Welcome to Quantum Field Theory 4, Second Quantization. If there is a second quantization, then presumably there is a first quantization. That is where we start with the description of a system in terms of classical particles and through quantization arrive at a description in terms of waves. This is the standard quantum mechanics that we developed throughout the quantum mechanics series. In the case of a hydrogen atom, a positively charged proton is assumed heavy enough that its position can be considered fixed at the origin. A much lighter negatively charged electron of mass m orbits the proton with position x and momentum p. We write the classical Hamiltonian, the expression for the total energy equal to the kinetic energy plus potential energy in terms of the components of electron, momentum and position. Then we transition to quantum mechanics by replacing these components with operators. The resulting Hamiltonian operator is used in the Schrödinger equation for the electron wave function psi, which is a function of position and time. Solutions of particular interest are the so-called stationary states of definite energy. For these states the wave function separates into a spatial factor psi k and a time factor e to the minus i omega k t. The spatial factors psi k of x satisfy the time independent Schrödinger equation with e k equals h bar omega k. These solutions are the hydrogen atom orbitals that we discussed in the quantum mechanics series. As we also established there, each orbital can contain one spin up and one spin down electron. Though a complete quantum state of an electron in a hydrogen atom would be specified by an orbital and a spin state. We'll assume the subscript k indexes the so-called spin orbitals. More general quantum states can be represented as a superposition of the stationary states, each with some coefficient bk. The superposition can, of course, represent individual stationary states. If bm equals 1 and all other bk's are 0, then the electron is in state m. If bn equals 1 and all other bk's are 0, then the electron is in state n. If both bm and bn are non-zero, then the superposition contains different frequency components and the wave function is not stationary, but its magnitude squared varies with time. This was one reason that Schrödinger thought his equation could restore determinism to atomic physics. If the magnitude squared of the wave function could be interpreted as the actual distribution of matter and charge, then this oscillation of electronic charge would create electromagnetic radiation that would carry away some of the atom's energy, causing it to continuously transition from the higher to the lower energy state in a completely deterministic manner. The normalizing condition, sum of magnitude squared bk equals 1, would represent the conservation of matter and charge. During a radiative transition, the bk values would vary continuously while maintaining this condition. However, careful observation has shown that electromagnetic energy is not radiated continuously, but rather in discrete energy quanta, we call photons. The creation of photons is not described by a deterministic process, but rather a probabilistic one. Therefore, the magnitude squared bk must be interpreted as the probability an electron is in the kth spin orbital, and radiative transitions must occur in quantum jumps. At one moment an atom is in a high energy state, the next moment it's in a low energy state, and a photon has been created. As we discussed in the first video of this series, one goal of quantum field theory is to represent this quantum jump as the destruction of a high energy electron and the simultaneous creation of a low energy electron and a photon. Second quantization is the process where we start with a wave description of a physical system, and through quantization arrive at a description in terms of quantum particles. This is the process we have developed in this series for the electromagnetic field. In video three we saw that if a radiation mode of the classical electromagnetic field is described by a vector potential, a k alpha, expressed in terms of time factors e to the minus i omega t and its complex conjugate, then in the Heisenberg picture this becomes a quantum field operator formed by replacing the coefficients with photon destruction and creation operators. Now we want to apply this idea to electrons. Our approach will be to start with a classical electron. Apply first quantization to obtain a wave function, then apply second quantization to the wave function to arrive at a quantum field description of the electron. We dealt with first quantization in the quantum mechanic series, which we have just briefly reviewed. Now we'll treat the wave function psi like a classical field expanded in its modes. For electrons, this wave function should be a solution of the Dirac equation, the fully relativistic description of the electron, but that involves a lot of complicated bookkeeping. It's easier to work with solutions of the non-relativistic Schrödinger equation. This is simpler yet still quite instructive and useful in its own right for describing the non-relativistic low energy limit, such as atomic radiation, and it provides a useful foundation that we can extend to the relativistic case in the future. We start by writing the wave function as a general superposition of the spin orbitals. Then we apply the formalism we developed for photons. The coefficients of the e to the minus i omega t terms become destruction operators and the wave function becomes a field operator and that's basically it. Well, there is a wrinkle having to do with the destruction operator that we'll come to shortly and figuring out what this expression actually means will take some consideration. But yes, we have just produced a quantum field theory of the electron. In quantum mechanics, the expectation value of the Hamiltonian operator is the Hamiltonian operator applied to the quantum state projected onto the quantum state. In terms of our superposition, this is sum over L, BL conjugate, bra psi L, Hamiltonian operator applied to sum over K, dK, ket psi K. The Hamiltonian operator applied to the kth orbital produces the kth orbital energy ek times the orbital. So we get sum over L, sum over K, ek, BL conjugate, bK times the projection of the kth orbital onto the lth orbital. But this projection is zero unless L equals K, in which case it's one. So the expression reduces to the sum over K, ek, bK conjugate times bK, which is sum over K, ek, magnitude squared bK. This simply says that the expected value of the energy is the sum over each orbital of the orbital energy times the probability the electron is in that orbital. Based on our experience with second quantization of the electromagnetic field, we expect that if the coefficient bK becomes the destruction operator, b hat K minus, then the conjugate of bK should become the creation operator, b hat K plus. So the quantum field theory Hamiltonian will be the sum over K, ek, b hat K plus, b hat K minus. The creation operator times the destruction operator is the number operator, n hat K. So finally, the Hamiltonian operator is the sum over K, ek times n hat K. That is, the energy is simply the sum over all atomic orbitals of the orbital energy times the number of electrons in that orbital. The wrinkle referred to previously is that the creation and destruction operators we use for electrons cannot be the same ones we use for photons. They have to be separate fermion operators. For bosons, the destruction operator applied to the zero-photon state, the vacuum state, gives zero. You cannot destroy a photon if there are no photons present to destroy. The creation operator applied to the vacuum state gives the one-photon state. The destruction operator applied to the one-photon state takes us back to the vacuum state. The creation operator applied to the one-photon state produces square root two times the two-photon state, and so on. There is no limit to the number of photons that can be created. For fermions, the destruction operator applied to the vacuum state should also produce zero. The creation operator applied to the vacuum state should give the one-electron state, and the destruction operator applied to the one-electron state should take us back to the vacuum state. But now we come to the central issue. According to the exclusion principle, there cannot be two electrons in the same quantum state. So the creation operator applied to the one-electron state has to produce zero. Therefore, the fermion operators cannot be identical to the boson operators. They must differ in a manner that makes them compatible with the exclusion principle. Now, derivation of boson operators followed logically from a quantum analysis of a classical system, the harmonic oscillator. The creation and destruction operators were linear combinations of the corresponding position and momentum operators, which represent physical observables. But derivation of fermion operators will necessarily be abstract because there is no classical system analogous to a harmonic oscillator that obeys the exclusion principle. So let's see what we can come up with using logic and math. Boson operators satisfy a commutator relation.   