 Okay, can everybody hear me? Let me know. Okay, great. Excuse me. Let me know if you can see the slide. It's a beautiful picture of New York and happy your times. Thank you so much. Apologize for coughing here. Great, gonna start here today and I'm gonna talk about my strategy, which is gaps. If you have questions, write it in the room. Okay, I'll answer it as we go along. I see some familiar faces here today. Some new people, some old people. For those of you that don't know me, my name is Melissa Armell and I own the Stock Swoosh. And basically I do gaps, just sum it up. I do only one strategy. I teach only one strategy. I use it for day trains and for options. And we had huge, huge trade today in Tesla. Actually two trades today in Tesla that were calls. And I will talk about one of those today. But overall, I do gaps. And it's something that you can do to make money in the market. If you have questions, you can email me at Melissa at thestockswoosh.com. Or you can call me at 929-3200 gap. You can follow me on Twitter, Facebook, YouTube or Skype. Okay, everybody with me here? So have you ever thought about day trading? I think one of the pitfalls of day traders is that they really are all over the place. They don't focus on one strategy. They don't focus on one trading system. And they really, really, really miss the boat because you can't get good at something unless you really focus on that one thing. So it's kind of like if you wanted to go out and play sport. Yeah, while you might be just very athletic. Okay, maybe you play basketball, baseball, tennis, golf. If you're a professional athlete, you're really good at one sport, whatever that is. Okay, I'm a little nephew, he's into basketball, the playoff start tonight. He's a Sixers fan. If you're a Sixers basketball player, that's your focus, basketball. Okay, and that's how you get good. And that's how you make a lot of money. Okay, focusing on one thing and getting good at that one particular thing. So for me, when I started out, I realized that pretty quickly, I'd say within the first two, three months of trading, I realized that there was something to gaps and I realized that gaps really had to be the focus for me. So that is what I do in every single trading decision that I make has to do in a centered around gaps. And if you've been one of these people that have been trying to make it in the market or trying to make money and failing, it could be because you're not focused or maybe you're the strategy you're doing, whatever that is, isn't correct. A lot of people buy, pull back, short resistance. I talk about this in my class too. While that makes sense that there are support and resistance levels in charts, it doesn't make sense as a strategy per se because there's multiple support and resistance levels in a chart, okay? And when I'm choosing my choices, when I'm making my picks of the stocks that I wanna trade, I'm really focused on the daily chart, okay? And I'm focused on the daily chart in the gap. And any questions as we go along, just feel free to write them in the room as well. So today we're gonna discuss how to make money with one system. And again, I focus on one direction at a time. So like I'm not gonna short and go along the same stock on the same day, whether it's an option or whether it's a day trade. I have one bias for that stock on any particular day. That's it. And if it loses, it loses, okay? And if it wins, it wins. And that's how I look at it. So why do you one thing? Again, going back to what I was saying about the sports analogy, because that's how you get good at something. And also I think it makes it so much easier for you to trade. A lot of people find trading so complex. But I say when, you know, if you were small and you were little, the easier and the simplest you can make things, the better it is for you to grasp it, to learn it, and then obviously to get better as you go along over time. And one of the reasons that I'm really good at what I do is because I've been doing nothing but this really since 2008. So 12 years plus, okay? So that's a long time. Now there's lots of people out there trading more years than me, but I've only done one strategy for 12 years. So that's a long time. And again, it makes it a lot easier for you unless stressful if you're only doing one thing. Thanks, Kathy, for the information. And again, anyone that's coming in late, if you have questions, you can type them in the room. So I say make trading as easy for yourself as possible because no matter what, not every trade you take will win. I do have losing days and I do have trades some days that don't work, that lose, that's part of the business. But more trades that I take win than lose. And sometimes when we have winners, they're huge winners like I was talking about with the Tesla today. But overall, the easier that you can make your life, the better it is, that has to do with simplifying your trading focusing on one strategy and not deviating off of that. And that can be hard to do. It can be hard to do some days when you're in something and it's down and you wanna do something else or you wanna flip it, but you have to do what I call hold the conviction. Actually, let me just pull up a chart here really quickly because I just wanna, I didn't put this in the class but this is something really good here. This Tesla today was really sick. Sick in a good way. Facebook. Can everybody see my chart here? Gosh, that Facebook was a good call. I mean that Tesla, Facebook was a good call too by the Tesla. Here, Facebook. Can everybody see it? Can everybody see the chart? Hello, by talking to myself. It's still loading, but I just wanna see if you can see it. It's taking forever. My Lord, this is taking forever there. Can everybody see Facebook? So holding the conviction when I was talking about, I called calls in Facebook on this day, stuck, dropped. It was not as short. It was a long. These were options trades that I called. Anyways, long story short, this was higher and the train drop, drop, dropped and then till the day before the very last day of the expiration it popped and actually it popped on the last day too. But the point is though that if you would have lost conviction that it was higher, you would have lost in the trade or killed it or if you'd shorted it and flipped it, you would have lost too because look what it did. So you gotta really one, understand what you're doing and two, stick with one strategy and one directional bias. Again, it's a focus, focus, focus. And if this trade had lost, it would have lost. It didn't, it worked. But again, I think it's so, so critical for people to just have that focus. And you could even say a narrow focus if you want to because really I think it will help you overall. Okay, we're back to the slides here. Can people see me or see the, let's see me even see the PowerPoint, sorry. Why go long, why short? Well, for those of you that don't know me, I like to mostly short for day