Yes, I can. Can you hear me? Yes. Where are you broadcasting from today? I live in Manhattan, New York City. Oh What part of Manhattan? Right in Midtown in the thick of it. I used to live on 54th Street and First Avenue So that's probably walking distance for you where you are now Great neighborhood.  I'll give your introduction Melissa Armo founded the stock swoosh LLC in December 2012 The stock swoosh LLC is an educational firm that empowers traders with a complete and detailed system to become profitable traders Melissa Armo graduated Magna cum laude from Gettysburg College with a BA in philosophy and a minor in Latin and political science in 1994 She was employed for several by several banks and brokers in Pennsylvania Florida Arizona and New York as a mortgage broker for 17 years She changed careers from banking to pursue a security trading career in 2008 a self-taught day trading Day trader with over 10 years experience Well, this is specialty is trading strategy focuses on shorting stocks that gap Melissa also appears frequently on TV as a stock market expert watch militia on RT America cheddar TV CBS Fox News and Fox Business Network Melissa Vinny V dvici It's been a long time since I've spoke Latin, so You know, there's a definite shortage of Roman soldiers to practice with in New York City That's why my Latin has gotten rusty I'd rather trade then then then work on my Latin these days You can do both while you're waiting for the market to move you can sit here and memorize the Phrases from the great Latin philosophers. That's what I do in my free time. There you go. There you go All right, well, you have until five minutes before the hour and Then we'll introduce our last batch of prices For the week. I'm gonna go ahead and mute myself and you have the floor Thank you so much. Thank you for having me today It is been a very very crazy day for markets We fell today and so this is this is very topical because we're gonna talk about shorting So if you shorted many stocks today or the overall market and by market I mean the SPY or the QQQs or even the diamonds you made money today So we're gonna talk about how to short for fast profits this summer Obviously, it's summer when the weather is nice people don't like to sit at their desk all day But personally, I really don't like today trade all day I will be an options that I may be in during the day But I'd like to be in and out quick and fast in my day trades and that is what we're gonna talk about today So if you have any questions, you can email me at Melissa the stock switch calm You can call me at 9 to 9 3200 get you can also follow me on Twitter Facebook YouTube or Skype I put on there what I'm gonna be on television and again I do appear on every national news network. We've been talking about inflation for quite some time or recession It's a daily topic and also of course the way the market has been selling off So it's interesting because again Regular everyday people do not trade the market for the most part when they're watching TV They just want to know and they're worried about the retirement accounts for this and that people are talking about recession How will that affect the market? Well, the reality is that the company is the stocks that I trade that you may trade as well They report earnings four times a year. So we're getting into July July is in a couple of weeks when the next earnings season will begin and then companies will report their earnings for Third quarter so if companies think they're gonna have not as good a production not as good a profits Have to lay people off that will be reflected in whatever they say in the earnings calls in July and August So far this year, it's been a good time to trade because we've had a lot of volatility and again High inflation the possibility recession rising interest rates all of these things do affect the market because people are worried They're up a lot of money because the market's been rallying up in 2021 was a very very bullish here in the market Whether you bought Tesla like the speaker was talking about or whether you bought the overall market things are rallying so much last year You could have bought every single dip and made money You could have bought money in strong stocks weak stocks everything the reality is that was a very Unusual year. Okay, so that was an anomaly. It's not it's not the case that you can always buy anything and make money So I think traders were spoiled last year by going long But the funny thing is I have always preferred to short since I started trading about 14 years ago I decided I like shorting is a niche because many traders prefer to go long. I do go long I will go long, but I prefer to short. Okay, so it's been very advantageous to short this year But I did short last year even when the market was bullish, okay? And again, I like to look at stocks and sometimes we do the market But trading is a great summer job because of the fact that you can be in and out quick and done in a half an hour An hour a day so the trades we did today. We're gonna go over here I plopped them in this lecture the things that we did today that we shorted We ran it out in the first half an hour of the day, so I'm doing the webinar here now It's four o'clock in the afternoon But I pretty much had my afternoon free from ten to four because I was done I was done very early today And that's one of the reasons why trading is a nice summer job because you don't have to sit for six and a half hours all day And I find that people to trade all day even if they want to sit at their computer all day, which I do not Which is one of the reasons I like doing television It's something I can do after I'm done trading people tend to give money back they make money and then they give it right back That's a disaster trading isn't one of these things where the more time you spend trading the more trades that you take the more money You will make you make more money trading when you have more wins and increase your win ratio And then increase your size with your trading positions It's the idea of getting really good at something so good at it that you win more than you lose and you rarely lose And then you can add size to your trades whatever size accounts