Therefore, A hat minus A hat plus applied to the one-photon state produces the one-photon state plus A hat plus A hat minus applied to the one-photon state. But A hat plus A hat minus is the number operator, which applied to the one-photon state produces one times the one-photon state. So the final result is two times the one-photon state. If we try to follow the same steps with fermion operators, we have to get zero. Because the very first operation is the creation operator applied to the one-electron state. But by the exclusion principle, we cannot create a second electron in a state that already contains an electron. We will obtain this result if the fermion expression has minus signs where the boson expression had plus signs. Working backwards, we must have B hat minus B hat plus equals one minus B hat plus B hat minus. And working back from there, the fermion operators must satisfy an anti-commutator relation, which we represent with curly braces. The anti-commutator of the destruction and creation operators, B hat minus B hat plus plus B hat plus B hat minus equals one. For bosons, it's trivially true that any operator commutes with itself.  Likewise for the creation operator and indeed any operator. If fermion operators satisfy anti-commutator relations, then the corresponding requirement is that operators should anti-commute with themselves. For the destruction operator, this requires B hat minus B hat minus plus B hat minus B hat minus equals zero. And similarly for the creation operator, this is not trivially true. In fact, it is equivalent to the requirement that two applications of the destruction operator or two applications of the creation operator are zero. Those in turn are requirements of the exclusion principle. Consider two applications of the creation operator. If we start with the vacuum state, one creation operator produces the one electron state. A second creation operator would be an attempt to create two electrons in the same state, which cannot happen. So, the second quantization formalism we developed for photons can be applied to electrons with the modification that commutator relations are replaced with anti-commutator relations.


or that should be coming through. How are you today? Thank you for asking. I hope you're doing well too. The show is going awesome. People are asking great questions. Everything's gone well so far. So yeah, everything's good. So I'm gonna go ahead and get out of your way. It's all yours. I can see you. I can hear you and I'm here if you need me. Terrific. Thanks so much. Welcome everyone. Good evening. It's five o'clock here in Manhattan and with the time zone change it is pitch black dark out right now at five o'clock. Now that I'm talking to you we had daylight savings time yesterday. So it is a very interesting time to trade the US stock market and of course I'm here to talk to you about trading, about making money, and specifically about shorting. So we're gonna talk about making money fast shorting. If you have questions as we go along I can see them in the chat if you want to ask me questions as we're going through that's fine. This is me if anybody doesn't know me. I appear on TV. I talk about the stock market. I talk about economic issues that come up and again all of these things are related. If you have questions you can always go to my website at www.thestockswish.com. You can also email me at Melissa at the stockswish.com or call me at 929-3200 Gap. So again I appear on TV mostly to talk about the stock market. Where do I think the market is going? Today, tomorrow, next week. Again we're living in very interesting times. We had quite a bit of a rally. I'd say almost a few power trend days in the last week and a half and now today we seem to stall. So it'll be interesting to see really where the market goes between now and even Friday. But trading is a great job. Trading is a great job. It really offers a lot of freedom and one of the reasons that I like to trade and why I'm interested in trading the market is because of the fact that I don't have to be changed to my desk for 40, 50, 60 hours a week. So when I first started trading I actually was doing mortgages and I worked a lot of hours and then I got into the stock market and one of the reasons was I wanted to switch careers and I didn't want to work as many hours. That only is a market only open from 9 30 to 4 but I focus on the morning trade. So I'm really pretty much done trading within the first hour of the day. So you don't have to be even at your desk during the full time the market is open and of course you also get weekends off. So this is a picture that I took actually. It looks like a postcard. It's a picture of Central Park. I live in Manhattan along the park and ever since I moved to the park I have such an appreciation now for Central Park and for nature and it's so nice to be able to trade in the morning and then go outside and enjoy the fall and the park and everything the Manhattan has to offer. And obviously if you live somewhere and you want to go golfing in the afternoon or spend time with your children or whatever the case might be you have that freedom as a trader specifically as a day trader that you can do other things with your life because again this is not an eight-hour-a-day job but you've got to make money and you have one goal when you trade and that one goal obviously is to make money. So a lot of people attempt to trade the market and they fail because they don't know what to do but really why do people fail? They fail because they don't have a successful strategy and I'm here to tell you that you can be successful trading. So this is a video I actually have a video on YouTube if you want to go to my YouTube at the Stock Swoosh of a woman that that did my class many years ago she is a full-time trader when she came to me she never traded before in her life so people always ask me what if I don't know anything about the market you can learn from the ground up and when she started with me she was working two jobs then she quit the one job then she went part-time and now she is just full-time trading and she quit both her jobs so it may take time for you to get where you wanted me but I'm telling you that you can get there I'm telling you that you can do it and that the reality is that you don't have to take forever to do it I think that so many people are at this for so many years and then after a while they just kind of they keep trading they keep losing money but they never really they never really believe that they're actually gonna make it but I'm telling you that you can make it you can I see a hello there from Alan good to see you and anybody else you can chat in the room so again getting back to what I was saying many people find trading success elusive why they just don't have a whole idea of what to trade they have no idea they don't have a system they don't have a system make money they have no idea I get up in the morning I have a whole list of stocks I want to trade I have them all figured out a whole list of things I want to trade before the market even opens and how am I able to do that using my strategy so I get ready in the pre-market I make a list of things I want to do or things you know I'm going to watch as a watch list so to say and I put in also the stats here I don't have time to go over all of this but this is all the trades that we've done in the day trading room so far this year 2023 through this is actually I have to update this this is through the beginning of October but 450,701 to date stats in the day trading room this is day trading on margin equity trades so my day trade room is a day trade room or I'm calling the trains live in and out of the room quickly and if you're interested in a trial of the trading room you can email me as well for a free one week trial these are the stats for the options newsletter so I risk more money in my options that's one of the reasons why the stats here are more 1.739920 million for the year to date for options and this is because I'm risking more my options trades one of the reasons I'm risking more in my options trades is because I want to hold overnight and I want to take larger positions to get bigger moves in stocks in the market and again you can trade options even with one contract for the small risk if you want you do not need a margin account