You know, the good thing about this panel is we go from colleagues into the parliament, to the Ministry of Foreign Affairs, to ambassadors, to central bankers, and then to scientists. So let me also, our fourth speaker Ernesto Demiani is a professor at Khalifa University for the Department of Electrical Engineering and Computer Science. He's also the Director of Center for Cyber Systems. He will be, his remarks, the opening remarks will be about trust and governance issues of multi-regional deployment of AI. Please Ernesto. Oh, thank you very much. I was the only one apparently who had taken the opportunity that was given to us to present a couple of slides. I don't know if they are available or not. We just try to press this button to see whether this is the case. If not, I'm, I can, okay, here they are. So basically, I really listened with a lot of interest to what was said before me, and as you said, I'm not an economist and I'm not, but I'm very much interested, of course, in the economy of the processes, especially the processes, large-scale processes and the regional processes in terms of, you know, large-scale supply chains, business processes that involve multiple countries. And I'm interested from the point of view of the underlying technology. And so I would like just to add a few words on what could be the day after of, you know, a deglobalization that is taking place. And there are two, two words that I want to say before starting to show you a couple of slides. And the two words are words that are very fashionable in Europe. And I also heard them in the region here a lot. One is decoupling, and the second one is de-risking. So what is decoupling from the point of view of a technologist? Introducing redundancy. So if a part of a process is not feasible due to some conditions that happen. For example, a supplier is no longer available, and then you want to have a second sourcing. So you need to have this second alternative part of business processes. And this is called decoupling.  You want to be at an optimal solution just because you want to decouple. You want to be able to cut out some parts if this is needed. And the second is de-risking. So the fact that I wanted to put risk as a first class citizen in my decisions. And these are decisions that from the technology point of view are decisions that are about business processes and supply chains. So this is what I wanted, a very interesting picture that we have in front of us of de-globalization and arising areas of conflict. And of course, the impact is that we have a technology platform that needs to handle decoupling and de-risking. These are the two words. So in a sense, the problem is that our platforms, we run them based on data.  Regional, of course, processes are, and inter-regional processes are particularly important in this region. We are in a place which is the hub, the hub between the east and the west. So I don't want now to enter into this from the point of view of the economist or the politician because it's really not my daily way. But from the point of view of the technologies, this makes a very fascinating place. On the other end, the problem is that normally we have to optimize jointly, meaning that we have to solve jointly some problems of optimization to run global airlines, to run global cargo, to run the business processes. And in order to do that, the big problem is that the notion is that we must have some joint strategy. The actors that will take decision together need to be able to basically trust each other enough to do joint optimization of large-scale regional and inter-regional processes. So my problem is that we have, most of the tools, of the technology tools we give to decision makers are based on this assumption they will trust each other enough to make a joint decision because this is a major part of any of any. So in a sense, well, I, being a scientist, well, you see, I have a nice picture. This is called the Pareto Frontier, Pareto was a, you know, so in the decision making, you tended to find those points, which basically will be a sort of a compromise so everyone can agree on them with a minimum of damage or a minimum of penalty. The problem is that in order to do that, you must know, have a joint knowledge of the data, of the information that you are jointly taking a decision on. And the problem is that in this situation, we are less likely to be able to do that. The worst part, now let me inject a bit of AI. I hope I'm not boring you too much. The worst part is that most of the optimization decisions today are taken by systems. Humans have a role in starting, have a role in sharing the information, but then the notion, for example, of optimization supply chain. We did a master class here in the University together with a number of European University on the pharma supply chain at the time of COVID. So basically, you need to optimize the pharma supply chain to be able to, for example, to do the vaccination rates that are needed for the population. And this is something that you can do if you basically tell each other what are the sizes of the warehouse, what are the availability of the instruments. So the problem is that these days optimization are done using systems. And they are done using systems that are a little bit difficult to open and identify. I know there has been a session in this conference specifically on this topic in the previous days by a colleague of Califa. And I want to underline this notion. We are accustomed to optimize trusting each other, putting the data in a box, and then running a sort of the algorithm and getting out of our solution that will bind us all. But the problem is that the data or the information, the trust level, may be decreasing much in this region specifically in the near future. So the big processes may be, in a sense, less easy to optimize. So there is a problem of failure happens. And we may be seeing in the future, our models, we do run simulation models, of course, of this. And our models say that we may see lower accuracy of the joint models. We may see fast model degradation. So a number of assumptions that led joint running of processes may be sort of show that lower performance in the next future. And the mutual trust, mutual trust will become scarce, so scarcer then. So this is what from the technology perspective I wanted to highlight. This is not just political, this is also technological. Because the technology platforms, and this has been discovered in Europe with the Ukraine war. And with the push for the risk and the decoupling, the supply processes that involve certain countries. So this is something that, again, I would like to highlight to you here.  And I want, let me just arrive to this discussion point.  We were trying to do it in this region specifically, we're still trying to do it. It's similar to the introduction of the Internet in the 90s. But in the sense for how perversive it is. The problem is that the introduction of the Internet was done in a moment in which there was a globalization type of trend. Everybody was trusting each other or could pretend to trust each other. The deployment of AI and the joint optimization of large scale processes need to take place in a situation in which there is not enough trust. So we need to find another way to take joint decisions in order to handle this limited trust that we have. Of course, technically I could show you how optimization in a non-trustworthy environment could take place. But I just wanted for the moment to highlight this thing. It will be the day after, because whatever the future brings, certainly the globalization in a mutual trust environment is going to be, I believe, a memory of the past. Thank you very much. Thank you, Ernesto. We, in economics, we did borrow so much from science. And most of the terminologies, you have said, we use them in economics, but I hope we use them the right way, de-risking with correspondent banking. So this is the way we have been using it. But in science, it's being used differently.


Testing 1-2. Kathy, let me know if you can see the PowerPoint here. Is it good? Okay, we'll be back in five minutes. Everybody. Hello, everyone, and welcome to the Chamber of Online Traders Central. We want to welcome each and every one of you to the presentation today. Melissa Arnault is your host presenter. We'll be starting promptly in just three minutes here at Online Traders Central. Again, this is Online Traders Central, and we start promptly in just three minutes. Hello, everyone, again, and welcome. This is Kevin with Online Traders Central. It is exactly 4.30. And with that, let me round up the Trumpets and the percussion section. Okay, drummers, are you ready? And with that, ladies and gentlemen, it's time to begin. Please put your hands together and welcome our host presenter today from thestockswish.com. Please welcome Melissa Arnault. Thank you so much, Kevin, and thank you, everyone, at Online Traders Central. Welcome. Welcome today. My name is Melissa Arnault, and I own a company called the Stockswish LLC. Today's lecture is going to be on something that's very personal for me, very meaningful for me, and it is my 26-point trademark system. So for those of you that are new to trading, we're going to talk today about a trading system. And for those of you that have traded before our trading right now, you are already aware of the fact that having a trading system is important. And we're going to talk about this today. If you'd like more information, feel free to go to my website, www.thesoxswish.com. And