it fell off a cliff. And even the third day. So from the first day of this gap in line, first of all, every day had great momentum. So here was the first day here. And it dropped down $3. The second day, it dropped down $5. And the extension on the third day into this gap was over $4, almost $5. So in three days, here's a power of the gap and momentum. This is under $30. It lost $10 in value. So the stock lost 30% of the stock price from the day that it gapped to here. So here was the night before. The night before the stock closed here at 33-something. Got up in the morning, the stock is gapping. It's gapping under $30. There was a bearish play here, a bearish play here, and this is a bearish play too. The stock just fell off a cliff. And this is what I mean by momentum. And this is the very thing that you're getting up and trying to rate and look for every day to play because there's lots of money to be made here. And you look at this chart and you say who is controlling the stock. Well, the bears, the bears are controlling the stock, not the bulls, the bears. Nobody wants this thing. It doesn't matter why. Nobody cares. If you don't even need to think about that, you don't need to read the fundamentals or anything else. You read the price. What's happening with the price? The stock is gapping down and loses $10 in value. You're playing it short to the downside. And the beautiful thing I like about shorts and why I strive to teach and trade only to the downside is because they move harder and faster and quicker than longs. Now, I can read bullish gaps just as well as bearish gaps, but these things, when they set up, they just like this. And you can make just so much money very quickly. And I really like that about trading to the short side. So, no strategy or checklist is a weak structure and foundation. Like, if you wanted to buy a house, would you buy a house like this? Probably not if you lived in a hurricane zone, because one strong wind would blow this thing up and you'd lose everything. And you wouldn't even get insurance for this. No flood insurance, no homeowners insurance, nobody give you anything. You're lucky if you have any friends come over. It's a weak structure and a weak foundation. There's nothing to it. Whereas if you live in a nice solid stone home or brick house, you have a strong structure and a strong foundation and gaps or a strategy that have a strong foundation. The foundation is in the power of the directional trend of who is setting the tone, which is the power of money in the stock, and also having a checklist gives you a strong foundation for what you want to do in the day. No strong foundation or no strategy in trading equals gambling. And quite frankly, there's many people who get up in the morning and trade and they gamble. They're taking pot shots at stuff. It doesn't have high ends of working. This isn't the right way to trade. You want to take your own money, your hard-earned money, however you earned it, and be able to do something that is going to give results. And that isn't gambling. You're better off just going to the casino if you don't have a structure, a strategy, a business plan. So, if what you're doing in your trading or your life is not working the way you want it to, then it's time to make some changes. You could investigate some information, decide to change your trading plan, decide to learn something new or take a class. It's about making some changes, particularly if you're trading now and not seeing the results that you want to. So, having a set of principles counts. What are the underlying principles behind why? Why are you taking a trade? And this is the foundation for a strategy. What is the reason? What is the framework? What is the framework for buying something or selling something or shorting something? Having a checklist is like your own set of principles. It's a blueprint to follow the stock correctly. And why? Because you're following the large institutional money, and this is the foundation and the brick structure for trading gaps. How can understanding how to trade gaps make it possible to read charts and trade profitably? Because you have a structure of understanding where the institutional money lies. What are the footprints of that institutional money? Because gaps are created with large institutional money. They're the only things that make them happen. They either buy stuff or sell stuff. That's it. And that is what makes the gap. The professional gaps that happen and play out in stocks are formed by one thing and one thing only large institutional money. In fact, I had a gentleman, he just took my class over the weekend. He had worked years and years and a long time ago, a long, long time ago for a brokerage firm. And he never really knew how to file or read the footprints of institutional money in charts and got away from trading and just took my class and is so excited to start trading. This is it. All the brokerage houses that are creating these things, that are creating these moves, that are taking trades, the banks, the hedge funds, everything. This is it. This is where you want