now I get this question all the time the room is not an options room the room is a day trade room the options is an options newsletter so if you want to sign out if you want to do options with me you would sign up for the newsletter and that's what you would do if you wanted to get my options trades just so you know so anyways we're gonna go through and we're gonna talk about some of these trades but before I even get started I want to talk about this let me just move this here training really takes a positive attitude so again as I said I live in New York City so the New York City marathon the 2023 marathon was yesterday so it's a first Sunday in November I did not run in the marathon but I was a spectator of the marathon and it was an unbelievable experience for me yesterday to watch the marathon and watch people go through so if you could have watched on ESPN it was actually on ESPN but it was it was so motivational so inspirational to watch people yesterday run this race it's 26.1 miles it starts in Staten Island they go over the Brooklyn Bridge which is a famous scene and people train for months some for years to run the race some people don't train they just want to run it it's a dream they want to do it I saw old people young people skinny people fat people I saw people from every country 153 countries 50 states were there yesterday 50,000 people ran this race they had a wheelchair division it started out the race where people were in these the with were in were were actually started the race and moved their arms through 26.1 miles and they were the first round then it was the women then it was the the man that won who actually broke a world record it was it was just unbelievable and I watched it I watched it all yesterday it was the whole day so the it started at 8 a.m. and like the last people came through like around 8 o'clock at night and I could I could see the whole thing because where they rounded the bend into the final stretch was right where I live and I got tons of videos which you can see on YouTube I didn't have time to post them all but yesterday was so inspiring so inspiring to watch these people and by the people at the end were the most inspiring to me because they were not professional runners so there's different ways there's like five waves when you run like obviously the people that won were very very fast runners but the people towards the end were barely getting into the into the end I mean they could like I took videos again I haven't had time to post it like they're towards the end people were carrying people over over to the end over the finish line like and there's one person that was hanging on the edge of the game and somebody came up you know just total stranger came up and helped them move along because by the time you get to the point but the time you get to the point where you enter central park and you go through to the finish line the finish line is at um you know in central park you've got to make it you've got to cross if you don't go over the finish line you do not get a medal and everybody wants a medal this is a this is a this is where people were taking the pictures at the step and repeat but it was so inspiring just to see the people the last couple hours people that could barely walk that were pushing through and you know what the thing about trading is so many people trade the market and so many people give up quit want to quit and and what i found and again i've had the business now for for 11 years going on 12 where i've taught people what i know i've been trading for 15 going on 16 but it's like so many people trade risk money every day or every week training the market and they have the shittiest attitude you would ever ever find they'd never make it to the end of a race they quit before they'd even give up and what's crazy to me is people trade and risk money and actually lose money and they have a crappy attitude how do you think you're gonna make it in this business if you don't have a positive attitude you need a positive attitude and we all need inspiration the motivation should be to make money that should be your motivation to do it for me it was a combination of money and i really wanted a different career i was so tired of doing mortgages and dealing with the crap with banks trying to get loans approved again this was 2007 2008 when mortgage companies were going under so i was extremely motivated to change careers i was working way too many hours and i wanted to work less hours and i was also really motivated by money but there's far too many people that attempt to successfully trade the stock market that have a terrible attitude so you say well why do so many people lose they don't have a good strategy and they have a terrible attitude and they may say they have a good attitude because they trade every day but they do not they would never be able to run the 26.1 miles that the people did yesterday where they're barely getting over the line they would quit they would quit right at the end and you can't you can't so yesterday just watching people and again i caught them i caught people on video i mean it was it was insane i just haven't had a chance to put all the videos up on youtube but it was extremely motivating for me because in a world and an industry where so many people give up so many people quit so many people have a negative attitude it was it was motivating for me because again part of my job as a teacher as a trading educator is not just to teach people my gap strategy um it's also to motivate people to keep going because again everybody has a different situation everybody has a different circumstance everybody has a different amount of money that they're risking everybody has a different learning curve you know so you have to have a positive attitude but in order to become successful you actually also besides positive attitude you need a system and you need an it should for me it is shorting it is shorting but again there's only you know one winner on the opposite side of every train just like the marathon there was only one winner yesterday and again another another similarity i was thinking about this too because like i said there was different waves in the marathon the guy that won was so so so fast like two hours in some minutes or something then there was a couple guys that were in the original pack with him the fast guys that were right after him then the amount of time from those fast few people to the first wave of people was a long time and then the amount of time from the that wave of people till all the rest of the people up until eight o'clock was far far far off and it's just very similar comparing it to trading because again you have people at the top that are making tons and tons and tons and tons of tons of tons of tons of money and then you have the people in the middle that are making a little bit or maybe break even and they have all the rest that are losing money trading and again the dichotomy between the winner and the loser is so far so vast so wide even though yesterday i can't because everyone that finished that race was a winner as far as i was concerned to make that distance but but it was eight a.m. to eight p.m. and i which was 12 hours so the similarities with trading is again everyone wants to make it you know you're you have to look at it as something that you have to keep pushing forward pushing forward it may be 10 steps forward and two steps back but you need a good system in order to succeed and you have to follow it daily and for me it's gaps and that's what we're going to talk about i'm focused on momentum i'm focused on volatility i'm focused on shorting and i'm focused on the fast rates because i like the idea of having to rest the day to myself like i said i also like the idea of shorting because of something called panic so let's talk a little bit about what is a gap a gap is a difference between the close and the open this is a chart of the spy back here in september you saw a gap in the market so a four o'clock close was here in the spy a 9 30 open was here so a gap is a difference between the close and the open in the case here of this this was a gap down the market felt there are also bullish gaps in the market with the market gaps up closes at one price opens at a higher price that happened in here this was early october market close here open higher rally okay so i try to focus on gaps and specifically bearish gaps but i'm looking for momentum i want the gap to go fast i want to make money i wanted to go really really really really fast hopefully it'll go within five ten minutes if we're doing a day trade and if i'm doing an option i'm doing the weekly options but again if someone said to you if you can make a thousand dollars in five minutes you'd rather do that than make a hundred