 What's up everyone? My name is Alex. I'm one of the co-founders of MyInvestingClub.com and I want to let you guys know about something special we're doing for our viewers on YouTube. So the most common question we get asked is, you know, how do I start day trading? So what me and my mentor about it is we create a free two-hour mentorship course for the brand new trader. It's going to be available at MyInvestingClub.co. The link is going to be right here. This is a free webinar that reveals our 12 secrets that every single brand new day trader should know before they start. I also want to let you guys know about something that's very unique to MIC. So if you have any questions about trading or you're curious about trading or you don't know if MIC is the right fit for you, now you can text our head mentor, Tosh, whose number is going to be right here and he'll answer all the questions that you have in less than 24 hours. Thank you and enjoy the video. Alrighty, June 16th, 2020. So we're going to talk about selling gap days and buying gap days and some good practices to use during those. Boeing, the only reason why airlines are down is because of NCLH, everybody expects further travel restrictions. So what I'm going to talk about mainly today is AAL and really airlines in general. But first, let's look at the market. So a common practice is if you are buying dips or shorting pops, whatever it is, okay? Shorting pops, buying dips, it doesn't matter. If you're accumulating a position over a period of time, all right, accumulating a position over a period of time and you fail to sell or cover into the gap, an extremely large percentage of the time the gap is going to fill, all right? And how you react during that time is what dictates really a lot of your trading. People will mistake what a big gap percentage is, okay? You need to know what's within certain range tolerances, all right? So a good metric for that, and we're just going to be very simple with it, is called ATR, average true range. And it's usually calculated on a 14-day look back period. So that means that it's going to take an average of the range each day for the last 14 trading days, okay? So if you have $2, $4, it's going to be a positive number. There's not negative range. One strategy and one form of analysis in swing trading is by just judging a weekly candle, all right? And if we judge based on the market and we look at weekly candles, at the end of 2019, all right, the last week of 2019, the average range per week, the average range per week and you can see it in the bottom left hand of my screen, all right? If I hover over this, you will notice this number right here will update. Using it in that metric, you could change your look back period and calculate the average and stuff like that, but or we could go into some really in-depth study and find out, you know, what the average gapping day or what the average trading day is or the average gap in the market and then you can go and judge what an outlier might be, okay? So an example of that, and this is just some food for thought, we're not going to do this or this webinar would be four hours long, okay? Outliers are going to be using deviations, all right? So you're going to calculate the average gap and then the standard deviation, okay? Of spy in 2019 and you can calculate all of this stuff out and figure out all these metrics and everything like that. Now, I mean, these can help you learn how to trade the market itself and learn what is an outside day and what is an inside day that, you know, an outside would be that it's trading outside of its normal days range or it's trading at an elevated number or an elevated or extended gap range. I'm just going to give you a metric just to judge off of it, a normal days range and I'm going to go back and I will actually do this study and I will share it with you guys, okay? So whatever the average is, you have that number, it's positive 0.5%, right? And then you calculate the standard deviation, which is an algebraic formula, it's really not that hard to figure out. If you do this in Excel, all you got to do is this. So Excel formula for standard deviation, like you don't even need to know what standard deviation is or how it's calculated, okay? All you got to do, all you got to do is do equals stdev and then highlight the cells, okay? That's it. That's all you got to do. All right? You don't even need to know what the rest of that shit is. All right? What I'm going to explain to you is this is going to be how you can tell what a difficult day is going to be, okay? This is all very complicated to say something extremely simple. For me, it's when the market gaps like 2% or more, plus or minus, okay? That's a big gap for me. And it is almost always a gap that you need to be selling into or buying into, all right? Or covering, I'm sorry, not necessarily just like at the open, just buy that shit, which historically has worked in the market except for here. When it increases and it becomes the number one position, like today is UONE is the number one position in Robinhood accounts in increases, right? Increased number of positions of Robinhood accounts, holding shares of each asset. We started at 46.75 and we increased to 18.678, which was a 14,000% increase. Is that what that means? Or is that a 14,000? Oh, no. That's just adult. That's just a physical increase. What I wanted to point out here, what I thought was funny was that AAL was like number two, okay? In like biggest decreases, okay? And I thought that that was, like Roger said here, a good metric is a 50% increase in the call options, okay? A good metric to start scaling some out is always when you're up 50% on the position. And a lot of people think it's really hard to make 50% on a position in options. It's got to be the easiest shit you've ever done in your life if you know what you're doing, okay? You should be hitting 30% and 50% gains in options, uh, fucking daily, maybe. I mean, every other day, you should be hitting 50% gains and I'm telling you guys, options are, they will make you more money than small caps will ever make you, okay? It went to three days. In the three day decreases, it was in like the top five. And so I noticed that, you know, a lot of people are deep, a lot of idiots, sorry, but if you trade at Robin Hood, you're an idiot and I will say it to your fucking face. You're an idiot if you trade at Robin Hood. So big parabolic washout. And so it was the number one decrease in 24 hours and it was like in the top five decreases, uh, in positions in like three days or five days or some shit like that. And so I was like, okay, market's selling off, AAL selling out, all of airlines are pulling back after the big, there's going to be a fucking bounce. There's going to be a bounce and all of these Robin Hooders are exiting and usually when dumb money sells, that's finally when we, um, Faye's not invited, Julius, okay? Faye is not invited, all right? I can't handle being around her and just hearing about all her just waking up and pissing excellence. I'm just not going to be able to do it, all right? So remember, these are not decreased positions. These are the number of accounts holding shares, all right? So this is the number of accounts that have went flat, right? Totally exited. So usually when that is the case, uh, it's probably near a bottom. Um, and for example, HTZ is the number one decrease today, but it's not that much, okay? There's still a lot of people holding this stock. And so there's no real good, like, bottom dip buys right now that, um, I see, but obviously number of increases, everybody, I mean, we started the day with 4,600 people holding shares of UOINI, which probably are not selling. They're probably still fucking holding. This would have been a good gap to sell into, all right? Had you bought a position like I did, uh, and held it overnight. Here is the gap and here's a great example of what happens. Look at what happens at the open, at the open, you get the big sell down, all right? The push to 17 and fails to continue, fails to continue, fails to continue, and then you get the big washout, all right? And most people, most people, when you've got a double top, the tendency is to, um, like adjust for that. Just to correct it, okay? So when there's an inefficiency and price in American Airlines with something that is super liquid like this, that's why I don't like trading AMD is because there's hardly any fucking volatility in this stock because it's so efficiently priced. This shit is so efficiently priced that there's no inefficiency to really trade besides maybe this right here. Like, I'm just looking at this chart and being like, oh, that's a first green day right there and like that's 58 to 48, roughly 49, 58 to 49. Okay. Finally, some fucking volatility out of AMD. There's some inefficiency in the price there. Okay. I see an opportunity. AAL. AAL, we gap from 1650, 1670, we gap all the way to 21. Something like that. You got to fucking sell that gap minus 31, 31. We gapped 65 points and the average true range on any given day is 56 points prior to the volatility. And so we are like way outside the range. Like we're at the max extension of the range. So that is going to tell you that when we are at the max extension of a range and there's no catalyst to why we're continuing higher, like today was like retail increase, like retail number of increases, but that isn't really much to go on. So when you get a big catalyst that is a justification to why you should make that upward move or downward move and that price extension to create a new range, then it would make sense to hold into the gap.