trades. I will do go long, but I prefer to short and look at the shorts first for day trades. When I say day trade in the equity trade where you get in and get out, you gotta get out by four o'clock and we're trading on margin. Now, why do I like to short? And what happens in a short? Stocks move lower when selling action or shorting action comes into the stock. Okay, it's like a dump, okay? They dump it. The price is driven down and if you short before the price drops then you can make money. Like if you short a stock at $10 and it drops down to nine, what would you make a dollar? If you have 5,000 shares, what would you make? 5 grand, understand? One of the best reasons to short as a trader is that you can make money very quickly. And this is one of the reasons I prefer to short for day trades because you gotta be out between 9.30 and four in and out as a day trade. So I like the fast ones. It doesn't mean I don't go long, I do go long. I'm gonna, we're gonna go over long in here in this lecture, the best long last month, but I do prefer to short for day trades. Another great reason is that very often the downward moves happen in a big way and quick. And when panic comes into a stock, sometimes it looks like it has no end. And you don't want to be in the long side of selling action. Trying to think what was the last one we did that really collapsed like that. I have to think about it. Anyways, so you wanna be a short person. We wanna be short something when the panic comes in. Anyways, here was two days ago. Now don't mix this up. This is Baidu. This was earnings. Stock closed here, gap down. Stock sold off. This was the day trade short. Actually, I'll pull up the one minute here and show you. Entry is 117.20. We put a stop at 119.10. And if you join the live trading room, I call the entry and the stop. And the exit shares was 1500 with a risk of 2850. This was a nice move. Exit was 116.35. Profit 1275. This is a good day trade. It also happened very fast. So we shorted this. Now let me go back to the charts here because I'm gonna pull this up. This was Friday's day trade. Actually, because I didn't put this in the chart. Let me just show you. I mean it in the class. So 814. Everybody see Baidu? So I short on the one minute chart. Move to the time. Sometimes I do a different chart, but most of the times it's on the one minute. Can everybody see Baidu one minute? Here we go. Stock closed up here the night before, boom. Closed at 124.65, boom. Open in the morning, 118.40. So do you see, look at this. This is selling. How do I know? Well, the stock closed here at around 124.00 and change. And then it opens in the morning down $7.00. Plus, or six something plus. So it opened at 118. So you say, what happened here? Selling, dropped. Shorted, get the drop. Shorted, get the drop. We had a good exit on this actually. Actually, it looks like the low of the day in this ended up being 115.60. So you could have squeezed a little more out of this if you held it all the way down. We get out of this early. I think it was a good move, but you could have squeezed a little bit more out of it. Low of the day here, broke at 116. Was 115.60. This was a nice day trade. You could have been in and out quickly in 15 minutes or less. And again, if you held it down a little bit more, you made a little bit more. But again, when you're in a day trade, you wanna get in, get out. I call it chunking it out. This was a nice short here. This did not fall through lower today though. I wanna point that out. This rallied. Of course, the market was strong today and the market rallied today. So that was a short and that was a day trade. Now let's look at the next one here. I've been talking about this earlier, Tesla. What happened here? Is everybody with me? So again, sometimes that will go long. Sometimes I will go long day trade. Sometimes I will do a call, which is along as an option. And a short is a put as an option for those of you that don't know that. Anyways, it's just a different way to do the trade. It's just a different way. And to be honest, it's actually a cheaper way in stocks that are very, very expensive, which I consider Tesla an expensive stock. Anything over $1,000 a share is expensive to me. Everybody with me? So what happened here? Again, I focus on one strategy. Whether I'm going long or going short, I focus on gaps. Just very basic. Before I go over the Tesla trade here, what is a gap? A gap is a difference between the close and the open. There are bullish gaps and there are bearish gaps. What's a bullish gap? Today was a bullish gap in Tesla. Stock closed here, gap up. A gap up is when the stock closes at one price and opens at a higher price. This took off like a rocket. This was such a beautiful, just gorgeous call today. Raj, I see you in here. Did you do this trade? And Dan, I know you're not in the letter anymore, but I talked about it in the room. Some of my students said we're in the room, we're in here at IRB, I didn't see you today. I said this stock will go to 1,800 today. I said this is gonna go to 1,800. I said it this morning. The stock almost went to 1,850. It was completely, completely insane. I hope some of you held this sucker up. It was a great call. But anyways, this was a bullish gap up. That rally, okay? Now let's talk about a bearish gap down. What is a gap down? A gap down is when the stock opens at a lower price than where it closed. Here is a day over here. Stock closed here, open here. So it closed at one price here, open lower. So this gap down, closed here, open here. This gap down, this gap down. This closed here, gap up. This closed here, gap up. When does the question go ahead? Did I see you there? Did you do the test law? Anyways, a gap up is when it opens at a higher price. A gap down is when it opens at a lower price. So you can't go long every gap up and you can't short every gap down. If you could, it would be so easy to make money we'd never lose. So what do I do? One, I find the gap and then I rate the gap using my own personal system, which I created, which if you came and wanted to trade with me you'd learn the system in the class and I figure it out every day in the pre-market. While some days I could figure it out in the post-market I usually wait till the morning to figure it out in the pre-market. I get up in the morning and I rate whatever gaps I see. Some days I will do long, some days I will do shorts, some days I will do day trade, some days I will do options, some days I will do both, some days I will do nothing if it doesn't rate well, if there's no highly rated gaps. So today there were options trades but no day trades because again, I'm not gonna do Tesla as a day trade as an equity trade but you could have done an option in this as a day trade. And again, any questions on that specifically or options let me know. When do I see, you just wrote question but I don't know if you have a question. Okay, so this was the call from Thursday. This wasn't this morning's. I