Whatever fits within the sizing of the size of your cash of your account whether you do it as day trades or whether you do as options That's how you make more money. It's not about just trading for six and a half hours a day again That's not something that I do. I run a live trading room It's open every morning for a half an hour an hour of 15 minutes if we're done You know whenever we're done I shut it down and that's it and I go on to the rest of my day But if you're here, you're probably here for one reason you want to make money Okay, and that is something that needs to be at the forefront of your mind every day when you trade when you get up Why are you doing this? You have to be focused you have one goal when you trade one It's to make money what it's great to know a lot of stuff about a lot of different things and read fundamentals and Read all kinds of newsletters and watch what's happening on a CNBC and everything on TV What people are saying the reality is what's happening in the price of the market are the stock is going to determine with the position you take longer short and where you get in and where you get out and if you're and get the direction right whether you make money and Again, the idea is to chunk it out 500 500 500 a thousand a thousand a thousand you put together a week in a month and an entire year by trading Accurately consistently it does not mean that you will never have a trade that loses I have trades that lose but I have more trades that win that lose And so that's how I've been able to establish a business now for ten years and again I've been trading for 14 years and if anybody has any questions you can plop them in the room and I'll see them I'm not going to go through every single trade in here. I put in all the stats These are the day trade stats not the options for the entire year so far this year for 2022 So we're basically almost halfway through the year. We're halfway through June five and a half months This is the results. This is risking an average risk of about twenty eight hundred dollars per Trade these are day trades. These are day trades on margin We did the cues today and we did the spy and we shorted them and we were done a little after 10 o'clock this morning And we are going to go over the straights. We did not do anything yesterday We did not do anything Tuesday. We shorted the market Monday and Friday And again, it's not like I look at the market every day to short but the opportunities have been there and so we've been taking advantage of those opportunities and again We're going to talk about those trades here today But training overall before I get into the nitty gritty and charts and talk about things like that Training overall requires really a positive attitude. I find that this is difficult for people that have been attempting To trade the market successfully for years five years ten years a long long time longer than I'm alive People paid for classes or subscriptions. They don't learn. They're trading in the market. They're losing too It all adds up it, you know, no one wakes up and rolls out of bed The first day they decide they want to trade and is all of a sudden successful and never looks back That's not realistic. It wasn't the case for me it took me three years to figure out my system and I did take a class when I started again a long time ago 14 Years ago. I did not learn how to make money in that class I did learn an overall basic view of technical analysis, which was the foundation for developing my own system So I found that valuable and every class you take and anything that you learn you can pick up things here Or there which can help you but you've got to have a system that you use on a regular basis That is successful and I think people jump around way too much way too much futures cryptocurrencies this thing that thing Whatever because they they they feel like they've got to look for the next best thing If you get good at something and it works you will have success But you have to stay positive Everyone has a point where they are trying to figure out what to do it may take weeks It may take months and may take years till you find the right strategy or you create your own Which is of course what I did It's not like I decided to do that when I first started again I did take a class But when I realized after that class that I didn't know how to you know make money from that class It didn't teach me how to make money. It was like a lot of stuff about Things that really wasn't any specific system I realized that I had to figure something out that would work And at the time and even now there's not much out there about gaps Which is what we're going to talk about today the fast trades I do are in gaps the market gap down today and a video gap down today Tesla gap down today Pretty much everything did with the market or most stocks did that created opportunity to short Okay, so know that if you're going through this process Know that if you've been trading for a while you will have ups and downs And the only way you're gonna make it is if you have a positive attitude because otherwise you're gonna quit You're gonna give up You're gonna be negative and that all works against you while you need more than a positive attitude to be Successful as a trader or investor whichever your goal is here or why you're here today You need a system as well But you still need a positive attitude to and even if you know what to do and even if you have a good system And even if you have a good attitude you might have a bad day But you got to get back up on the horse tomorrow and do good the next day and move forward And that's training, you know Even people that have been trading again for longer than I'm alive and have millions and millions of dollars sometimes have bad days Professional traders institutional traders. They even sometimes have bad days. So you have to be able to look forward Even when you have a bad day and a positive attitude really helps you with that. Okay So in order to become successful in my mind You need a positive attitude and you also need a system and a niche. So what's my niche? My niche is I focus on shorting and I also focus on gaps and I focus on fast trains in The morning in the