So good afternoon everyone and I must confess I'm happy to be the first speaker since it is after midnight in Australia where I am, although I understand some of my colleagues are in the same position as I am. So I'd like to thank you for joining me in this virtual discussion from wherever you are around the world and whatever time it is for you. So my presentation today is focused on one multi-actual negotiation that is currently taking place which is the discussions on possible reform of Investor State Dispute Settlement which is occurring in the UN Commission on International Trade Laws Working Group 3. And in particular those negotiations are increasingly involving some highly creative proposals to implement a range of reforms to ISDS with emphasis on flexibility over consensus in multi-actual treaty making. So I'll begin with a brief refresher on why states are considering ISDS reform and anyone who's familiar with investment law will be familiar with this image which shows some of the networks of bilateral and multi-actual agreements containing investment protection provisions of which there are over 30 to 100. Many of these agreements include ISDS meaning private investors can directly connect litigation against their host state before ad hoc tribunals and arbitral awards can be enforced against the state. The number of ISDS cases has grown exponentially since 2002 and with that growth we've seen a growth of criticism relating to ISDS. Now UN Commission on Working Group 3 has categorised the criticism of ISDS into three key areas. Concerns with the consistency, coherence and correctness of arbitral awards, the cost and duration of arbitral proceedings and ethics and appointments of arbitrators. So in July 2017 UNSATRAL held preliminary discussions about undertaking possible reform of ISDS and while some states express some doubts about doing this in a multi-actual context in general states participating in those commission discussions highlighted that it was preferable to have multi-actual discussions to avoid fragmentation. And there's also an efficiency aspect to developing ISDS reforms multilaterally rather than bilaterally. So states in Working Group 3 generally agree that it is the older or the first generation bilateral investment treaties that pose the greatest legal risk and need to be updated. So what are states options when looking at updating older treaties? Well states can terminate those treaties and deal with the relevant sunsetting clauses or each state can see to negotiate tens or potentially hundreds of treaties bilaterally which is possibly very time consuming or states can consider something else such as a creative multilateral approach that can efficiently update many older treaties in one go. And this is precisely what UNSATRAL Working Group 3 is considering. There is a general agreement in the working group that there needs to be a process to deal efficiently with older bilateral investment treaties. However there is a conflict about how those agreements will be updated. And if you've been following the Working Group 3 process at all so far you'll know that the key potential reforms to ISDS have so far been discussed in very binary terms. So the EU and others have proposed a potential two-tier permanent court with appellate mechanism to replace ad hoc arbitration. However other states have indicated a preference for retaining arbitration potentially with some reforms to bring those older high-risk investment treaties in line with modern treaty practice. So UNSATRAL now finds itself in the third and final stage of its mandate which is developing solutions and what we're seeing is an interesting proposal from some states and scholars to deal with these two dichotomies of different reform packages. What has been proposed is an approach that would accommodate all proposed solutions and this would be achieved by creating a flexible multi-lateral treaty that allows multiple different and sometimes conflicting reform solutions to be developed and then implemented by states on an optional basis. So I'm attempting to demonstrate this with quite an unsophisticated graphic for which I'm sorry but we see here the network of bilateral treaties and states would be looking at developing a flexible multi-lateral umbrella treaty which would include a range of optional reform solutions including institutional or structural reforms such as a court but also individual procedural rules that states can opt to apply to pre-existing bilateral treaties in an efficient and a flexible way. So in practice it would operate something like this although this is somewhat simplified. An individual state like Mauritius opts into apply a procedure or a procedural rule in the overarching multi-lateral treaty and hypothetical treaty partner Austria also opts to apply that same rule or institution. That rule will then apply to ICS disputes that occur under the bilateral treaty between Mauritius and Austria. So this is the common theme between the various proposals that have been presented before working group three to resolve the dichotomy. They each have an option matching mechanics that operate something like this although the exact details and the names of the various proposals do vary between proponents. Unfortunately I don't have time in the context of my presentation today to share the details of those proposals but the common elements that I just want to reiterate is that there would be a choice of procedure between arbitration and a court and second there would be a choice allowing different procedural rules to apply in ad hoc arbitrations under the existing bilateral treaties. Now in developing the different proposals to accommodate these different reform options many proponents have referenced existing treaties as potential models for implementing such a flexible multi-lateral treaty and those are the Mauritius Convention which was a previous treaty reforming transparency in ICS which was also developed by Ancetram. A OECD treaty which modifies the network of bilateral taxation treaties and then Unclos's article 287 which allows a choice of procedure for disputes occurring under Unclos. Again I don't have time to describe how these treaties work in operation but what I do want to highlight about each of these treaties is that they have elements of flexibility with states can opt into certain elements for procedural choices but each treaty also has elements of rigidity and consensus and this is quite different to where the dynamics of the Uncetral discussions seem to be going. Uncetral seems to be looking at a far more ambitious project than has been undertaking by these previous treaties and the multi-lateral treaty that Uncetral was to be developing would have minimum rigidity and maximum flexibility on a range of levels. So of course a flexible approach like this is needed in order to effectively proceed with the negotiations given the lack of consensus. The Uncetral secretariat has noted that a flexible multi-lateral treaty could be the backbone of reforms and a way to ensure greater consistency among states. So one way to think of this is states might be choosing different reform options from the menu but at least they're all at the same restaurant. My research interest is trying to ask well how do states know that they're getting what they think they ordered and in asking this question I'm keeping in mind the end result which is that a multi-lateral treaty will end up governing the applicable rules and procedures in future ISDS cases be they cases before tribunals or before a court. So states need to have a rough idea about how this treaty would actually be applied and interpreted by actual ISDS tribunals or a court in practice. So we need to ask ourselves what will happen in an ISDS dispute and keep in mind that this is in visiting a world where there's several available dispute settlement avenues. Even though Uncetral are only considering procedural reforms so they're not looking at updating the substantive investment protections there will be potential conflicts between disputing parties. There'll be conflicts about how the jurisdiction or the institution sorry about the jurisdiction of the institution or the tribunal and there may also be conflicts about how or whether the procedural rules in the multi-lateral instrument apply to that dispute and I think the simplest way to talk about these technical issues are through examples. The first example is a hypothetical conflict between the disputing parties about the jurisdiction of the institution or the tribunal and in this example an investor might seek to commence ISDS proceedings before an ad hoc tribunal. The respondent might allege that this is the wrong forum and that a multi-lateral court is the right forum based on the proper meaning of the multi-lateral treaty. So how will the tribunal determine this? They will determine their own competence to hear the dispute by looking at how the multi-lateral treaty modifies the underlying or pre-existing investment treaty and to do that they'll be guarded by Article 30 of the Vienna Convention on the Law of Treaties on successive treaties which effectively provides that the later-in-time treaty supersedes the earlier treaty unless the earlier treaty contains a clause stating otherwise so we see it starting to get very complicated already. Investment treaties do contain provisions like that. For example the energy charter treaty which is the most commonly in vote treaty in ISDS has a provision setting out its relationship to other treaties. That provision states that nothing in later treaties affects any provision in the ECT if the ECT is more favorable to the investor or investment. So then the tribunal has another problem. How do they determine what that phrase means? Here they guide it by the general law and treaty interpretation in Article 31 of the VCLT which directs the tribunal to look at the ordinary meaning of the treaty term in context and in the light of its object and purpose of the treaty. This of course is a further complication. What is the context, object and purpose of the treaty? Is it a pre-existing treaty? Is it a multilateral treaty or is it both? And so to conclude I highlight this as one example but it shows some of the technical issues that a tribunal or court will need to grapple with to resolve just one case and you can see how there's potential for there to be divergent decisions on a question such as this by different tribunals but also as between a tribunal and a court. So this is highly relevant to working group 3's concern about consistency and coherence of decisions and has potential implications for the cost and duration of proceedings. So I would be happy to share some some other examples with you if we do have time for that in in the questions but to conclude I think this leads us to a position where states need to think carefully about proposals through the framework of the concerns that motivated reform in the first place to ensure that the desired outcome sorry the outcomes in practice match the desired intentions and it may be that some reforms in the overall package are better suited to implementations through a treaty like this and other reforms. So thank you for your time and I look forward to taking questions.