Kathy has my information in there. You can also feel free to email me at Melissa at thestockswish.com. I have a lot of videos on YouTube. You can go there and check it out or join me at any one of these places. Feel free to reach out and email me if you have any questions today after the lecture. What is the purpose of having a trading system? Again, if you're new to trading, this is great to go over and review. And it's a good review even if you're trading right now. The purpose of having a trading system is so that you have a structure to follow each day when you trade. If you have a system that works, all you do each morning is follow it. It's a structure. And it makes it easy for you to trade. Otherwise, you're trading what I call on the fly and probably in fear. In other words, if you don't have a structure to follow every day for what you're supposed to be doing and why you're supposed to be doing it, then you're really trading on the fly. And your results are probably going to reflect that. I have found that having a system takes out the fear. And many, many people do have this fear about risking money in the market when they trade. But if you have a system that you know works and you believe in, it alleviates that. It takes it out. It lessens it. It gets rid of it. And having that leads to less stress when you're trading. If you have a structure to follow, then you follow it. It leads to less stressful and more relaxed trading because you just do what you know you're supposed to do. Having a quality system also leads to more consistent and substantial profits, which obviously is very important if you want to make money in the market. So what's the purpose of the 26 point racism that I do, what I created, what I made up, and what I'm going to talk about today? My 26 point system evaluates the daily chart of a stock to carefully determine the day's directional bias. Trades are rated each morning using the 26 point rating system. The 26 points use advanced technical analysis to determine the correct price action for the stock on the day. Easy, okay? Except for how do you do it? And we're going to talk about that. As a trader myself, doing this analysis and having the 26 point system is a huge advantage. My 26 point trademark system gives me an edge in the market and it will give you an edge as a trader if you learn it. And that's what's so amazing about this. It's something that I created for myself, for myself. I never created it to teach anyone. I never in my life thought I'd be teaching people anything to do with trading. But as it turns out, I'm teaching people now and they're doing it, okay? The 26 points predict institutional buying or selling in a stock. Institutions create momentum for stocks to move to trade and make money on the moves and that's how you make money as a trader. You get in a stock that's going higher, you buy it. You get in a stock that's going lower, you short it. What are the advantages of having a trading system? The advantages of having a trading system are numerous. Almost too numerous to talk about tonight but we are going to talk about a few. All traders need to have is a system to follow. And if you don't, then you need one. Take a step back, take a couple of days off, take a break because it's not a good idea. If it were just as easy as doing whatever each and every day, then you would not need a system. However, making money in the market consistently requires a skillful system. If you follow the system correctly, you will see all the advantages each day. Now, what are some of the advantages? Preparation. I prepare to trade before the market opens. I'm completely prepared going through my trading system before the market even opens. And that really gives me an edge, actually. I'm very focused. I know exactly before the open what stocks I like, maybe one or two, maybe three, that I'm going to focus on. Instead of scanning into the open and looking through hundreds or thousands of stocks during the live day and having absolutely no idea which one to watch to trade or what direction to take it. It really gives you focus, my system. Also, what really helps is confidence and face of the market. One advantage to having a system is it gives you confidence. You believe in what you're doing and you do it. And if you do not have confidence in the face of the market, the market will see it. Just like it will see the confidence in you. The market sees me confidently going into the market and taking trades. And that helps me make money, and it can help you make money too. Another advantage of having a system is it keeps you organized. They're organized just because you're trading from home. If you happen to be trading from home at your home office or at a desk, on a laptop or a computer, it doesn't mean that you don't want to be organized. You want to be just as organized at home, trading from home by yourself, even if it's only for an hour or two hours a day, as if you would be going into an office and wearing a suit. Because being organized helps you make more money. And that's another great thing about my system as well. It helps keep you organized. The advantage also of having a system is knowing direction of bias. I know exactly if a stock is going to go higher or if I think the stock is going to go lower. I have the direction picked out before the day and I also do not flip it, okay? I have a set-out way to look at everything. I know what it's supposed to do. And if it doesn't do what it's supposed to do, either don't take it, or if it does something it's not supposed to be doing, then I don't flip it. In other words, if I see something that's no longer short, I want to short it, then I don't flip it and go long. I stick with what I know. I stick with direction of bias. I stay with it. Either works or it doesn't. Also, another advantage is knowing what to look for in the trained setups. This is BAC. This was a gap from back towards the end of April was last week. I know exactly what I'm looking for here. BAC gapped down in the morning. It was a short. I rated this. I knew this was a short. And so I'm waiting for the setup. If I have everything situated, figured out before the open, I know exactly what to look for here when the day starts out. This is at 9.30. This is a one-minute chart. This is when the market opened here at 9.30. And the market starts to trade. I know what I'm looking for. I know what setup I'm looking for. And then when I see it, I take it. So knowing what to do ahead of time is a huge advantage because when you are training and things are happening live and the market moves fast, as you know, stocks move quickly. Especially ones that have a lot of volatility momentum when we want to make money on that. We need to know what to do ahead of time. If we want to play on that for profit, we need to have everything figured out ahead of time that we're going to do it. And I make my list. I go through my list. I know what stocks I'm watching. This is the little scanner that's on my platform here. It shows you the active stocks and the gainers and the losses in the NASDAQ and the New York Stock Exchange. So you can go through this each morning. This is where you're getting your picks that you're going through for the rating system so you know what stocks to watch, okay? You will go through it and you're doing all of this before the market even opens. And you could start as early as 7.30 in the morning. 8 o'clock, I usually start going through things. You could even prep at night. That's another great thing. If your time frame is you're in a different time zone, you can prep to go through everything in the evening. And also another advantage is knowing your monetary risk. This is important. I know if I risk this much money, I'm typically going to make this much money. In my system, I'm risking usually a dollar to make $3. That's my goal, okay? So I know my monetary risk that I want to take in the trade before I take the trade. And I know my monetary goals. I know I want to make $3 for every dollar I take in a trade or more. And many trades that I take do make more than three. I do not take a trade on the fly where I have no idea if it's going to meet my goal. And that's what happens when you don't have everything pre-planned out. You need to pre-plan out what you're doing so you know you're going to achieve your monetary goals. And having a system in place and a structure to follow helps you meet your monetary goals. And also helps you stay within your limits. Because if you want to risk $100 in every trade and if you didn't figure out what you're supposed to do ahead of time or how much you're supposed to risk, what if you press the button and you take 2,000 shares of something and all of a sudden you're risking $400. And you only want to risk $100, okay? The structure of having a system and following it helps you stay on track with your financial goals trading. Not to risk too much, risk just enough, and to stay in the trade enough to meet your goals. Another huge, big advantage of trading with a system is that you can gain an edge over others. Just like if you were running a race, okay? You want to have an edge over the person in front of you or behind you. You want to be in front. You want to be the one that is moving forward, getting the edge, getting ahead. And having a system and a structure to follow gives you an edge. There's a lot of people that trade the market that don't have any structure at all. They have no structure. They have no system. They have no idea how much they're