 Testing here, everyone. Can you see my slide? Just let me know. I think it started here in a couple of minutes. Can you see this, Kathy? Is PowerPoint good? Okay, great. All right, I'll be back in a little bit. So, you must be starting just five minutes start time here at Online Trader Central. Thank you, everyone, again, and welcome. Hello, everyone, again, and welcome. We start in just four minutes. Four minutes of start time here at Online Trader Central, everyone. Thank you again, and welcome. But it's our honor to host you again today from the Dock Squish. Notice you'll be starting promptly. We try to start on time and end on time. We'll be starting promptly in just four minutes. So, four minutes of start time, everyone. Thank you again, and a welcome. Ladies and gentlemen, it is time to begin. It is five thirty eastern time here in the Boston area, or wherever you may be. It is time to begin. Around the world, please put your hands together and welcome from the Dock Squish. Please welcome all of you. Welcome, everyone. Thank you so much, Kevin, and thank you Online Trader Central. Welcome. My name is Melissa Armo, and I own a company called the Dock Squish LLC. Welcome today. Today, I'm doing a lecture on how to profit easily with momentum. If you'd like to ask questions during the lecture, you can feel free to type it in the room. I can answer as we go along. And also, if you'd like more information, you can feel free to email me after the lecture at melissa at thestockswish.com. And you can go to my website at www.thestockswish.com for more information on my company and the classes that I teach. I also have a lot of videos on YouTube if you'd like to go there as well. So, let's get started today. Really ask yourself, what kind of profits are you looking for in the market? Are you trying to make pennies or dollars, a little bit of money, a lot of money? Are you looking for big profits, or are you looking for small profits? In reality, the reason that I started trading, the reason that I began to trade and wanted to trade in the first place was I really wanted to make a lot of money in the market. So, I set out to find a way to do that, and I have done that, and it's really playing momentum. Momentum equals money in the market. Momentum offers big moves, not small moves, but big moves. Momentum offers the opportunity for traders to make big money in trades, not small monies. So, ask yourself, what is your own personal financial goal? Just like I did when I started out trading. I knew what my goals were. And why are you trading? And if you're not trading, why are you thinking about trading in the market? Are you trading to make a little money or a lot of money? What is your goal? Why are you looking to trade in the market in the first place? And why do you want to do this? What is your number one objective? I think it's very important to have a focus for what you're doing and what you're setting out to accomplish. Many people say, yeah, I want to trade the market, but they have absolutely no idea where to start. And not only that, don't even know what their goals are. So get clear on your objective and your goals. This is really going to help you succeed in the end. Do you want to ride the wave of momentum or watch it go by? It's fun to go to the beach and look at waves, but when you're trading, it's not fun at all. If you see something go without you, you want to be in it. You don't want to just sit there and watch the trades go. You want to make the money in them. Is there a way to know that momentum will occur? Occur in a stock before it actually does. The answer is yes. There is a way. And this is the good news. There is a way to actually know that something's going to have momentum before it actually hits. Because after the fact, everybody can see that. It comes up on every scanner in the world. You want to know something's going to have a momentum move in the day before it actually does. And how are you going to be able to do this? You're going to look for gaps. Gaps actually have momentum. Gaps play out in the market very well. In fact, this was a gap that happened yesterday and continued through on today. Here we have this gap from the night before. It closed up here. This was back on the 26th of Monday at approximately $7.20. Here it opened the next day at approximately $3.40. So first of all, the gap itself is momentum. And I just want to point that out for people that have never traded gaps before. A gap is created by people moving the stock pre and post market. This is momentum. This is momentum right here. Now I trade on the day, on the live day. So I'm entering it on the live day after the market opens after 9.30. However, the momentum was created pre and post market and then it follows through in the day. So I'm looking forward to follow through on the day. And actually this one followed through today as well. Talk about momentum from the day before the gap until the end of close to day. The stock has had a $5 plus momentum. Now this is what I'm talking about. I mean, this is the way to make money trading. So can making money trading be easy? The answer is yes. It can be easy once you know what to do. You've got to learn what to do. And once you do, it's actually fun. Trading is actually easy once you know how to trade and what to do. Making money trading is actually easy once you know what to do. The market just gives it to you. I say it gives it to you because I get up in the morning, I see the gaps and I say the market's giving it to me. The market gives it to you once you know what to look for correctly. One of the biggest keys to making money easily is trading with the stock's trend and overall momentum. Getting paid by the market is easy if you have the right stock pick, which you need, correct directional bias, which is essential, and you enter the stock before the momentum move trigger so that you can get paid and you're not chasing it. So again, is it possible to do this? And the answer is yes. Learn how. Knowing what to do and when to do it makes a world of difference. It makes a world of difference. It's the difference between loving what you do, loving trading the market, loving taking risks, or what I call suffering, where you're stressed the heck out and you're searching every day what to do and you're all over the place and you're over trading. So give your trading an edge by learning how to pick stocks that have momentum so you can trade with those big moves. And if you don't have an edge in your trading, then you need one. I'm speaking to everyone that's here. If you are trading the market and you can't say one thing to me that you say that gives you an edge, and I could say I could probably less 25 things that give me an edge or more. But if you don't even have one, you got to take a step back and find one, because that is going to help you succeed. There's so many people that want to be successful as traders and so many people that want to do this. You have to have an edge. And something like what I do, which is looking for the momentum and moves and things, actually gives me an edge. So if you have never written a wave of momentum, that you have no idea how great it feels, I picked this chart here on Facebook because Facebook has been writing, literally this is a wave. If there's a wave of momentum in Facebook, it's a wave to the upside. Facebook was a bullish gap when it happened back here in July. This is a wave. This is a beautiful, beautiful, beautiful, beautiful wave of momentum in the bullish upwards direction ever since this gap happened. So the gap made the momentum and do you see how it's following through? This is writing a wave. And if you've never written a wave like this, you've got to learn and