to be on the side of. This is how you're going to make money as one individual. And so therefore you need a way that will help you pick the correction to play the gap and confirm that the large money will flow with it. By having a formula to rate and qualify the gap, you get confirmation and conviction that the large institutional money is on your side and then you play it. Gaps are an event and create a sense of urgency. Like when someone gets upset when a stock gaps down and they're long it and it just lost $10 in value like we saw in the line. So an action is being forced by participants of the stock and this is why gap trading is incredibly powerful and profitable to trade. Gaps create the momentum and trading gaps is a powerful and profitable way to trade because you're trading on this side of the power. So let's look at some examples about the power of the gap. I put this clip in here for Shark Week. Shark Week is this week. I love watching the Shark Week on TV. Sharks are very powerful creatures in the ocean. You don't want to mess around with them. It's the same way with power and money in the market. You don't want to be against it. You want to be on the side of the power. So let's look at one example here. This was Jack. I made this chart really, really, really big. Okay, I'm going to show you a smaller one here, but I just wanted to show how this stock has fallen off a cliff. Now how did this create itself? How did it set up this way? What was the after effect? Well, who knows? When it first started, you can see here somewhere up around here at one point the stock was worth over $30 and now it's worth $5.60. So this is over a period of about four and a half years, but all of this play in here, there was money to be made. Whether you do swing trades or court trades, which you can trade gaps that way as well. Now if you want to do a day trade on a gap, you get up in the morning, you see Jack. Jack closed the night before here, around $11.25. All of a sudden you get up in the morning, the stock has opened here at $8.75. So this is a $3 gap down in Jack. Now what do you do with it? You rate the gap, determine if it's a good gap to short because you're trading the gap in the direction of the gap. I always trade a gap in the direction of the gap. The idea of gap fills doesn't work. This price was up here the night before and now it's down here. Nobody is buying this thing. They want out of it. Why again doesn't matter, but obviously there's something wrong with this thing and look at the move in it. So here was the setup. You get up in the morning, you rate the gap, you look for the setup, it opens to trade. Everything is on the open on the day. No pre-post market trading. That's a different structure. It would require a different plan. This is a bar here at $9.30. This is a five minute bar. Stock opens, sets up, and you're in the trade here as soon as it's set up and here's the play. The entry time was $9.40. Price was $8.60. Stop is over $8.75. It was a $0.15 risk, which is a really nice stop. So for example, in 3,500 shares, you could risk $525. It moved more than a dollar. This is a very nice gap move. Profit if you risked $525 was $4,550, so that's $8.6 times the amount you risked was made in profit. So for every dollar, you made $8.6. For every dollar that you risked, you made $8.6. So you turned $525 into $4,550 in two hours of work. So you get up in the morning, you rate the gap, you like it. You have to watch it first set up to trade. And I teach in the class how to do the entries as well. Here's where you enter here. Stops over here. It never ceases price the whole day. And really, you could have even done some ads in here to take more size or you just hold the trade. This is what I call no suffering. The stock sets up immediately in the first five to 15 minutes of the day and it just bleeds. The stock just bled right into the target in here. It actually went past the exit. You get to point here, this thing is dropping, dropping, dropping. I have a rule you're up a dollar or more and it starts to rally against you. Into reversal time, you have to take it off or something or the whole thing. But the stock actually went and broke $7 and went all the way down here. Here you can see it on the charts better. And all the way down to like 680 something on the day. This is an huge move for the stock. The extension of this bar is $2 plus at this price point. Beautiful. So if you had wanted to take this trade, you could have taken this trade and risked this size or you can do what I call a beginner trade. The golden gap for beginners, this guy here, he doesn't want to risk $525. So he wants to take the same trade. He knows how to do it. So he gets in here, puts a stop over here and he decides he only wants to risk $75. So fine. He risked $75. He's still going to make 8.6 times the amount on his money. So if he risks $75, he takes the exact same trade. He can make $650 risking $75. That's a good risk to reward. $650 a day isn't bad. Okay. Now, he's not going to make that every day. Not everything runs like this every day. But certainly, gaps like this