risking. They don't know how much they want to make. They have absolutely no idea what stocks they're doing on the live day until after 9.30 a.m. And I know exactly what I'm doing before 9.30 a.m. And this really, really gives me an edge. So what does a system accomplish? Well, I developed my own trading system over the course of three years. That's how long I took it to put it together. The system accomplishes a method to accurately read how to take the direction of a stock. And if you take the direction of a stock correct, then you can make profit. The system accomplishes trading can be at times. It's really as simple as that. Many people who lose money as traders or in the market don't get in the right timing and the right direction. And you must do that to trade accurately. Each morning before the open, I prepare to trade easy in my system in the pre-market trading. I analyze 26 points on the daily chart of a stock to determine the correct directional bias for the day. And I rein each stock each morning to calculate whether it's a long or a short for the day. I personally like to do shorts, and we're going to look at some examples today in the class of shorts, but you can do longs as well. If you don't know how to retrends, this is a great system to learn because it pinpoints the overall trend of a stock in a larger time frame. You can use the information in the 26-point reigning system to trade for both a short or a large time frame. So what is a strategic reason for the trades in the system? The strategic reason for taking the trades is to read when institutions are doing stocks. And if someone in the street came up and said to me, why are you doing this stock today? Why did you want a short AVP last week? On Thursday, I think it was. Why did you want to do that, Melissa? And I'd say because I know institutions are selling out of their long position in AVP. That's the reason that I shorted the stock. Okay? You need to know and look at what institutions are doing. And that's what the reigning system teaches you. Are they buying a stock? Are they selling a stock? How can you tell what they're doing? Well, you look for the stocks that are gapping each morning or evening, and then you apply the systematic 26-points to the gap. And it tells you whether or not it's good. The reason you're taking the trade is because the 26-points give you conviction that an institution or multiple institutions will move the stock in the direction the points determine after you qualify the gap. Now, a lot of people ask me, do you need special indicators? The answer is no. Okay? There is no special software that you need to buy or indicators. You can have any charting system that has a level two where you can take equity trades to do it and anything you can have that you can set up charts, at least with Japanese candlesticks. I have some moving averages on my charts. However, I don't live and die by these things. And there's really no special indicator that you need to do this system. Remember, if there was some black box or special indicator that you could use that would work even 65% of the time. Okay? Everyone would have it. There isn't anything like that. Okay? There just isn't. There's no special indicator that works more than it does not. Even over 50% of the time you can buy out there or using your platform or using and putting your charts that's going to tell you what to do. And even moving averages, which I do have on my charts, I don't live and die by them because there's many times I'll do stuff and the moving averages don't flesh out and the trade goes on to work or vice versa. So think about that.  So why and how does it work? It works because it acts as a looking glass into the overall daily chart bias. When the stock is gapping there's usually a reason for the gap or what I call a catalyst. Okay? This catalyst brings in participants of the stock. People that are long and want to sell. People that are short and want to get out with profit. People that were at money but now they are down because the stock is gapping. The 26 point system analyzes all these criteria to look into the future and predict the move the stock will make on the day. The 26 points analyze price. It is a price based system. That is what I'm looking at in the points. That is what I would teach you. You are looking at current price, past price and predicting with that information the future price of the stock on the day or for a larger time frame. You could even do this for swing trading for core trading or day trading which is what I like to do. As a trader doing this analysis ahead of time and using the 26 point system gives you a huge advantage because most people cannot predict accurately what a stock can do in one day. Not only can they not predict it accurately they can't predict it within anywhere near the numbers that I can on the day or even over time. Not only does my 26 point trademark system predict the move accurately predicts the numbers of the move accurately sometimes within pennies. This is a definitive edge and it will give you an edge as a trader if you learn how to do this. Now here's an example. This I have in the class. This is infi. This is back in 2013. It's a year ago actually. Now I squished this together. This is a bigger long term day chart of the stock named infi. It actually had a gap that happened back here. It opened and swushed. Now I'm not going to get into what a swush is today. That's a whole nother lecture by itself but the stock swushed. It's something that I do in the market. It's a play I do in the market. It's why I named my company the stock swushed. Anyways it swushed. It's a amazing beautiful, just unbelievable move for the stock. I think it moved $5 or $6 on the day here.  It went past every dream target in the world. And after this happened I looked at the longer term trade on this and it was $10. About a week and a half ago the stock met that target and it's actually gone past it. You could have actually taken this as a swing trader or core trade in infi. Day traded it like I did on the day or taken as a swing trader core trade around $30 or thereabouts close to 3029-ish and this is a year. It took a year to get to the longer term target down here to $10. You could have made $20. So you could have taken 100 shares of this and made $2,000. And you would have known that was okay using my system understanding the stock and the way the stock moved on the day. Now for a day trade it was a huge trade. It was a huge trade as a day trade. I day trade on flat every day by 4 o'clock just because of the monster move at stock head and you can take bigger risk on day trades and you can for over long long term trades. But this type of accuracy here is exactly what I'm talking about that I know how to do this and some days I'm even surprising myself. Another one that I did recently was Cree. I did Cree as a day trade and the target for Cree was actually $47.75. In three days it went there. It went to $47.83. It got within $0.08. It actually continued then. And you can see this move is head and I did this here. This was the gap. So I got up in the morning before the open before this thing even happened or did anything here. And I predicted going through my system that the stock would get to there and it did in three days. This is what I'm talking about. This is exactly how you make money as a trader. How often does it work? Gaps happen in the market every day and sometimes there are multiple gaps per day. Personally I like to focus on one but you can do as many as you get. However there are some months when two to three days will be no gaps. So you might have a couple days in a month that there won't be gaps to do. They won't meet the system. Again, what do you do? You can do it every day. The system is there if you did follow it. It's a structure. Also in days there are many gaps you can take more than one trade. I did this on Friday. You can take two to five trades at a time or two to five trades in a day. I like to focus on one to two gaps per day. Really one, but sometimes there's two. They're so spectacular. Like on Friday I'll do them both at the same time. It's a lot to manage for me but I can do it. In those days of one to three gaps are rate per the system and work. It's up to you how many trades you can manage at a time. Maybe you can manage six, seven or eight or nine or ten. I'm running a live trading room while I'm trading live so two is a lot for me at the same time and I usually do one but you're trading and you can manage a couple and have a few screens. You can do as many as your risk amount will allow. Gaps are very practical to trade and this is the strategy that my system is focused around and the reason they're so practical is because they're created with institutional money. That's what is making the gap. There's some catalyst that the institutions are acting on. It could be anything, by the way. The professional gaps that happen and play out in the stocks are formed by large institutional money and then you use the 26-point rating system to help you pick the gap. This way you get the correct direction to play the gap and confirm that the large money will flow with it. So the 26 points give you the confirmation that the institutions are going to do something with this stock today and in what direction and then you get the trade when it sets up and you do it. The 26-point system, Sam, is what I teach in the class. I'm not teaching you that today. I couldn't even if I tried. I couldn't even tell you that in one hour. It takes a whole weekend for me to teach my system and actually two days is a lot of information for two days. I'm telling you information about it today. By having a systematic formula to rate and qualify the gap you get confirmation and conviction that the large institutional money is on your side and then you play it.  