first 30 minutes of the day So you can make money in the market people do it all the time. However, not everyone does why? Because they don't know what to do and for every winner There's a loser and so it's you know, it's from the movie the Wall Street the Gordon get though It's a zero-sum game. This is one of these things where I'm not making you know knitting socks You know what I make money in the market today I don't have a product like that I'm selling to someone on the street like a sweater And neither are you you you actually are pulling money from somebody else in the trade that you're taking money from somebody Could be your next-door neighbor. You don't know this is an independent activity You want to be right the people that make the money or the people are the winners that's the side you want to be on So in that sense, it's a tough industry because it's not really something that involves camaraderie It's independent and you have to look after yourself again Even if you come you learn from me and I mentor you you're the one pressing the button You're the one sizing yourself and you're the one making the decisions to take the trade So you have to realize what it is It's set up as a system that a lot of people are going to lose There's going to be more losers than winners once you understand that once you can wrap your head around that concept Then you can move forward the beautiful thing about the market is there's so much money in the market and so many Participants in this type of environment of electronic trading And again, I've been trading since since 2008, but you know The electronic market has been around way longer than that The fact is that there's so much volume in the market and so many people in there You only need a tiny piece a little sliver every day of one trade to make thousands of dollars on any given day Or any given week so you only need a dot of something Someone's asking about shorting stocks in IRA. You can buy a put a put is a short We will talk about a put that I called to in here as well But in an IRA you have to call and find out and talk to your place So you have the IRA out you should be allowed to buy a put Okay, and we do that too. We do that too. All right, so let's talk about having a good system You have to have a system you have to follow it daily if you don't have anything you don't do anything Like I said, we didn't do anything yesterday wasn't anything good We didn't do anything there was the rate announcement. Nobody knew what they were gonna say half a point It's point some five. No one knew how they react. We gapped up yesterday. We fell we rally we rally We fell we didn't do anything yesterday. Okay, you have to be focused. You have to know what you're looking for I get up in the morning and I look at whatever's gapping and I take a look at it Do I know where the mark is gonna gap to our morning? No, I don't know where it's gonna gap to morning Could be up could be down. There's something tonight that's reporting right now. We can look at if we have time It's Adobe. That's reporting earnings right now after four o'clock and that's probably having some kind of big move I don't know if it's up or down But stocks got for many reasons could be economic data could be with the market like today could be earnings could be an Upgrade a downgrade. So there's lots of gaps that happen, but not every gap is a good gap So I create a system to actually evaluate the gap itself to determine if I want to short it Okay, but what I love about gaps is that they have momentum and they had moves and the moves happen quit And they happen fast. Okay, so here's the chart of Apple. We didn't do this But I plopped it in here today because I want to show you the gaps I want to show you what a gap is and again people love Apple. They just love it. Love it. Love it So what happened here today stack closed here. This was yesterday Thursday. I know that was yesterday was Wednesday Sorry yesterday Wednesday Apple closed here roughly around 1 1 35 ish boom open in the morning here It's like around 1 32 ish and change and fell dropped. I don't know where this closed I plop this in here a little bit before 1 o'clock We felt we fell later this afternoon, but anyways, you can have shorted Apple today Now what is a gap a gap is a difference between the clothes in the open again I like to short but there are all kinds of gaps. There are bullish gaps. There are bearish gaps Okay, so this closed here this gap up So a gap up is when the open is higher than the previous days closed This was Tuesday to Wednesday show from Wednesday to Thursday. We gap down We closed at one price here and open at a lower price. This is a bearish gap that happened today So there were bullish gaps there are bearish gaps And I actually do do both because if I don't say to go bearish gaps And I may look at the bullish gaps and I may go long today We're talking about shorting because I prefer to short because most of the days the 200 plus trading days in a year I do short. Okay, someone's saying adobe's down. All right. There we go I'm gonna look at that tomorrow morning. I'll rate it in the morning and again I'll see where the market is adobe is a market stop The market's probably lower today no matter how it tomorrow no matter how it gaps So to be honest with you again, we'll all look at the market in adobe if we have time when we're done here But anyways a gap is the difference between the clothes and the open simple So what the complexity in the process is that I'm trying to find a gap It's gonna have a big move and a fast move. Okay fast money is good One of the reasons that again, we've had a good year this year is because of the volatility The volatility is not something that scares me the volatility is great It means that we can get big moves traders make money with big moves You gotta have the direction right because what you have the direction right all the time Anyways, you should know how you're playing something either way But fast is good. So you don't have to worry about when the Fed chairman is talking when the president is talking What's happening in Russia? Ukraine if you're in and out of something of 5 10 15 minutes 30 minutes in the morning You don't care what