called the 1700 calls this morning. This was Thursday's Tesla, I called the 1620's that expire this Friday, which I'm so glad I called it that way. Now let me go back to Thursday. This is the option newsletter where you get the trades emailed to you. This is Friday, this is Monday, here's Thursday. So the stock closed here Wednesday, boom, open gap up on Thursday, rallyed, closed. Then it gaped up, some people got out here. Okay, you can see where this is. I called the 1620's, this gaped up in the morning, Friday morning, fell a little bit but was a positive trade. Some people got out that they wanna hold on the weekend, I held it, I felt a high level of conviction it was gonna gap up again today. And then this morning in the pre-market, the stock was here, here, let me pull it up. Let me just go back to the chart because this just makes it so much easier. Hold on, it's just easier to teach here looking at this stuff here. Here, so this is 8 a.m. The stock was gaping up. So I called a new trade today, the 1700s which obviously worked but basically, again the 1620's in, we're really up this morning. And then here is the open 930, takes off like a rocket, blew through 1700 right away it's in the first 15 minutes of the day and then just never look back. So in this pre-market, snuck as a bug, I'm reading the gap in here on whatever I'm looking at. Today I was looking at this. So you get up in the morning and you look at the pre-market. The pre-market is what's happening before the open before 930. I do not trade the pre-market, I do not trade the post-market. Now let's look at the post-market. What's happening here, I don't think much of anything but just a little baby selling high what today almost got to 1850, 1845 and this is just having a little baby selling here tonight. And the reason I said 1800 was because it was the previous high, that's where it went and that's where it got passed. Wendell, do you understand what I just said? Or did you have a question? And again, you could have done an equity trade in this would have been expensive even on margin but trading options is that kind of thing where it's just, I just think it's a cheaper, cheaper, cheaper way to, I'm going back to the slide here just one second. I just think it's a lot so much cheaper to be able to, what's the word? Just, it's just cheaper. You just don't, you just have to, you just can, you don't have to suck up as much of your cash to take it. Anyways, this was the test of the call. Here's the trade. Trade cost 55 bucks. I bought two, which was kind of pricy. So like you say, okay, what if I can't risk $5,500 then you can't do this trade? You could have done a strike farther away. That's an idea. That's something that you could have done and something that you can do if you're on the newsletter. To 1700s I call today were even more expensive than this. They weren't cheap either. You could have done the 1800s today actually. I didn't look at what those cost but those work too. So when you're doing an option, if I call it and you can't afford the price of it, even one contract because you can't take any smaller size than that, you could do one away from it. You'll still make money in the trade if it's running into it, into it in the right direction. Those 1800s today were probably a good trade. Anyways, the risk in this for two contract was 11,000, sold at 215 and I held it as long as I could today and I thought this was a great exit. It still kept going. There was nothing you could have done wrong with this trade today. Like there's no way you could have lost in this trade. And I think even to be honest with you, the people that didn't get out of it today which I don't think there's anyone but if there is somebody that didn't get out of it are still gonna be up in this trade tomorrow just because it was so insane. Even though it's slightly down a bit tonight, you're still gonna be up in the trade. But again, in options, you have to be very careful because time, you have a time decrease every day that goes into it, even though this still theoretically could be higher. And at this point now I'd have to wait to see where Gaps tomorrow to tell you where the next target is really because it got blew through all the targets today. And considering it went to 1845, that's basically like 1850, it really got there. Profit, 32,000 on a risk of 11 grand, that's a great trade, 291% return on investment. So when you make two, three, four times the amount in a train, one you get your profit and then two covers the trades that lose. And again, I do have trades sometimes that lose. And ironically, right now at this point, some of the longs are having better follow through than some of the shorts. Now this week we have a lot of big names coming up. I have no idea which ones I'm gonna like or which ones I'm not gonna like but we do have a lot of retail coming up this week. So it'll be very, very interesting to see what we get this week because there's a lot and we have a lot of things that are big movers. So again, let's talk about the concept of going long. What are you doing when you're going long? Well, you're buying into a stock, into momentum which is getting bought by institutional money. So that's the whole concept, that's the philosophy and that's what I'm looking for in the rating system. That's what I'm looking for when I'm playing the gap. So I'm predicting that Tesla, which I did this morning when I woke up and it was around 1670 some and wherever the number was, I predicted this morning at 930 in the room, I said the stock is gonna go to 1800 between now and Friday and it even could get there today, which it did. So I predicted the stock would make more than $100 move. How was I able to do that? Because I rated the gap, because I can rate the gap in the pre-market and that helps me determine what institutional money is going to do or are they going to buy it or are they going to sell it? Here's an example back here. This is like two months ago or something like that, July or a month and a half ago, a little bit more. This was a sell-off that occurred. Now, what do I mean? Stock closed here, open, rallying. I forget the reason for these gaps, but anyways, then it gapped up. So then it closed here, then it gapped up, then it rallyed, then it sold off. So this had selling, how do I know the bar is red? Did I short this? No, but you can see here, if you went long on this day, this closed lower. So that would have been a boo-boo, okay? And it really didn't go anywhere after that really at all for the last five, six weeks. But anyways, this, okay, shows and depicts the selling. This depicts the buying today. So again, not every gap up is along because this was a gap up. I know the bar is red, but it was a gap up. Here was a gap up. You would have lost if you went long here. What do I mean? Stock closed here, gapped up, open, higher, wasn't a good entry, long, fell, boom, sold off. See that? So you have to pick and choose the bullish gaps