see how it feels. I call it experiential. It's actually something that you have to experience to feel how great it is, meaning the immediate time you take a trade you're up and you are never down as soon as you take it. And not only are you never down, you're up money every day. You whirl out of bed and more and more and more. It's a great, great feeling. So waves give you conviction. Gaps give me conviction. This is why I trade them and why I'm teaching them to people now. When you have any way to see the wave coming on, I mean coming on before it does, and which I do in the gap, that it gives you conviction to risk your money in the market. There is no way of getting around risk. And I need to be very clear here. I talk to a lot of people, they say, oh, you know what? Trading in the market takes someone that is able and wants to take risk. Why? Because the market, the very essence and the very nature of the market at its soul, at its core, is a place for people who are willing to take risk to make money. The market, the stock market, the United States stock market, the NASDAQ and the New York exchange is the market that exists, is a place for risk takers to profit. If you are not able to understand this and conceptualize it, then trading is not for you. You have to understand that there is an element of risk when you place a trade. So how do you make it less stressful for yourself so that you can feel conviction in something that it's worth your time and effort to take the risk, whether it's something called calculator risk? You are risking your money when you trade and therefore you have to take calculated risks in trades, meaning I know this is going to work if this happens and this happens and this happens and this happens and this happens. It has a certain percentage of chance of working this many times. So how do you take calculated risk? Well, you have to learn how to read a move before it happens. So it is worthwhile for you to place the trade and I do this by reading price, by reading price action. The trades you take must have the correct directional bias and not only that, the possibility of momentum occurring to pay you because that's who you're going to make money. So waves pay you profits. That's the great thing about them and you've got to get in before they happen. Profits add up and add up fast with momentum because all of a sudden, as soon as you take the trade, it goes under work. As soon as the trade hits, it goes on and you're up and you're in the wave. And how long you stay in the wave really is up to you, whether you stay in it for a small target, a big target, a dream target. So fun and effortless trading, does it exist? The answer is yes. How? Trading with momentum. Here was an example of a gap here. This is a golden gap of CY. And boy, this played out enormously, not just for the first day of the gap, which the first day of the gap was here, but the second day on down. And here again, a great example of momentum. The stock gap down for the night before here, 1140, down the next day here broke 1050, ran down a dollar, a dollar in the day of the gap, and continued. This is momentum. This is momentum, the day of the gap is momentum in the follow through, just like ACHM, which I showed. And by the way, this is still breaking lower. So this is a beautiful example of how you just ride this move and you get paid. So here was the trade. This was the first day. This was the day of the actual brand new gap that happened on September 24th. You could have watched this to trade. Again, the momentum happened here overnight and in the morning pre-market. Then you enter on the day and you play it on through. So this is on the open. The markets open live now. You could have been in this aggressively in the morning or waited for a later time to get in, still in the morning, still before 10 o'clock a.m. Right in here. So the entry time was 948. Price was 1047. Stop was over 1053. I'll go back and show you the entry. Risk was 6 cents and you might say that's tight, but you do need to be tight when you trade in their early morning trades and gaps because if they flip around, you don't want to be in them. So if you are an advanced trader and you want to risk $420, if you want to exit at the first target, this is the first target. And it got there. It got there actually very quickly. You could have made $3290. This is a beautiful trade. This is the 7R plus trade, almost $8, and it actually went to the dream target. The dream target was $950, broke $10, bled on down, went all the way down here, and you could have made almost $7,000 on this trade. A dollar on one trade risking $420. Risk to reward to the dream target was $16.1, and so you could have made $6,700 on this trade holding it. Now you could have managed it by lowering the stop, or you could have just taken the trade here that here was the entry. Stop is over this area here, and here is where it dropped down and fell into the target. You actually were out of this trade by barely after 10 o'clock if you got out of 10, and you could have been on with your day. Now if you had conviction it was going to go like this to the dream target, you could have stayed in it. You would have had to be in it a little bit longer here, but you could have lowered the stop to stay in this. Again, this is money management, and how are you making this money? What are you doing? You are riding the wave of the gap. You're just riding the wave of the momentum that's in this. The momentum that, by the way, is created by large institutional money that exists in the market and moves stocks, and then it pushed it down again this next day here. What happens is that the stock starts to get sold off, and then the momentum really pushes these things down to the dream targets because not only is it getting sold off, people that are along the stock are selling out of it. Also, people start to short it. Traders are shorting it. Big money is shorting it. Hedge funds, they can short too. So then it's an accumulation, and this is why it moves like this. Then the wave continues of not just selling, but shorting as well, which I love to do. So you could have stayed in this thing for the whole move down, and here's where it broke. This is a five-minute chart, but it just shows you where it went all the way down. Time of the day, you had to be in it pretty much till three o'clock, but you see how it bled. So you could have managed this down and lowered your stock the whole way. Beautiful chart here. Look at this, 200 per moving average. All the moving average is squishing down. Lovely beautiful trade. In fact, it never broke the 8 per moving average all day. It squished along side of this in this chart. Really, really nice follow-through of the overall trend, the trend in the gap, which is to the direction down to the downside. So really, what do you need to do this? How do you figure it out? Well, you need a quality strategy. The strategy is gaps, and you also need a detailed way to determine that money will flow. Flow into the stock that's going to move it like that. You need volume. You need money. You need it to get a push, because just a couple people will not make a move like that. You've got to get real volume in the stock and selling and shorting to make a move like that. And the same thing with the reverse direction for Facebook. To get that kind of lift up in Facebook, to get that kind of buying, you got a volume to come in to give it the lift. So you also need the right setup and knowing how to accurately enter. And what the realistic and dream targets are to get out, because you can't stay in something forever. The idea is to book the money. This day trading is for income, so you have to know where you're going with the trade. You can't make a decision at the last minute. So where does momentum come from? Who creates it? Here's a picture of an elephant. This guy is a good example of the people that make this. They're like these big, big elephants. They make the momentum. They're the power money people. You can't run over them if you try. They're in charge. You can see they're in charge. They're big. Who makes gaps? It's large institutional money. Gaps are created with large institutional money in the market. That is what makes the gap in the first place. That makes the sell-off when it comes in, when it pushes on down overnight. The professional gaps that happen and play out in stocks are formed by one thing and one thing only large institutional money. And this is what I'm trading with. 