happens in the afternoon at 2 o'clock or 12 o'clock or whatever happens when they're doing a White House press conference So, you know, you just make the money get the move get out. You're done You know, you don't know I can predict all of these things that are going on in the world right now Who could have ever predicted that where we being right now the price of oil and everything else? No one, okay? You couldn't have predicted that going back eight nine ten months ago So doing the fast trades getting the money in and getting out quick is actually again a Benefit besides the fact that I don't want to sit and stare at charts all day for six and a half hours But gaps move fast. They also have momentum. So let's take a look at the QQQs So what happened in this today? We gap down market close here. This was Wednesday gap down open fell dropped Boom again the red bar to pick what it depicts selling so we had selling coming into the market today and again, this is Momentum to the downside So you have selling your buyers that are selling and then you have the shorts Okay, because we shorted this there were other people and sure that short of the market today, too Again, let's go over what is a gap a gap is a difference between the clothes in the open I look at the daily chart and see the gap You also can see the gap on any other time frame that you would like to see it I look at the daily, but you can look at the 15 minute. You can look at the one Stocks gap most every single day. I mean, it's so rare that Apple would close at 130.02 and then open the next day at 130.02 While theoretically it could that's rare So not every gap though is a good gap or what I call a golden gap and that's a terminology I named my system in my class because it's like finding gold in the market when you find something that works I didn't push the trading room yet from today on YouTube I will if you want to go follow me on YouTube at stocks wish on YouTube I will post it in the room today was so certain so certain I said a hundred percent no chance of failure the market falls today a hundred percent and I was right. So I mean when when you get a good gap. It's like You know, you got to do it. You stick with it. You follow it through you get in and you get out So I'm looking for the gaps that are predictable predictable, okay This isn't about predicting what's gonna happen three months from now or four months from now or you know January 2023 Okay, active trading and we're even the options. We're doing the weekly options. So I'm not doing options like I'm not doing long-term Leaps active trading is you're in you're out. You're in you're out You don't have to worry about what's gonna happen with inflation recession or anything right now You are just looking to make money today and tomorrow and the next day and the next okay It's active trading where you're chunking it out and you're pulling money out of the market on a regular basis Profit okay, and I think people forget that too when they're trading And remember I was talking about the fact that I find that shorting as a niche Because most traders love to go along people are talking already and I know because I'm on TV with these people When when do we bottom out? When can we go out of the dip? When can we do this? Where are we going? When can we buy? It's like why are you even worried about that right now? You should not be thinking about that at all Why is anyone even thinking where they're gonna go along anything the markets falling the momentum to the downside? Okay, that's it. Don't worry about what's gonna happen one week from now one month from now three months from now That's very difficult to predict and you don't know and neither do I okay? Seeing a Dolby or the market tomorrow morning when I roll out of bed at six o'clock in the morning rate it Play it between 9 30 and 10 a.m. That's totally something that's doable and easily predictable once I rate it Because we're looking at a very short time frame in a minutious Framework to do something to to read the momentum and trade it, okay? Trying to predict what's gonna happen and all other kinds of things that affect the market and stocks is It's just like it's a it's it's just a lost cause Okay, and why people want to do that because they're in swing trades or long-term trades They're worried about the retirement account quite frankly if you have money in a retirement accounting You're anywhere near retirement your in retirement right now You should have met with someone long ago. There was a financial advisor I mean, I'm talking like February to get advice about what to do when we started selling off early this year It's it's a little late now to be questioning those things if you're actually in retirement With the drop-off that we've had so far since January I mean the spy made a brand new high in January 4th and the Qs didn't even make a new high at all this year And I did say this like I said it on Fox News Action Memorial Day was a memorial day I said there is a chance. I said I'm not a hundred percent But there is a chance that the market may not make a brand-new all-time high again for the rest of the calendar year of 2022 and that will be shocking for people shocking for people because the markets made so many brand-new all-time highs going back so many years now and You know that if you trade it or you know that if you've had money in a 401k that people won't know what to do with themselves If that doesn't happen while it is possible possible that we could It's you know, I mean the later it gets in the year and the farther down we go That's very unlikely and if it happens, it'll be towards the end of the year. Okay Anyways, let's get back and look at the spy this gap to him. So again, we did the spy today We did the Qs today this closed here this gap down boom again. Why do trainers prefer to short and go long? I don't know. I really don't know. I don't know. I love shorting because the moves happen fast It's fun. I like to do it. I found that's a niche for me and I'm very aggressive when I train shorts But I think the concept of buying is easy for people to understand if you buy something at a dollar and it goes up to two dollars You cannot wrap your head around the fact that the