That's an action that's being forced by participants of the stock, whether they're long or short. This is why gap trading is incredibly powerful. This is why the strategy works so well to make these kinds of moves like an infi. Trading gaps is a practical way to trade your power. It makes sense to be on the side of institutions who create the market in the first place. Why? Because if you get in something that isn't being traded by institutions on any given day, then the stock is hardly going to move and then you're not going to get any play in it and if you can't get any play in it then you're not going to make any money and if it doesn't move you're not going to make any money and sometimes stocks don't even move at all and then there's no directional bias. It's like flat and then it drives you nuts. If the goal is money, which it is for anyone that's trading, then first there must be accuracy. If the goal is money, the first thing must be accuracy. It's kind of like you can't jump the shark.  Then once you're accurate the money comes after the fact. I think this is the biggest hurdle for people that want to do well in the market and actually if you're brand brand new to the market this isn't going to be a hurdle for you because you have a clean, fresh, wonderful, beautiful slate in your mind but for people that have been trying to trade and struggling with the market back and forth for weeks or months or years really it's a hurdle for people. They want the money, they want the money, they want the money, they want the money. Okay? It's like they want instant gratification but the fact is accuracy is what's going to take you to the money and once you are accurate it's going to be a hurdle ahead of you. No Mark, I cannot. I'm not going to. You've got to take the class to learn it. The goal is to trade with accuracy and detail. Detail counts, accuracy counts, having a system counts, it counts and whatever you do if you don't have a system you don't have an edge. You don't have an edge in the market. A system is your trading plan and again if you don't have a trading plan you need a trading plan to trade. A system keeps you on track directed towards your financial trading goals and you can achieve them. Without a good system you have anarchy in your trading and will not achieve your desired results. It's kind of like you have to be your own government. You have to be your own government. You're in charge. You're the president, you're the vice president, you're the secretary of state, you're everything. You've got to do everything and you've got to be in charge and you have to make all the decisions and it's all on you and this is where the responsibility level comes in the system helps you be responsible to yourself. So if you want to make money trading now you can, you can but you have to learn how first. Many people want to keep prodding along though in their trading. They'd rather go back and forth and back and forth and not make a full on commitment. The commitment is in learning. That's the commitment to you and what you have to do. Yes, Sam is asking, Mark is asking am I going to tell you one of the points? The answer is no. I'm not going to pass to get any of the points. I'm not going to give them to you, not even one. I do have a record but I'm not giving it to you in writing. You can contact any one of my referrals and ask them what they think. Some of the people in my room are doing incredibly well and I've been trading with me now for well over a year. You can reach out to any of them, okay? And even though they know how to train they are still paying me to be in my live trading room with my calls and they're making way more than the cost to trade with me. I've got really good clients. In fact, I have clients in here today. I have clients that are doing so well that they want to hear everything I have to say and they've already done the class. I have people in here right now that have already done the class.  My clients really respect me because they are making money on my calls and I guess that is one of the best things that I could possibly say. So thank you clients. Let me try to get through. Phillips is correct, thank you. And George is one of them here too. George is here. George is about ready to quit his job. Let me... No, I do not have a payment plan, Sam, because you get all the information in the class right away in the first two days. I don't have a payment plan. So you get everything you know to learn how to trade in two days in the class. So that's the thing about the payment plan. It will stretch down to be different. So this trademark system is my signature. I'm an expert chart reader. If you want to learn how to trade and make money trading, this is your opportunity to learn from me. And I think this is why my clients come to these webinars like this even though they've done the class because they want to learn more. They want to learn more, they want to get better at learning how from someone that is doing it day after day. They're a Margaret. Margaret just signed up for the class too. Margaret hasn't done it, but today was her first day. There's Margaret. You have to crawl before you run. You cannot be successful in the market trading unless you know what to do. You can't. And if you decide that you really want to be going to focus on accuracy and detail, you will put yourself ahead and shoulders above the rest. You will do it. I'm going to talk about this later at the end, but I'll say this now. We've got to get going here to the examples. We're going to run out of time. But if someone said to me, do you want to go out in front of 40 billion people and trade live and make the calls, I would do it. I don't know anyone that would do that. I don't know anyone that runs a business that would do that. I don't know anyone that runs a live trading room that would be to do that. I would do that if someone gave me the chance. That's how much conviction and belief system I have in the calls that I make. In fact, there's some days that I say, why are you, I said this last week on AVP, I said, why is anyone here even looking at anything else? And we did AVP and it worked. There's some days that I just, I know. I know. I know some days when things are going to work. I just know. And there's one reason I know it's because of my rating system. I just know. The goal is to trade with accuracy and detail. You have to crawl before you run. You cannot be successful in the market trading unless you know what to do. And if you decide that you really want to be good and focus on accuracy and detail, you will put yourself head and shoulders above the rest. You will, you will. And there's so much opportunity to do it.  There's so many people that trade that lose. You have a chance to set yourself apart for the rest. You, everybody in here, there's not like 20 million people in here today. If everyone in here wanted to set themselves apart from their friends and from the rest, you could do it. The opportunity is there because there's so many people in the market that are losing and there's so much money to be had. There's so much money to be had. That's what gets me out of bed every morning. That's what gets me excited to train every day. Okay? The money. But I had to get good first. Okay? And the reason is because most people are not focused on being good. Most people are focused on being good. They're not focused on being good. They're not focused on being accurate. They're not focused on being experts. They're not focused on any of that at all. They are only focused on the money and guess what they lose? I am an expert. Are you? Are you an expert? Ask yourself this and if you're not, you want to become one. And this is why my people are here today. They want to be experts because they see the money. They see it. Now let's go over P. This was a beautiful gap that happened back here. This was in April. April was a really solid, beautiful, fantastic month. April fell. This P fell here in April. This was in the 25th and it continued down here the second day. Again, it got up in the morning. P didn't do anything like this before the morning. P didn't do anything at all. I rated the P. I did the P. Okay? I want to point something out. P was a good gap. And many people would look at this and not know what to do with it in the reference to shorting it or think it wasn't going to work and that it was going to halt like because of this bottoming tailing thing here. Or that it was actually going to be a long and fill this gap. But that's not true. P was a short. P was a great gap and I knew P was a good gap and P worked. P worked and all of that. P broke this. And P had the nice follow-through. Again, as a swing trade or a day trade. So this is the one-minute chart on P. You were looking to take a trade on this chart in the P. So let's look at it. The entry time was 946. Entry price was 2511. If you risk an advanced risk it would be $570 at 3,000 shares. Exit 2360. Let's go back. Let's go back and look at this one. Let's look at the chart. Forget about the money for a minute. You rate the P. You like the P. You love the P. Okay? You could have actually gotten in the P here early. The P sets up here at a beautiful, beautiful, beautiful trade. Indoor rally here at 945. And do you see what this P did? You took the trade and it just fell off a planet. And this all happened within 30 minutes. You took the trade at 945. Trade is done by 1015. Okay? And this is a beautiful trade. If you just focus on this, rating the P, liking the P, doing the setup in P and then just do it. Have all the numbers figured out where to take and where to get out.  