work like this at least two, three times a week. And again, he just made $650 in a few hours. So let's just go over this as far as goal sitting. Let's pretend that you start out and you say, you know what? I'm going to risk $75 a trade. So on a low end, gap trades pay for the low end risk to reward. So on $75 on the low end one day, you get up on a low end day, you make $300. On a high end day, you could make 8 to 10. So on a really good day, you get something that runs just like the jack. You make 8 times the amount. Again, you're risking $75. Starting out new, you could make $600. Let's pretend two trades are losers in the week. Okay. This one's a low end. This one's a high end. The two fail. So the total of the losses are $150. So in four days, one is a low end. You make four hours. Two is an 8R trade like Jack. And then you have two losses, which is $750. And say one day you got nothing. You didn't take any trades, didn't meet your rating criteria, you didn't do a thing. It was probably a Monday. Mondays are slow days in the trading world. So that's $750 a week. $750 a week is $3,000 a month. $3,000 a month is $36,000 a year to work part-time a day for a few hours. Now, you may or may not be able to support yourself on $36,000 a year, however, to be able to risk $75 and make an average of this, this is a very conservative outlight here. You had two gains and two losses. This is only a 50% win-loss ratio here. This is very, very conservative. Okay. So two trades worked and two failed. And you still could make $36,000 a year working part-time a day. And if you can do this and prove you can do this for six months a year, you can increase your risk and do more. Okay. And certainly you could do this part-time and some other type of job. So it's 100% realistic to start out doing this and get good at it. Of course, you have to get good at it. But even this, I mean, to risk $75 a train and make $750 a week, it's money. It's $36,000 a year. So look at the bigger picture. Can you afford to risk $75 per train? Part-time income of $3,000 a month, risking only $75 a trade is substantial for a few hours a day of work. You can't even go get a job like that anywhere part-time. They won't even pay you like that part-time. Look at the bigger picture and the future holds more potential to make more money if you risk more. Of course, you have to learn how to do it right first. You have to learn the strategy before you risk more. However, once you learn the rating system and the strategy and how to trade gaps, the bigger picture is even better. So what's the bigger picture? Well, let's look at a trade here in Crust. This Crust is just amazing every time it's set up. But the most recent one was here. But look, you can even look at this one here and here. I mean, there was some fat, fat, fat red bars in this thing. Just some beautiful moves and beautiful trades. And again, great price point. I love this price point around that $20, $35 range. You get a huge size and get great risk to reward and good stops in these. So here was the Crust Play. Opened at $9.30, thought off a cliff. Look at this. From where it opened up here, the tippy, tippy top of the day literally fell as soon as it opened. The high here was $19.20 and the low here was $17.30. It was a $2 drop in time of the day here where it went to was like $9.38. Boom, that was it. The whole thing. Trade was done for the day actually. Trade was done for the day in eight minutes right there. The entry time was $9.31. Price to enter was right as soon as it broke $19. Stop was over $19.25. The risk was $0.25. And for example, in $1,500 shares, you risked $3.75. Exit was at $9.35. This is not even the whole move, but it was the bulk of the move at $17.25. Total profit was $3,000. $3,000 in five minutes. $3,000 in five minutes. So the risk to reward again was eight times the amount risk made in profit. Now, you don't have to once again risk $375. You could just risk $75, but either way, you still would make eight times the amount. It's eight times per dollar. So for advanced trader goals, advanced trader goal setting, let's just look at this. If you risk $375 per trade, on the low end, you make four times the amount. One day, you get up. Something works. You make four times the risk. It goes to target, but not the dream target. $1,500 is what you make in profit. You book it. Risk made in a high end day, like on Crust, eight times the amount, $3,000 in profit. Very good day. Goes to the dream target. Two trades you take are losers. $375 times two, you lose. You lose $750. You're out. You're out the money. So the total is $1,500 plus $3,000. So the one day you won the $1,500, the one day you had the $3,000, and the one day you lost two trades. So you lost $750. So what's the end result here after four different trades? $3750. $3750 a week is $15,000 a month. $15,000 a month is $180,000 a year to work part time a day. I can't think of any other job that you could work a few hours a day and make almost $200,000 a year, or even six figures. I just can't. Maybe some cushy sales job you've been at where you've worked up clients, you