you go along. You have to pick and choose the bearish gaps that you short or do puts in, okay? And that's what I do. I'm predicting, okay? I'm predicting and then I put the money on and you set your risk accordingly. And then in an option, you can't lose any more than your risk. In a day trade, I put stops. Here's one here and I'll pull up the chart on this because this is really squished. This was Apple. This is a beautiful call too. This was the biggest trade last month we did as far as a day trade. And mainly because of the fact that I held it. Some people didn't hold this. Some people got out of it in the morning. It was still a positive trade. This was a really nice call too. Entry was 406. Stout was 4270. This is a long, this is not an option. It's an equity trade. This is expensive. Apple's very expensive right now, okay? A thousand shares was a $3,300 risk. Exit 423. Also I called calls in this today. Dropped and we'll look at that as well. And some people panic today the way that dropped. This stock is higher too. This was a $17,000 profit. And why? Because of the run up. Because of the run up. Because of the entry. The difference between the entry and the stop. And because of the size. A thousand shares. It's nothing to sneeze at. Now let's look at this. This was 731. But let's look and see how Apple closed. Cause I didn't go back to that. Okay, here was the day. We went long as a day trade. Stock closed here, gapped up. Dropped, fell, low of the day was 403.30. Then that got a perfect entry on this. It was really just a very, very good one here. It was just a perfect timing. Anyways, ran all the way up. Dream target was 420. Then it got to 425. Just a beautiful trade. High was 425.66. Gapped up here the next day. So this again is a long, it was a day trade. I'll go over here to the 15 minute. Here it is. Closed here. Gapped up. Dropped. This is the push up into the close. That's that day on the 31st. This is a 15 minute chart. See the push? Now I did call calls on this today. This is higher. I like it. I've been liking it. I do like it. Was a weird open here today. Retested this area so it dropped. It couldn't get them push up. But I still like this. I really, really like this. And I feel very confident this is gonna gap up tomorrow. This either opens neutral tomorrow and rallies or gaps up slightly tomorrow and rallies or any gap up is gonna rally. So this chart looks good. And I called calls on this today. So even though this sold off today, this is higher. And the market too. All right. So that's Apple that was on the 31st. And this is a one minute chart where I called the trade but it was easier to see in the 15 minute. Made the move into the lunchtime period and the push up into the close. Okay. Again, you could have done an option in this when I called the day trade in the room if you didn't feel like you had the equity buying power to do the day trade. You could have taken a hundred shares but it still would have been a great trade. So what I've done is I train my brain to look at something in a certain way in one direction. It could be up or down. So like again, I'm not flip-flopping it. Like where the Facebook fell off, I still have a long bias. Apple's fallen off today. I still have a bullish bias. You know what I'm saying? Like, so it's, I've just trained my brain to see things in relationship to how the gap sits, opens, rains, which is what again, the information I teach in the class, it's a long class, it's two days. So that's what I, that's the process that I go through and I just don't deviate from it. And sometimes I'll be on step on top of something and the trade will lose because it just won't do it. But then it's ironic, then it usually goes then later, which is very frustrating. But anytime you do a trade, you do have to have it within a certain time period. You're doing a day trade, the trade has to go before four. You gotta be out. If you're doing an option, the trade has to go before it expires. Before the time is up, you gotta be out. So the one thing as individuals, and this doesn't matter if you have a big account, a small account, a medium account, everyone is working within the confines of the financial situation that they have. Even people that trade big accounts, I mean, you can't risk your whole account. Everyone has limitations, which they have to work within the confines of. You know, does this make sense? I mean, people complain a lot and say, oh, I wish I had a bigger account. Yeah, if you had a bigger account, you can make more money if you know what to do. But if you have a bigger account and you don't know what to do, you'll lose more. So what's the difference? Whether you have a big account or a small account, it really doesn't matter. If you know what to do, you'll be able to make money. You can grow a small account into a medium-sized account. You can grow a medium-sized account into a big account. And it doesn't take that long if you know what to do. Okay? So it's really about learning the skills, and the skills is using your brain and your training it, which like this morning, like right off the cuff, I just spit out in the room that the stock of the Tesla was gonna go to that number. And actually, I already talked to one of the traders. She did two contracts of it too. She did two contracts of it too. She didn't hold it all the way, but she risked more than what she would normally risk just based on what I said in the room today. And that's part of training your brain to see something. Like you're training it, training it, training it. Again, like an athlete. You know what I mean? It's called muscle memory, but it's really the memory in what you're looking at, in deciphering the price action. So one of the nice things about gaps though, I will say is they can work in a bullish market, they can work in a bearish market. You can go long, you can go short. Making money consistently means you have to be good at predicting directional bias with accuracy or high level of accuracy. That's where the consistency comes. It doesn't matter if you wanna go long or go short. It's the consistency of what you're doing to get the accuracy rate up. Why do most people lose in the market? Because they take more losing trades than winning trades. While it's true that some people lose in trades that they were up in, most people that lose just take bad trades, meaning they're just losers and they were never winners. You know what I mean? And then once in a while, sometimes people lose in trades and they'll have a loser. They'll have a big loser and once in a while they'll have a big winner. While that can happen to anyone, it's the consistency of win, win, win, green, green, green, green, green that really keeps your account intact. It keeps your confidence level up and it keeps you going while you're building the skill set where you don't have these massive, massive drawl downs. You know what I mean? Any questions here so far? Any questions from anyone? Actually, quiet