dollars in five minutes i mean it's just it's just like a no-brainer and again so many people are scalping they're trying to get 10 cent moves 20 cent moves 25 cent moves i'm trying to get a dollar two dollars three dollars or more okay i really really want to get you know lots and lots of fast big moves and i'm typically not doing things for pennies but again getting back to it the key today training stock successfully is using a system and trade a system and sets up daily so again i'm looking to one that sets up daily that's what i do and particularly that doesn't really need the market because again if you if you mean the market then you better read the market right every day and that's very difficult even i don't get the market right every day now i do get the market right a lot because the market gaps almost every day and then i'm reading the gaps in the market but i don't trade the market every day i don't even want to or try to trade the market every day there are trades that i do in the market and you'll see some in this lecture but if they don't know we set up to be what i call predictable but my system is called the golden gap system and you can use it to trade options you can use it to short in an option which is what it's called a put so a put is a short so you can we buy puts and sell them buy calls and sell them okay and again if you're day trading in the room we're calling the trades live in the room we're trading on margin we're all short 2000 shares of something you have to have a margin account to do that all right now i'm going to go over this was one week here and i could have put in any week but i put in one week of trades from the options newsletter the week expiring october 20th this is an average week it may seem like a busy week there was 15 trades this was earning season we've had weeks we've had more trades in this we've had weeks where we've had less and i'm using an advanced trader risk because that's what i trained and that was the stats i showed you earlier you can use a beginner risk you can risk 500 per trade you can risk 250 per trade well some trades you maybe won't be able to do if we do like an avidia and it costs $15 for one contract yes but most of the trades we do i would say are between a dollar and four dollars per contract so i'm going to go over a whole week here of trades with you and then we're going to go over some stuff at the end if you have questions as we're going along you can ask me but the win ratio for this week and again these were all gaps all based on gaps we had 12 winners zero breaking even three losers and 15 trades the average return investment was 136 percent with an eight thousand eight thousand dollar per trade average risk and i know that's a lot but again you can risk less but the profits for this week was 162,100 this shows you the potential that you can make if you can get to this point in your trading career and again i think this is important i think this is important to motivate people if money doesn't motivate you to trade then you need to do a a status check because trading is about making money because you're going to lose if you're not motivated to make it now then while there may be other reasons that you want to trade and you're motivated to trade as i told you i wanted to trade change careers and i wanted to work less the fact is you have to be driven by the money to do it because it is it's a zero sum game like i was explaining earlier you want to win there's one winner and one loser now how do i come up with these picks how did i come up with a 15 picks and again there were a few that launched if we're going to go over them here i get up in the morning my processes i rate the gap i get up in the morning i rate the gap using the checklist so the checklist is what you would learn in my class it is a 26-point checklist where you rate the gap if the gap rates 20 points or more okay i take it in the direction of the gap so in other words if the gaps down it rates 20 points or more i will buy a put the gaps up and rates 20 points or more i will buy a call i'm looking to trade momentum so i have my whole list of trades everything picked out in the pre-market when i see the gap everything rained in before the open show many of the trades that i call on the options news that are sent in the pre-market before the open now as far as the day trades i'm just doing the day trades live in the room if you're in the room you got to be there live to get the trade the day trades are not emailed to you you don't have to be in the room to get the options trades they are emailed to you i may send a trade out at 8 a.m you can't do that options trade until 9 30 after the open someone says something about the boston marathon yeah if you're in boston and you and you watch it or you're ever ran it again another very motivating race and anything that challenges yourself to accomplish something or do something that you never did before and again getting back to relating this to people who trade the market that's telling me i hear people's sob stories i hear people's stories i can empathize with people but if you tell me you've been attempting to trade the market for 20 years 15 years 10 years or more and you're not successful what is going on you obviously do not have the strategy that's successful that's number one or number two you're not motivated enough to make it happen for yourself and do it and something has to change you can get motivated like that okay you it doesn't take weeks and months and years to get motivated and again you could say well i don't have the money to do this i don't have the money to trade i don't have the money listen if you're motivated you will find the money that you need to take my class you will find the money that you need to open up a trading account and trade you will get motivated and open up an options account with two thousand dollars which is all that you need in the bare minimum to trade options you would you would only be doing a small position size if you did that and you will build it from there said everyone said well i want to have a hundred grand before even start okay whatever that is meanwhile again weeks and months and years of your life go by and you don't get anywhere with it you know the other thing again i just i don't want to get too off topic here but the other thing about yesterday that was so amazing and again you can really see it in my videos of youtube of the runners is that there there's one moment in time like right now tonight it's 5 24 and we are here together and i'm here live with you and jeff you can ask me a question and i will answer it live we will never have this moment again this moment right now is the most powerful moment in the present in the present moment and this moment will never exist again and it is very similar to when you're running a marathon and you've got to do it and it's only one day and it's very similar when you have opportunities in the stock market to trade or take positions or put positions on or make money make a lot of money or even if you make a decision that creates you a loss for you where you just where you take a trade that you don't know what you're doing and you lose so you you know live moments the present moment is so powerful and so many people get so caught up particularly traders in the past and mistakes they've made and decisions that they've made that they've regret and trains they've taken and losses if you're living in the past with your training you were you were working against yourself and the sooner that you stop working against yourself is is the is again the first step to the beginning of your trading career which you could actually be successful because opportunity exists every single day in the market where you can make a lot of money or you can lose and the choice is yours the choice is yours so i mean again it's it's so incredible for people to understand this and again all of this should help motivate you to actually do it to actually get somewhere to actually be that person that you want to be and it doesn't have to take forever and it doesn't have to take a long time and it doesn't have to take a million years for you to get to the point to make this kind of money either you know when i was started at trading when i when i first started out i did not know what i was doing and i had to teach myself that was a process of three years you don't have to do that you pay me for my class you get the information in one weekend and you learn it then i'm here to answer questions for you that's invaluable invaluable because i didn't have that i didn't have that access i didn't have you know one person to go to to ask questions about because i created the system myself you know anyways let's go over the trades here so this is what the newsletter