have money coming in, some kind of thing, some kind of sales job. I can't even think. But really any sales job, you still have to get new clients all the time. To be able to make six figures a year working a few hours a day is just not normal in today's economy and it's a fantastic thing. And obviously, if you can do this, there's much better things ahead for you as well. So the power of the gap is that you have the ability and the potential to make a six figure a year income from working part time from home. Now, are you going to run out and do it tomorrow? Absolutely not. You must learn what to do. You must get good and you must practice and you must do it with small risk until you work up to it. However, the potential is there. It's there because there's nothing different here. This is the exact same trade. You take this trade and risk $75. You take this trade and risk $375. You take this trade and risk $575 at some point, some day, and so on and so forth. You're working yourself up to the point where you're making a lot of money. And again, what a nice lifestyle to be able to work in the morning and make your money in an hour or two hours a day from home making over six figures a year. Now, depending on your lifestyle and where you live, that may or may not be enough for you to support a family. But it certainly has the potential to turn it into something way more and you even have time in the day to do something else. You can invest in real estate. You can have another job. You can do lots of other things. If you need to make 300 grand a year or 400 grand a year to support your family, to be able to make over six figures doing this part time a day is certainly, certainly well worth it. And again, this is a 50-50 win-loss ratio here I'm using. I'm trying to be very conservative here to show you the examples. One medium trade, one big trade, two losers. You still can make money. Let me ask you to answer a question here. NP is saying a lot of the stocks that get down are not shortable or not available to Barra. How do you get around that? I can short almost everything I want. I'm not sure where you are trading NP. You can email me here and I will can refer you to some places. I get everything I want and if I don't have it, I request it and I get it. Here, I don't think that one in the room is happy. Can you plot my email please in the room? Anyways, if you are at a place where you can't get shorts, then you need to change places. I've never traded there before NP, so I'm not sure. However, the only stocks that I can't get are ones I wouldn't want to touch with a 10-foot pole that are worth like a dollar or like penny stocks or something. Like those aren't going to have momentum anyways and they shouldn't be traded. You want to trade stuff that has volume, at least a price point of $3 or more. It's got to have volume. It's got to be able to move. It's got to have momentum. I'm around the $5-$6 range is really where you should be at. Let me just answer some questions here. Since we're doing good with time, let me answer these questions here. What size account would you want to have to have the $3.75 trade risk? As far as buying power, it's going to depend where you actually have your brokerage account. But as far as what you want to risk on the day, let's just say you want to risk $375 per trade. You have to have at least an amount of money in your account because you want to take or be able to take at least four to five trades a day. So you need to be comfortable risking anywhere between $12 and $1,500 a day because you may want to take more than one trade in a day. So let's just say you take three trades, two lose and one works. One goes on to be a home run, two lose. You've got to be able to sustain that in your account. So you need to have at least, if you have a prop account, you need to have at least, I'd say, 10 to 15 grand in a prop account if you're going to be risking $1,000 to $1,500 a day and you better be good. And if you're not good, you shouldn't be risking that anyways. And if you want a retail brokerage account, then obviously you should have at least, I'd say probably 50 grand in an account in a retail account in a retail brokerage house to be risking $1,000 to $1,500 a day. This is advanced. You've got to be good here. You have to have know what you're doing. Because it's not like you're going to get out of bed and just take one trade. Now, you might. I mean, you might. You could have a $5,000 prop account and risk $375 and take one trade a day. Are you going to stop? If you're going to stop them, fine. Then you get up and wait until tomorrow. That you could do. But I'm saying if you want to be active, I'm pretty active. I've been doing myself a bunch of trades a day. So it depends if you're active or not. Okay, let me answer some other questions here. I heard gaps always close. Why you say not? Bookie, you mean Phil? They don't. They don't. We can talk about that more here. When I bring up my live charts at the end. Let's talk about the end. Let me write that down so I remember Bookie. Good question. Zach is saying how many trades