group tonight. Anyways, many traders are fighting against each other for the money. When you trade, I made money today in Tesla because I took money from somebody who lost. Somebody that shorted Tesla. Someone that shorted. Someone that shorted that gap up, that big red bar, that tail, back from a couple of weeks ago. Somebody shorted that and I took their money today because I went long. Why did the stock fly over the $1,800 number that I gave this morning? Absolutely fly over it. 45 points over it. And it happened like that because you had people that were short the stock. So you had buyers and you had shorts in it too. So when you train and make money, you're taking money away from someone else. You're not making something. I'm not sitting here sewing a dress. I mean, I don't have anything like just show you. It's you're, I'm creating money. You can, it's kind of like magic because you're like creating it from thin air. It's like the smart people versus the dumb people. Well, how do you get on the side of the smart people? That's one of the reasons why I look at institutional money, not what regular day traders are doing. And many, many, many, many, many day traders believe that gap fills work, okay? Which they do not. Even though that doesn't mean you can't sometimes make money doing a gap. Really doesn't work consistently as a strategy. What I do works consistently. And so you have to go with that power of money. I call it power of money. I call it institutional money, okay? And it's driving the market right now. I'm shocked at how the market has flown since the march lows. I'm not saying we don't go back there. In fact, I think we do, but I don't know when. But I will tell you I'm shocked how much the market's rally. But that is institutional money that came in and just scooped up the market and never looked back. So again, as far as day trading goes, I mostly like to short just because of fast trades panic and making money quickly. While some people are uncomfortable with fast trades for me, I just like to be done as soon as I can in the morning. That way I don't have to worry about news or the president tweeting or some kind of data or something with China. I can just get in and get out, okay? Now that apple trade was a long. Sometimes you have to hold long a little longer. Okay, long sometimes take longer, which is why I prefer shorts. Again, I do both, but I do go to the short side first for the day trades. Any questions here? Anyways, how do I know how to repand before it comes into the stock and sells off by reading the gap? I read the gap. I get up in the morning, I read the gap. I rate the gap. And that's how I do it. And I'm predicting where it's going to go. Now I've been talking about this. What is an institutional gap? An institutional gap is a gap that moves in the direction of the gap. It is called an institutional gap because institutional money is making it, creating it, pushing it up or pushing it down. Large professional traders and investors are making and creating the gap, okay? Been big, big size and they move the market too. In the case of a bullish gap, professionals are buying the stock. Therefore the stock moves higher on the day. In the case of a bearish gap, professionals are shorting the stock. Therefore the stock moves lower on the trading day, okay? So why are gaps significant? They help you to analyze a large timeframe to make the trend decision on the direction of bias for the gap. All large traders of every kind look at large timeframes to make decisions, particularly institutional traders. They help you make entry decisions and exit decisions based on a small timeframe because I'm looking to get in in the one minute usually on a minute chart. And this has a high degree of focus and accuracy. Using the daily chart to make the decisions for the stock pick though, allows you for the accuracy and direction. And then I use the one minute to figure out the risk to reward trades and that's where I put the stop. So the entry and the stop. Billy Bob trader is a question, go ahead. And anybody else here? So I'm looking again, institutional money. Oh, Billy Bob doesn't have a question, okay. Gaps are created with large institutional money. The ones that I do, okay? That is what makes the gap. The professional gaps that happen and play out and stocks are formed by one thing and one thing only, large institutional money. Therefore you need a way that will help you pick the correct direction to play the gap and confirm that the large money will flow with it. By having a formula to read and qualify the gap, you get confirmation and conviction that the large institutional money is on your side and then you play it. That's how you can take a trade like Tesla and risk that kind of money in it and hold it because you know that it's not going anywhere down. Why? Because the control is what? To the upside. Who's in control of Tesla today? The bulls. The bulls. So therefore you would have wanted to be long and quite frankly, wherever you would have gotten it this morning would have been a huge trade. Gaps are an event and create a sense of urgency. Hurry, hurry, hurry. So what happened today in Tesla? Was that like panic buying? It was over 1800. Wasn't in the morning, but it got to be that point later over 1800 and who knows what it could be like tomorrow. It could gap up tomorrow with more panic buying because that's how crazy what's going on in there right now because it started once it got over the high and that's why it flew up 45 points as soon as it touched on the number and blew. And that is something that makes it so easy to make money. So sometimes we get panic selling and sometimes we get panic buying. Thus an action is being forced by participants of the stock. This is why gap trading is incredibly powerful. Trading gaps is a powerful and profitable way to trade because you're trading on the side of power money. Okay, any questions? So is there more than one kind of gap to trade? I know people do all kinds of different things but there really isn't any other kind to me. Okay, again, I created everything I do. I made it up, but it all works. So it's kind of like when people say, oh, they're doing a gap field that has no meaning to me. You would, I would never go on TV and talk about that. It makes absolutely no sense. Nothing has a high degree of predictability and therefore profitability to play other than playing a gap. That's a professional gap based on institutional moves. Okay, because if you cannot accurately predict something that there's no way and no reason, no reason at all, why you should trade it? Because there's no high degree of, you would have no reason to think that you would be able to make money in it. Therefore it would be gambling. So you may as well just go to Atlantic City, okay? If you can't look at something with a high degree of probability, it's about trading is about putting the odds in your favor, okay? Like, here's an example. It's, I'm in New York. I'm in Manhattan. Today, right now it's 76 degrees, okay? I can tell you with a high level of probability that it's not going to snow tomorrow in New York. It's not gonna get under 32 degrees that it's not gonna snow. We are expecting precipitation tonight. 