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. So 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 all you do is play it. However you want to get in it before it happens, you're getting paid on that move. Gaps are an event. They create a sense of urgency. This is why the momentum happens in the first place. Like pretend you were someone that ran a hedge fund and you were in, see why for example, long. Pretend you were managing people's money. You were in this stock long. You got up in the morning and saw this gap down and you saw the price. All of a sudden one day you're up money in it. It's rallying up here at thirteen some dollars over thirteen. You see the pullback here to support the two hundred and you say fine everything's great. But then you get up in the morning. You see the price here now. What do you do? You're managing people's money. You decide I better get out. I think the right thing to do here is get out. I don't want to lose in this trade and then you make the decision to exit it and this is what happens. This is the thought process in people when they are managing over these big time frames. So it does create a sense of urgency because people are not expecting it to do that and nobody knows why they do it. Sometimes things just happen and they do and you're reading in a real live time. So an action is being forced by participants of the stock meaning people that are actually long the stock if you're looking to short. And this is why gap trade is incredibly powerful because these people have to make an emergency decision. It's an emergency and they have to decide and if they wait too long this is what happens and they get out the next day then they're getting out at nine dollars instead of getting out of ten. So trading gaps is a powerful and profitable way to trade because you are trading on the side of power money and power money is what makes these momentum moves in the market. So how do you see it beforehand before it even happens? Well you can see momentum beforehand in gaps. Lots of stocks gap each day. In fact almost every stock gaps and the market also gaps daily. Almost everything in the world gaps. However not everything has momentum every day. So there's lots of stocks that gap but they don't all have big moves. So you need to find a way to qualify the gap to know that it's going to work and the way to find which gap will move takes skill. It takes skill, it takes expertise, it takes learning and a knowledge of how to pick which symbol to trade. To know that it will move big before it actually does because again the idea is to get in something and be up money as soon as you get in. That's really the fun way to do it and that's what makes trading fun. Gaps are a specialized strategy. I think it's very important for not only people to have a strategy to trade but also to specialize in something. I've chosen to do that and again you know it really doesn't matter what you want to be an expert in as long as it works and pays you. I prefer to do gaps because they move so well and they also work quickly and in the morning. However I do think it's essential for anyone who wants to do this as a career or for the rest of their life even part time or for income to really get good at one specific strategy and it's amazing. Lots of people don't even have a strategy in the first place and you do need one because how else are you going to be focused? How are you going to know what to do every single day? So gaps are a specialized strategy. If you want to make money in the market you need to think and act like a true professional and they have strategies. This is true if you're only trading part time. Professionals have specialized strategies, reasons for doing trades, they have systems and they don't just get up in the morning without a plan of action. They know exactly why they're trading, they know exactly how much money they want to make, they know exactly where they're getting in, they know exactly what they're trading each day, they know exactly where they're getting out and this is how you have to think. Professionals look for momentum in the market and trade it on a regular basis and not only that, professionals want to be with big money. First of all, some of them are the ones that are creating the moves. Some of them are not, some people are professional traders and they're not trading account sizes that could make these moves but they can read them just like I am reading them and trading them myself and then choosing to trade with them because it's the right thing to do to make money. So how are you going to find and pick which gaps to trade? Because like I said, there's so many and you want to be organized and situated in the morning and know where you're getting in and know where you're getting out. Well, you need a set of criteria and this set of criteria is a checklist and this is what I use just like a pilot would have a checklist or a doctor would have a checklist. The checklist tells you which gaps will work and which ones won't work. Not every gap works in the market in the direction of the gap and again, this is what I'm doing. I am trading the gap in the direction of the gap. Does every gap in the direction of the gap work? No. So you have to find a way to qualify them. You need a way to read the price of where the stock is gapping to determine if it will work correctly. This is based on technical analysis. For those of you that trade based on technical analysis, this is how I trade. I'm reading price action. No specific indicators or things like that that I'm focusing on. It's really just truly reading the price and that's how I'm figuring out. If there was someone magic indicator that would tell you exactly what somebody was going to do, we'd all have it. We'd all have it and there is no such thing. So really it's price action that tells you what a stock is worth and what direction it's going and what direction it's going to go and what direction it's in and not only that, who wants it? Who wants it? What is something worth? Something's worth what people are willing to pay for it and that's it. Actually, Apple is a great example of that right now. Apple is a beautiful example of that right now. Everyone loves Apple, but Apple is in a big major downtrend and hasn't turned around. Not even with the move today. So something is only worth what people are willing to pay for it. The idea is to pick the highest rated gap and play it each day. Some days you get four good gaps, some days you get two good gaps, some days you get none. You trade when there is opportunity based on your set of criteria and using the checklist. So professional traders trade momentum correctly in gaps and they also have checklists. Again, many people think this idea of gap fills is the way to trade gaps, but that's incorrect. Gap fills do not work. Here's the ACHN again. Do you see how there was no way this was going to fill this gap? And not only that, it's broken