set ups on average a month or do you call them for us? I do call them every day. I call them every day. There's trades every day. They're either brand new gaps every day or continuation gaps. Now, do I get a trade every day or a gap every day that runs 8 to 10 times? No. Okay? They usually happen two or three times a week. Now, in earning season, it's very active. So you may get something every day like that in earning season. But I'd say you're looking to usually get two or three a week that are what I call goodies, really, really setting up to run. And the name between you might get some small ones or there might be a day where there's nothing to do. There might be a day when you don't get anything that meets your criteria. You go through the checklist. It doesn't meet the points. You don't do it. You can't do anything. Or you can look for continuation gap. Okay? Like, Jack, you could have shorted Jack every day. Every day after the gap, you could have shorted that. Now, it just kind of bled down into itself, which you could have shorted it every day. And I do have a live trading room that I rate my gaps in in the morning and make the calls. But people need to learn it themselves to do it because I'm not pressing the buttons on your computer with your money. You are. So you have to learn what to do to have the knowledge, to have the information, to have the conviction. So again, going back to this, this is a good way to change careers. It's something that takes time. You've got to start from somewhere. And today's day and age, and today's environment, to be able to get a six-figure income job is not easy. It's challenging for people. So what is it about gaps that make some so profitable? Well, it's the risk to reward. You're not just risking one penny to make a penny. You're risking one penny to make four pennies, or one penny to make eight pennies, or one penny to make five pennies. You're not just making one penny and one penny. Okay? This isn't a good risk to reward. I know some strategies are, you know, teach us this good, but it's not. I don't want to get out of bed to make a penny for a penny. I've got to get paid. Okay? So trading gaps makes financial and intellectual sense due to the risk to reward payout. Why is this possible? Because of momentum. For every dollar you risk in a trade, you should be looking to make more than a dollar, or even two dollars. Ideally, you want to make four dollars in the low end and a potential for ten dollars in the high end per dollar risk. So trading gaps makes it worthwhile to trade because the risk to reward payout is great. You make your money work for you when you trade gaps. It's about longevity and consistency. The Golden Gap course will teach you a strategy that will help you sustain yourself in the market. Trading is about consistency and longevity. What does that mean? Sometimes trades won't work, but they work more than they don't. And when they work, they pay you. That's where you have the longevity and the consistency. And if you want to have longevity, you need to produce consistent results. The Golden Gap course teaches you how to get consistent results in your trading because it's teaching you the right direction to take the trades. So conviction in a strategy will help you stay on the right road in the right direction, where then there's no other path. It's not confusing. It's not like you're looking down a road and there's one way and one way and one way and one way. Once you start to get on the right path, you see that this is the right path and you see that there is no other path. And then the trees are blooming and the grass is green and you're happy and you're walking along the path. You've got to get conviction in what you're doing to be able to feel that and see that and do that. And how do you do that by taking trades and making money? Once you take trades and make money, you're going to feel the conviction and understand it and understand how it works. So learn how to properly make money in the stock market. This is very, very important. What is the right direction? This is the cues. In fact, somebody today was saying something about the market coming in. The market was seeming to come red. Market isn't coming in. Market isn't coming at all. We're higher, higher, higher, higher, higher. One red day is not coming in. The market is not extended. We are not coming in. We are higher this year. How do I know? I know how to read gaps. I know how to read the gaps in the market. They're bullish gaps in the market. There's a million of them. Here they are. All right. So learning how to read gaps tells you the trend, not only in stocks but even in the market. So it can help you with your overall longer positions. So efficiency and effectiveness in trading. Trading effectively is about consistency and longevity. If you want to have longevity, you need to produce consistent results or you won't make it. If you want to produce consistent results, you must have an efficient plan and a trading strategy. And part of this also, by the way, is money management. I see some more questions here. Let me finish. I'll