price went up and you made a buck I know there's some types of trading accounts of people only can go long So maybe that's why they like to do it too but actually if you can learn to short and short well you will have a niche and Anything you could do to give yourself an edge to put you over the other people that are fighting for the same money In the market is actually something that you should consider because the fact is again, everybody's after the same thing Everybody's after the profit So you want to get an edge? Here's Facebook. This was before it flipped it went meta. This is an old chart now Before it changed its name. I'm glad I have this old chart in here. I have an old chart of Amazon too I don't know if I have it in here before that stock split. This was up here. This is early in the year This is February this gap down in Ernie and so this tanked Absolutely tank talked about a good short this closed up here the night before around 320 and changed open down here in the morning run to 40 something so again This was a gap down. What did we do? We shorted it. We shorted it We got in got out boom again the red bar depicts what selling shorting and the price dropped You could have bought it put in it, which is an option. You could have shortened the day trade We did that too. You even could have done a swing trade if you want to okay, it went down. Here's the volume Okay, again, this has changed now the ticker symbol is meta So anyways, I focus on shorts wide because shorts move fast shorts move quick And again, it gives me an edge because a lot of traders don't know how to short a lot of people are going long Again, they're already trying to go long every day Waiting and planning when to go long So I'm looking for the footprints of institutional money and then I'm going to short it I'm looking to see what's happening. What are they doing? Are they buying? Are they selling what's going on big traders professional traders hedge funds? They're the ones that move the market and move the market up They move the market down they buy they sell they short to you want to be with this side of the money the big big Money to power money, which is one of the reasons also that all the things that I trade have volume momentum You know the companies you've heard of the companies. We're not doing low float stocks or little penny stocks Or things don't have any volume. We're not going to make any money doing things like that Or you have to take too much risk and too much size and that's too dangerous Okay, and any questions here as we're going along.  What do you make two thousand dollars? Boom. You're done five minutes ten minutes Also moves to the downside short moves happen quick. Why because of panic panic panic panic What do you think's happening today? What do you think happened from yesterday to last night?  It's we're rallying. It's this is the low It's ridiculous that anyone would even conceived or even thought of going long yesterday Okay, first of all the Fed has lost all probably a bit credibility a month ago They said they were gonna raise rates a half a point and no more and then all of a sudden in the last two days CNBC was talking about it since Monday They were talking about raise they may raise it points a 75 basis points And that's what they did the market rallying that news why again You can't look in things and say do do do and try to figure it out You're never gonna get in the head of anybody look at the price. Look at what's happening The rallying yesterday was absolutely pathetic no strength no stability Just buff kiss as soon as it rallied up but just pittered off into the clothes and While I did not know if we got down today as much as we did I wasn't surprised when I saw it and then we went right after it. Okay? And again, we are going into holiday weekend. We're closed actually the markets close on Monday for Juneteenth So we're going into three-day weekend. The chances and anyone's gonna go along and tomorrow is like Next to none. Okay What's the footprint of institutional money? First of all institutional money is big money that comes in I'm using and describing the picture of a footprint so you understand. It's a big move. That's the reason I'm saying footprint Okay, hopefully that makes sense. How do I know it? I know it by reading the gap Okay, I know it by reading the gap How does the gap created the gaps created by buying or selling that happens in the post market or the pre-market? Which is when many institutional traders big professional traders Take positions the footprint is a picture forget the footprint if you don't like that analogy I like to use pictures to describe things so people can understand it. It's big money that comes into the market and It buys or sells stocks or shorts them Hedge funds can short stocks too. Okay, but when I say big money I mean huge positions and they move stocks So you can't be against them because if you are you will lose. All right This was again a chart back here from April Okay, this closed here this gap down This was up here like around 340 and change the night before the earnings and tanked this was again Netflix and this kaboom just like Facebook did actually we did a short in this we did a day trade short in this You could do what put in this it fell and this is another example of a gap. Okay So again talking about institutional money, what do they do here? Well looks to me like they sold it or they shorted it too How else are you gonna get a stock to go from two?  