You did not focus on the money. You focus on all of this stuff here with the P. You size yourself right if this is your risk or less than that if it is. And all of a sudden here you go and there's all the money. The risk to reward is almost 8. Okay? So you turned $570 into $4530. Remember what's my goal every day? 3. So this actually was almost quadruple what my goal was on the day. So here's a good example. I have a trade here today. Okay? My job is done. I take this trade. I'm out of this trade. My job is done. And that's how you have to look at trading too. And that's part of having a structure. That's part of having a system. You have goals. I don't know what your goal is every day, but monetarily you have to figure it out. It should be at least three risk units. Okay? So if you're risking $600, it should be at least $1,800. But once the goal is made, you're done. This trade isn't gambling. You've surpassed your goals for the day. You're done. Okay?  Yes, I have a stop loss on every single trade mark. Mark asked a great question. I have a stop loss in every single trade. Otherwise, how do you know? Here, how do you know this is part of the structure too, Mark? How do you know then to even know if you're doing well or not? If, here, there was a trade today. I'm not going to flip it up right now because we're going to run out of time. That had a dollar stop. It had a dollar stop. Okay? If my risk unit is between $500 and $600, give or take, I can't take 3,000 shares on the trade that's set up today with a dollar stop. It was BroadSoft, BSFT. If I would have, how much would I risk? $3,000. I'm not risking $3,000 in a trade. I'm not doing that. Okay? And no one here should be doing that. But it's about the monetary risks because share signs varies. Okay? And I do have a stop loss and you do have to follow it. Otherwise, again, if you're not following a structure like that, which how much you're risking and how much you're making, then your results will be skewed. You won't have positive results. You can take one trade that works and make $4,500 and take another one that loses and you didn't size yourself right and you could lose $3,000 and you only wanted to lose $500. Do you see? So it has to be all of that is part of the structure, all of that is part of the system. With 26 variables, how much time does it take to analyze enough different stocks to find the highest probability trade? Are there things you use to help you decide? I use the 26 points. That's what I use. I don't use anything besides that to decide. That is what I use to decide. How much time does it take? Well, of all of these ones here, I'm going to quickly go back here very quickly to answer Jim's question. This little scanner guy here that I clipped. Of all of these ones here, first of all, I focus on the shorts. So what am I looking at? I'm looking at this list and I'm looking at this list. So that already narrows it down. I'm not rating every one of these gaps. Because sometimes I'll automatically see them and I'll say no, no, no, no, no. And I can tell right of ways if something isn't good. So once you learn the system, your eye will see that's not good, that's not good, that's not good, that's not good. Oh, that looks good. Oh, that one looks good. Oh, that one looks good. And then you'll make a little short list. It could have eight things in it. And then you rate as many as you want to. It takes between five, six, seven minutes, I'd say, per one to rate. For me. And if you're brand new, it might take you 10 minutes. But it doesn't take a million a million hours. And again, I'm only focusing in one direction. It's going to take a little more time. You're focusing in both directions. You're focusing in how to trade one thing in one direction, the first, do it really, really well. And then you can do both directions. All right, so let's look at the P2. P, here, set up again. Do you see this? And came all the way down. Now this was a little bit longer of a trade. 1030 to 130. Okay, you're in this actually for three hours, but you're up a million miles the whole way down. And you actually might have gotten out of this here around the lunchtime period. But it did roll out and had a beautiful exit down in here into a number. Entry time is 1035. This is a continuation of the original P. Price is $2381. So here we have it. Mark had asked about the sizing. This one would not warrant 4,000 shares, or it would be more than $600. It's $2,500. Exits $2,148. Total profit $5,825. Again, look at the money you can make if you're not focused on that. And said what are you focused on? P. That's what you're focused on. You're not looking at your P&L. What's the worst thing that can happen if the trade stops out, you lose exactly what you were willing to lose, $600. And again, you can divide this by two or three quarters however much you're willing to risk. The risk to reward is 9.7 times the amount risk made in profit. That's a great trade. Philip's saying you can see. Can everybody see my ticker here? I don't know if what happened was a fat finger by Kevin or if something happened with the PowerPoint. Just let me know if everybody can see my arrow here. Anyways, another great trade in P. Let's go back to the original look here. I do have a cursor. I do have this here. Can you see it? So what may to move like this or this or even make any kind of that money. $4,000, $5,000, anything. How could you have even done it? How did you even know to do it? The rating system. The rating system. The rating system. How did I know when P was before P even did a before 9.30. I knew P was good. And that's why all of this because of the rating system. Because I rated the P. Yes, I have a stop loss in every trade. I absolutely have a stop loss in every trade. Mark's asking good questions. I have to. And you should too. I know some people poo poo stop losses, but I don't. And look at the size I'm taking. I'm putting them in. I must. If something doesn't work, I want to be out. Okay? Total profit in P in two days. Day one P risk 570 bucks. Day one P profit 4530. Day two P risk 600. Day two P profit 5025. Total risk in P in two days. Day one in day two. Two days in a row. 1170. Now again, this is an advanced risk. But it was only in two trades. Total profit in P. If you risk $1,170, you can make over 10 grand in P. You you could have just gone to the beach. Okay? For the rest of the week. Okay? This is in two days. Total risk to be born in P over 8. Now, let's go to the next one here. Lo and behold, another beautiful, beautiful, beautiful gap. Camp. Okay? Camp gap. How did I know camp would do this or something similar to this or even this? Because I rated the camp. I used the 26-point rating system before this even open. And I'm rating it. And I know it's good. And I know it's going to work. And it does. And I'm predicting this ahead of time before 9.30 that the stock's going to do this in the day. And then it does it. Camp. In fact, this, I didn't even see this. I remember this. This was for some reason. It ended up doing this here. But I remember when this was actually live on the day. This had, the bar was weird. It actually had a big red bar like I couldn't see the open. I actually remember that. It was weird. Anyways, this camp set up. Set up and look what the camp did. This is right at the beginning of the day. It comes on down. Set up again. Came on down. Or you stayed with the first original trade. Entry time and camp was 10.30 to do the full on set up to the lower time frame. Actually, no, that wasn't 21. No, it was, no, it was in 10.30. It was 9.33. 9.30, 9.31, 9.32. No, it was 9.32. At the time wrong. Here's the entry. It was 9.32. Risk is 2200 shares. Again, you can't take 3,000. If you take 3,000 here, you're risking more than 572. Exit's 1905. Tell the profit over 4800. Risk to your words 8.4. Again, great trade. So, if your goal is 3 hours a day and there's 5 days in a week and let's say one day you don't get anything to trade. Let's be really, really, really conservative. One day a week you figure you're not going to do anything on a Monday which is a low trading day or activity. You say 4 days a week. Your goal is to make 12 hours a week. That's your goal. You just made 8 in this one trade and you made 8 in the P if you did them both. So, you made 16 hours then for the week just in 2 days of trading if you did them both or if you only did the 1 here you made 8 hours in this one trade your goal is 12 for the week. This is very, very, very, very, very, very reasonable. Some people think it's insane to try to make 10 hours a week or 12 hours a week. It's a very reasonable goal and that means even almost not trading one day. Now, day 2 camp set up again same thing as a P with a follow through. Beautiful, beautiful move in the camp on the second day down. Here's the open here's where it falls. Entry time, now this entry time is a 10.30. Price is 18.62 exit 17.30 risk is $520 on 4,000 shares you must risk the same amount total profit 52.80 another rate trade 10 hours. 10 hours in this if you risked the advanced amount you could have made over $5,000. How can you make $5,000 in a trade? You don't close your eyes and trade it on the fly. You know the camp is good. You know the gap yesterday rated whatever it rated. You know it rated for the 26 point system.  