Hello everyone and welcome, welcome Jen, Diane, A.H.R.D.C. and others with Online Creator Central. We want to welcome each and every one of you to the presentation today. Welcome to JD, welcome to Casa, Jim, Ty and others. This is Online Creator Central. We are fortunate today to have Melissa Armel with us. We'll be starting promptly in just about a minute. If we try to start on time, we do try to end on time as well. So let me see if I can round up the musicians. Okay, percussion section. Okay. And with that, ladies and gentlemen, we are very pleased again today to be able to bring you our host and presenter for today. Melissa Armel from thesockquish.com. Please put your hands together and welcome our host, Melissa Armel. Thank you, Kevin. Thank you so much. Welcome, everyone. Happy Halloween. It's the day before Halloween, doing a little Halloween webinar today. Thanks so much for everyone that's decided to join me. My name is Melissa Armel and I own a company called the Stock Swoosh LLC. Today's webinar is going to be about a very good topic about risk to reward. It's a lot of things that traders don't think about and really it's a very important part of trading. The topic is risk a little, earn a lot. And if you have any questions or would like more information, you can go to my website at www.thestockswoosh.com or you can email me at Melissa at thestockswoosh.com as well. So, do you wish you could make more money by only risking a little?  I need to have all this money. Well, actually, you know, it's really about quality and trading, not about risking a lot. It's about really honing in on the detail. Ask yourself, is there enough profit potential in the trades you take? If you are trading and only making a penny per penny or a dollar per dollar, that's really not enough payout to be a successful trader. Is there enough profit potential in the strategy you trade? Now, the strategy that I happen to trade, which we're going to discuss today, is gaps. This was a gap here, a very nice gap that happened. And this is a very profitable strategy gaps. There are a lot of different strategies people do in the market. However, not all of them pay a very high risk to reward. So that's what we're going to talk about today. When you exit your trade, do you always feel like, ugh, I just, ugh, I didn't get enough. I wish I want more, I want more, I want more. Do you feel like you need more? Like you're always looking out, isn't there more? You're always wanting, always needing, always wishing, always hoping. If this is what's happening to you when you're taking your trades, then something's going on. Something needs to be corrected. Either strategy or your actual entries or your exit positions in the place that you do. Because you should exit a trade, a good trade, each and every day, and feel good. Good about yourself, satisfied, not wanting or needing more. Like you had a terrific trade where you can pat yourself in the back and book money. And the way to do that is to getting the right risk to reward. Do you have to risk a lot of money to be successful in the market? The answer is no. No, you don't. You really don't. This was a trade that just happened last week. This was on Friday. This is one of these things that's just so uncanny. I could look back at the daily chart of the stock on FIO. The range on this day, I got literally the entire range of this move on the day, was very unusual and really wasn't a big range, but was enough range with a correct analysis to take the trade and get the move on down. And I got the full move of the stock on the day. I mean, it was an excellent trade. It had a really good risk to reward. And the bar of the day really wasn't much of anything. So you really don't have to risk a lot of money to be successful. The entry for this trade was in the morning. And the price was $9.73. Stop was over $9.81. I'm going to go back and show you in a minute. So if you just wanted to risk $80 and anyone could risk $80 if they wanted to trade the market, you could have taken 1,000 shares of this. Exit was $9.43. It was the entire move of this bar on the day. Total profit would have been $300. This is a 3.75 times the amount of money your risk was made in profit. And we're going to discuss this in more detail today about what this really means. So you could have turned $80 into $300. That's a great risk to reward trade. That's excellent. So again, $80, you could have taken this trade in here and $80 risked $80, gotten this move down in here and gotten out. A very profitable trade, a very nice trade, doesn't look like much. This doesn't look like much of anything at all. And yet you could have risked $80 and made $300. And if you're an advanced trader, you could have risked even more. So this is the kind of thing that really should be the goal. The goal to get this day after day after day consistently because this is how you rack up earnings and start to really get going making money in the market. And how do you get to a point where you can start risking more than $80? We can risk $160, $240. Start to double and trouble your risk. You've got to be able to figure out how to get the quality, the most bang for your buck, no matter what you're trading. So the right risk to reward in trades equals results. And when you have results, you feel confident, you feel good about yourself, you move forward, and you start to increase your size trading and the only difference from what you're doing today until the next day or the next month or the next year is size. And that's how you start to really make a living in the market. So how do you measure the success of your trading results? If we're measuring this on a scale here on a ruler, how do we really measure whether or not something is good or whether or not something is so-so, whether it's just like maybe trade? Well, here are some examples. Here's an example of an unsuccessful trade. If you risk $300 and you're making only $150, that is not a successful trade. Now, this isn't a loser, okay? This is not a loser trade. You risked money and you made money, that's fine. But this is not what I would consider a successful trade. Someone risking $300 is only actually making a half of the amount that they're risking. What would I consider a successful trade? Example of a successful trade would be risking $300 and making $900. That's a successful trade. This is what I would consider a 3R risk-to-reward trade. You risked $300 and you made three times that amount. That's $900. This is a very successful trade. Now, an example of a really very successful trade is what? Well, when you're risking $300 and you're making $3,000, this is 10 times the amount of your risk. Do you get trades like this? Yes. Again, how do you find them? Where do you look for them? How do you know how to take them? These are often things that go to dream targets. Actually, today, a lot of trades, a lot of gaps, went to really beautiful dream targets. What kind of trader do you want to be? Ask yourself. What do you want to be? Do you want to be a so-so, maybe a no?  You want to go and say to yourself and to your friends and look at yourself in the mirror and say, I really did it. I did it. I'm doing it. I'm doing everything correct. I've got a good strategy. My money is working for me. And ultimately, that's what you want. You want your money to work for you. You do have to get your money to work for you in the market to make everything, all the effort, all the work that you've done to get to this point worthwhile. It's really about quality, not quantity. Just like when you go to the store and you want to buy something, sure you can go and you can buy cubic cerconia diamonds for your girlfriend or a watch that's a knockoff for your boyfriend or your family friend. But, you know, will they be able to tell the difference? You can tell the difference. You know the difference. Just like you know the difference when you take a good trader, you take a trade that's really not that great. It's about quality and everything you do with trading. Results really are about the risk to reward no matter what size you trade or how much money you have or risk. So, it doesn't really matter if you're trading 100 share lots, 1000 share lots, or 10,000 share lots. It should always be about the risk to reward and whether or not it's worth it. And it doesn't matter if you have a small baby beginner account or an advanced account, a very large trading account. People that have a lot of money still want to make more with what they've got. This isn't just about beginner people trying to turn something into something bigger or more for themselves to grow a small account. Real people, wealthy people, people that are trading a lot of size still want to make as much as they possibly can with what they have. And even more so, people that are wealthy and have a lot of money are very, very concerned about taking things that are quality, quality, quality. So, good risk to reward trades are for everyone. They're for everyone.  