looks like okay let me just move this here this trade i sent out at 10.05 in the morning i called the LMT calls i give the symbol i give the strike i give the expiration date the type is a call or put okay and this trade so again what was the day let me just see here at 10.09 so this we went long actually even though i prefer to short we did go long here this had a move rally this was a positive trade this was a small one here i held it as long as i could i was trying to hold it trying to hold it i this did not work out the way that i thought even though i made money in this trade and i exited with the profit i wanted this to go much much bigger than it did i will give something to almost the very last day the last day to try to go i gave this i gave this a long time days actually and then i got out of it so this trade was positive you would have made money in this a stock rally but it didn't go the way that i anticipated when i first first did the trade then i did ba this was an october 9th same day october and i did the 185 puts again that expired the 20th i'd like to do the weekly options again depending on the date if it's the middle of the week i might do the farther week out so 10.09 here was the ba where are we 10.09 oh here october so again this was one that we did that started to look like it was gonna go and then flipped lost in the ba held it into the very last day ran it into the 20th it rallied then dropped and i ended up losing in this now i got out of it was something i didn't lose the whole thing in this it wasn't a total bust you can see how the stock fell and it was late so again timing is very important with options i was early in this trade we did another ba which i'm going to go over here later but again i get out of it with a loss not a full loss but i still lost in this trade then we did oracle this was the biggest trade of this week we did the 109 puts an oracle 10.11 uh 10.11 was here so again i did the 109s you see where the stock is trading here right around 110 do do do do do do do do do fell off a cliff so this one went the very last day it was an absolutely absolutely huge trade it cost a dollar 50 60 contracts was a risk of 9 000 sold at 7.25 profit was 34 500 return an investment was 383 percent this was a huge trade so let's just pretend you had one contract of this or 10 let's let's say you spent 1500 dollars look at what you could have made 383 percent and this is in you know a couple of days a week and a half not even you would have taken the trade here and you would have got out of it here that's the type of trade that can also make your whole account if you have a small account where you can double or triple quadruple your account again and that doesn't mean risking some absurd size it's because of the return of investment that this trade offered and again we're talking about shorting we're talking about momentum what happened to oracle this was a put this was a put this fell the stock fell this is a big fat red bar the stock got dumped it was a dump and the movement again is to the downside okay one of the reasons i like to short is again you get big moves to the downside why panic comes in when stocks fall this was a gap down but again it continued we were ready in the trade we were actually already in the trade at the time then we did the ba puts the 190s but this was after that original date 1012 uh which was here so this one here was the one that was really the good one stock close here gap down fell dropped boom you see it again here is the selling here is the stock falling so again we did the 190s you can see this so again so many people well i want to do options because i can open up a small account i don't need a margin account but i don't understand the time value we're trading momentum whether you pay a little more or pay a little less or hold a little bit longer get out this point this was a positive trade you couldn't have screwed this trade up if you got in and here and out of it here you made money if you got in and here out of it here you made money if you got in and here and out of it into the drop here you made money you couldn't have screwed this trade up the stock price dropped in fact you could have held it down the very last day which i didn't because the trade was up already get out of it made the most it came down in here to 180 on the last day so this this was another really really cheap one in my opinion $60 for one contract 60 contracts was a risk of 9600 sold at 750 369 percent this is a profit of $35,400 with this risk so again you could have bought one and paid 160 okay which is $160 and you could have sold it at 750 and this isn't even the best price out and you could have made 369 percent and anybody to trade should be able to take one contract at this price you know but if your risk is even like 500 or something again that was a put that was a short 10 12 in the afternoon I called Tesla 260 again another put let's take a look at 1012 what Tesla did back back back here we go this was a nice one here close your gap down and there it went look at it beautiful beautiful beautiful train again this is one I get out of the 19th you could have held it to the 20th you could have held it to the very last day and made more money it came all the way down to 210 this went 50 points through the strike from the point that I called the train so this is expert expert professional technical analysis to look at this to see it it is my gap rating method that allows me to see on this particular day that Tesla will have the momentum to the downside and then take the trade and do it so this was another really good one this wasn't cheap though 875 for one 10 contracts 8750 sold at 38 again could have held it into the last day and made more profit was 29,250 return investment 334 percent so again if you want to do one contract you would have to be able to risk at least 875 or what you could have done if you wanted to risk less you could have actually did a contract farther away farther away than that that's another idea then we did do the market the same day 126 the QQQ is a 369 strike again this was a putt so 1012 let's take a look at it here are we again boom got the drop again here's momentum the momentum here in the markets to the downside we got it we were already in it we were already in the market short okay again he put is a short so again people want to trade and get a little bit here a little bit there you want momentum you want a big move this is a big move you get in the trade a good spot whether you hold it get out soon is neither here nor there you're making money you can take something you gotta have you can hold the whole thing you can even add that's an advanced concept which I'm not gonna go over here today but cost was 345 number of contracts was 2586 25 risk again sold at 913,875 return of the best was 161% for this trade in the market we did the 369 puts you can do the daily expirations of the market I'm not doing those but you could same day did the spy again saw the market was going to drop and fall which it did we did the 434s let's find that here again there it goes and again this is a sell-off you're short you want to be short so again if you think the market's higher here we're already short we were down in trades before they went so I was in the train held it through rally the trade was down made all the money then stayed with the trade again this is expertise this is the point of coming to me and learning what to do this is all about the right knowledge this is how you make this kind of money you have to know what to do if you're going with the credit traders you're not going to know what to do when you're going to lose and that's above and beyond the negative attitude stuff we talked about earlier cost was $3.80 number of contracts 20 with $7600 sold at 750 profits 7400 return investment 97% again a nice trade in and out could have held this the last day too if you wanted to again you take a chance when you do that when you're up that much in a trade then we did Netflix is again we did this one 360s let's see where this one went so 1012 here and again beautiful drop got it do drop down and there it was again you see where it came down to went through the strike 3 360 3 350 came all the way down close to 340 and you're out and you're out trading you're in you're out in the day trades in a couple of minutes at an option you get the move get out you get the move get out you chunk it you chunk it out how to make money in the market you get in get out oh this one I held I screwed this up I lost in this one because I held it too long mmm that was my fault here's what happened you would have made money in this if you got out I held it so what happened here this was positive then it had earnings and I held the trade so that was my error