It falls up a cliff into the open rallies back and sets up drops rallies back and sets up and drops this is a great gap and you look for the follow through and it does it and again you could be in any of these a swing or core day trades. It doesn't matter all of them kept going. Day 1 camp risk 572 day 1 profit 4800 day 2 camp risk 520 day 2 camp profit 5200 total risk in camp was advanced and you could have made over $10,000 in this stock symbol in 2 trades in 2 trades in 2 trades and that doesn't include the P total profit in 2 stock symbols in 4 days of trading in 1 month. This is 1 month. This is 2 days April 25th and April 28th 2 days in 2 stocks there's a whole month to trade. You got a whole month to trade and you could have made up 20 grand in these 2 stock symbols that you could have made that out the low. These aren't out the low. These aren't out the low at all David. Go look at the charts. They're odd at the exact numbers. I'll tell you exactly what they are here. This is an exit for me. It's called a double bottom. Again you learn this in the class. This is an exit. Hey listen, you know David seems to think that I'm making this up.  And if you don't think that I know how to trade then don't take my class. Okay? That's all I have to say.   People are here that are trading with me in the room that did these trades and took these trades. Okay? I couldn't possibly say that I made these calls if I didn't. So think about it. What if you only risked half of this amount or a quarter of this amount? Total profit in two stock symbols in four days of trading in one month this is if you divide it by half then this is if you divide it by a quarter. In other words, if you didn't want to risk at an advanced amount you could have risked less than 600. You could have only risked 300 to trade. You still would have made over 10,000. You could have risked 150 in the trade and you still could have made 5100. Okay? So would you like to make this kind of money in four days? Yes, of course you would. And obviously David doesn't believe it. And my guess is that David probably has lost money in the market. And when you're at a point where you have a negative attitude about being successful in the market then that's the point you should quit. You should stop trading. You have to have a positive attitude and believe that you can make money in the market. If you have a negative attitude and don't believe that anything can work then you're at the point where you're up against the wall and you should quit. Okay? Oh there we go. Jim, Jim I Jim I don't know who you are but Jim just said I watched her trade live on one day and called the exit price well in advance. Hit it right on cue. Oh thank you Jim. Yeah, Sam you can get your email me here for for references. I tell you I love somebody asked me another day it was less. Alas asked me the other day. I don't know if Alas is here right now. He said do you like you know talking to people you know. And I said sure I like talking to people you know obviously I talk to people I'm doing everything I call the trades I trade, I do the webinars, I teach the class I do it all. I'm a one woman show. I said I'd love to talk to people but you know I do have a short fuse I guess buy and buy as the days go on the more money that I make trading myself meaning that if I see someone has a negative attitude or if they question me too much then I'm not going to spend a lot of time with that person your best way road to success is to learn from me directly so keep that in mind, okay because if you want me to respect you then you got to take it seriously and you have to take seriously what I'm saying and they'll come a day when you wish that you would now I know everybody has issues that they have to work out in their mind mentally but you go see a therapist for that you don't work it out with me I'm here to teach you how to trade I'm here to help you make money to call the trades live some of you have been trying to do this for years and those nodes need to see some other sources and you can do that on your own I'm here to actually do it get it done to make the money that's what I'm here for and you want me on your side you want me on your side I think that's why the people that are here today that have already learned from me they get that they understand that I'm a good ally could you make this kind of money in 4 days Yes, if you want to become a good trader. Yes, if you're willing to learn something new. And no, if you're not. Yes, if you're willing to risk an intermediate to advance risk in each trade, which $300 to $500 is advanced. Yes, if you have a minimum of $75,000 in buying power. That's not cash, it's buying power. And yes, if you want to take the Golden Gap course and learn the 26-point rating system. Would you like to make this kind of money in four days? Would you like to make this kind of money? Yes, of course you would. Anyone would. And who will? Who will make this kind of money? People that believe that they can. I always believe that I can make a lot of money in the market. Now at the time that I started out, and I didn't know what to do, there wasn't a great thing because I lost a lot trying to figure this out. But I always knew I could make a lot. And lo and behold now that I am, you do have to believe that you can do it and you do have to believe you can make this kind of money from the market. Many people will never, ever, ever, ever, ever make this kind of money trading. Many people will never make it. They will never believe that they can. They will never figure out right. And they will never follow a structural system or ever connect with someone like me to teach them what to do. So if you can learn it, you're going to have an edge. Just from the very fact that there's so few people that are actually doing it, okay? Just from the very fact that you are choosing to learn a system, decide you want to do it, believing that you can, you have an edge. The fact that I made a system, believe that I could do it, it actually gives me an edge. And the fact that I'm doing it, okay? And actually the fact that I'm teaching people gives me an edge too, because it's helping my own confidence level to be able to say, I can go out there into the world and make these calls ahead of time. Sometimes I'm on YouTube making videos before the stock even gaps. Saying that it's going to gap, okay? Calling the overall directional bias, like Crete. If you want to make this kind of money in just four days of trading, then you have to decide to make a level of commitment to learning the system. And that involves taking the loading gap course and learning it. Here's where it comes to what everybody wants. Everybody wants in the world. It's actually like sex, okay? Everyone wants instant gratification. Many traders want instant gratification. Money and sex are a lot of correlations, actually. And the longer I teach and the more people I talk to I realize this. The great thing about trading gas as a strategy is you do get instant gratification in the money you make. You do. You get it in the money you make in the morning trades, because they usually move pretty fast. However, the idea of instant gratification doesn't help you become a good trader. Okay? It doesn't help you become a good trader. All right? Just like it doesn't necessarily help you forge a good relationship with someone if all you're interested in is sex. You have to think about the long term. That doesn't mean you're not going to make money in the short term. Okay? But you're building something. What you're building is the solid foundation for your financial future. And it's not going to happen overnight. If you want to make this kind of money not just in four days of trading but week after week, month after month and for the rest of your life, it's like marriage. You're getting married to the market. Then you need to see trading for what it really is and can be for your life in the bigger picture. What can it be in your life for the bigger picture? For the bigger picture is you learn how to trade. You learn a system that you can use for the rest of your life. And you can make money trading for the rest of your life. So pitch time. The $2,500 that it costs for the class if I can teach you something that you can make money for the rest of your life. You'll make way more than $2,500 if you use the system correctly over the course of your life. It will add up far greater. And you'll have to look at the bigger picture. And if you're too short-sighted, if you're too focused on instant gratification that you're not committed to your own financial future and success. And I was committed to my financial future and my own financial success because I had a job at the time when I started doing this, I was making money, doing mortgages. I was making good money. And I realized that I wasn't going to be that job wasn't going to last. And so I was committed to my future for the moment when I started to trade, when I first started out, I was making really good money doing loans. But I saw the writing on the wall. I saw the writing on the wall for my future that it wasn't going to be there five years down the road, 10 years down the road. I knew I needed to make some changes now so that five years down the road I wouldn't be left in a different financial situation. I wanted to make the changes for my future. And I was young enough to do it. So it's never, never