They're for everyone. Everyone wants to make the most of it come with the amount of money that they have, whatever it happens to be. So, spend your time and money wisely on good risk to reward trades. So, what is a good risk to reward payoff? Well, let's talk about exactly what I... This is what I consider a good risk to reward payoff. One to three on the low end. Okay, this is the low end. So, you're really looking, the goal is three. You want to make three when you're risking money on a trade. Four to six is what I call the middle end. If you make four or more, that's the middle end of your risk to reward, and that's actually pretty good. If you can make four or five hours a day or risk amounts a day, that's it. You're making money as a trader. This actually pays for some losses and you're still paying yourself at the end of the week or the end of the month. And eight to ten on the high end is what you will get when these stocks move for bigger targets. And you don't get these trades every day, but when you do, it's an amazing thing and they really bulk up your week and bulk up your month. So, this means for every dollar you risk, you should have a goal. This is the goal of a minimum of three dollars that you want to make. Also, there should be a potential. Whether or not you get it every day or not, you don't know. You don't know to the stock opens and trades, but there should be a potential, meaning I know the dream target is this and if Crest gets to the dream target today, then I'm going to make this much. So, the dream target should get you at least eight to ten on the high end when you do it. So, really, if you calculate this on a percentage basis, and I know a lot of people like to think of things this way that think about money, then that means that if you invest a dollar on a trade and you are paid three dollars on a trade, that you are gaining a 300% return on your trade. This is huge. This is huge. And by the way, this is why people want to trade the market. Because you can't take your money into a money market account of CD or pretty much anything else, maybe real estate. You know, but even that doesn't turn around for you in a day when you invest money in real estate. It takes time. You can invest money in trading on the day, live, intraday trading, and have the money booked and be flat by four o'clock and it's there, it's yours, it's in your account and you don't have to wait weeks and months and years to get paid. This is why everyone that I talked to is so excited and wants to trade the market. Because this is a 300% return on your money. That's really what it is. And this is on the low end, but this has to be the goal. So, this means if you're risking a dollar and make $3, you're having a 300% return on your trade. That's amazing. So what other strategy the market offers is kind of paid in a dollar for dollar basis. Gaps, gaps, gaps is it. Gaps, the way that I trade, what we're going to talk about today, golden gaps, this is it. This is the way to do it in the market. And by the way, there's lots of things you can do in the market to make money. I've tried them all since the day one when I started. And this is the best way to really get the most bang for your buck. And this is the way to make a large profit in the market. And this is the way to risk a little and turn it into a lot. Or you could risk a lot and turn it into a way lot. This is also the way you can make a very good rate of return percentage wise on your trades and positions in the market. And ultimately, this is the goal. This is the goal for people because you're spending your time and money doing this and you want to see some results. So how do you achieve good risk-to-reward results? Well, you've got to learn how to take successful setups. Such a big part of it. Learning how to take successful setups is something traders really, really need to focus on. And I know this. It's like trying to win the race before you even qualify for the run. You need to learn how to take successful setups before you can make money in the market. The play is so important because this is how you enter and exit the trade. The play is important because this is how you're making the money trading. And you can have a correct directional read, for example, on a chart, but if you take a bad entry or put the stop at the wrong place, then you can lose in a position even if you get the directional bias, right? Or you might not make enough because you may undersize yourself not knowing where to put the stop correctly, meaning put the stop at a place where it's really, really far away. If you're unsure of how to take a trade and therefore missing out on the right risk-to-reward, and this is key. This is really what's going to make a difference in your P&L at the end of the week, at the end of the month to be able to pay yourself.  Do you believe in small stops or really do you think they're bogus? You know, they're not bogus, they're real. I know because I'm doing them and I'm doing them every day. It's about precision and detail and that is what matters. Accuracy counts. It accounts in trading in all fronts. What does that mean? It means a quality strategy, a good risk-to-reward, the right entry, correct sizing of your position and the proper exit. Successful in the market takes detail and a certain level of precision and detail matters. Of all the things you think you do, they really matter in trading. It happens on a minutia time element during the day when you're day trading, but it really, really matters and once you learn how to do it, it's actually easy. It can make a difference in you making a lot of money one day or losing one day. So it is really important. And so you have to learn what to do and not only that when to do it. Here's a good example. This one just happened this week. This was just... Yeah, it was yesterday. It was on the 29th. This was the AG&C. I was in this trade all the way back here. I had the stop at $22.50. I traded all the way down money in this trade. All of a sudden I had to know where this machine thing happened and machines trade in the market and they're part of the market and we have to trade with them. But here's a great example where accuracy and detail played a factor in me staying in this trade. I had the stop at the right place. It was a tight stop. It was three pennies over the high. I didn't get taken out of it here. The machine came up and retested this number right back here at the resistance and I was in the trade and continued on and made money and was tripping trade. So this machine even didn't take me out. Why? Accuracy and knowing exactly where to put it. And many people who wouldn't know this might have either and gotten scared from a machine little bar like this or if they didn't have the stop at the right place would have gotten taken out. But this is a reason people don't know how to use stops. They see these things happen in the market like this and then they're not sure and they might put the stop like all the way up here. But this kills the risk to reward then at the trade if it's all the way up here. I'm taking more size by entering it and putting it here. And there's no reason to put it up here. If it comes up here, then I don't want to be in it. People are afraid of machines in the market but it's all about accuracy. Remember, machines are programmed by people. That's all. Machines don't work on their own. They're programmed by people. And what do people use? They use numbers. And so this is where the accuracy and the detail really counts. And by the way, here was a resistance on this. This is to the penny. So advanced technical analysis is the way that I trade. And this is how that I trade every single day. This is how I'm teaching people how to trade and it's real. It is so, so real. All the information you need to analyze stocks to find quality entries is found in the price action in charts. That's how I trade. Using advanced technical analysis skills can help you predict how the stock is going to set up before it does and also where it is going to go to a target before it does. Target of A, G, and C was 22.70. It went to 22.71. It went to 22.71. And I said in the morning, the target was 22.70. So when the stock sets and triggers, you can take deliberate action and enter the position without hesitation. You've got to be deliberate. You take a trade. I'm deliberate when I take a trade. Boom. And stop over there. Do it. I'm in. I'm deliberate. No hesitation. No question yourself. No wondering. Get in. Do it. Put the stop at the right place. Take the size. Go. Get the risk reward. Get the trade. No fear. Technical analysis, which I 100% believe in and have 100% conviction in and use and see and line with the market day after day after day, uses past price data to predict future moves and stocks and the market. If you want to become a successful trader, it is important to analyze price action in detail. This means the numbers. That's all. Understanding price action helps you evaluate the correct directional trend of a chart. So you know what direction to take the position and when.  