This is four o'clock. This is 930. This isn't three weeks from now Okay Now again, do I short every bearish gap down could this have flipped could this have gone up? Could the market have done that today? Could it have rally? Could it have filled the gap? Yes? Yes, it might have it might have a cut up. It didn't how did I know I? Went through the process of my rating system to determine in the morning in the pre-market that in fact it rated good enough Too short that in fact it was not a long Okay Because sometimes things reverse you've seen that happen in the market you've seen that happen in other stocks Okay, are actually this morning. I didn't see how that closed with that reversed out of the gate this morning That was a gap down in earnings from last night Anyways momentum is the way you're gonna make money no matter how you trade whether it's options or whether it stocks But just talking here in general if you're trading share quantity share size if you have a thousand shares of a stock Or what would be ten contracts is basically a thousand shows if you were doing options and you short it and it drops A dollar how much will you make a thousand dollars? Okay, if you have a thousand shares of a stock and you short it and it drops ten cents How much will you make a hundred dollars? So which would you rather me? So obviously you'd rather make a thousand so I don't scalp things where I'm doing things for ten cents fifteen cents twenty cents I want momentum. I want to move. I want a big move again going back to the philosophy and Understanding of what I'm looking for. I'm looking for the institutional money because they will move it They will move stocks up. They will move stocks down Okay So the philosophy behind Shorting is I want fast moves fast quick moves where I'm in and them out and again, it's panic It's panic panic panic. So again, here is the spine close to your gap down fell and again We did this today. So the key today trading stock successfully is really using a system You have to trade a system that sets up daily with a high level of predictability in the directional move You're not gonna make money going long the market for example today You would have lost or you would have scouted and made very very little Trade a system that works independently of the market and does not need the market to work. Okay, that's that's the other bugaboo I think people are like in 2021 They were just lazy because they were doing all kinds of things even stocks and downtrends They were super deeper week and they were going long them and because the market was strong They were making money and so for one year They thought they knew how to trade or what they were doing because everything they went long worked That's not normal. Like I said, that was an anomaly. You have to look at it like you're saying, okay This is gonna work in any market condition. Whether the markets bearish whether the markets bullish wherever we're going Success or failure has a lot to do with the quality of your system again a positive attitude is very important But if you don't have a good system, you're not gonna make money at all period It doesn't matter if you have a good management money management It doesn't matter if you have five hundred thousand dollars in your account It doesn't matter if you have, you know a positive attitude if you don't have a good system, you're gonna lose, okay? So my niche again is shorting and It's one of these things where I think people are struggling for years trying to figure out how to become successful You have to go to different places and go through the process of finding something that clicks with you Like if you're here today and listen to something I say you're like, yeah I think this person what she's saying I can wrap my head around it. It makes sense or I think this might make sense That's what you have to think about, you know People go through and they start out trading and inevitably they lose because I don't know how to do it You've got to learn from someone else to trade Successfully or you have to create your own system and that that's what I did But I gotta be honest you it was a very very expensive and long road for me It was financially expensive and it was emotionally exhausting because I'm a strong person I had the money to trade and figure my own system out. I did it But you know it took me over three years and I never thought it would take that long That is a path that you could take you do not have to sign up for my class You can create your own system But if you're gonna need a lot of money and it's gonna take years of your life So it's a cheaper path to pay someone else to learn how to train And you also get the benefit of having a mentor as well. So, you know again I'm looking for institutional money. I'm looking for the gap. Not all gaps are made with institutional money This is one reason why people are often confused reading gap direction and again sometimes something gaps down and it reverses It's not as short it gets bought It's not confusing to me because I have a method that I used to review it daily I'm not trying to predict where the market's gonna gap tomorrow morning. That's not my business I just get up in the morning and see the gap and then I will go through the process of reading it and I will determine Then if I am going to short it or if I'm going to go long or if I'm going to do nothing at all, okay? So again Here's the chart of the market. We're gonna go over some trades, but you know ultimately I think people just misunderstand how to short It's very easy if you don't know how to do it You can call your broker get your account set up to short Retail traders and professional traders can both short you can buy puts if you have an IRA and went to short because a put is a short too and The concept of selling the concept of shorting again, it happens very quickly and fast This protects you from having to worry about the afternoon moves where economic data is often announced and again The press conferences and all the things that wiggle and jiggle the market if you're done trading every day by 10 o'clock in The morning 10 15 the latest you're not gonna have to worry about any of those things and again You short something you got a dollar move get a $2 move get in get out. That's it Okay, and that's what we did today and again we were done a little bit after 10 o'clock But you could have actually got out of the trade earlier today. I am going to show you the one-minute chart We do the trades on the one-minute chart. I'm looking at the gap on the daily I'm ready on the daily, but we do it on the one So today 616 we shorted the market the entry was 370 to shares was 1,800 for an advanced trader risk you could have taken a hundred you could have taken half this you could have taken Whatever you want to take whichever fits the requirement your account if you did not want to short this as an equity trade on margin You could have bought a putt today. You could