too early to start. The bigger picture is personal freedom. The freedom to be able to work for yourself the freedom to be able to choose and set your own hours the freedom to be able to make the money that you want to make. Okay. And that's the bigger picture. Many traders want instant gratification. That does not mean that you can't take the class and start making money the next day. But the fact is that you have to look at the bigger picture if you really want to make much more using the examples that I showed you today unless you have the money to do it. Okay. But you have to learn it first. The great thing about trading gaps as a strategy is you do get instant gratification the money you make in morning trades because they usually move pretty fast. However, the idea of instant gratification doesn't help you become a good trader. The idea of focusing too much on the money doesn't help you become a good trader. If you want to make this kind of money not just in four days or trading but week after week month after month and for the rest of your life then you need to see trading for what it really is and can be for your life in the bigger picture. I actually think that trading is meant for people that have the right attitude and I know exactly what that is. You have to be willing to take risk. You have to be willing to take a chance to look into your future and not know the outcome. The same as you do with a trade and you have to have a certain level of commitment and you have to be willing to spend money. You have to be willing to spend money in your trade and you have to be willing to spend money in a class and if you're not willing to do any of those things then trading isn't for you and trading isn't for everyone. It's just not. Even though a lot of people will do it and actually there's a lot of people that trade in the market trading is not for them they trade and they lose and guess who's getting their money? Me. Okay? You know that when you trade in place of trade when I make money I'm taking it from someone else when you make money you're taking it from someone else that's where how it works. The bigger picture is really financial freedom to be able to set your own course it's all about conviction. Having an edge gives me conviction and you give me conviction too. The Golden Gap system is a 26 point professional bearish gap rating system and the purpose of the system is to help you evaluate which stock that is gapping to trade each morning using a checklist and the system also teaches you the entries and the exits. David was asking early about the exits if you take the entries I'm calling David it doesn't matter if you don't get out at the low of the day whether you make eight hours or six hours or five hours or four hours or 6.275 if you get the exits you can get the stock right you can get out whenever you want you can get out in 15 minutes and make money you can get out five and make money you can hold into the target if you want to make money you can trade in the morning before you have to go to work and just get out even if it's still going because you have things to do it's about getting the right stock getting the right pick getting the direction right and more than that getting the answer right which is something that I excel at so why does it work the Golden Gap system works because it looks at a large time frame in the daily chart of a stock time it looks at the bias it looks at the larger time frame the daily chart the bigger time frame I'm a day trader but I'm looking at the bigger time frame and that's why it works for swing or core trades too the quality and high success rate for choosing the right stock to trade each day and getting the direction of bias correct comes from the 26-point rating system so using a 26-point checklist system to trade gives me an edge it's my trading plan and it looks at a larger time frame this is the BSFT this was this morning looking at the BSFT before the morning here actually I'll tell you what I did with this quickly I rated this gap it was all the way up here I figured out all the targets the stock moved down in the morning and hit through all the targets in the gap it actually I was just watching it I rated it early because I started 8 o'clock I rated it like it was around up here 24-something the stock went down in blue through all the exits in the morning in the pre-market I just watched it it wasn't in it I watched the whole thing then it still opened down here and worked as a short but here's one where I had all the targets figured out and it did in the pre-market actually that happens a lot but I'm looking at this in a daily chart entries are on a smaller time frame for risk to reward so the entry on BSFT if you wanted to do it today in one minute was here again this is a one-minute chart entries on a small time frame the overall directional bias to the downside in BSFT on a bigger time frame this is what the 26 points helps you pull together the philosophy behind the 26 points is to have a high probability directional bias for the day big moves early confirmation of the move before 10 o'clock and precise entries with follow through and a good risk to reward so the Golden Gap course is the class that I teach the rating system in it teaches you how to find the best stock to trade each day the entries the exits and again the exits are something that you can work on yourself I teach you the exits in the class whether or not you're going to hold them all day if you have something else to do it's up to you but you got to get the stock right and you got to get the entry right otherwise you're not going to make any money at all the course teaches price analysis and technical analysis on an advanced level and it teaches a detailed way to read support and resistance in the right direction and teaches you how to make money okay I'm teaching people how to make money that's the object whether you make 3Rs or 4Rs or 8Rs or 7Rs the idea is you're up when most traders are down you are profitable if you learn how to do the system and it gives you an edge the checklist a system helps you make money a system helps you get serious about your trading a system helps you focus and you got to ask yourself are you focused if you're too focused on the money then you're probably losing and don't have a system that works a system helps you get serious about making money because it teaches you what to focus on in the charts the price because you're just focusing on that system that's what you're following that's where you get up that's what you look at and it gives you an edge and you absolutely need a system to be successful in the market okay it gives you an edge to trade and why do you need an edge because there's a sea of traders out there there's a sea of traders out there trying to take your money every day they're out there trading trying to take your money are they going to be successful taking your money are you going to take their money okay remember you're out there every day there's a sea of traders and this is why you need an edge so empower yourself today to learn how to trade it's a complete system to use how to trade that I teach in the class it's a full day to two day course on how to strategically find, pick and place stocks to professional bearish gaps retakes are free the class is online so the retakes are free meaning you can take the class and then retake the class as many times as you need to after the fact you can get the information down more accurately the dates of the class are May 10th and 11th from 9 a.m. to 5 p.m. eastern time again the class is online you can be anywhere in the world and take it the cost is $2,499 contact me at Melissa at the stockswish.com if you would like to sign up and one last thing people are asking me honestly honestly honestly you got to have $2,500 to be in the market if you don't have $2,500 to take the class you probably don't have enough money to trade you got to have money to trade don't put yourself into this market not knowing what you're doing okay you can't put yourself in the market without knowing what you're doing it's a good $2,500 to spend and I'll send referrals to anyone that wants to learn my system you can learn the system and make the money back in one trade you know if you're going to follow my trains I also teach a class called the trends course this is June 10th and 12th from 12 to 4 cost of this class is $999 it's a course on how to retrend and stock charts and I'm running a special this month you can do both classes and save $499 so you can do the golden gap class and the trends class you'd like to swing trade or core trade that's a great class for that the class would be $2,999 $2,999 for both of the classes you'd save almost $500 if you're interested in this email me at Melissa at the stockswish.com second quarter is upon us good trading for the rest of this whole month while second quarter is running on there'll be a little bit of law in June and then I'll start up for third quarter towards the end of June and it's a great time to trade because there's a lot of gaps and a lot of follow through like you saw remember the future is yours to create you could be like these people here okay these sour pusses or you could be like this person here when you walk down the street this person gets noticed he's very attractive he's very confident he dresses very nice and he can afford to do so and these people here can't get a date to save their life so what do you want to be do you want to be like this person or do you want to be like these people a scene of traders losing so you got to ask yourself because this can be you because there's a lot of these people so even if everybody here look like this guy it still would be a lot of these people so think about it do you want an edge and here's my town New York remember the future is yours to create thank you everybody for coming email me and Melissa at thestockswitch.com if you'd like more information we have like a minute here for questions if anybody has any more questions email me if you want references no one said anything simple Sam you have to learn it I mean you've got to learn what to do and I have no idea what you know I don't know if you're going to think the class is easy or hard people that are here people that are here that I did the class is the class hard or easy I don't know you tell me you're better off asking other people if the class is hard or easy it's hard for me to say anymore because I have been doing this now for so long for me it is easy so most days are very easy for me but it's because I've been doing it now for over five years sure so once again super job always helpful to hear it again never knew you had so many sourpusses I'll keep up the good work just for you have a great weekend thanks so much online trader sensual have a great weekend one of my savings Monday night have a great sink of the Maya good night