today. So if you even thought that it might, would you buy this here today? I was looking to short this here today for follow-through, for continuation, continuation, and what continuation in the overall trend, continuation in the move, continuation in the gap, continuation in the momentum, the momentum that is set by power money in the market and for whatever reason nobody wants this thing and it got sold off and is continuing to sell off and probably is going to break and go down to two dollars because it didn't get to the target today, which was 250. So this idea of trading gaps is fills, it doesn't work. And in fact, if you do that, you're trading against the trend. You are contrary to the trend in stocks when you do gap fills and they do not work to make you money. Here's another great example. This JCP. This JCP was down one, two, three, four, five, six, seven, eight, nine, ten, eleven. Eleven days before it gapped here. Rally for one day and gapped again. This thing gapped again on Friday. It gapped here. This was Wednesday, Thursday, Friday. It gapped in three days. It gapped twice. Talk about something falling off a cliff. Talk about momentum even back here from the beginning of August. The price of the stock was 1650 and it's broke down here to eight something since then. So this is again a great example of momentum and where you're riding it, here's your riding the wave. You're riding the wave, you're riding the wave, you're just getting paid. You're getting in the trade, you're riding the wave and this is even for long term. And even here do you see how you're riding this wave on this day and even here. So how do you find stocks that move? You need a way to analyze and direct your choice. It's trading day to pick the right stock that will have the momentum to trade and get in it before it hits. How can you pinpoint this ahead of time before the trading day begins? And this is something that actually makes trading so much less stressful. Talk about the idea of taking risk. If you know exactly what you're going to do and you get the setup, you take it. And if you don't get it, you don't take it. I mean it takes away all that stress in the morning on the live day. Is there an accurate way to do this? Yes. How? By using a set of criteria. And I use a checklist. So my system I called, I named it the golden gap because it's like finding gold in the market when you find something ahead of time before it makes the move and then it makes the move. So it is called the golden gap system. And this is a rating system I use. It's a 26 point professional bearish gap rating system. The purpose of this system is to help you evaluate which gap to trade each morning using a checklist. And this is what I do. And it works. The golden gap 26 point checklist directs you by looking at specific price action in the pre and post market data of the price of the stock gap and telling you, and you can use this for bullish or bearish, to say yes, this gap is going to move in the direction of the gap and pattern money is coming and it is going to move this gap in the direction of the gap. And so that's the idea of it. And then you set the entries for yourself where you want to get in approximately the area and then also the targets. And depending if you're shorting or you're buying something, whether you're looking at support or resistance levels. So how do you find stocks that move? I mean, here's a good example of this NTKR. This just moved on Friday. You see here now, I clip this. This is the pre and post market data. This was the night before. You see this stock, this move, how do you? This is a one minute chart. The drop down here that happened, do you see this as momentum for where the stock was at up here the night before, before the information came out to make a gap. It was like 1380 and dropped all the way in here. This is at night. This is Thursday evening and it broke down here and broke $10. Now in the morning on Friday, you woke up, it actually rallied. All this thing happened and do you think that the stock is going to get bought because it rallies up here? The answer is no. How do you know? Because you rate the gap. And if the gap rates high, you trade it to do it, it's still in the direction of the gap. Remember, the stock was up here the night before. It's 1380 something and even with the rally is here at 1140. And then it worked. It was a great short that worked on the day on Friday into the day. Here's the live day where it opened and it bled on down. And this had two moves in it as well. So how do you find stocks and move? This is KKD. This again had continuation of follow through. Beautiful move here. This was back at the end of August and the follow through here the first day in September. So from where this stock gapped, broke down 22, fell all the way. This was a $4 move that the stock had in two days. Talk about trading and the wave of momentum. This is the way to make money in the market. To be able to make a $4 move in something like that in two days or even just the one day. I mean, just the one day in this, it broke and moved more than $2. This is really the way to trade. This is a way to trade for income and even for longer term, bigger pictures. So how do I do this? I use my 26 point rating system. The 26 point golden gap rating system helps you pick and say, I know KKD is going to move today. It has a target. It has a dream target as all the areas and then it went to the dream target and it helps you pick which stock to trade each day. It pinpoints it ahead of time for you so you can be focused on the day to trade. And it pinpoints ahead of time which stock will have them move on the day with volatility because volatility as a trader is a good thing. This is what allows us to make money. If the market was flat and barely moved and moved just a little bit of teeny weeny weeny here and there, we'd only ever have the chance to make small money in the market. The reason it's possible to make big money in the market is because of momentum and volatility. This is a good thing. So having a checklist keeps you organized and focused and I cannot tell you what a difference this makes in your stress level and your ability to be able to hit it and make the money and trade with size because you're not so overly concerned about things that you should already know before the trade sets up. You do it. You take the trade. You have conviction. You have confidence. You believe in yourself and you believe in the gap. Having a checklist forces you to look at what you should be looking at in a chart in a stock to make the correct decision instead of being all over the place. Having a checklist helps assist you with the directional bias which you've got to have right because you're not going to make money in something if you don't get the direction right and this is just basic, basic trading rules. Having a checklist keeps you on track to reach your goals and your goal to me is to be successful and to make money and to take the risk you want to in the market and to make profit. That really is your goal and you've got to stay on track with that. A checklist is a plan of action and everyone needs this in the market. Everyone that puts money into the market should have a plan of action and a checklist. On a professional level, all high income career field specialists have checklists. So this is really nothing different than anything else that you would do that you'd want to focus on. So the reigning system tells you what to watch to trade and the reigning system is a detailed analysis of the price action that directs you to trade it on the day. It tells you what direction the stock will go by using price-based action and technical analysis in the daily chart and I