have bought 370 puts the exit was 3667 78 And it was 4032 dollars with an 1800 share position and we were in this and it made this money in a half an hour Okay, so let's look at the one Here was the trade I stretch this out Here's the gap is one minute chart stock close to your gap down open rally boom We got in it got the short got the drop out it kept going it kept going it kept going further I do not hold and always get the low of the day exits. That's not my job My job is to make money and be done quick and fast. That's what I did. This did continue I don't know where we closed exactly today at four But I know a continued past where we got out today in the room But we're in and out quick So we did it here And we get the drop it rallied up. I stayed with it. We got one more push out done So again the selling pressure was on the market today. I Look at technical analysis. I look at a chart. That's what chart reading is. What is technical analysis? I'm looking at past price data to predict future price data I do not look at fundamental stuff. I have to know what's going on with fundamentals to talk on television, though So very often the fundamentals do coincide with the price action But I got to be honest with you last year was so bullish and the backdrop of the fundamentals really wasn't there To be honest with you So there were many signs that we were leading into an inflationary period if you're a consumer You knew that shopping last year even in the last six months of 2021 One and the market was reacting so bullish to every single thing that was happening. It really didn't make any sense So that's why again, you really can't just say well, I'm gonna look at the fundamentals and make trading decisions You know, this is a good company. I want to buy it Okay, if you can be in it for 20 years or 10 years or whatever it may go back to the high Which you may suffer and sweat another downtrend or sell-off till God knows where before it even goes back up there Okay, because many stocks do tend to go with the market when it's having big gyrated moves So having a niche in a focus really counts and you have to focus on the good ones today We had two good ones and we could have done more we could have done more things today But I typically do one thing a day. I just said let's do them both and we did This closed here this gap down. This was the overall market. This was the QQQ's again We did do this Monday, too. So we did it Monday. This was a gap down here. This was Friday into Monday, boom Okay So this is the daily Again, you could have bought a put you could have bought the 275 puts Okay, I did call two puts today in the market advanced trader risk 1800 shares risk 360 shorted at 27490 boom exit 272 95 You could have made thirty five hundred ten dollars and this was again a fast trade We got out of both of them a little bit after ten o'clock. Here's the one minute got the short Boom that the drop got out. This kept going all the way down in here If you wanted to hold it to 11 o'clock came all the way down to 271 ish So you definitely could have held it even more again The goal for me is to get the good pick than the good direction to get a move to make the money and get out So we're looking to turn it over one So if you risk two thousand looking to make two thousand if you're rich three thousand looking make three thousand if you're Doing an option same thing And to be honest, I think 50% is a good return and investment option A couple people email me today. They got out of the trades I called today They may 50% they were happy they were done if they keep going it doesn't matter They may 50% they were happy to book the profits Every time you book money in a trade then you have money to take another trade and another trade and another trade and Booking money again is important. Remember what I said. We're chunking it out Any questions here? Just won't look at my time. So again short moves happen fast. Why panic? Panic panic panic panic panic panic You could say because of rates going up. You could say fears of recession You could say whatever you want to say the fact is that they happen quickly because selling comes in quickly Nobody's thinking thinking thinking thinking thinking when they're afraid when they're panicking. It's not like you're like well Maybe I'll go long Apple It's there's no emergency. Well, maybe I'll go long. Well, maybe I'll go long tomorrow. Well, maybe I'll do it next week There's no emergency. Okay, and when something's falling There is an emergency if you're in it If you're in it already and you happen to be down or you are up and you're not up as much as you were before Because it's moving down. You understand so short moves happen fast because of panic panic is fear We've seen non-stop panic in the market since the beginning of the year. I mean, it's really been fear Fear creates selling and again, this is what creates selling We do do gaps on earnings and we do do news gaps like today. We did the market Again, I'll look at Adobe tonight tomorrow morning Adobe is an earnings gap So we do gaps for different reasons right now. It's not earnings season We're at the tail end of earnings season So I'm not going to not trade unless there's unless there's earnings. No, I will trade gaps on news I will trade gaps for many reasons. I do look at earnings gaps, too Again, I'll look at any gap as long as it rates good. Are most of our gaps in a calendar year of 12 months of the earnings gaps I don't even know because in between times we do things like the market or things with the market. It could be even 50-50 So, you know, it's not earnings season every day is the point and we don't go weeks without trading So that's we get more gaps More gaps in earnings season and they have bigger moves. We did Walmart. That was crazy We did target that was another earnings gap So I guess the best way to describe the benefit of earnings season is you get big moves bigger moves And you would normally get and you get more trades you get more trades Let me just ask here. I time I ends by watching it live and looking at the targets As far as options if you can't watch because you're busy or doing whatever you could just put a sell order It's a cancel day order. It's a