Hello, and welcome to the session. This is Professor Farhad, in which we would look at sample CPA questions specifically on the regulation section. These topics could be covered in an entity or a corporate income tax course, but they deal specifically with S corporation. It's very important that you understand each topic on the CPA exam. Why? Because the exam is adaptive. If the AI CPA software that he notices or was able to know that you have a weakness in the S corporation, guess what? Most likely you will not pass. In other words, you have to know every topic and each topic in details, so you'll be able to answer the questions. How can I help you? Well, I practice those questions. I do have a full course about corporate income tax on my website, where I explain this topic in details plus practice. In addition to that, you would use your CPA review course in addition to my material, and you should be good to go. As always, I would like to remind you to connect with me on LinkedIn if you haven't done so. YouTube is where you would need to subscribe. I have 1,700 plus. Accounting, auditing, tax, finance lectures, and thousands of CPA questions. If you like my lectures, please like them, share them, subscribe to the channel, connect with me on Instagram. And I just, as I just stated on my website, you will find additional materials such as courses to supplement your CPA studies. And I have many CPA resources to help you get those 10 to 15 extra points to get you over 75 and move on with your life. This is a sample catalog of my resources. I have plenty of resources for you. Check out my website. So let's take a look at this first question. Again, they deal with S corporation. Remember, you have to focus on each topic separately. So you have to be confident, competent in all topics in order to pass. Farhat Court, a calendar year S has two equal shareholder, which is 50-50, for the year end of December 31st, year one. Farhat had income of 90,000, which included 60 from operating the business, 20 from investment interest income, and 10,000 from municipal bond interests. There are no other transaction for that year. Basis and the stock of Farhat for each, not for both, for each shareholder will increase by how much. Remember, it's 50-50 because they own the S corporation equally. Now, what you need to know, you need to know that any income, regardless of its source, increases the basis. Well, what income did we have? We have 60 from operation, 20 from investment interest income, and notice what they did to try to trick you. I said 10,000 from municipal bond interest. Yes, municipal bond interest is not taxable. Although it's not taxable, it increases your basis. So it's not taxable, but it increases your basis. Therefore, the total basis will increase in total by 90,000 for each shareholder. We have to divide this by two equal to 45,000. So be careful here. A classic mistake is a student would select 90,000, but the question is for each shareholder. So we have to be very careful. Let's take a look at this question. Adam is a shareholder of CER Inc., an escort. Adam's adjusted basis and the stock is 60,000 at the beginning of the year. During the year, the CER reports the following income items, ordinary income, tax exempt income and capital gain. In addition, the CER makes non-taxable distribution to Morgan of 20,000. What is the Morgan adjusted basis at year end? So this is a very classic or typical questions that you will see on the CPA exam.  Well, what's your beginning basis plus all the changes equal to your ending basis?  This means the 30,000 will increase your basis. The 5,000 will increase your basis.  You had a cash distribution of 20,000. Now we know our basis. We took everything into account. As a result, your basis will be 85,000. The letter, the answer is the 85,000. Let's take a look at this question. Carmen is considering forming an S corporation. Which of the following will prevent a corporation from qualifying as an S corporation? What does that mean? It means, do you know the rules for an S corporation? Do you know what are the eligibility to have an S corporation? The corporation has one class of stock with different voting rights. Yes, you can only have one class of stocks, but it could have some voting and some non-voting. So the voting right does not matter, but one class. One class, so you could have common stock, some of it voting, some of it non-voting. That's okay. So this doesn't prevent us. The corporation has 75 shareholders. That's okay. That's okay. The limit is 100, so that's okay too. It doesn't prevent us. The corporation was formed before 1981. That's okay too. The corporation has both common and preferred. Hold on a second. No, you could only have one class of stocks, which is common, you cannot have preferred. So they will prevent you from having an S corporation. Has been an S corporation since inception. In each year one, year two, and year three, Tony Spitzer made a distribution in excess of the shareholder basis. Which of the following statement is true concerning the three years? What does it mean? They have distribution in excess of the basis. Well, think about the basis. What is the basis? The basis is how much you paid for the stock. Let's assume you paid $100 to buy a stock. Just kind of keep it simple this way. You'll be able to follow what I'm saying. So you paid $100. That's it. That's how much you paid. That's your basis. And you got $140 for that stock. You received $140. What happened is this? The first $100 is return of basis. So the first $100 of that distribution, remember they gave you, they gave you 100. So the first 100 is basis. What about the 40 in excess of the basis? Well, that's capital gain. Well, let's look at the answers. In year one and year two only the excess distribution. Why year one and year two? Why not year three? In year one only, not at all. In year three only, no. In all three years the excess distribution are taxed as capital gain. You're getting more than your basis. Therefore, the excess is considered capital gain and taxed as capital gain. And as corporation is not permitted to take a deduction for what? Well, the best way, in my opinion, to kind of get familiar with those, there's something you have to kind of memorize basically what's there and what's not. But if you look at the form, it's gonna help you tremendously determine what's deductible and what's not. So it's very important to be familiar with the deduction on form 11-20. So basically what you need to do, look at the deduction, compensation of officers, salaries and wages, repair maintenance, bed debt, rent, taxes and licenses, interest, depreciation, depletion, advertisement, pension, profit sharing, et cetera, employee benefit program, other deductions. So you have to be familiar with what is deductible and what's not. And you have to know what's not deductible. So being familiar with the 11-20, that will help you tremendously. Let's take a look at the answers. One, charitable contribution, did you see that? And the answer is no. Charitable contribution, they flow through to the shareholders on form K-1. So that's not deductible, is not permitted to deduct. Therefore, one is a correct answer. I'll take out B, I'll take out D, because one is not there. Compensation of officers, you see compensation of officers was there. Therefore, that's deductible. So that cannot be part of my answers. So immediately I take out this one, I take out A. I'm left with by process of elimination, I'm left with C. Short-term capital losses, yes. Capital losses and capital gain, they flow through as a separately stated item on K-1 to the shareholders. Therefore, the answer is C. These topics separately stated items are very important for the partnership as well as for the corporation. And I do cover them heavily with exercises and practices and multiple choice in my entity tax course. I strongly suggest you check out my website because one subscription gives you access to everything. So it doesn't have to be, you don't only have access to one course, to everything. I have 30 module of accounting and CPA reviews. Study hard, stay safe, especially those coronavirus days and good luck.