It's about proper trade execution. You've got to press the button, but no fat fingers here. Lots of people just are so unsure of themselves. This is why setups and entries are so important in trading. Because it's about calculated risk. It is not gambling. It's not just press it, press it, press it. No. This is your own money you're risking to make sense. What do I mean by calculated risk? It means a chance taken after careful estimation of the probable outcome. Careful estimation of the probable outcome if agency gaps down to here and if agency sets up here and the resistance is here and the target is here will I make at least a 3R risk to reward or more? The answer is yes. So you estimate this before it happens as a probable outcome. Proper risk to reward trades use calculated risk. That's how it's done. And this means knowing what the stock to trade. So you've got to know what to watch too. What is the basis though for taking a certain position in a stock? I don't just play any stock in the world. Or knowing that the setup will go where you take it with the stock where you put it. It's because of the actual strategy that I'm trading which is the gap. It's because of the gap and it's all in the quality of the gap. And if you don't know what gaps are in the market, it's because of the strategy in the market. And they happen in the market every day, every day of the year. So where do you find these kinds of quality setups that you can take small stops in gaps? Quality setups that provide good risk to reward are found in highly rated gaps. Gaps are an event in the chart of a stock in our large display of price action. That's why they're so meaningful. That's why these moves work so well in the stops fit. In the market, notice gaps. They all notice them and they play them too. And then they trade them. And as one individual, then you can trade them too to make money. So this is where the opportunity arises. These gaps happen, stops gap, they gap up, they gap down. Everyone's seeing them. Institutions are seeing them and they're playing them.  And then you watch it and you look for the setup. I find gaps and then I rate them. So how do I know what gaps are the ones to trade? Well, I made this checklist for myself. It has to pass the checklist. I have a 26-point checklist test. It's like a test. You have to pass the test. And if it passes this golden gap, 26-point checklist text, then I watch the gap in the morning, wait for a setup, and I take it. And I figure out all the numbers ahead of time after I rate the gap what to do. Where is the support? Where is resistance? Where is the target? And if it sets up here where it's gapping and it goes to the target, do I have the right risk to reward? So let's look at this one here. This is a gap from today.  Symbolist CETB. Very, very small price point. Once again, you really don't need a huge, huge, huge million-dollar account to trade something like this. This is a really nice gap.  I mean even dream target was here. Around three ten-ish, or even three dollars, went through that. Beautiful, beautiful trade. This is a one-minute chart. The stock opened and showed immediate weakness. You could have actually taken this aggressively right away. Or you let it rally back and take it into the next setup. The entry time was, well, you could have gotten in here at $9.32, but the entry time really that made more sense was about $9.36. Price was $3.94. Stop over $4.03. The risk was $0.09. And again, if you look at this, you say $0.09, but the stop is over here, over the spacey base. So if this trade would have failed and gone over this area, you don't want to be in it anymore. Why? Let's go look at the daily chart. Here's right about where this thing was setting up. Okay? So when this is moving down, if it starts to back up against itself, it's going to lift. It could go anywhere at once. This is a big gap down. The stock actually closed here the night before at around $6.12. Opened the next morning here around $4.25. So if the stock fails on this setup and starts to lift, you don't want to be in it. This is why it makes sense to size yourself and take the trade and put the stop at the right place, because if it doesn't work, you want to be out.  The exit was 280 and actually broke that. Total profit, $6,840 if you risked $540 in this trade. What is the risk to reward? 12.67 times the amount risk made in profit. So you could have turned $540 into $6,840. That is a great risk to reward trade. This is an amazing risk to reward trade. Again, like I was saying, the stock went to the dream target and beyond. Do you get these every day? No. Do you get these a couple of times a month? Yes. Yes, you do.  And, you know, it's one of these things where you never think in your life that a stock at this price point would ever move like this. And yet it did. And yet it did. Why? What makes this much momentum? The gap. People selling out of this thing, they don't want it anymore. They've said, that's enough. And they just say, take me out, get me out. And then the selling goes down all day. Just persist in selling all the time. And it barely even rallied in the clothes. This, like, couldn't get a breath of life for itself. So a really, really, really nice move and a 12.67 time risk to reward is a great payout. All you need is one trade like this or two trades like this a month going to dream target and you have a month. I mean, this is a really, really nice payout. And again, it doesn't matter how much you risk here. If you only risk half of this, a third of this, 25% of this, whatever you can afford to risk, it's not about the amount of money. It's about the amount that you're risking per times. That's what's so great about this. The very idea that you could even risk $100 and make 12 times $100, that's $1,200. If you only risked $100 on this, you would have made $1,200. No, it's not difficult to short a $5 stock. I had this available to short today. I've had a ton of stocks available to short in a small price range. It's a really heavily, heavily traded thing here. You got to trade with people that can get you shorts. Obviously, I do that. Let's look here at HWAY. Another beautiful gap with a nice follow-through that continued this is the day of the gap and the follow-through the second day and even the third day down. This was even breaking today, too. Really, really nice continuation move on this. Again, nobody wants to sing. It's dead. This was a second-day play on this and the reason I'm pointing this out is this was a second-day play on this. Sometimes these things have really nice moves to the second day, so it's the follow-through the gap. Again, stock opens here at $9.30, sets up immediately and breaks. Look at this move all day.  You just never look back. It's just a constant, constant sell-off. Entry time was in the morning. Price was $11.49. That was over $10.60. I'm going to show you where this resistance was here in the next chart. Risk is $0.11 on 5,000 shares, which is an advanced risk. Risk is $550. Exits $10.66 is almost a dollar move in an $11 price point stock. On a follow-through continuation of the gap. Why? Because not everybody gets out the day of the gap. Lots and lots of time stocks gap for various reasons and not everybody notices them on the day of the gap. Lots of people do. Most people do the day of the gap. But then sometimes what happens is the late people come in and they see it then the next day and then they continue after the fact. And sometimes it happens like for a week after the fact. Total profit on this with an advanced risk is $41.50. This is over seven times the amount risk was made in profit. Again, if you wanted to risk $100 here, you can still make seven times the amount. Over $700. You don't have to risk an advanced amount. This is the same point. Is this a tight stop? Yes. Is it the right place to put it? Yes. You can turn $550 into $41.50. This is a great risk to reward trade. Now why was this the right place to put the stop? I'm going to show you here. Sit is asking a question. And anyone else that has any questions here, I'll answer them too. How much equity do you need to short a stock like this? Like 5,000 shares. Well, for this price point you needed about $55,000 a little bit more, give or take. I would say between around $55,000. You needed about $55,000 in buying power. That's not cash for cash.  