know that this is really what's telling me what's happening with the price when I read it. The 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. It doesn't matter if you're a day trader, a swing trader, a court trader, the daily chart of the stock is telling you everything and this is the major chart that is being used by power money also as well. So you have to read that and take it into consideration. Even if you're trading the smaller timeframes, you must focus on that daily chart. It's telling you the overall trend that's happening in the stock that's going to set the tone for what's going to happen on the day. The price reading on the daily chart tells you everything, everything you need to know about who is controlling the stock and in what direction and what's happening on that day. Overall and on the day and you need to know both. You must get the direction right on the daily chart if you want to make money trading. So the goal is to get in before it goes. Here's the JCP. I mean, the goal is to get in before this happens, that big fat bar that happened back last week. You know, if you missed it, you missed it. The goal is to see it, to pick it, to trade it, to get in before it falls up a glib. And this is the goal, to rate the gaps in the morning, know what to do and know what's going to move. The points are your confirmation. Everyone says, well, I want to wait till the trends intact. I want to wait till 10 o'clock, 10, 15, 10, 30, 11 o'clock. I want to wait till what the market's doing. No, if you wait till then, the momentum's gone, or 65, 75% of it. Your confirmation is the pre-market, post-market, data activity, the gap itself. And determining it with the rating system, that's your confirmation. So you can be aggressive in the stocks when they open and hit. The 26-point rating system in the daily chart is your confirmation of the directional bias. If the gap rates according to the system to trade, then it will have a momentum move in the day in the correct direction, which is in the direction of the gap. You want to have a good target to get paid a momentum and you need to know where that is to because it doesn't make sense to waste your money trading something that really is only going to move a dink. You have to have something that's going to move and even that ACHN at a $3 price point moved almost $1 the day of the gap. And then continue today. So knowing the target is important before you take the trade. This is how you will know that it is worth taking the trade in the first place. Because again, you want to put your money to good use in the market. You want to risk money in the market to profit, but you want to do so using calculated risks, getting the confirmation before the move sets up. If you wait for confirmation till after the fact, you are going to miss the boat. You're going to miss the way to get paid and you're going to end up chasing stuff and getting poorer entries and no risk to reward and then you're going to say why am I doing this? The idea to do it is figure out what's happening before it hits. So the daily chart tells you where the power of money is and you can read this. I mean the way it was under way in this before it even set up. The way it was under way in this was on the move. This stock is on the move. It was on the move, it was on the move and then it fell like a banshee and then it fell again. And I know that people thought this was going to flip around and do you see here even if you tried to buy this this day when nowhere? So I mean honestly, this is a beautiful way. And again, what's directing this? Who's in charge? Who is the power of money? People, the bears. The bears are in charge of this move. It's very easy to see. This is a bearish downtrend. The stock is in a downtrend. The pure money people are pushing it down. They're selling out of it. In fact, not only are they selling out of it, they're shorting it now. Power of money has been shorting this up for quite some time. It's pretty evident here. You can see this. So this is how to get paid. You get paid on being with the flow of power of money. You want to be with the flow with the way with the move of the money, of the power, of the power of money. Not just the little people you want to be with the big people. This is how you're going to show yourself and getting consistent profitability in the market. In order to achieve consistent profitability in the market, you will need to be with the flow of the wave of power of money, not against it. And if you ever find yourself in a trade and you're against power of money and you make money one day, trust me when I say, it's done luck if that happens. And if you trade like that over and over, the market will take that money and more from you that you made that one day. This is why, this is why people think GapFills work. Just listen to what I'm saying. People think that GapFills work. They don't. They do not. I'm an expert in gaps. They don't work. But someday somebody does a trade. The one day they do a GapFill, it works and they make a lot. Okay. Because it happened to do a retracement. It's called a retracement when it does it. And then what happens is they keep looking for that same thing, which they never find and fails over and over and over again. So one day, Trader A makes a lot of money in a GapFill and then he thinks it works. And he's so excited and his memory pattern has this memory of a positive day and a lot of money. So he will retrade that same setup even though it fails and he'll do it 15 times after that and he'll lose 15 times and then he'll be down, not only down from the money he originally made. He'll be actually down his own money then. But he will keep trying to recreate that same thing he did even though any normal person would say this doesn't work because one trade working or 15 failing is not a good system. But he will keep doing it because his memory of the money that he made that day is still in his back of his mind. Do you see what I'm saying? You have to move your own mind in the direction of the money to see consistent profitability, to believe and have conviction that you can make money in the market so that every day you get up, the memory is there, a positive, positive, positive, positive, positive. So you stay on track and don't do silly things chasing one good day you had by doing something that was dumb luck because overall the way to be successful is you must do something over and over and over again that works and this is how the market will pay you and then the money adds up and you have big days over time because you start to risk more and you certainly can't do that if you don't have something that works on a regular basis. So when you begin to do this on a regular basis trading becomes easy and less stressful and then it also becomes fun. How would you like to get up every day and get paid to do something fun? And now that can pay a lot of money. Trust me, trading is fun after you know what to do it because you can sit at home for your computer and press the button and it's amazing sometimes how quickly the money comes in but it is because of the momentum that it does that. It does take learning a strategy that can give you this level of success. It is certainly is possible and you can do it if you want to. There are people making money in the market and you can be one of them. There are people that make money in the market. I mean I hope that you do know that. I know people are trying to do stuff sometimes for years and they have not found success and then they question themselves and they question the market and they question everything they're doing but the reality is that there are people that exist on this planet this very planet right now today that