answer them at the end. If you want to have consistent results, you need to have a detailed focus system like the 26 points to help you find the gap that will work to trade each day. And you have to learn how to trade efficiently and effectively. That means getting good bang for your buck. It means not being stressed out in the morning because you don't know what to do or what to trade. You go through and you pick the gaps and you rate the gaps and they tell you based on the rating system which ones are going to work. And you watch them to set up and trade. You have to ask yourself how badly do you want it. I'm really, really, really, really, really wanted to badly to make money in the market. So I set out to do it. So, you know, this is really the reason that you're trading. You are trading to make money. You could trade to make a small amount of money. You could trade and want to do it to make a big amount of money. Either way, you're never going to make a big amount of money until you learn what to do. It's a dream, dream job to be able to make over six figures working at home, sitting at your computer in your pajamas for two hours a day. How bad do you want to make it happen? Bad enough to pay to take a class? Bad enough to learn and practice in something? Bad enough to take your time and only risk $75. Be the beginner baby trader. Rest and rest and rest and take your time and learn the information until you get to the point in six months or a year to do it. I mean, really, how badly do you want to do this to change your life? If you want to make money trading, you know, ask yourself, what are you waiting for? You have to start somewhere. You've got to empower yourself to do it. You've got to empower yourself to do it. The market will be here forever. You can wait a year from now, wait two years from now, wait 10 years from now, wait until you have this or that or this much money or that much money or wait until gosh knows when or you could just do it today. Empower yourself today to trade. The market is real. And third quarter earning season in the market is a great time to trade gaps. It's just a great time to trade gaps. So learn how to trade gaps to change your life. How are you going to change your life by having something that is something that is fun, okay, and has income coming in for you. You are in control of your own destiny. You're not relying on someone else to get a paycheck and you're the one that's in charge. So the class I teach is called the Golden Gap course. The Golden Gap course teaches a strategy on how to trade gaps. The course teaches a 26-point rating system to find the best stock to trade each day. The course also teaches you how to play the stock on the day. And the course teaches you chart analysis and technical analysis on an advanced level. The Golden Gap course is a complete system to use to trade. And what do I mean by complete? The strategy, the entries, the rating system, technical analysis, how to read charts, how to figure out support and resistance, how to read targets, how to understand how to read price action. All of these things are important. Money management as well. So the class is a full day course on how to strategically find pick and play stocks at a professional bearish gap. So this is what I do. Retakes are free. Anytime you take the class and pay for it and sign it for it once, you can retake it as many times as you need to, which people do, because it helps them get better. The class is August 17th and 18th. The class is 9 a.m. to 5 p.m. Eastern Time. The cost is $24.99. If you would like to sign up, please email me at melissa at thestockswish.com. Your path to success is a Golden Gap course. It teaches you the road to go down to look for the direction of the trade. I also teach another class called the Trends Course. This is a class on how to read trends in stocks. This class is August 12th and 13th. It's an eight hour course for $9.99. It is a course on how to read trends in stock charts. So the special for August is both classes for $29.99, which is a savings of $4.99. And if you're interested in this, email me at melissa at thestockswish.com. I just did a class recently and it went three hours over. I did the Golden Gap course. It's a two-day class. It went three hours over. I am going to cap the number of people I have in the classes. So if you seriously want to do this and sign up, sign up sooner rather than later to get your spot reserved, because I give everything I got when I teach. I want people to get the information. I answer everyone's questions. I really, really am teaching people how to be good traders and mentoring them. And I'm going to limit the number of people I have in the classes so that I'm not teaching till midnight because it went three hours over last time that I did it. All right, let me answer some questions here. Thank you so much. Let me answer some questions here and actually let me bring up my charts. I'm going to show you the gap that I like for tonight. I'm just going to take this off really quick and then I'll answer your quiz questions. Hold on one second here.