40%, 50% chance of rain. It's gonna be rain. It's not gonna be snow. I'm telling with a high degree of accuracy, we will be above freezing in the next 24 hours, okay? So you have to look at something and feel very, very confident in the prediction that you're making or the probability. You're putting the odds in your favor. Now when I go out in New York and I think it's supposed to rain and I say 60% chance of rain. Well, if I don't want to be caught drowning on the street walking around, I take an umbrella out. If it says 30% chance of rain, I still take an umbrella out because even it's a couple of drops, I could get wet, okay? So you're looking at the odds. You do trains where the odds are in your favor and the way I look at it, it's kind of like black and white because if the odds aren't in my favor, I don't do anything at all. So we didn't do any day trades today because there was absolutely nothing good to do. We did the option, okay? Now, while you might go outside in a day that it's sunny and it may rain and it didn't tell you no one told you it was gonna rain, it was no probability it was gonna rain and then it rains, that's like some days where you take a trade and you lose. You say, how can this happen? It was supposed to be sunny all day and then we get rain and now I don't have my umbrella but that just happens, that's just life, okay? You see the difference? It doesn't mean you never take your umbrella out. Doesn't mean you have to carry it every day either, okay? Doesn't mean you never trade again. If you take a trade that loses, doesn't mean you give up on it at all or have a negative attitude or do something crazy the next time. It's just part of what it is. Anything that can put the odds in your favor to trade will give you an edge. The 26 point golden gap rating system that's the system I created gives you an edge. It reads the price of the gap and using technical analysis on an advanced level, pin points which talk to trade that day and in what direction. The high probabilities and the quality and detail in the rating system. 26 points is an enormous amount of detail. It takes about five to 10 minutes to rate one gap if you're new and it takes less than five minutes once you've become experienced with the system. Now I don't rush it. I like to take my time, that's just me. But again, you could do them very quickly if you wanted to. Now this was another short. This was a day trade again. This was on the lower, less expensive side compared to the Apple. Again, that was a long, this is a short. This is a gap down. Stock closed here at night before a gap down. Boom, open in the morning was a short. We entered this here, 43.20. Stock was 44.15, boom. 3,000 shares, risk was 28.50. Exit 42.44, beautiful move. Profit 2,280 bucks. This is a day trade. You would take us a margin. I get this question a lot. They said, well, this would actually cost 43.20 times 3,000 shares. It would be this much money? No. When you're trading on margin, what does that mean? It means if you have a retail account, you need a minimum of 25,000 and you're gonna need a 41 margin on a retail broker which means you're gonna have 100,000 in buying power. So buying power in something like Cisco for 1,000 shares would be 43,200 but you don't need 43,200 cash. You need one quarter of that if you're at a retail place and thus you'd have to be over the minimum of 25,000. Make sense? If you're at a prop place, you need one 10th of that because prop places usually give 10 to one margin. So again, it would be based on your size of the cash depending where you're trade but you don't need $43,200 cash to take and that's not what you're risking for 1,000 shares of Cisco. Does everyone understand that? It's buying power or margin or the cost of the trade versus what your risk is. The real risk in this trade was $2,050 and if you would have lost, that's it. That's what you would have lost unless it went through it or pushed through a little bit through the stop which sometimes can happen but not that often with the trades that we do. Does everyone understand what I mean? And if you don't understand margin and you don't understand buying power and you don't understand that then ask me and don't be afraid to. Now, doing options, you don't have anything like that. You don't have buying power with options. It's the cost is the cost and that's it. Everybody get that? That's another lecture I could do actually more in a different time but does anyone have any questions about that here? Anyways, the key for one individual like you is the idea of producing the income which is pulling money out of the market. I call it chunking it out, chunk it, chunk it, chunk it. 500, 200, 300, 100, you're pulling money out of the market. You are gonna have some trades that lose. That's why I use the stop. And in reference to the options, I let the trades that are losing, I just let them play out. So I don't kill my trades in the middle of the trade if they're down. If they lose, they lose and I usually run into the last moment. Okay? But if you wanna kill your options trades when they're down to 50%, you can conservatively but know that some will go on to work without you. Anyways, you can do this and I definitely think 20 grand a month is possible even for this year for people joining. There was a guy that just signed up, actually two guys just signed up this past weekend for the class for next weekend. They've already paid for the class. They did the Tesla trades. They've paid for the class already. The class is seven grand. So I mean, to make money before you even do the class is just like phenomenal. So it's people think that they can't do this and they get into a mindset where they just feel like very lost about trading and get down about the whole trading thing. But I think once you start to see what you really are capable of and what you can do and how much money you can make then it's really quite frankly very exciting. And again, this has nothing to do with the fact that some trades are gonna lose. But when you realize that you can actually be consistently profitable and have more winners than losers you're gonna see this as something that you can do for a lifelong career or if you wanna do it part time. Some people are trading in their part time. They trade in the morning and then they go to work or some people on the options newsletter and they're working full time and they're trading on the side in between at their office, whatever works for you. But you really still could make a full time income with some of these trades that I've been calling. And he was, how do I do it? I use a checklist, boom, boom, boom. I get up in the morning and I rate the gap and I determine