make money in the stock market. So you can be one of them. You just have to learn how to do something that works. And once you start to make money trading momentum in gaps it really it gives you a rush. It's like an adrenaline rush actually. Trading momentum is like getting in a rush like if you were doing water sports power sailing high and gliding it you know bungee jumping any of these fun things that you can do when you're out playing on vacation. It really is like getting a rush if you've ever done any of these kinds of things. When you start to trade it and the money you make and how fast it starts to roll into your P&L and it's like getting a rush and it's fun. So here was the the next gap the next day this was the next day down into itself this was the CY it had a second day in it a second day of moving it was one of these ones that fell through and continued then it had momentum the second day and you could have played it again and because this is the second day you really want to wait for confirmation this for a little bit bigger of a move to make sure that it is going to follow through but it actually had a setup still very early in the morning on this it was a $10.50 price was $9.49 stop was over $9.55 and again if you're an advanced trader you risk $420 on 7,000 shares it went almost to the target target was $9 but a double bottomed here so you'd be out tell the profit was $32.20 again 7.6 times the amount risked main and profit beautiful beautiful beautiful trade and again this is a good risk to reward trade typically you want to make at least three Rs or three risk units in your trade and some days you'll only make two two and a half and then some days you'll make six seven or eight again that's a beautiful thing about trading you never know some days things go to the dream target some days they do some days they don't you ride them down until the momentum goes you can trade momentum at any level you want you don't have to trade with an advanced risk you could start out as a beginner and I tell people if you're a brand brand new to gap trading to start out as a beginner so you can risk whatever money you want to risk so here's a golden gap play for beginners this guy just started out he does not in the position that he wants to feel to risk 400 some dollars he does not have the conviction yet he hasn't been doing this for five years like me he's been doing it for five months that's okay he wants to start out slowly or maybe he's been doing it for five weeks five days but he's gonna do it he's gonna try it he's gonna take the trades he believes that it can work and then he decides to get in so here he is he takes the trade he gets in he puts the stuff he takes the entry and he rides it on down and from the moment that he takes the trade he's never down he's never down money since the time he takes the trade he couldn't even lower the stop here after a broke a 12 o'clock noon and you see we're double bottomed here and then you'd be out double bottomed there and been out and again this is three pennies from the target three pennies from the target and from the first move of the day into the second move of the day this really is a dream target for the stock so he risked 42 bucks he did not want to risk more than that he still had the same risk to reward so it doesn't really matter the amount of money that you risk the idea is the risk to reward you must understand this if you did not understand this ask me now I get a lot of questions about this it is not how much you risk it is about how the quality of the gap and the trade and where you're entering and where the stop goes that you take the trade to get the risk to reward you could risk any amount you want here it doesn't matter the entry and the stop is the same and the exit position is the same whether you get out at the exit or dream target either way you should still have a good risk to rewarding your trades if they're good gaps so it's not about the amount of money that you're risking for what you're learning to do it is this number here this is the goal because you can just add a zero onto this number and you're still making this but then this number is more you can add two zeros onto this number do you understand what I'm saying you can't do any of that though until you learn what to do and how to read gaps and all of that how to take the trades how to enter them where to put the stop and even to know that this is going to work in the first place I mean even to know that this was going to work the second date in on the first place even to be able to see that this was going to break on down through the second day in the first place so you know it is really just about starting out from scratch learning something good and then building on it from there you know you have all the time in the world to make money in the market you have the rest of your life you have forever as long as the market exists which is eternity until you learn something good you have to take it easy with yourself and then once you know what to do you just add a zero here and a zero here and you're going at it and then this is again why you don't need to trade every single solitary day of your life you can take a vacation you can take a day off you can go on a holiday you can take Mondays off you can take three-day weekends you can do whatever you want so that's when it really becomes fun when you have more freedom and now like that you're doing something you love and it really doesn't take you this long to make this kind of money so whether you want to make you know three hundred twenty dollars or three thousand some dollars the time it takes is the same do you see here the time it took to do this trade was the same for the beginner person the advanced he was in at the same time as the other guy all that matters is the risk and you can't take sizable risk until you know what to do and this is where the level of professional starts to come into play so golden gap entries combined with momentum equal great risk to reward payout and this is what you need to look for when you're trading when you're picking what to do momentum gives you the risk to reward so what is the good risk to reward trade three to one or more it's three to one so you're risking one dollar to make three you don't want to risk one dollar to make one dollar you don't want to risk one dollar to make two dollars you want to risk one dollar to make three dollars or one dollar to make six dollars or seven dollars that's a good trade so with targets being if it goes to the dream target you could make 8 to 10, just like the CY trade did. It was $16 if you took it to the dream target. One to one is not enough risk to reward. It just is not enough because in order to do this, in order to trade, you have to pay commission costs and other things too and platform fees. So it's got to be more than one to one risk to reward to make it because after all, if you wanted this for a living and you want to pay yourself, it has to be worth it. What creates such a good risk to reward? Precise entries combined with gap momentum, the momentum of the gap of the trade of the stock and the precise entries to get the right risk to reward on a smaller time frame chart. So I teach people how to do this, how to do what I myself am doing and I've been doing now for five years. It's called the Golden Gap Course. The Golden Gap Course teaches a strategy, which is gaps on how to trade them. The course teaches a 26-point rating system to find the best stock to trade each day and that's really the crux of what I'm doing. 