limit order and it can sell you out if you can't watch it Put a sell order 50% if you can't watch it for the target. I do put targets in the gap options newsletter But I like to watch stuff live if you can't if you're doing other things then you just put a sell order So that has to do with your schedule Do I ever short these small bio stocks that gap up 80% in the morning and spend the rest of the day fading away? No No So how do I find the best shorts daily and how do I make the picks? I look at a rating system I get up in the morning and rate the gap. I rated the market this morning. It rated good That's why I said no chance of failure and we did it It was a 26 point rating system that I created a very long time ago I haven't changed anything for a number of years If I could come up with something that was 126 points that I never lose that would be great But I really haven't added any points since I created a system which took me three years The more things that you can look at to give you an edge to say that this is gonna work the better off you're gonna be Trading is about the odds.  That's what makes the gap in the first place So I call them golden gaps. You could call them professional gaps They happen to play out in stocks that are formed by one thing to one thing only large institutional money Therefore, you need a way that will help you pick the correction correct direction to play the gap and confirm it The large money will flow with it the spy. Okay Yesterday is a good example many day traders went long Okay, you saw the pop-up in the market yesterday We we were short since Monday, so who was right the people that made the money, which was obviously today You've got to be right More than you're wrong So the checklist helps me be right more than wrong It helps me get more winners than losers and actually a lot of it's based on common sense I'm just talking the basics about this here, but talking about selling talking about panic I mean you can wrap your head around that Shorting gives me a niche because people get scared. They get scared. They get scared and then they sell They sell first think think about it later You know people some people might regret selling some of their positions here with this market the way we've been this year But they don't think okay. I Do go along I will go along I will call calls. I've called calls before we've done calls in the market We did calls in the market last year on the options letter and we've gone along the market as well Right now, that's not what we're doing So when when I will see that is whenever I see it again, it's like It's like you're telling me okay when I'm gonna see the next rainbow out my window. I have no idea It's like I'm not I can't even think about that right now like trading is about opportunity You take advantage of the opportunity when it's there if it's there to short your shorting if it's there to go You're going long so if the market flips and turns I'm probably still gonna be doing the fast-quick day trades to the downside Like I always do but I'll probably be doing calls on the options newsletter when that occurs Whenever it occurs, which is not right now. Okay So what if you have a small account can be still short someone's asking about retirement accounts the answer is yes You can open up an options account was about $2,000. You shouldn't risk $2,000 a train You shouldn't risk even a thousand dollars a trade with a $2,000 account. You have to divide it up Bit by bit grow a $2,000 account up to five grow five account up to ten people are doing that with me again The guy that that took this buy trade today and got out with 50% as a small account He's in he's in one other thing or two other things still But you have to chunk it you have to chunk it out You can start with a small account though and grow it and a put option as I said earlier is a short All right You have to check with your broker have to check where you have your IRA have to look into the information again I'm not a broker but the advantage of trading gaps as options is you get the overnight moves and you get the overnight moves with a Fixed risk if you're in something shoring as a swing trade or even going long as a swing trade You basically have unlimited risk. You're on either cash or two-to-one margin with the broker But either way even if you're on all cash, you could be totally upside down and nobody wants to be upside down And that's what's happening. That's what's happening right now people Anyways, the nice thing about options is you have a fixed risk You can't lose any more than your risk if you risk $2,000, that's all you can lose even if the trade goes against you All right now what people gets concerned with options is timing Well, that's where my rating system helps with the timing because in an option if you get the momentum in the direction Right in your in your move and it goes in your favor. That's where you get the profit That's where you get the money. So that's again where the rating system helps me make the option picks Okay, I'm seeing the momentum is going to come in at XYZ date or whatever day that we do it So I'm doing them pretty tight. I'm doing the weeklies This was this was a great call. This is just a great call last Thursday. I called the 409 spies So this was 575 Was the cost 15 contracts was 86 25 sold at 36 profit was 45,000 375 It was a 526 percent return in investment and the beginner risk was 6,000 on 1150 so I'm just quickly looking here at the time. I'm just going to fast-forward here I know I asked ask some questions answer some questions if anyone's interested in my class It's 6999 June 25th and 26 Father's Day weekend is this weekend. I'm doing a Father's Day special You if you want to sign up for the class next weekend, you can sign up by Father's Day Sunday I'm giving the options newsletter and the trading room free through Labor Day, which is a nice special the class is the 25th and 26 I just I just saw. Thank you Did I go over? Any quick questions here? Yeah, email me if you have any questions. Just feel free to email me and Again, if you want to travel the trading room, you can email me to Thanks so much for having me Sorry if I went over Awesome. Thanks, Melissa Sure John is gonna