if we're going to trade it or not based on their reigning system. So what does a 26 point rating system do? It measures gaps for rating them in the daily chart to find stocks to trade that have number one, a high probability of directional bias for the entire day. Hopefully the whole day. Two, a big move in the day like the Tesla. Three, early confirmation of the bias and the move between 9, 30 and 10 a.m. Eastern time, precise entries with follow through and a good risk to reward target potential which obviously we all want. So some trades are big, some are small, some are medium. If you're doing a day trade with me and you're risking 500, you're trying to turn it over one time. Sometimes we get more, sometimes it's a little under. It depends where the target is. I call the exits in the room. If you're doing an options trade, I'm usually looking for 50% to 100%. But I really want to move. And that's why when I was looking at that Tesla chart, the stock really didn't have the move yet. Like today you can see that it had the move. So some days you'll see it's gonna have a move and then you see the target's gonna be much, much bigger than 100% and then you just run it up. Any questions here so far? Quiet group tonight. Anyways, the philosophy behind the Golden Gap system is to analyze a large time frame to make the trend decision on the directional bias for the gap. All large traders of every kind look at large time frames to make decisions, particularly institutional traders, to make entry decisions and exit decisions based on a small time frame. And again, I go over this in the class, the one minute chart, which has a high degree of focus and accuracy. I'm really good at reading the one minute chart. But I'm really good at reading the first five minutes of the day, which is how I often am able to get some of these entries or then I pass on something. Like we looked at Apple today and I was thinking about going long Apple to day trade today. And then I watched the first five minutes and said, boom, it's off. We're not doing it. It could have set up. We might have done it. It didn't. We didn't do it. Using the daily chart to make the decision for the stock pick allows for accuracy in the direction. Again, trying to be nimble, nimble in and out, okay? Using the one minute chart allows for good risk to reward trades with accuracy. And we did the best we can. Some stops are small, some stops are big. This actually was, well, I shouldn't say big, but considering for the stock, it was kind of a big, a big, a big stock for something like SNAP. Like it could have been a lot, a lot smaller. Like you could get this even with a 20-cent stop. Anyways, this was back, what day was this? Eight, three. So here's the SNAP. This was earnings. Stock closed here, gap down, dropped, boom. Sold off. So this was a gap down that I rated to short. Entry was 21.60, stock was 22.10, 50 cents. Again, this is, you know, it depends on how tight you want to be here. Some days you can get something even smaller than this. This stock can move and you can get good fills in this. And it also has a lot of volume. Also has a lot of momentum and moves quickly. And sometimes you could get, you know, like I said, 20, 30 cents stop in it. But this did have a good move in the day. 5,000 shares, risk was 2,500. Exit 20, 70, boom. Nice trade. We had a beautiful exit on this. It was just a really nice trade. Profit 4,500. Again, this was a gap down. Closed here, gap down. Boom, drop, sold off. This is a one minute. This is snap. That was another one I rated in the morning. Anyways, how do I determine the correct gap to do each day? I rate it, I get up, I rate it and we trade it. That's what we do. Anyways, I do it with the Golden Gap 26 point checklist. Boom, get up in the morning pretty early. That's my routine. And I'm looking ideally, like I said, for one over for a day train. And ideally 50% to 100% for an option. It depends how much time I have left in it. If it's at the target, if it's a weekend, what the market's doing, or something even like Tesla this morning where I really wanted to make sure that everybody in the room got the biggest bang for their buck in that. And that's why I told everybody, listen, you know, this is what you're looking for in this. Again, you know, every once in a while, something will go just crazy. And sometimes I can see it like we did today in the pre-market. So how much money can you make doing this? If you want to train part-time, and this isn't an average, 500 dollars a day when I say that, it doesn't mean you're gonna absolutely make 500 dollars every day. It's an average because some days you won't do any trades. Then tomorrow you may do two trades. Wednesday you may do one trade. Thursday you may do no trades. It's an average, okay? So it's an average. And I think if people look at their goals per week, per month, per year, it's a lot better to look at it. Like if I have a big day, one day, it's, you know, then you're not chomping at the bit the next day. You know what I'm saying? Like just look at it as a whole. And sometimes you get so obsessed like, where you have to like make a certain amount every single day, even if you have a small account, you really don't have to. You're gonna lose if you take bad trades. So when you break it down and just figure it out per week, it really helps you to understand what you're looking for and what you're doing to be more patient, I guess, for quality setups and quality trades. And also when you think about it as a whole, if this is something you wanna do part-time, you can wrap your head around the idea of even making $1,500 a week. I mean, some people can live on 78 grand a year. Not everybody can, but some people can. But if you're looking at that as part-time money, that's $1,500 a week is totally doable, you know? And this could be a combination of day trades and options or just one or the other. But your goals per risk amount and your risk unit should be based on an account size, a monetary weekly monthly goals, which should be based on what is your account size and your level of experience and your risk tolerance, okay? So if your risk tolerance is, like if you're really super conservative, then you might have gotten out of Tesla Friday. It was up. If you are more experienced and willing to take the risk to hold Tesla from Friday to Monday, knowing you had a week left, then you held it. So you know, sometimes you take the risk to hold something to make more. Or here's another idea. You get out of half the trade, hold the other half the trade. You only have half the risk on and you've already booked the profit in whatever you're in. Here was another one that was on the lower price side. This is WDC. And again, a stock that can move similar to SNAP. This was a day trade. This was a short stock close to your gap down, open drop sold off. Entry was 38.60, stock was 39.50. Again, I'm calling the entry and stop in the room. You determine your share size, you