I held it and I lost in the whole thing look I forgot that one but this trade was a good trade I was up in it I didn't get out so again you kind of have to decide what you want to do I thought this was gonna continue lower so that's rare but I was up a good amount in that trade and then I lost in it I held it through I held it through I was my expectation was that it was a 50-50 that I could go in my direction further through the number and I decided to hold it but what you could have done here with this one is you could have actually got out a half booked half and then held the other half but this was a personal decision here but this was a positive trade but I'm showing you my results I lost in it the stock had earnings this night gapped up and then it failed so that is the price that you pay but this was positive it was expensive I'm just thinking back on my mind what was going on in my head I think I wanted to hold this because it was just it cost so much it's like two weeks ago I think that's the part of me thought it was going to be lower in the earnings that was number one and then and then also it was just so expensive but that that trade was positive for some people to trade with me they got out the conservative thing to do was to get out actually IBM we did the 140 putts again expired this day we did this on the 13th 9-11 9-11 10-13 let's find it oh here we did IBM this was earnings stock close here gap down dropped boom fell so again we did the 140s so we didn't got the drop you could have got out here you could have held it into the drop here this gap down here this particular morning dropped in here into 136 again I'm someone that does tend to try to hold my options a little bit more so I get out of the day trades fast I try to hold the options a little bit $1.50 was the cost for this 50 contracts $1,500 sold at 3 profit with $1,500 good trade again if you can't watch your trades for the targets even though I give targets in the newsletter you can just get out when you're up at 50% or 100% put a sell order it's a day order it'll cancel out if it doesn't hit by four then we did the BA again the 180s on the 13 this was another one here you see here we did the lower strike so again this dropped fell fell into 180 got the drop so again that one was a nice one but no I lost in this one I didn't get out of this one either boy I was a pig or this this week I forgot that too no I got out of this with a partial loss I should have got out of that when I was up to this was a good this first drop in here in the second day was the best exit here I'm just looking at this you see that or even here on this day here see it but I'm losing the whole thing what about 365 kids we did on the 13th here this was the one we were talking about I did a different strike different day different strike fell dropped again same move same downward momentum this was not expensive but three dollars and forty cents for one twenty five contracts risk was eighty five hundred sold at nine fifty profit was fifteen thousand two hundred fifty dollars return investment a hundred seventy nine percent it was a good trade so we've been talking about this as far as you know getting out with pause or whatever I think you have to decide what camp you're on so like I told you how I'm added trades is I'm trying to hold them for a little bit longer than my options fast trades for the day trades hold options a little bit longer as you see here on some of these trades I was up in some of these trades and the options and I didn't get out and they reversed against me so you have to decide what camp you're in because some of these trades that I got huge huge moves in you know two hundred three hundred percent almost four hundred percent return investment is because I held them so again you know if you decide to do that you will take losses in some like I did that you were up in that is a personal choice of something that you want to do I found that if I take quality trades and I give them a chance to work and hold them a little bit more I will get something more out of that it will benefit me more in the long run that the ones that I lose in that I was up in that I will make far greater by holding the ones to get the bigger move if that makes any sense any questions here as I'm going along nice presentation thank you then we did the spy this was late in the day for me 1126 we did the Melissa yeah go ahead yeah we do have some questions from YouTube if you want me to if you have a chance for it yeah go ahead Lewis wants to know do you work in the money only some of these are at the money yeah and what indicators do you use to get the entries I'm not using indicators to get the entries I'm using the gap my gap analysis like here with this spy again we were talking about a gap the spy was on the 1013 here I'm playing the gap so I'm playing the gap it's nothing to do with moving averages or indicators or anything else like that I rate the gap in the morning using a checklist which is what I teach in the class and if it range 20 points or more like I said I will take a trade of the direction the gap that trade could be a day trade or that trade could be a putt and going back to the strike question I will do it at the money or I will do it away from the money I'm rarely doing things that are in the money maybe they seem like they are here with these charts but rarely am I doing them in the money because I find that those are too expensive if I if I was if the market was trading today at 400 I might do an at the money 400 putt if I wanted to short the market I'm not telling you to short the market tomorrow I'm just saying or I might do something that's 395 where if I see 395 it's gonna be the target that I feel like it's gonna drop into 395 where it's away from the money okay we're caught up on questions oh oh except that was just had one if option trade is a big do you protect profit by selling an option thanks for the question about this yeah I buy the putt and sell it I buy the call and sell it I am not selling options if that is your question I am not doing that so all right you all come up yeah thanks if you want to protect your profits then what you should do is get out of half you should get out of half if you or just get out of the whole thing you know so again it I don't use stops for my options the risk isn't stopped again I did this five this is it I can't lose any more than this if I take 25 contracts of this from risk 81 25 this is my stop I can't lose any more than this and I'm not killing it in the middle of it as you can see so I mean again if you did 25 contracts get out of 10 get out of 15 hold the rest you can't lose then anyways the cost of this was 325 sold at 7 profit was 93 75 return an investment was 115% for this one again a drop in the spy see the X was a call if you could even believe it we did a call in this on the Friday and again this was 1013 1013 and this one I got out of 1019 so this was 150% return investment but I got to be honest with you this one didn't work as what I thought it would either so I had a good trade it was up more than 100% I got out of the trade but this this didn't really do what I anticipated either it was a good trade it was a positive trade but it didn't go as big as I thought that it would so again you know you have to book money you have to watch it if you're up in a trade the day before the expiration this was a day before I decided to get out then we did this by 425 on Friday the night the 13th this dropped fell that was a good trade this one I got out of the very very very last day which again is rare but it was up 33% that I did the 360s and the queues and get out of this one the last day to me 85% again the market was cooperating the last day so there were some that I was up in but barely and some it was down or flat and going into the Wednesday of the week and I just wanted to hold them and I was up so much and the rest of them and her got out of stuff that I decided to hold it so you know I will try to do a video on YouTube a beginner risk for for this week I have other weeks on YouTube I'm trying to do the whole month of October it's just there's too much going on in my life right now I don't know if I'll get to that but I will try but anyways to show you how like we were talking about being motivated something that can motivate you to do it whether it's half this risk that I'm taking whether it's more risk than I'm taking whether it's the same risk that I'm taking whether it's everything that you can do for yourself it's the idea being motivated I do not show my checklist because that's what I charge money for and teach in the class whoever asked that that is what you'd pay me for in the class what you talk about the end as far as again technical indicators we talk about that more in the