Depending on what broker you go with you have to check to see what leverage they're willing to give you. To take this position you would have needed about $55,000 in BP, give or take. Buying power. That's not dollar for dollar. Brokers give you leverage. And you have to check with the broker to see the leverage they would give you. Go ahead, keep asking me questions. I'll answer them here while you're writing that said. This was this second day. This is the first day here. I'm just showing you this chart. So this is the day of the gap here, which I did play this this day. This is the second day in. Now how did I know that this was a good place to put the stop here? This is just so detailed. But this is the opening price in the day here. This is the second day. I want you to go with me here. You see this? So this entry where the stop had to be was at the resistance level. This is the resistance level for where it can't back up if it's going to fall through and work in the second day. Okay, there's some other questions here. Let me answer them. Do short gaps or long gaps tend to work or fall through better? I do shorts because shorts tend to work faster and I think they have bigger moves. Why? Because there's no sense of urgency for people to buy something. There is no sense of urgency for you to run out and buy something tomorrow if it gaps up. You might think about it, think about it, think about it, and you might buy it in a day or a week or a couple of days after the fact when you see the stock price going up. There is a sense of urgency that's created here. If you see this HWAY, stock was up here the night before at 1640. Gapped down here the next day at 1160. The stock price lost four or five dollars plus overnight. There's a sense of urgency here. Crap, we gotta do something. What should we do? What should we do? We're in this long. Should we get out? Should we get out? Yeah, let's get out. Let's get out. Get us out. Out, out, out, out, out. There's more of a sense of urgency with shorts. That's why I like to play to the downside. I prefer to play to the downside. You can play bullish gaps as well, but the downside gaps work very hard and fast and quick and there's a sense of urgency. But you can do gaps in both directions as long as they rate high enough to do. And the short moves work fast in the morning and bullish moves tend to take more time all day. So, anybody else have any questions? No, I do not trade options. I do not trade options, but I do have people that have taken my class and used the information to trade options because I'm teaching directional bias. So, I'm teaching directional bias. I don't trade the options myself, but you could if you wanted to, if it made sense, some will make sense to do that, some will not make sense. You have to look into that. But it's based on the directional bias then you would look out for the gap. So, I've had people do that. I've had people do that on some of the calls I've made in some things over the last year. I'm just not doing it because I like to do the straight equities. Let's look here at the Juniper. Juniper was a really nice gap again that had the follow through. Juniper was last week, too. Look at the size of this bar. This is a monster. And then it fell in three even the next day and you could have played it in here. For anything, for shorting stocks or buying stocks or anything, it's not just for shorts. Any type of trading that you had that you want to do, day trading, where you want to day trade, you have to find a broker, a qualified broker that will allow you to day trade. It doesn't matter if you short or buy, you have to find a broker which you can day trade with. And it's nothing to do with the shorts. Whether it's shorts or longs, you have to be able to find a broker that will A, allow you to take shorts and B, you have to check with them to find out what their requirements are for the balance, for the leverage, all of those things. No, not if you find a broker that will allow you to day trade. You have to find a broker that will allow you to day trade. And there's a million out there. Okay, let's look at the golden gap for Juniper. Well, how did this one work out? This actually had two very nice plays in it. One in the morning and one in the afternoon. Again, this bar like this can be played all day. Played in the morning, let it ride back out, played again. And you could have played it the next day. Okay? So Juniper's entry time was immediately in the morning. Price was $19.95. Stop was over $20.15, risk is $0.20. So if you want to take an advanced risk of $500, it'd be 2,500 shares. A good is down to the drop. It got within 5 cents of the dream target. Total profit with a $500 risk is $22.50. This is a very good trade. It's over 4. 4.5 times the amount risk made in profit. This is turning a really, really nice trade into something even bigger. You're getting in the trade here. The stop is over here. Now you say to yourself, well, is this too tight? No, why? Let's go back and look at the Juniper here. So you see where this Juniper gapped? Here's where it closed the night before here, around 2039-ish. And open the next morning right here. This has to break and go right away. If it doesn't, it could put seat for this thing. Why? This could have failed. It could have actually gone up and traded up higher. Why? It was coming down into this area here. Do you see this? There's a lot of price congestion in here for this. To the left here. So this is one of these ones there again. You have to see the setup and you take it aggressively. You rate the gap. You like the gap. It rates for the 26-point rating system. You take the trade when it sets up. Why? Because it should go. And if it doesn't, you want to be out. Okay? And it does go. And it breaks and falls off the planet before you can even say go time. So after the first trade in this, which came all the way down to the dream number here, this is all the way into 10 o'clock. 10 o'clock. Look at this. You could have done a second trade in this. Juniper had the morning move. Rallied all the way up here. Beautiful, beautiful pattern here. Resistance. Set up here in the 15-minute chart. Now this is a 15-minute chart. The other one's a one-minute chart. This is a 15-minute chart. Again, a reading price action. Seeing the stock set up here to go on and break. Again, went down. Broke the low by a few pennies. You're out. So you could have had the first trade in Juniper and you could have taken a second trade in Juniper. Price is $19.44. Stop is over $19.55. Risk is $0.11. Again, a 5,000 shares. It's a $550 risk. Exits $19. Total profit's $2,200. Risk to reward is four times the amount made in profit. Again, you're only looking for three. You're only looking for three. And if it goes to the bigger number, could this have gone more? Sure, it could have. Let's just go here and look and see where could this have gone. Here. Actually, dream target on this was $18.70. Real target was actually, the real target was $19.25, then $19. Dream target was $18.70. Look, it actually broke that the second day. But this is late here. This is a late, late trade. This is into the close. It's after 3 o'clock. So then you got to get out. But you could have made two really nice trades in Juniper, making over four risk units twice. So let's look at the advanced results for Juniper. If you're an advanced trader, what were the results for you? Well, in the play one, you risked a $500 and you could have made $22.50. In the play two for the advanced trader, $550 was a risk. You could have made $2200. Now, let's just say worst case scenario, this one would have failed.  So even if the second one would have failed, you still would have had a $1,750 for some profit. That's still a very nice day, even if this had failed. Now, the total risk for both the trades, though, was $1,050. $500 for the first, $550 for the second. Total profit result was $4,450. This is in one stock, in one gap, in two trades in one day. And the worst case scenario is that the first trade would have lost. You would have lost $500. Is it worth it to make this? Yes. Yes, it is. Total risk to your pet is $4.2 in average in both the trades. And this is on one stock in one day in one golden gap. I use... Let's go back here. I use very clean charts. Ray is asking about moving averages. This is a $200 period moving average. This is a $20 period moving average. This is an $8 period moving average. I really have very clean charts. I don't want to see a lot of mucky muck. I want to see what's exactly going on. I don't use Fibonacci's. I don't use anything else. I've seen some people's charts that look like a planetary solar system plopped on top of it. And you can't see anything that's going on. I really think the reason I'm so honed into all this stuff here, when I take my entries and setups and the stops and the numbers and everything is because I have clean charts. So if there's anything I could advise you to do is get your charts clean. In fact, do a test for yourself. For those of you that are traders already, just test yourself one day. Take all the junk off and see if you can do it. I bet you trade better. I bet you don't even miss half the stuff that you're using. You don't need it. Sometimes we rely on these