determine your risk. Should be based on the size of your account. And remember, you're taking these trades on margin. Exit is 37.77, boom. Profit 24.90, done. Take it out, take it out, chunk it out. That's what you have to do. Again, preferred. Preferred to do fast trades. Some of the day trades move fast, some of them take a little bit longer. But if you're looking to day trade strictly, we're usually done in the morning, the first hour of the day. The options can be trades that go into the afternoon like today with Tesla. Whatever works for you with your schedule is what you really need to think about in the time that you can commit to focusing on charts and looking at your trades. Now you can trade and be in options and go about your business in the day, but you still have to pay attention to stuff and look at it or you put an order out to fill you. Like you could have done that with the Tesla today because I mean, you estimate the price, put an order out to fill you and then that's it. If you can't be watching it because you don't want to miss getting out of trades when you're up. But I definitely think that everybody can figure out something in their schedule, whether it's actively day trading or options to turn your dreams into a reality if your dream is to really trade the market. I think once you're bitten by the market bug, you're kind of bitten for life and you're not going to just ever give up on it. I think people just do it and lose and they're negative and then they wonder why they're losing. You have to have a positive optimistic attitude if you want to be successful. While having a good attitude doesn't mean that you're automatically going to be successful because you won't without a good strategy. It is part and parcel of it. Even with a good strategy, if you have a bad attitude and bad money management, you're going to lose. So you've got to have all the pieces of the puzzle together. A good system, a good strategy, preferably good mentor like me that can show you and teach you what to do. I specifically like the targets in Tesla today and calling good trades which makes it easier for people to make the money. But you also have to have a positive attitude and an open mind to really learn the things that I'm teaching because sometimes the stuff that I teach is the app is in it what a lot of people know about the market and it kind of can get in your head. And so you have to be on the right side of things. I guess, like I said, if you were short Tesla today, you were screwed. And I think it was even more people that are short that didn't give up on it, which is probably another reason why I could have another pop tomorrow. Anyways, my class is called the Golden Gap System. It's a Golden Gap course. Each is a 26 point professional bearish gap rating system. The purpose of this system is to help you evaluate which gap to train each morning using a checklist. So it's about probability. You've got to understand that. And anything that can put the odds in your favor to trade will give you an edge. The 26 point Golden Gap rating system gives you an edge. It reads the price of the gap. And you're using technical analysis on an advanced level, pin points, which stock to trade that day and in what direction. The high probability is in the equality and detail in the rating system. 26 points is an enormous amount of detail. It takes about, again, five to 10 minutes to rate one or less than that if you're used to doing it. But I wouldn't rush it. I would take the time, go through the process. In that review time, in that morning period, I get up at least an hour early to give yourself an hour. I do more than that. It really helps you get the conviction. Decide if you want to do it. Determine how many trades you want to take. If I call five options, are you going to do them all? You're going to do one? You know, you have to decide. Pick and choose the ones you're going to do. The Golden Gap course teaches a strategy on how to trade gaps. That is what I do and that is what you'll come and learn from me. And you'll have the benefit as well of getting my trade calls. The course teaches a 26 point rating system to find the best stock to trade each day. The course also teaches students how to play the stock on the day and the course teaches students chart analysis and technical analysis on an advanced level, which is basically looking at gaps. So it's all together in a row, all the pieces of the puzzle. Again, having the right mindset, looking at the entries, the targets, risk, okay? Looking at the market helps you rate the market. Look at the market direction and also, again, the gap. So the Golden Gap course is a two-day course on how to strategically find pick-and-play stocks at our professional bearish gaps. Class is online. It can be anywhere in the world and take it. Class is this weekend and the next class after this is not until the end of September, okay? So if you want to get in and trade for fall, you'd want to do this class. August 22nd and 23rd, Saturday and Sunday, nine to five Eastern time, cost the class of 69.99 US dollars. Email me if you want to sign up. And so I'm doing a special for this week, which is a great idea. I live in New York and New York is a mess right now and I'm really trying to stay positive myself, talk about staying positive. I'm trying to stay positive about New York and man is it been tough, really tough, really, really hard. So I'm doing a sign up by this Friday and you get one year free of the trading room. And if you want to do the options newsletter, that is a separate subscription. You can email me for that information. That does not include the class. You don't have to do the class to be in the options newsletter, but I think it helps, but you do have to do the class to be in the room. So this is a nice bonus. You get the one year room for free. Any questions from anyone about anything so far here? No real earnings out tonight to look at. Bunch of stuff out tomorrow morning. If you'd like a trial of the run this week, email me at MelissaBestockSwish.com. Kathy, do you have anything else or any questions from anyone here today? I know we went a little over. Kathy, I'm gonna call you quick when we're done. Can I call you quick when we're done, Kathy? I'm gonna answer. Listen, good to see some of you. If you want to try the run this week, email me. It's been a crazy year, people. Thank God I have the market. It's taken my mind off all this craziness in the world, but we do have a lot of craziness in the world right now. Trades like today would tell us to take my mind off it, but man, has it been a crazy year. The market has been a good source of, I'd say, distraction and just being able to focus on making money and staying inside, but eventually I'm gonna have to go outside again and live. Never in New York, it's back to normal. All right, have a great night, everyone. Have a great night. If you're interested, email me at MelissaBestockSwish.com. Very good.