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 and this is really what's going to help turn you into a good trader. I have people when I teach the class and I show them what I mean by supporting resistance on a chart and they never looked at it that way and then all of a sudden they look at it differently. I say, you know, what if you had 25,000 people lined up in a room at a conference at some trading convention and you put plot to chart up on a board and if I asked everybody in the conference convention room, if I asked them all to tell me what the support was in the stock or resistance, every person probably would have a different number or be slightly off. No two people would have the same answer and this is what I'm talking about. Who's right? Who's the person that's right? Just like with Apple, who's the person that's right about Apple? You know what? The person that can see what that stock is going to do way before it does it and then it does it. That's the person that's right and you don't know until after it happens. So you need to read it before it happens. So this is where it is. Who's the people that are right in reading support and resistance? The people that are making money in the market? The people that can see what the stock are doing before it does it? And how do you do this? Well, you have to have a way, you have to have a method and have to know how to look at things in the correct direction. And I do this with a checklist. The checklist tells you. It tells you what to watch to train each day and how to train in what direction. And overall, checklist is a great tool. And no matter what strategy you're doing, if you're a swing trader or a court trader, you should still have a checklist. Just because you're not day trading doesn't mean you don't need a checklist. You should have a checklist no matter what. So why would you want to maybe learn this system? Well, to learn how to take trains that have momentum, which is the way it's going to be easier for you to get paid, to learn how to trade and make money in a half an hour a day or less when these momentum usually happens quick, and you could get the first wave of the move. Waves come in and they come in and they go whoop. And then you could get out of the first move. And then if you want to stand for the bigger move, then you could be in a little bit longer than a half an hour. But if you want to get the first move, get out. If you want to get the bigger move, ride it, ride the wave all the way down to the bigger move wherever it goes. But typically, the first move of the wave will pay you at least three hours and moves quickly. So also to learn how to take good risk to reward trains, another reason to do the class, and to learn a strategy driven by power money in the market, which once you feel what that feels like, and again, this is experiential, you will never go back. It's like once you feel that power money momentum, you'll never go back. You'll never go back to anything against that. It's like if you were trying to buy JCP last week, you would run over like a Mack Truck every day. It was a short. To learn a strategy that makes you consistent and vast profits, and to learn a system that generates income. Because ultimately, that's the reason that you're trading. Remember, day trading is for income. Okay, that's why you got to book the money. That's why whether you stand it to the first target, the second target, the dream target, it really doesn't matter. Ultimately, trading is about income. It's generating income. You get up in the morning, you look for the opportunity, you trade, you make money, you book it. You get up the next day, you don't see anything, you don't trade. You get up the next day, you see something, you trade, you may take two or three trades. You are generating income. You're booking money consistently. When you are a day trader, you want to get in, get the momentum, get out, book it. Get in, get the momentum, get out, book it. Get up the next day, do two, get out, book it. Take Friday off. Day trading is for income. You are not in these things holding them to the end of time. Okay, it is about getting the move, getting the move, getting the big move. So if you learn how to get the big moves, you're going to generate more income, more consistently, than if something you're just looking to do a little, little, little. And then, of course, you get impatient. And you say, why am I doing this? You want to do it to generate income. So the most income you can make in the shortest period of time is the way to make trading fun. And that's how it becomes easy. So why learn the Goldman Gap system? Momentum, momentum, momentum, getting moves. Momentum trading is one of the most profitable and fastest ways to make money trading. And I would never trade any other way. I just wouldn't do it now. I'd never do it. Once you learn how to do this, you will never not do anything else. Learn how to take a position in a stock in anticipation that the stock will have an explosive move because this is what you want. These enormous moves happen in one direction and they happen fast. And momentum trading is very profitable. And that's the reason you're doing this in the first place. In order to get paid in the momentum, you have to enter the play before the big move takes place. It doesn't help you after it comes up on the scanner. If you don't know what stock to look for, you won't get the entry in the stock before it moves to get paid. So getting the entry right is important and this is part of it too. And this is why you have to learn where am I supposed to get in this thing and where am I looking to get out. Learn how the market can pay you with momentum because it's going to turn your trading around. If you're stuck, if you're in a rut, if you're done in which direction to head, if you're trying to find something to do and you never traded before, I'm telling you that the way to get paid in the market is with momentum. Otherwise, you will never find trades that you could ever, ever make 16 hours in. You just won't do it. You'll never find the entries right to get something to be... That stock only moved $1. That stock only moved $1. A dollar is not $10 or $5, but the person that took that trade made 16 hours. 16 amounts of money times the $1. That's $16 per dollar. You can't make that in a certificate of deposit, in a CD at a bank, in a money market, in a savings account, in a mutual fund, in anything. And that's one trade in one day, in any time of any 200 days in a trading of the market and a million gaps that happen any given year. You can replicate that over and over once you find out how to go and get the gaps before they do it. So fall is a great time to trade. Fall is a great time to trade. It's a beautiful time of the year and it's a very busy trading time in the market. Lots and lots of people participate in the market. So remember, making money is fun. Trading is fun. Here's a picture of the spy. Beautiful move in the spy. You know, the market's in an uptrend and these bearish gaps are falling off a cliff. So the weakness in the market is real. Have fun riding the wave of the momentum. Have fun, have fun riding it and get paid on it. You've got to ride the wave all the way to the bank. Book the money, book the money, book it. Take the trade, make the money, book it and get out. Allow the market to pay you. You've got to learn how. And if you don't know how, then you have to learn how. So the Golden Gap course is a complete system in order to learn how to trade, which is to rate the gap, find what stock to pick, figure out where the entry should be, figure out the support, the resistance, the target, the first target, the dream target and how much money you want to risk on the day and what is your goal and how many trades are you going to take in that stock on the day. One trade, two trades, three trades. And then add