class but I make the decisions based on the ratings I think that's it if you want to learn more about candle six or charts or any of that you should ask Jeff Jeff has all of his programs with the charting and again that's very important to have live charts as well so getting into the end here just a couple more minutes here I'm just going to talk about how my niche is shorting and how you really I think need a niche to be successful I'm looking at institutional money when I'm making the decisions and the choices that I make about the market or about stocks or anything else that I'm that I'm doing I'm looking at something and I'm trying to determine if institutional money is going to sell it in which case I'd want to short the stock or if they're going to buy it in which case I'd want to go long the stock we went long Microsoft it was you know one of those ones that got bought that was the recent long that we did but again my niche is shorting okay so how do you make money shorting you make money shorting when the stock price drops and buying a put is a short and again I'm not selling the put I'm buying it and then selling out of it that's it and I'm not doing fancy dancing you know options configurations but anyone could short anyone could short it all you could buy a put like I said in an IRA account in a retirement account you could buy a put in a cash account you need a margin account to short as a day trade and for the day trades I do I'm in and out very very quickly early in the morning but again fast day trades are very important so we are going to talk about a couple of these here I mean as far as this goes okay this is one that we did just want to show you here this was Tesla and again these are small small small small small small but we shortened Tesla on a one-minute chart this was a day trade and we got in out we've been talking about options this whole time but I day trade every single day so I want to show you this is a trade that I called in the room I did in the live room you would do it with me if you were there I tell you where to get in and where to get out and we're done and we were done in five minutes so again you have to have a margin account to do this as far as another one we did we did CLX this was ten five again very similar this is a one minute chart where you would get in and get out and you can see how fast the stock moves how big the drop is again here's the gap this is the night before the one-minute chart at four o'clock where the stock was closed at CLX this was earnings open in the morning here and we got in we shorted it it was a nice trade and again these moves all happen very very fast because panic comes in fast fear creates selling and how do I make the picks I the rating system so you would pay me for the information to learn the rating system this is what took me three years of my life to figure out I couldn't tell you it now in an hour if I tried it's a 14 hour class 16 hours one hour break each day for lunch and this is the meat and potatoes of what I do you learn my system you can use it for the rest of your life I have been teaching people now for 12 years going on 13 and again my business is called the stocks wish but I started trading personally in 2008 I did not know what I was doing I had no idea but I started shorting early on and I started trading gaps early on and I realized there was something to that and in fact I made a lot of money trading gaps and shorting at the beginning and that's I that motivated me to try to figure out how to find the best gaps every day it's the criteria it's honing it down you only need one good trade a day to make money you only need one good option a week really to make money quite frankly you don't have to do a million trades a week you don't have to do a million day trades you do not have to sit at your desk and trade all day or even trade 15 options a week you only need to get one good thing a day that is all you need a couple of trades a week it's the idea of having a high win ratio of a high-win ratio that's why I showed you the stats at the beginning you have to win more than you lose and that is another critical thing in reference to trading that people just don't get with traders all traders who trade the market win some days but they and they keep going thinking that they're winning but they're not they look at their account their account is down they got to refund it and it's a cycle it's a vicious cycle until you get out of it I know because I was in it when I started I was losing when I started I did not know what I was doing but that was the investment that I made in myself and then trading and figuring it out but gaps are created with large institutional money that's what makes a gap in the first place and professional gaps that happen to play out in stocks are formed by one thing and one thing only large institutional money therefore you need a way that will help you pick the correct direction to play the gap and confirm that the large money will flow with it by following the 26 point rating system you have a daily blueprint it's like a blueprint to follow to pick the stocks I'm not just picking them out of my head I like this I think this is going to work no I go through the rating system and rate it and I go with it that's it again and if I lose in a train it might rate good and the trade may lose that's the odds when you train the market you're playing the odds again just like the racers yesterday the runners yesterday the men's runners and the women runners I caught the women I got that got the one the girl that won the women there were three women they were on neck and neck neck and neck yesterday till till tillie and the finish line any one of them could have won until the girl that pulled ahead that won so again it's trading his odds you have to put the odds in your favor sometimes you're going to lose and that's the whole point of having to set your risk and something that you can afford and again when I do day trades I do use a stop it's a limit order stop it's a hard stop when I do options my risk is my stop and I say if you're worried about a trade in an option to cut your risk back but anyways the system is a blueprint to help you pinpoint institutional money in a stock and again it's a checklist it's a 26 point checklist it's based on common sense it's the idea that people get scared they panic they panic people sell and again you can have a small account and train this oracle trade which was the biggest trade this week I want to show you here we already talked about but I just want to show you if you had a small risk if you had risked $1200 you could have risked less than that but if you had risked $1200 you would have made $4600 in that trade you didn't have to do anything take the trade and hold it to the last day so I mean these are the kinds of trades that can really just grow your account if it's small to begin with which people always want you know you got five grand in an options account ten grand in options account and you can make 30% on your account almost 40% in one train that really gets you where you need to be to get up to the point to even build it up to have a margin account of $25,000 so again what should you expect an average of one to one we're looking for the 26 points we talked about this you need a positive attitude and you really do need to get the proper education because you're not going to make money if you don't have the right education you can figure out a system yourself like I did but that's very expensive very time consuming and most people will never ever get it but the point is that you must take calculated risk when you trade and you need a plan of action for what you want to do now I see some questions here I'm going to answer before I continue don't follow the off exchange don't follow the dark polls don't follow anything with that no no um I as far as a day trains uh someone's asking for the day trades and options I call day trades in the room there are people in the room that are doing my day trades as options for example the market if I short the market and they didn't want to short the market on margin yes they're doing the daily expressions of the in the in the day trade if I call a day trade and a margin in the same thing which I don't in every train and you're getting the options newsletter and the day trades you could do both I do both if I call um a day trade and I don't call an option in it that means I don't think it's going to continue therefore I would do it as a day trade and I would get out when I get out of the day trade does that make sense so that's up to you if you're saying you want to be in the room but you want to do options then you got to get out when I get out um unless I call an option in it does a pattern day trade apply and options