things. We cling to these things. And they're not even helping us. And in fact, they're really hurting us. This is a 15-minute chart. But I use these same things on anything. The one, the two, the five, the 15, all of them. Okay? So think about what I'm saying here. Clean, clean, clean. The only thing that matters is the price anyways. The 200-peri-moving average, the 20-peri-moving average, the 8-peri-moving average. And this is the baby one, the 8. I use simple peri-moving averages, not exponential ones as well. And I really, really think it's a good test for people to take some stuff off if they've got too many indicators on their charts and see if they can live without them. It tests your knowledge. It's going to force you to hone in and focus exactly the detail that I'm talking about here today, which is what? Technical analysis. What is technical analysis? Price, the movement of price and the reading of price. This little jiggy over here when it's moving. I'm watching this moving little guy here when it's moving real time. I'm watching these bars as they're moving here. I'm watching the price action. Is it going up? Is it going down? Is it getting sold off? Is it showing? Is it done? What's happening here? How is this going on? I'm looking at my level two. Simple, simple, simple, simple. Simple moving averages. The beginner results for Juniper could have been this. Let's pretend you didn't want to risk $500 a trade. Play $100 risk would have been a profit of $450. Play $110 risk would have been a profit of $440. Tell the risk then on these two trades for the beginner person was $210. Tell the profit results would have been $890 for this beginner. So this person wanted to risk $210 as a brand new newbie. He could have made $890 on that day in Juniper and that is fantastic. That's outstanding. To be able to risk $210 and make $890 as a beginner is outstanding. Total risk to reward is 4.2. Again, this is all in one stock in one day. You don't have to do a million trades. You don't have to look at a million gaps or a million stocks. You don't have to look at anything other than Juniper and follow it. Just sit there and watch it set up and see everything it's doing and understand it. Because in the end, understanding what's going on here is so key. Understanding what's going on here is so key and I know that when people see these things and they're trying to say, ah, but to me, I'm looking at this and I'm seeing this as utter perfection and so this is what I'm teaching people how to do because this is what matters. This is what matters. Otherwise you're chasing it down here or you're putting in a stop all the way up here because you're not sure and then you can't take the size. Again, I was talking about qualifying for the race and getting in the race and winning the race. How do you get to the point where you can actually be an advanced trader like this? You got to be like this. You got to start from here and then you go to here. You got to take to the point where you can take 100 shares, 200 shares, 300 shares, 1,000 shares. You got to be able to do that before you can do this and it doesn't matter again how much money you have. Even if you have millions of dollars, I say just get good. Start from scratch and then work it up to this because you need to have a level of understanding of what's going on here to take the risk, to take the trade, to take the positions, to do it because you're doing it. You're the one that's doing it. You're the one that is doing it. So why do these setups work? Well, they work because of the gaps. Golden gaps are quality gaps. Golden gaps provide setups that have a good risk-to-reward payout and not every stock or gap will offer good risk-to-reward. I mean, that's the fact. If that was the case and all we'd have to do is roll out of bed every morning in place. I mean, look for these setups. But do they happen in everything? No. Do they happen in every gap? No. That's why I figured out a system to qualify them. Then they do need to be qualified. Gaps need to be qualified each morning to determine if they meet the standards of criteria to trade. It's kind of like having a checklist like if you were a doctor.  You'd say, okay, nurse check, suit check, radiology check, anesthesia check. You check out everything. All this stuff has to be yes, yes, yes. You've got to get the checks. Otherwise, you can't perform the surgery in the person successfully and you have to do that. You're like performing surgery on the gap. Surgical. Go. Do it. Boom. And you take it deliberately and you're out. You're finding a highly rated gap is key and it's absolutely key to finding good setups and gaps are an opportunity to find good risk-to-reward trades. And they often have follow-through with good payouts and huge moves. It's all about the quality of the gap, which in turn leads you to the quality entry. And that's how you're going to make money. So in order to take the position at the exact price point, you need to be watching. You need to be watching the right stock to trade. And it can't be by happenstance. And if you're waiting to find stuff on a scanner in the morning, you know, you can miss the entry. You'll miss the entry I'm taking. I'm already in it. I'm close to being out by the time people are finding stuff on scanners that are dropping. I'm like, I could be completely out by the time these things pop up in scanners. So how do you know what to watch? You find the gap and you rate it. If the gap rates per the 26-point system, you watch it to set up. And when it does, you take it. Easy as that. Support and resistance levels and targets are determined pre-market before the open. That's the good thing about being prepared, just like if you were a doctor. You say, we got to get all these things lined up. And then we're ready to go. And then you watch it on the day. It does what you want, and you take the trade. Determining targets ahead of time helps you determine if the stock is going to have a good risk to reward move. And that's the whole idea. So you've got to learn how to take large positions with small stops because you have conviction in the gap. How do you get to the point where you can take a 5,000 share position? You've got to have conviction. I trade with size because I have 100% conviction in my own system. I have 100% conviction in gaps as a strategy and I have 100% conviction in my own entries when I take a position to just do it. Do it deliberately, aggressively, right when it sets up and go for it. And do it, and that's what you have to do. And this is trading. This is the kind of thing where you can do where you can make $3 to risk $1, make $10 by risking $1. How do you do it? You have to have conviction in this. This thing here is everything. It doesn't look like much, but it means the world in this chart. This really doesn't look like anything to anybody unless they're, you know me or took my class or are me. You know, I just love these things. I know there's so much money to be made in these things. And not everyone that's in this chart is like this thing here. I just know when I rate these gaps and it rates per my system that it's going to pay me. And that's how I'm able to trade. That's how I'm able to do it. Golden gaps give me conviction to trade and take calculated risk. And the calculated risk is in what? Is determining first of all that the gap rates per the checklist, number one. Then you wait for the setup. And then the calculator risk is I'm taking the entry here and putting the stop here. So you are risking a certain amount of money, dollar-wise. And that is how you're figuring out your share size. You're going to determine the sizing of the position based on the dollar amount that you want to risk, whether you want to risk $50, $100, or $500. It is up to you. And then you take it. So I teach a class called the Golden Gap Course. That's what I named my system because I decided that these gaps are like finding gold in the market. Why? Because of the entries, because of the setups, because of the way that they run, because of how big that they pay for the amount of money that I risk. The Golden Gap Course teaches a 26-point rating system to find the best stock to trade each day or in multiple stocks. Many days there's more than one gap to trade. Today you could have done anything. I said in the room, you could just do anything today that I had that I liked. I said you could just do anything I liked today. And you could have done anything I liked or did them all. And they all are one of these things where you just say, can I do two or three things at the same time? I don't know. I really like to focus on one thing. I did do two things today, but sometimes if you can manage it, you do three or four. The course also teaches you how to enter and exit the stock of the day to get good risk to reward trades. The course teaches price analysis and ethical analysis on an advanced level. And you got to