what are you trying to do? What is your goal? So the class is called the Golden Gap course and it is a course on how to strategically find, pick and play stocks that are professional bearish gaps and it really is a way to strategically do that by rating them. Retakes are free if you decide to do the class. It is an online course. Retakes are free so once you sign up for the first time you can redo it as many times as you need to after that and get better and become more advanced over time. It is a two-day class. The dates are October 12th and 13th from 9 a.m. to 5 p.m. eastern time and again the class is online so you can be anywhere in the world if you want to take it. You just sign into the online training room. The cost is $24.99. If you are interested, email me at melissaatthestockswish.com Here I'll put my information in here. If you're interested in the course, actually, Kathy, can you plop that up in the room? And I also do another class on trends if any was interested in doing a special for the month of October if you do the GAP course. This is a course on how to retrend in stock charts. It's a great combination with the GAP course. Specifically, if you want to understand bigger time frames, which helps you day trade and really helps you swing in core trade too. This class on its own is $9.99. It's October 15th and 16th from 1 to 5. This is an 8 hour course. The Golden GAP course is a 2 full day 16 hour course. I'm doing a special though. If you do the GAP class and the Trends class in October, you can save $499. So the total price for both classes in October will be $29.99. You save almost $500 if you want to do them both. And if you're interested, email me at melissaatthestockswish.com So remember, learning the Golden GAP is an opportunity. This is an opportunity because what I'm doing is very specialized, very specific. I personally trade GAPs and I am a professional trader and I'm teaching people how to miss this and you don't want to miss this opportunity. I have one woman doing this, doing it and I figured it out myself and it is very specific and specialized to find these things but having these criteria sets me apart to be able to pick every single morning that I get up if there's something good or if there's something not good to do and the things that are good really work out. So, 2014 is almost here. Start making plans for your future. You want to move forward in your life. You want to have a great upcoming year. If you can learn how to trade now you've got plenty of time between now and the end of the year to get up and going. Start at the beginner level and start to get advanced so that when 2014 rolls around you could be in a position where you're trading larger size, larger amounts of money and making more and maybe can transition into becoming a full-time trader. I know a lot of people want to do this. You have to start where you're at and then move from there but you have to start somewhere and if you don't want to start now you're just putting off the inevitable if you really want to change careers. So, if you're doing something now this is something you could do part time because the moves happen in the morning and then you could go on to your day until you're making enough money trading to be able to quit your full-time job. So, thank you everyone. Thank you so much. If anyone is interested in asking me questions ask me questions now or I could go back to any slides. We have a little bit of time here. Everyone was really quiet tonight. Here's my email. Does anyone have any questions about anything with the charts? Anything with gaps? Anything that happened today in the market? Anything about the class? Feel free to let me know. Everybody's really quiet tonight. It's not normal. There's a lot of people here too. How's everyone doing today? Did everybody have a good trading day today? I was looking at one gap tonight. It's actually gapping up so I'm not going to do it. I had one watch for tonight and it's gapping up. So I have to get up tomorrow morning and look for something new. Something brand new. If you don't have any questions I'll let everybody go. It's a nice group here today. Feel free to email me. If you missed the beginning I saw some people pop in late. I am having this taped and the replay will be on YouTube. If you want to go to my YouTube site if you missed the beginning and we ended up coming in late the video replay will be on YouTube this evening. Okay, I have another question here. On momentum shorts why not use OTM puts with leverage and max risk? You can also use in retirement accounts. You could do that if you want to. I personally don't do that. You could do whatever you want to do. If you want to do that. I personally trade equities straight out equities when trading them on leverage. So you don't need the cash dollar for dollar for the positions I'm taking. I'm trading them on leverage. But I actually think you're going to make more money trading straight out equities than any other type of method. But if it is better for you cash flow wise and to do it like you were saying in retirement accounts and as far as cutting down the risk for yourself. If you want to do that for NJ or NJ I don't know if that's New Jersey or for NJ. But you could use that. I'm teaching people the direction of the overall position of the stock what is how it's going to move. You could do that. Some are going to pay better than others or make sense to do that. Some aren't if that makes sense. I've had people that have actually done options in my call on Apple. That's something that may make sense. So it depends. Not every stock will probably make sense to do it but the ones that work out to do so sure you could. What kind of margin is required for shorting? It depends what type of trading account you have. There are various different brokers out there. Gosh, there's so many. There's a million. If you have a retail account their leverage is 4 to 1. But the price point of that stock was cheap. At a $10 price $10 if the stock is $10. Okay? If you wanted to take 10,000 shares you only needed 100,000 in buying power and 7,000 you didn't even need 100,000 in buying power. That stock moved like that and it was at a $10 price point and ACHM was at a $3 price point. It moved a dollar at a $3 price point. I didn't put that trade in here but that was a $3 cost stock. You do not have to trade Apple to get momentum. And there are proprietary day trading accounts out there. You have to research them where you can get way more than 4 to 1 leverage. So that's something that you can research but the price point for the way that these things are moving you don't need a million dollars in any type of account. That ACHM was a $3 stock and you could have taken 10,000 shares of that and you only would have needed 100,000 in buying power. That's it! To take a 10,000 share position and it moved a dollar. So I mean gaps happen and stock prices all over the place. You don't need to take trades to make a lot of money in the market and things that are expensive. No, no, no, no, no. In fact, things that are expensive tend to have bigger stops. They still have sometimes good risk to reward but typically my favorite stocks are say $8 and like $65. I'm getting the best entries the best risk to reward less spreads in stocks in that price point. And once over 100 bucks things tend to be bigger stops and then you really have to watch for the spread and you have to stop at the right place. How many of the 26 points are technical? Everything I do is technical analysis. Every single thing I do is based on technical analysis. I don't do anything on fundamental analysis. I'm not saying that you can't or you don't have to or it doesn't work. I'm saying I don't do that.