you could open up a cash account you have to set it up as a cash account if you set it up as a cash account you're okay if you set it up as a margin account then you need 25 000 so yes you can trade options without a margin account but you must set it up as a cash account that you work out with a broker I'm not a broker these are all good questions to ask a broker but you can do it and there are people trading options with me that actually have their account set up that way and and again if you want to referral let me know anyways really have another youtube question go ahead um uh Lewis wants to know how important volatility is for your option trades if you're again volatility is your friend if you're trading it in the right direction but you may I'm usually in trades before the volatility has hit so you know there was a couple back there I don't want to go back because we're running on it we're running close to time but where I was in a trade the trade was in my favor then it booked up and I was in a put and then it was against me and then people were going long this was in the market a couple weeks ago and then we were already short I was down in the trade and then the volatility went back in my favor and it and it and it helped me move to make money so volatility is actually your friend but again if it goes against you in a trade and you've got a week left if you know what you're doing and you rated the gap and the gap rated good you should stay the course and that's why I hold trades out to win or lose volatility is your friend it will help you make money if you're in the right direction if you're in the wrong direction you're going to lose but if you whether you're volatility or not if you're in the wrong direction you're going to lose so it doesn't make it doesn't matter that makes sense um something about 10-4 I don't know what you mean by that Douglas anyways penny wise and pound fullest just really want to quickly bring this up so many traders that act like this and again I'm not British but they they get out of trades with pennies and because they're worried about losing dollars you saw some trades here that I was up a lot and I held them through and I lost I'm not saying to do that but you know the reality is that people get out to make a couple pennies they'll risk dollars and they'll make a couple pennies then they take cheap price stocks because I think they're going to make more like low float stocks stuff like that's things that I will never trade or cheap options too or they pay for cheap classes or bad inexpensive classes they don't think they're bad they just say well this is cheap well I'm going to spend $100 on this subscription $500 on this class they said well and then they lose money taking the class they didn't learn anything and they also lose money taking the bad trades from whatever class they took our subscription instead of paying for quality education so it's like a double whammy and people do this I mean again and people then go and take free trials and then they take trades blind and they lose they have no idea whether they're doing them or not nothing no nothing about it and people won't trade expensive stocks when they could make money really good money because they don't want to do small size and then also another mistake people put the majority of their money in a trading account spend very little education and it should be the opposite yes you need money to trade but you have to divide it up again I only take credit debit cards for the cost of the class but the fact is you need money to trade but you shouldn't be so worried about spending money on a class that you said well I only have this much money to put the account then that I can't read such much no if you are someone that has what you would I would say is a small account for example you have to be even more concerned about not having losses even more concerned about it so again you shouldn't be worried about putting a class in a credit card even at an interest rate of 30% if you can make 400% in a trade I mean it's just like people just don't think when they make decisions about things because they're too small minded I'm trying to get you to think outside the box and to think in a way that successful people think wealthy people think people that make a lot of money uh let me just see here something about I don't know anything about that Hanson uh so I can't answer that question let me just see where we are this is a 26 point checklist if you kind of learn my class you will learn a high probability of directional bias for the entire day big move of the day early confirmation of the bias and the move between 9 30 and 10 a.m and precise entries with follow-through and a good risk to reward so you learn the entries in the class the edges in the class the targets the 26 points and how I make the picks the purpose of the system is to help you evaluate what gap to trade each morning I'm going to teach you how I pick those 15 trades Oracle all of them read in the market the 26 point checklist predicts the directional bias in the stock or the market and again you do not need a general overall broad-based view of how to trade you only need one strategy but it has to be good and it has to have a high win ratio and again if your reason for doing this is to make money you will make money go back to the original purpose if you found yourself lost in your trading lost in your mind why the hell you're doing this go back to yourself why did you start this in the first place you wanted to make money you wanted to quit your job you wanted to retire early you wanted to have more money coming in to combat inflation and everything else you want to save for a house whatever it was get back to that purpose because if you're trading and losing and it's november 2023 less than two months away from 2024 and if you're down for the year I don't know if you can come back from the year but you still have time left and you've got to put that positive face back on yourself develess I appreciate all your wonderful comments but you haven't signed up with me and even followed me a long time and I don't know why you haven't signed up if you love me honestly but I appreciate the nice comments anyways it's a checklist you go through it this was this is this is a great example of a guy and I have tons of people like this they did the class in in october he paid for the class started trading and made the cost of the class before he took the class that is not always the case but he did he paid ahead of time he got in the room he did the trades he I mean it's just a win for him you know and so he's in the room and he's getting the options trades and he did great he's somebody that you know there's many many success stories that are out there but this is a recent one and he was happy to send his picture and just loving the service so it was you know he's one of these people that has been following me and and he jumped in and he did it so again the class is called the golden gack horse the class is 6999 it's November 18th and 19th it's not this weekend next weekend only two more classes this year one in November one in December I don't have the December dates yet classes online it's a class on how to fine pick play in professional bearish gaps and I'm doing a New York City marathon package look at that view I took that picture anyways the package I'm running is going on through today and it just I've been running it for the last week I know we had the webinar but I'm offering to people in case you're here and if you think you want to sign up it's a it's a combo it includes the golden gap course the trends course for 7 499 and it includes the options course free it includes one year of the room and one year of the gap options newsletter I was running this for a week I just happened to have this webinar planned but this does expire today again think about what you're doing with your investment money think about the things that I said about what's going on in your head you've got to stay motivated and again you have to think about the ideas that I talked to you about today save up Douglas I hear you saying save up if you want to if you want to take the class and hopefully you can do it soon um I don't do forex it's not your fault Douglas it's just you gotta you gotta you gotta jump to it you got a hop skip to it I'll say one last thing I'll already go remember what I said this this moment in time today November 2023 right now 602 this is it this is your moment in time we were here today together you learned something from me hopefully you'll take something away from it if you're interested in more information email me at melissa at thestockswish.com and please please please be careful trading the rest of the week very cool thank you melissa and that's melissa