learn it. You know, it's just one of these things. The idea of not wanting to learn something isn't going to make you money to market. You want to do well in the market, you got to learn what to do. There's no shortcuts. There is absolutely no shortcuts becoming a successful trader. I'll tell you that right now. You've got to learn the information and you got to study. The course teaches a more proficient way of understanding resistance in the right direction. The course teaches you to focus on one strategy in a detailed manner so you can become a good trader because that should be your goal. If you say, I want to be the best trader that I can be, then the money is going to come to you. If you just so focused on the money and now focused enough on the setups, where do I take this what price, then you're going to have your mind on too many other things. Just try to focus on one thing which is the gap and the setup and being a good trader. Then the money will come to you from the market. The Golden Gap Rating System is a 26-point checklist. This is my thing, this is what I do and I'm very good at it. It measures gaps by rating them in the daily chart to find stocks to trade that have a high probability of directional bias for the entire day, a big move in the day, early confirmation of the bias in the move between 9.30 and 10.00 a.m. and precise entries with follow-through and a good risk-to-reward target potential which is very, very important and it doesn't matter what strategy you trade or what kind of trading you do. It doesn't matter if you do options or futures or forex or anything, anything you do in the market or any market you trade in. A risk-to-reward has to be there. It has to be there. There's fees involved when you trade. You've got to pay commissions. You've got to pay room fees. You've got to pay platform fees. This is what makes it worth it. This is how you pay yourself in the end. You've got to cover all the stuff, the costs that involve to trade and then still pay yourself how you're going to do that. You've got to have a good risk-to-reward. You've got to learn how to take good risk-to-reward trades. The idea is to book the money. So the Golden Gap system has great risk-to-reward. All the pieces of the puzzle that you need to do it successfully. And I teach a class called the Golden Gap course. It is November 9th and 10th from 9 a.m. to 5 p.m. eastern time. The cost of the class is $2,499. It is a professional bearish gap system. Again, because I'd like to focus on the shorts. That is what I'm teaching in the class. You could rate the gaps and flip the points if you wanted to do them in the bullish direction. I personally like to focus on shorts, but you could rate a bullish gap and just flip the points in the reverse direction to rate the gap with the 26 points. My email, if you're interested in signing up for the class, is Melissa at thestockswish.com. Remember, your path to success is the Golden Gap course. And you've got to get on a path to success. If you're not on one, think about getting on one before the end of this year. My goodness, it's almost 2014. Fall trading is great because of the fourth quarter earnings season. We're in the thick of it now. It lasts for the entire next month. Great time of the year to trade during fall. I also teach another class called a Trends course. This class is a course on how to read trends and stock charts, which I think a lot of people find challenging and is another good thing to learn. It's November 13th and 14th for one to five eastern time. The cost of this class is $9.99. If you're interested, email me at Melissa at thestockswish.com. I'm doing a combo special for November. It's the Golden Gap course and the Trends course for one price for $29.99. So you're actually saving $499 if you want to do both the classes together. It's a really good savings. So you could do both the Golden Gap class and the Trends class for $29.99. You save almost $500. And I run a live trading room. It's called Stockswish Live, where I trade, call Trends Live, and do it every day. And I'm running a special for Golden Gap class students for 2014 to go into the year and be in the room and do the trades with me. It's a holiday room special I'm offering this month and includes the entire year of 2014 plus the rest of 2013. So it's 14 months for one great price. It's a holiday room special of $1,800. The room is normally $200 a month. So at this price, it's 25% off, plus you get the extra two months for this year in 2013. It's a savings of $800. And the average room rate then with the special is like only $128 a month. This is a really, really, really good deal. And then you're in the room for the next year, year and next 14 months trading gaps. So happy Halloween, everyone. Thanks for coming. Does anyone have any questions? Any questions on anything? Anything anyone wants me to go over? Any questions about the class? Any questions about the setups? Any questions about gaps? Here's my email. Does anyone have any questions about anything? Rayson. Anyone have any questions about any of the charts I talked about today? Any of the trains today? Any of the gaps today? Anything about gaps in general? Or the class? Well, if anyone has any questions, you can email me there. You can feel free to email me there. Kathy put my... No, I put my email in the room there. And here's my phone number too if you want to reach out and call me. And I'm a live trader. So, you know, it's all me. I'm trading live. I'm teaching the class myself. And I'm teaching people actually what I do myself. And by the way, I made it for myself. I didn't ever make this to teach anyone. I just decided that I wanted to learn how to trade and I threw myself in the market. And what I figured out was really good and my friends encouraged me to start teaching it to people. So I started a business. I think the reason though my information, my rating system, everything I do is really good is because I did it for myself because I really wanted to do this successfully. You mean the webinar queue? Will this presentation be available? I actually am taking this and it will be on YouTube. It will be on YouTube probably this evening or tomorrow if you would like to re-watch it, yes. And I have a lot of videos on YouTube. Sure, Ray. You can email me at Melissa at thestockswish.com if you would like a free trial to the trading room to check it out. And I have a lot of videos on YouTube, just a ton of webinars and different trades I've done. And I do a lot of market reviews, although I haven't done a market review on YouTube for a while. I've just been too busy. Just been too busy trading because it's earnings season. So yeah, you're welcome. Thank you, Q. So think about some of the things I said if you are a trader right now. Consider what I've said about this idea of risk to reward. I think lots of people don't even know it's possible to make this kind of risk to reward because maybe whatever strategy people do, they just can't get the moves and stuff. And so they tend to become scalpers. I know, because I know a lot of people that scalp trade. But really, it's not the way to make a serious, serious money in the market. The way to make serious, serious money in the market is to play momentum. And gaps have momentum. And it's a combination of the momentum that happens in the gap and the entry and setup to get the risk to reward that provides this type of payout. It's the momentum in the stocks when they're selling off. So this is really, as far as I'm concerned, the way to do this if you really want to do it seriously to make a living. And some people want to do a part-time and some people want to do it full-time. But if you really want to get the most bang for your buck even if you want to do it part-time, you can still trade gaps and trade them early in the morning and be done. It's one of these types of strategies that you can trade several times or stock several times in the day. But if you want to do one trade and be done, you can be out. You can be done by 10 o'clock, 10, 15. You're welcome. You're welcome, Ray. Any questions from anyone else? And I hope everyone has a wonderful Halloween. Hope you're going to some great parties and have some great costumes. I hope everyone has a wonderful night tomorrow night. All right. Happy Halloween. Have a great evening. And if anyone is interested in the class, it's November 9th and 10th, email me if you'd like to sign up and get registered. I'm taking a limited amount of people because I talk a lot and answer a lot of questions during the class. So the sooner you sign up, the better if you want to do it. It's not this weekend. It's next weekend. Thank you. I will have a wonderful Halloween for sure. And I'm still getting up and trading Friday morning. All right. Thanks, everybody. Have a great night. Email me if you need anything. Thanks, Kathy. And thank you so much Online Trader Central. Have a good one.


Let us do homogeneous transformation matrices one of the reasons why I want to jump to this now is I want to combine rotation and translation because I need to use both of those operations to be able to place a rigid body anywhere I like in the world right because these remember these are the movable parts of our model the movable models. So, one way to achieve that is to do rotate rotation followed by translate. So, in other words I get my transform point x prime, y prime, z prime by multiplying out this rotation matrix R which I will just again not write all the entries and I will just put points here. So, that is a valid rotation matrix and then x, y, z is my 3D point that I would like to rotate ok. We agree that that is just simple rotation that we have been doing using the matrix and now I add to it some translation that I want to do I was using this notation last time I use x t, y t and z t for translation. So, if I go ahead and do this I should be able to generate any position and orientation for the rigid body how many degrees of freedom do I have here 6 correct. So, I have 3 different parameters here I can apply for translation and then I have 3 independent parameters I can apply in here after we satisfy all those constraints I gave last time for a rotation right. So, that gives a full 6 degrees of freedom again we could do this part of the computation we are using quaternions, but I am doing all matrices today at this point because of some of the particular transformations I will be getting into. There are interesting questions then about when to convert to quaternions and why at different various times. So, one thing to note is that the rotation part is a standard linear transformation, but this addition part comes outside of that because I am not multiplying a matrix here in the front right. So, I am not multiplying and adding matrices I somehow I do not have a simple equation of the form y equals a x I have added some extra term to it. So, one simple trick that people like to do is just extend the matrix by one dimension add another row add another column and then you can get this expression into a form that looks like this or there is just a single matrix. So, it is just a kind of let us say mathematical or algebraic hack and we end up getting something that is algebraic equivalent. So, let me just you know there is no real magic to it other than just recognize that it algebraically computes the same thing. There are some deeper interpretations having to do with projective geometry, but I do not need to go into that for this part. So, we make a 4 by 4 matrix that is algebraically equivalent when applied to a point. So, what I do is I take my x y z point over here when I just applied the rotation and translation in the standard way my point is just x y z over here I am going to extend the vector by one dimension and just put a 1 at the end.  So, I am not really increasing the dimension of the point itself and then I am going to calculate some x prime y prime z prime and the results going to be 1 for that and now have a 4 by 4 matrix and the upper the upper left 3 by 3 component is just going to be the rotation matrix. So, this will be the rotation matrix R just copy it exactly from here and place it in and then I am going to take my translation parts and put them down here x t y t z t and the bottom row is going to look like the piece of the identity matrix. So, it will be 0 0 0 1 and then I will apply this matrix to my new 4 dimensional vector x y z 1. So, I go ahead and perform this multiplication now do we believe that we get the same result as we would from performing this multiplication right should not take too much to see the algebra of that. For example, if I just look at the calculation of x prime I get I get the upper row of the rotation matrix the first row of the rotation matrix applied to this column x y z here right. So, that gives me exactly the rotation part and then because I am carrying this 1 along here right I get because I am carrying this 1 here this 1 will multiply with this x t and just add it on right when I take this inner product between this 4 dimensional row and this 4 dimensional column I add on this x t that is exactly what I get over here right I am just adding on this x t for the translation. So, it is just a very simple hack that converts it into what is called homogeneous form. So, this is a homogeneous linear transformation and if by the way you want to add some extra part to it where there is an offset vector then this is called an affine transformation. It has very different properties and sometimes it is difficult to work with and you know algebraically a bit different. So, if you want to start chaining matrices together and have there be translations and rotations happening all the time then you do not have to switch operations you do not have to sometimes add on a vector sometimes multiply biometrics matrix. If you use homogeneous transformation matrices then you are always just multiplying matrices to achieve both rotations and translations. So, that makes it very nice people who do who work in computer graphics who want to code algorithms very efficiently in say GPUs would like to use the same piece of code or the same circuitry let us say over and over again. So, it is another motivation for putting everything into one standard form and just performing the same algebra every time. I have an interesting question for you now what is the inverse of this right. So, this is a homogeneous transformation matrix this 4 by 4 that performs rotation followed by translation. Well, before I ask about the inverse completely though before you answer that we should also understand what is the axis of rotation here right. So, if I translate first and then rotate is that the same as rotating and then translating right. So, if I translate first then I have effectively moved the axis of rotation. So, you could do that you could consistently go and define things that way we are going to do it in the easier to interpret way which is first apply the rotation. So, that we when we think about the axis angle representation we are rotating exactly about that axis and the axis angle representation. So, you grab the book here. So, if we if this were the origin you first apply the rotation and then translate it somewhere. If you were first to translate it somewhere then the rotation would be offset by quite a bit right depending on how large this displacement was that was induced by the translation. So, just something to pay attention to alright. So, these operations do not commute. So, if I take the inverse of this I need to pay attention to that. So, just something to warn you about alright. So, what is a T inverse and I have not written exactly what T is T is this 4 by 4 matrix here. So, I will say T is the 4 by 4 matrix. So, this part here this is matrix T. So, what is T inverse let me write a candidate for it. So, is T inverse equal to well why do not I just invert the rotation matrix what is the inverse of a rotation matrix just a transpose right. So, this only happens for what are called orthogonal matrices and orthogonal matrices are also have might you might want to call them orthonormal matrices because the the columns are have been normalized as well. So, not only are they orthogonal columns, but the links are normalized as well the the magnitude of the column vectors. And so, if I do that I could just maybe let us say take the 3 by 3 part here and I will just put r transpose in there because r transpose equals r inverse that does not work for general matrices, but it works here. So, we can go ahead and do that and now let us see why do not I just negate the translation. So, I could that is the inverse translation right if I if I move forward 5 meters the inverse of that is moving backwards 5 meters. So, why do not I just negate that. So, I can go minus X T minus Y T minus Z T and then I complete the rest of this matrix 0 0 0 1 how is that is that the inverse why not ok very good very good. So, the operations in the wrong order here. So, if you apply this matrix it is going to first unrotate and then untranslate right or first inverse rotate if you like and then inverse translate that seems fine except for that point that I made a little bit earlier when you have non commutative algebra you have to swap the order of operations when you take an inverse right you have to invert the order of operations. So, this is not going to work. So, the answer is no for that. So, let us write what the inverse actually is it is very helpful to observe these kinds of things when you are when you are writing code when you are doing development for these systems. I found it very helpful myself when doing development at Oculus just being very quickly able to find inverses change order of operations fix different kinds of bugs that happen very often you can get things working most of the time and then doing something catastrophically bad like maybe the yaw and the pitch will be aligned correctly and then the roll is backwards for some reason a lot of things happening like this and these are the kinds of tricks I think that are that are helpful the kind of insights let us say that are that are helpful that can save you a lot of time and trouble. So, if we go T inverse well the first thing I would like to do is undo the translation right because that was the last thing applied. So, to undo the translation I will put it over here I will make a matrix that undoes the translation if I want to make a perfect matrix that undoes the translation what should go inside of here the identity rotation which also just looks like the rest of an identity matrix. So, so that just undoes the translation that gets applied first, but remember that I am going from right to left that is why I made a big deal out of that as well. So, so when from right to left that gets applied first and then we come over here and in this case we undo the rotation. So, I have my r transpose there and then I fix the rest of this matrix here I had better not do any translations here now this is a pure rotation. So, I just put zeros and I complete the bottom in the same way always for these I do not need to multiply that out and simplify it you can go ahead and do that there is not you know this is a fairly generic matrix here anyway. So, I like to keep it in that form. So, once again to summarize T is rotation then translation when applied to a point and T inverse is inverse translation then inverse rotation ok questions about that.


Hi, I'm Joanne, and I take care of the content creation here at Art Resin, and I've got a resin tip for you. If you've watched our videos or you've read our blogs, you'll know that we recommend giving the resin a warm water bath, especially during the winter months when you may find your resin is cold. Cold resin is difficult to work with, and it needs to be brought up to room temperature before you work with it. A water bath is the perfect way to do it, and here are a few tips. The water shouldn't be too high, as warm as a baby's bath is just perfect. Always warm the bottles before you measure and mix the resin. If you warm up mixed resin, the heat will cause it to cure instantly. If water gets mixed in with your resin, it'll cure cloudy, so always leave the caps on, don't submerge the bottles, and dry the bottles off thoroughly before you open them. A tall, thin container will prevent the bottles from tipping over. How long the resin sits in the water bath depends on a few factors. How cold the resin was to start with, how big your bottles are, and how hot the water is. But here at Art Resin, we usually let a 32 ounce kit sit for about 15 minutes in warm water. Now another thing to keep in mind when you're warming Art Resin in a water bath is that heat accelerates curing. In other words, when you're warming up your Art Resin, pour it right away so that your resin doesn't cure prematurely. And keep in mind, you're going to lose about 10 minutes of Art Resin's working time of 45 minutes, so just be aware of that. And that's your resin tip for today, hope it was helpful, and we'll see you next time.